Test 2 Flashcards
Products and services that are produces in one country and sent to another country to be sold
Exports
Payment that is made to an insurance company to cover the cost of insurance; price paid to cover a specific risk for period of time
premium
Methods for keeping foreign businesses from c competing with domestic producers
Trade Barriers
Application of the principles of right and wrong to issues that come up in the workplace
Business Ethics
A set of standards or rules that outline the ethical behavior demanded by an individual, a business, or a culture
Code of Ethics
A wrong against people or organizations for which the law grants a remedy
Tort
Risk that offers the chance to gain as well as lose from an event or activity
Speculative Risk
Competitors can not get together to set prices at a certain level
discussing pricing with competitors is illegal
Sherman Act
Offered when one business allows another business to buy now and pay later
Trade Credit
A grant of property right to an inventor to exclude others from making, using, or selling his or her invention
Patent
Bans business activities that do not promote competitions
Antitrust Laws
Form of intellectual property law that protects original works of authorship, including literary, dramatic, musical, and artistic works
Copyright
The original, creative work of an artistic or inventor, including such things as songs, novels, artistic designs, and inventions
Intellectual Property
Limit on the amount of a product that can be imported into a country over a particular period of time
Quota
Tax on imports that governments use to protect domestic manufactures or products that compete with imports
Tarrif
The study of moral choices and values; involves choosing between right and wrong
Ethics
Risk that presents the chance of loss but no opportunity for gain
Pure Risk
Cause by the actions of individuals
Human Risk
t is illegal for a business too:
Require a customer to buy exclusively from it
Force a customer to purchase one good in order to be able to purchase another good
Clayton Act
Local governments often establish zoning regulations that control what types of buildingscan be built in specific areas
Zoning laws
Legally binding agreement between two or more persons or parties
Contract
The person who authorizes another person (the agent) to enter into legal relationships
Principal
Involves taking action to prevent or reduce the possibility of loss to a business
Risk Managment
Involves looking at all aspects of a business and determine the risks it faces
Risk Assessent
Unfair or deceptive actions or practices by business that may cause an unfair competitive advantage are banned
False-Advertising
Wheeler Act
It is illegal to discriminate by charging different prices to different customers
Robinson- Patman Act
4 areas of law dealing with fair competition administer by the FTC
false advertising
price setting by competitors
price discrimination
product misrepresentations
Sherman Act
Competitors can not get together to set prices at a certain level
- discussing pricing with competitors is illegal
- Example: owner of one business decides to raise his prices, he can’t ask the owner of a competing business to raise their prices by the same amount
Clayton Act
- It is illegal for a business to:
- Require a customer to buy exclusively from it
- Force a customer to purchase one good in order to be able to purchase another good
Robison-Patman Act
-It is illegal to discriminate by charging different prices to different customers
-some economically sound reasonable that allow for different prices include:
volume discounts and special distribution
Wheeler-Lea Act
-Unfair or deceptive actions or practice by businesses that may cause an unfair competitive advantage are banned
False Advertising
Business are required to warn consumers about possible negative features of their product
Advantages and disadvantages of starting you own international business
- differences in language
- legal and cultural differences
- production medications might be required to meet the needs of global trade
- different currency systems
- exchange rate
4 types of human risk and how you would protect your company
shoplifting, employee theft, bounced checks, robbery
security system, enforce a strong anti theft policy for employees, extra cost for check/ not accept checks
5 reasons to establish an ethical workplace
- ethical behavior is good for business because it gains the trust of customers
- employees are more likely to act ethically if they see the business owner acting in an ethical manner
- acting ethically reduces the possibility of being sued
- you want to do the right thing
- you want to serve as a role model to others
