Unit 2: Chapter 5 & 6 - International Trade Agreements & Organizations

Question 1

What is Corporate Ethics?

Answer 1

A set of rules or guidelines that management or individuals follow when making decisions facing their company.

Question 2

What are the components of ethics in a corporate setting?

Answer 2

1) Corporate Policies
2) Laws
3) Personal Values

Question 3

What is Ethical Imperialism?

Answer 3

One set of values for all cultures; right and wrong are always the same.

Question 4

What does Cultural Relativism suggest?

Answer 4

Values are dependent on the culture; right and wrong depend on local values.

Question 5

In the context of international business, what ethical issue arises at checkpoints in developing countries?

Answer 5

Cash payments to officials for checks on ID, illegal goods, or vehicle safety.

Question 6

True or False: Corporate corruption and bribery are considered international business ethical issues.

Answer 6

True

Question 7

What are some international business ethical issues?

Answer 7

1) Outsourcing
2) Working conditions
3) Workplace diversity
4) Child labor
5) Dumping
6) Corporate corruption
7) Environmental impact
8) Advertising

Question 8

Positive effects of globalization

Answer 8

1) Increased access to global markets and expanded trade opportunities.
2) Greater cultural exchange and understanding between nations.
3) Faster spread of technological advancements and innovations.
4) Improved global communication and connectivity.
5) Enhanced economic growth and development for participating countries.

Question 9

Negative effects of globalization

Answer 9

1) Job losses in some sectors due to outsourcing and increased competition.
2) Environmental degradation caused by industrialization and resource exploitation.
3) Greater income inequality within and between nations.
4) Loss of cultural identity in some regions due to cultural homogenization.
5) Economic dependency, making countries vulnerable to global market fluctuations.

Question 10

NAFTA pros

Answer 10

1) Boosted trade between member countries.
2) Lowered tariffs on goods and services.
3) Increased investment opportunities.

Question 11

NAFTA cons

Answer 11

1) Job losses in some industries.
2) Wages suppressed in certain sectors.
3) Environmental concerns from increased production.

Question 12

Common currency pros

Answer 12

1) Simplifies trade by eliminating exchange rate fluctuations.
2) Encourages economic integration and cooperation.
3) Reduces transaction costs for businesses and travelers.

Question 13

Common currency cons

Answer 13

1) Limits monetary policy control for individual countries.
2) Economic shocks in one member country can affect others.
3) Requires participating countries to work together on their budgets and spending to keep the economy stable.

Question 14

What does CSR stand for?

Answer 14

CSR (Corporate Social Responsibility)

Question 15

CSR (Corporate Social Responsibility) benefits

Answer 15

1) Builds a positive reputation and brand loyalty.
2) Attracts and retains employees who value social responsibility.
3) Can lead to long-term financial performance by fostering trust with customers and investors.

Question 16

CSR (Corporate Social Responsibility) criticisms

Answer 16

1) Can be seen as a marketing tactic rather than genuine concern.
2) May divert focus from profit-making and business growth.
3) High costs associated with implementing CSR initiatives.

Question 17

What are Stakeholders?

Answer 17

Stakeholders are individuals or groups affected by or involved in a business’s activities, decisions, or success.

Question 18

Examples of Stakeholders

Answer 18

1) Employees
2) Customers
3) Shareholders
4) Suppliers
5) Local community
6) Government

Question 19

Imperialism vs. Cultural relativism

Answer 19

Imperialism: The practice of extending a country’s power and influence over others, often through colonization, military force, or economic dominance.
Cultural Relativism: The belief that cultures should be understood and judged based on their own values and standards, not compared to others.

Question 20

What are NGOs?

Answer 20

NGOs (Non-Governmental Organizations) are independent organizations that work to address social, environmental, or humanitarian issues without government control.

Question 21

NGOs vs CSRs

Answer 21

NGOs (Non-Governmental Organizations) are independent, non-profit organizations addressing social, environmental, or humanitarian issues.

CSR (Corporate Social Responsibility) refers to a company’s efforts to operate ethically and contribute positively to society and the environment.