Quiz 2: Chapters 4, Chapter 8

Question 1

CPT4: what makes up the criteria for general business ethics
bonus: the 5 examples MEECH

Answer 1

The accepted principles of right and wrong governing the conduct of business people.

• moral obligation of multinational corporations
  -employment practices
• environmental regulations
• corruption
• human rights

Question 2

CPT4: What is the root/cause of unethical practices in international businesses? ((6) (ppgsld)

Answer 2

PEPO: poor personal ethics

PSYCHO: psychological distances

GEO: geographical distances

STRATO: failure to incorporate strategic and operational decision making

LEAD D. CULTURO: dysfunctional leaders and culture.

Question 3

CPT4: How does one make sure ethical issues are considered in international business decisions? (4)

Answer 3

• hire and promote well grounded. ethical employees
• build a workplace culture that values ethics
• leaders act and articulate good ethics with consistency
• be and share moral courage

Question 4

CPT4: Most corrupt industries: (4)

Answer 4

• extraction
• construction
  -transportation
• IT

Question 5

CPT4: what circumstances influence ethics and ethical considerations (5/6) PESCT

Answer 5

• political environment (laws,regulation, national, international)

-ECONOMIC ENVIRONEMTN (currency flucuations, international monetary organizations)

• socio-cultural environment ( population, immigration, urbanization, etc)

-COMPETITION: The need for corporations to remain competative = consequences for both employees and consumers on a global scale.

-Technological environment (communciations, productivity, demand and access to work)

Question 6

CPT4: Determinants of ethical behaviour (5) PODUL:

Answer 6

• PERSONAL ETHICS
• ORGANIZATION CULTURE
  -DECISION-MAKING PROCESS
  -UNREALISTIC PERFORMANCE GOALS
  -LEADERSHIP

Question 7

CPT4: WHY DOES THE INTERNET HAVE SUCH A BIG INFLUENCE ON ETHICS? (4) VISQ + 1:

Answer 7

• VARIETY
  -IMPACT
• SPEED
  -QUANTITY

MAGNITUDE: large amount of content can be created and shared at a short period of time, and more people than ever are on the internet

Question 8

WHAT IS CORPORATE RESPONSIBILITY? :

Answer 8

the idea that corporations should consider social consequences of their actions when making business decisions, rather than just prioritizing capital gains all the time.

Question 9

CPT4: WHAT IS NOBLESSE OBLIGE? HOW DOES IT APPLY?

Answer 9

NOBELLESE OBLIGE: honourable and benevolent behaviour, responsibility of the high birth

• successful corporations should give something back to society bc it is that made their success possible

Question 10

CPT4: WHAT ARE THE CORPORATE SOCIAL RESPONSIBILITY (CSR) OBLIGATIONS (4) ADOP?

Answer 10

• ACCOMADATIVE STANCE
  exceeding customers expectations
  -DEFENSIVE STANCE
  deny responsibility for the cause of concern
• OBSTRUCTIONIST STANCE
  create barriers that make it difficult for customers to address their concerns
• PROACTIVE STANCE
  responding to issues as soon as they arise and inform their customers of how they will be proceeding

Question 11

CHAPTER 4 IMPLICATIONS FOR BUSINESS:

Answer 11

1. COMPANIES HAVE TO DEAL WITH AN INCREASINGLY COMPETITIVE ENVIRONMENT
2. COMPANIES MUST NOT JUST “DO THE RIGHT THING”, THEY MUST BE SEEN DOING I

Question 12

NAFTA AND CUSMA ARE/WERE

Answer 12

agreements between mexico, usa, and canada to reduce tarrifs and trade barriers between the countries

Question 13

WHAT ARE THE LEVELS OF FREE TRADE (FROM OUTSIDE IN) (5)

Answer 13

1. Political union
   - independent states uniting (USA)
2. economic union
   -adoption of a common currency (euro)
   - create more efficiencies and more wealth opportunities
3. common market
   pursuing a comon external trade policy (pre-pre free trade)
4. customs union
   group of countries committed to removing all barriers (pre free trade )
5. FREE TRADE
   all barriers of trade are removed

Question 14

Pros and Cons of the Euro

Answer 14

Pros :
- significant savings from having only one currency
- common currency makes it easy to compare prices across Europe
- european producers will be forced to reduce their production costs to maintain profits

Cons:
- national authorities have no control over monetary policy
-European central bank has responsibility to set interest rates and determine policies

Question 15

TRADE CREATION VS TRADE DIVERSION

AND Which is better?

Answer 15

CREATION:
- high cost producers are replaced by low cost foreign producers within a free trade area

DIVERSION:
- Lower cost external suppliers are replaced by high cost external suppliers within a free trade area

-TRADE CREATION HAS TO HAVE A GREATER AFFECT THAN TRADE DIVERSION IN ORDER TO HAVE A BENEFICIAL AFFECT

Question 16

REI DEFINITION?

Answer 16

REGIONAL ECONOMINC INTEGRATION: AGREEMENTS AMONG COUNTRIES IN A GEOGRAPHIC REGION TO REDUCE AND ULTIMATELY REMOVE TARRIF AND NONTARRIF TRADE BARRIERS FOR GOODS SERVICES AND PRODUCTION ETC

Question 17

CHAPTER 8 IMPLICATIONS FOR BUSINESS:

Answer 17

REIs can be good and threatening

Opportunities:
- free movement of goods across borders
-harmonization of product standards
- creates good loopholes
- diet coke has aspartame in Canada but not in usa

-simplified Tax regimes
- Cost economies

Threats:
-Business environment within both groups will become more competative
- nonmember specific threats
-likely long term improvements in competititve positions

Threats:

Question 18

How to know when to increase labour or kapital

Answer 18

mpk>mpl = use more kapital

mpk<mpl = use more labour