week 4 Flashcards

1
Q

define national culture

A

Everything in our surroundings that is made by people

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2
Q

explain the self reference criterion

A
The unconscious reference to one’s own cultural values, experiences, and knowledge
The idea that “we” differ from “them”
Common in international business
We react based on our knowledge
Accumulated over a lifetime
Grounded in culture of origin
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3
Q

explain cultural relativism

A

The concept that morality varies from one culture to another
Believes ‘right’ and ‘wrong’ is defined differently by each culture
Can be a rationalization for straying from one’s cultural values

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4
Q

explain global common values

A

Shared across most cultures; often based on religion, reflected by law
Desirable common values
Integrity, family and community unity, equality, honesty, fidelity, sharing, and unselfishness
Undesirable common values
Ignorance, pride and egoism, selfish desires, lust greed, adultery, theft, deceit, lying, murder, hypocrisy, slander, and addiction

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5
Q

slide 8 graph

A

sienna x jazzie :P

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6
Q

define Risk compartmentalization

A

Occurs when profit centers within corporations are unaware of the consequences of their actions on the firm as a whole

gfc

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7
Q

explain socialism (economic system)

A

Socialism: Advocates that wealth and power be shared across society, based on the amount of work expended in production
Karl Marx

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8
Q

explain social demoncarcy (ec0nomic system)

A

Social democracy: Private ownership of property, but a large government
Formed in the 1940s as an offshoot of socialism

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9
Q

explain biomodal wealth distribution (eco systems)

A
Many poor and a few very wealthy with a small middle class
Some argue it is a result of the global economic system
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10
Q

explain rational v behavioural economiss

A

Rational economics: Assumes that people are predictable and maximize the utility of their choices based on their needs and wants

Act independently on the basis of full and relevant information
Behavioral economics: Assumes that economic decisions are influenced by human behaviour
Humans are assumed to act irrationally due to genetics, emotions, learned behavior, and heuristics

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11
Q

explain multinational corporations

A

Public companies that operate on a global scale and are not limited to any one nation or region
Criticisms
Misusing and misallocating scarce resources
Exploiting labor markets of the host country
Issues of unfair competition
Failing to carry an appropriate share of the cost of social development

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12
Q

multinational corporations now support Business for social responsibility (BSR) which

A

Tracks emerging issues and trends

Provides information on corporate leadership and best practices

Conducts educational workshops and training

Assists organizations in developing practical business ethics tools

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13
Q

explain international monetary fund

A

Regulates monetary relationships between national economies

Promotes responsible global business conduct

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14
Q

explain world trade organisation

A

Provides legally binding ground rules for international commerce and trade policy
Facilitates trade negotiations and settles trade disputes

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15
Q

explain bribery

A

Bribery’s acceptance varies by country
Can be a challenge to determine what a bribe is
Bribery laws and regulations
The U.S. Foreign Corrupt Practices Act (FCPA) prohibits companies from paying foreign officials to keep/obtain business, with exceptions
The U.K. Bribery Act goes much further
Most developed countries recognize bribery is not conducive to business
However, companies must determine what constitutes a bribe

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16
Q

explain anti trust activity

A

Antitrust laws are meant to encourage fair competition
Countries have differing levels of protections
Can create difficulties in international business
Vertical system: A channel member controls the entire business system
Can occur when MNCs are allowed to grow unchecked and create a monopoly
Reduces competition and can put small competitors out of business

17
Q

explain human rights

A

Opportunistic use of child labor, payment of low wages, and abuses in foreign factories are a few of the concerns.
Relationships with subcontractors have proven problematic for some firms.
MNCs should view the law as a ‘floor’ of acceptable behavior and strive for greater improvements in workers’ quality of life.

18
Q

explain labour and right to work

A
Many people work outside their homeland
International firms today have many global ethical concerns related to labor
Gender pay equality
Right to join unions
Standards of living
19
Q

explain consumerism

A

The belief that consumers should dictate the economic structure of society
States that consuming goods at an increasing rate is desirable
Equates personal happiness with purchasing and consuming products
Made-to-break (Planned obsolescence): Encourages consumers to buy more items

Meeting with backlash from stakeholders who do not believe that consumerism leads to happiness Not sustainable as resources diminish
20
Q

Importance of Ethical Decision Making in Global Business

Companies should:

A

Incorporate global and domestic ethical issues in their risk management strategies
Formulate their own global ethical codes
Appoint ethics officers or committees to oversee and handle global compliance issues
Provide extensive training to its employees

21
Q

alternative energy sources

A
wind power
gethermal ppower
solar
nuclear power
ethnol
hydro poweer
22
Q

explain the triple bottom line approach

A

Considers social and environmental performance along with economic performance
Better environmental performance reduces costs by:
Improving risk management and stakeholder relationships
Reducing the amount of materials and energy used
Reducing capital and labor costs

23
Q

define green marketing

A

Using stakeholder assessment to create long-term relationships with customers while maintaining, supporting, and enhancing the natural environment

24
Q

define greenwashing

A

Misleading a consumer into thinking that a good or service is more environmentally friendly than it really is
Negatively relates to financial performance

25
Q

strategic implementation of environmental responsibility includes

A

recycling
stakeholder assessment
risk analysis
strategic sustainability environmental audit