Test 2: Ch 4,5, & 7

Question 1

Question 1

Answer 1

Values & Norms

Question 2

Question 2

Answer 2

Values

Question 3

Question 3

Answer 3

Individualism

Question 4

Question 4

Answer 4

Groups & Individuals

Question 5

Question 5

Answer 5

Stratification

Question 6

Question 6

Answer 6

Ethical Systems & Religion

Question 7

Question 7

Answer 7

Protestant Work Ethic

Question 8

Question 8

Answer 8

Job Security & Retirement

Question 9

Question 9

Answer 9

Hofstede’s Dimensions

Question 10

Question 10

Answer 10

America & Superior Product

Question 11

Question 11

Answer 11

The Principles of Right & Wrong

Question 12

Question 12

Answer 12

Global Common (The Public Owns Everything)

Question 13

Question 13

Answer 13

Corruption Act

Question 14

Question 14

Answer 14

Ethical Decision Making

Question 15

Question 15

Answer 15

Work Culture

Question 16

Question 16

Answer 16

Physical Theories of Ethics

Question 17

Question 17

Answer 17

Physical Theories of Ethics

Question 18

Question 18

Answer 18

Ethics & Business

Question 19

Question 19

Answer 19

Stakeholder Analysis

Question 20

Question 20

Answer 20

Ethical Decisions

Question 21

Question 21

Answer 21

Tariffs

Question 22

Question 22

Answer 22

Subsidies

Question 23

Question 23

Answer 23

Import Policies

Question 24

Question 24

Answer 24

Duties (Taxes)

Question 25

Question 25

Answer 25

Positive Government Intervention

Question 26

Question 26

Answer 26

Trade Policies

Question 27

Question 27

Answer 27

Environmental Organizations

Question 28

Question 28

Answer 28

One of the International Trade Treaties

Question 29

Question 29

Answer 29

One of the International Trade Treaties

Question 30

Question 30

Answer 30

Identify a Global Institution

Question 31

Question and what is the difference between values and norms?

Answer 31

Question 1: Values are ideas about what a group believes to be good, right and desirable while norms are the social rules & guidelines that prescribe appropriate behavior in particular situations.

Question 32

Question and what is the difference between culture and society?

Answer 32

Question 2: Culture is a system of values and norms that are shared among a group of people where as society is a group of people who share a common set of values and norms.

Question 33

Question and what is a group?

Answer 33

Question 3: An association of two or more individuals who have a shared since of identity and who interact with each other in structured ways on the basis of a common set of expectations about each other’s behavior.

Question 34

Question and what is an argument about different societies and their relationships with ideas?

Answer 34

Question 4: Individualistic societies are better at creating innovative ideas while collectivism societies are better at implementing those ideas.

Question 35

Question and what is a caste system?
Give example country.

Answer 35

Question 5: A system of social stratification in which social position is determined by the family into which a person is born and lacks social mobility.
-Eg. India

Question 36

Question and what is Confucianism?

Answer 36

Question 6: An ethical system that teaches the importance of attaining personal salvation through right action by creation guidelines for relationship with others.
-Originated during 5th Century in China by a man named Confucius.
-High morality and loyalty are central.
-Unlike religions, is not concerned with the supernatural, supreme being, & afterlife.
-Currently still being practiced in China, Korea, and Japan

Question 37

Question and what did Max Werner theorized about the relationship between Protestantism and Capitalism?

Answer 37

Question 7: He argued that Protestant ethics emphasized the importance of hard work with wealth creation (for the glory of god) and frugality (abstinence from worldly pleasures) help pave the development of capitalism in the western world.
-Basically instead of indulging by consuming (frugality), people should invest in capitalistic enterprises (wealth creation).
-Opposes the Catholic promise of salvation in the next world instead of this world does not produce the same kind of work ethic.

Question 38

Question and what is uncertainty avoidance?

Answer 38

Question 8: It is a Hofstede’s dimension that measures the extent to which cultures accept ambiguous situations and tolerate uncertainty.
-High level value job security, career patterns, retirement benefits, etc.
-Low level value readiness to take risks and less emotional resistance to change.

Question 39

Question and what is power distance?

Answer 39

Question 9: A Hofstede’s dimension that focuses on how society deals with the fact that people are unequal in physical and intellectual capabilities.
-High level cultures are found in countries that let inequalities grow overtime into inequalities of power and wealth.
-Low level cultures are found in societies that try to play down such any qualities as much as possible.

Question 40

Question and what is ethnocentrism?

Answer 40

Question 10: behavior that is based on the belief in the superiority of one’s own ethnic group or culture; often shows disregard or concern for the culture of other countries.

Question 41

Question and what is ethical strategy?

Answer 41

Question 11: a course of action that does not violate a company’s acccepted principles of right and wrong governing the conduct of business people (business ethics).

Question 42

Question and what is the tragedy of the commons?

Answer 42

Question 12: occurs when a resource held in common by all, but owned by no one is overused by individuals, resulting in its degradation.
-Originated by Garrett Hardin in 16th century England.

Question 43

Question and what is the FCPA and facilitating payments?

Answer 43

Question 13:
1. Foreign Corrupt Practices Act is the US law regulating behavior regarding the contact of international business in the taking of bribes and other unethical actions.
2. Facilitating payments are payments to ensure receiving the standard treatment that a business and government but might not due to the obstruction of a foreign official.
* AKA: Speed Money or Grease Payments
* they are not payments to fix your contract, stubborn not otherwise be secured, nor are they payments to obtain exclusive, preferential treatment.

Question 44

Question and what are ethical dilemmas?

Answer 44

Question 14: a situation in which there is no ethically acceptable solution. Requires people to have a moral compass or an ethical algorithm to guide them through such dilemmas to find an acceptable solution.

Question 45

Question and what is organizational culture?

Answer 45

Question 15: the values and norms shared among and organization’s employees. When the culture in a business does not encourage people to think through the ethical consequences of business decisions will most likely result in unethical behavior.

Question 46

Question and who is a righteous moralist?

Answer 46

Question 16: one who claims that a multinational’s home-country standards of ethics are appropriate for companies to follow in foreign countries.
*AKA: My way, is the right way.

Question 47

Question and what are utilitarian approaches to ethics?

Answer 47

Question 17: these hold that the more worth of actions or practices are determined by their consequences.
*AKA the greatest good for the greatest amount of people.

Question 48

Question and what is a code of ethics?

Answer 48

Question 18: formal statement of ethical priorities. It is considered essential in building an organizational culture that emphasizes ethical behavior.

Question 49

Question and why do businesses need to audit their decisions?

Answer 49

Question 19: to review to make sure that the decisions are consistent with the ethical principles stated in the code of ethics. Without auditing, business people may not know if their decision process is working and if changes should be made to ensure greater compliance with the code of ethics.

Question 50

Question and what is moral courage?

Answer 50

Question 20: it’s enables managers and employees to:
* walk away from a decision that is possible but unethical
* have strength to say no to the superior, who instruct them to pursue actions that are unethical
* have the integrity to go public to the media and to whistle blow on persistent, unethical behavior in a company

Question 51

Question and what is the difference between a specific tariff and a ad valorem tariff?

Answer 51

Question 21: specific tariff is a tariff levied as a fixed charge for each unit of a good imported (like three dollars per barrel of oil), while ad valorem tariff is a tariff levied as a proportion of the value of an imported goods ($100 on first 10,000 units, then $120 on the next 20,000 units)

Question 52

Question and what are the pros and cons of subsidies?

Answer 52

Question 22:
Pros
* to help domestic producers to be able to *compete *in the international market.
* to help domestic firms to reach a dominant position in industries of importance and that the world market lacks the ability to profitable support more than a few firms.
* Eg: Aerospace and Semiconductor industries
* to help domestic economy to raise employment and tax revenues generated from domestic businesses.
Cons
*Subsidies are paid by taxed individuals and companies.

Question 53

Question and what is import quota?

Answer 53

Question 23: A direct restriction on the quantity of some good that may be imported into a country by issuing import licenses to a group of individuals or firms.

Question 54

Question and what is dumping & why do businesses do it?

Answer 54

Question 24: The selling of goods in a foreign market for less than their cost of production or below their fair price.
* Fair market value of good is normally judged to be greater than the costs of producing that good enough to create a fair profit margin.
* Producers will use the substantial profits from home markets to continue running while subsidizing price in foreign markets to drive out indigenous competitors.
* Once driving everyone out, they will jack up the prices.

Question 55

Question and what is an argument for government intervention?

Answer 55

Question 25: It is necessary to protect jobs and industries from unfair foreign competition.
* When producers from an exporting country are extensively subsidized by their own government.

Question 56

Question and what are situations in which the U.S. government has used trade policy to support their foreign policy objects?

Answer 56

Question 26:
* 1991-2003 To pressure Iraq’s rogue state to mend its ways or hasten a change of government.
* Tried to impoverish Cuba into economic hardship to lead the downfall of Cuba’s communist government and be replaced by a pro-democracy/pro-U.S. regime.
* Libya and Iran were accused of supporting terrorist action against the U.S. Sanctions were lowered in Libya (2003) and Iran (2015) after they promise to halt there nuclear programs.
* Trump administration reimposed sanctions on Iran after accusing Iran of not adhering to the 2015 agreement.

Question 57

Question and people of which level of education & income are most likely to care about the environment?

Answer 57

Question 27: People with a higher level & income are more likely to care about the environment.

Question 58

Question and what is the GATT?

Answer 58

Question 28: The General Agreement on Tariffs and Trade was treaty under U.S. leadership created in 1947.
* Objective was to liberalize trade by eliminating tariffs, subsidies, import quotas, etc.
* Originally 19 nations that grew up to 120 nations.
* Deeply influenced by the effects of the Great Depression and World War II.

Question 59

Question and how did the GATT try to liberalize trade restrictions?

Answer 59

Question 29: Trade reduction was to spread over eight rounds.
* It was very successful in its early years.
* Eg: Average tariff in the U.S. declined by nearly 92% between the Geneva Round of 1947 and the Tokyo Round of 1973-1979.

Question 60

Question and what is the WTO made up of & what does it do that makes it more successful than the GATT?

Answer 60

Question 30: The World Trade Organization wrapped up the GATT, the General Agreement on Trade in Services (GATS) and the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS) into one umbrella organization.
* GATS: Focuses on free trade agreements for services.
* TRIPS: Focuses on narrowing gaps in protecting property rights and bringing them into international rule.

WTO:
1. Takes responsibility over arbitrating trade disputes and monitoring trade policies of member countries.
2. Unless there is a consensus to reject them, it does not allow member countries to block adoption of arbitration reports in the area of dispute settlement (unlike the GATT)
3. Countries found violating rules by a panel may appeal but the verdict is binding.
4. If offenders fail to comply with the recommendations of panel, trading partners have the right to compensation or to impose trade sanctions.
5. Every stage of the procedure has strict time limits.