week 4 Flashcards
define national culture
Everything in our surroundings that is made by people
explain the self reference criterion
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
explain cultural relativism
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
explain global common values
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
slide 8 graph
sienna x jazzie :P
define Risk compartmentalization
Occurs when profit centers within corporations are unaware of the consequences of their actions on the firm as a whole
gfc
explain socialism (economic system)
Socialism: Advocates that wealth and power be shared across society, based on the amount of work expended in production
Karl Marx
explain social demoncarcy (ec0nomic system)
Social democracy: Private ownership of property, but a large government
Formed in the 1940s as an offshoot of socialism
explain biomodal wealth distribution (eco systems)
Many poor and a few very wealthy with a small middle class Some argue it is a result of the global economic system
explain rational v behavioural economiss
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
explain multinational corporations
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
multinational corporations now support Business for social responsibility (BSR) which
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
explain international monetary fund
Regulates monetary relationships between national economies
Promotes responsible global business conduct
explain world trade organisation
Provides legally binding ground rules for international commerce and trade policy
Facilitates trade negotiations and settles trade disputes
explain bribery
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