Week 2: Chapters 6, 7, 15

Question 1

Globalization

Answer 1

The increasing movement of goods, services, and capital across national borders.

Question 2

TNC

Answer 2

Transnational Corporation

Question 3

Foreign Direct Investment (FDI)

Answer 3

Occurs when a company, individual, or fund invests money in another country.

Question 4

IFTI

Answer 4

International Financial and Trade Institution

Question 5

World Bank (WB)

Answer 5

One of the world’s largest sources of economic development assistance. Often have strict conditions on countries to receive its loans.

Question 6

International Monetary Fund (IMF)

Answer 6

Makes currency exchange easier for member countries so that they can participate in global trade.

Question 7

World Trade Organization (WTO)

Answer 7

International body that establishes the ground rules for trade among nations. Major objective is to establish free trade; that is, to eliminate barriers to trade among nations, such as quotas, duties, and tariffs.

Question 8

Constructive Engagement

Answer 8

When transnational corporations operate according to strong moral principles, they can become a force for positive change in other nations where they operate.

Question 9

Civil Society

Answer 9

Comprises nonprofit, educational, religious, community, family, and interest-group organizations; that is, social organizations that do not have a commercial or governmental purpose.

Question 10

Nongovernmental Organizations (NGOs)

Answer 10

Are concerned with such issues as environmental risk, labor practices, worker rights, community development, and human rights.

Question 11

Global Corporate Citizenship

Answer 11

Putting an organization’s commitment to social and environmental responsibility into practice worldwide, not only locally or regionally.

Question 12

Citizenship Profile

Answer 12

A configuration of citizenship activities that fits the setting in which a company is working.

Question 13

Stages of Corporate Citizenship p. 145

Answer 13

1. Elementary
2. Engaged
3. Innovative
4. Integrated
5. Transforming

Question 14

Triple Bottom Line

Answer 14

Includes Financial results and Environmental and Social impacts.

Question 15

Consumer Movement

Answer 15

Organized, collective efforts by consumers to safeguard their own rights in many nations.

Question 16

The Rights of Consumers

Answer 16

1. The Right to be Informed
2. The Right to Safety
3. The Right to Choose
4. The Right to be Heard
5. The Right to Privacy

Question 17

Behavioral Advertising

Answer 17

refers to advertising that is targeted to particular customers, based on their observed online behavior.

Question 18

Product Liability

Answer 18

Refers to the legal responsibility of a firm for injuries caused by something made or sold.

Question 19

Strict Liability

Answer 19

Under strict liability, courts have held that manufacturers are responsible for injuries resulting from use of their products, whether or not the manufacturers were negligent or breached a warranty.

Question 20

Alternative Dispute Resolution (ADR)

Answer 20

Can take the form of mediation or arbitration.

Question 21

Consumer Affairs Officer

Answer 21

Manages a complex network of contacts with customers.