Term
4 Types of Stakeholders
&
Difficulty Satisfying Board Members |
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Definition
1) Shareholders
2) Employees
3) Customers
4) Society
- Foreign markets are less familiar, and therefore, harder to forecast.
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Term
| Foreign Corrupt Policies Act |
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Definition
Outlaws bribery payments by U.S. firms to foreign officials, political parties, party officials, and political candidates.
- Applies to domestic or foreign operations and to company employees as well as their agents overseas.
- Applies not only to companies registered in the U.S. but also to any foriegn company quoted in any stock exchange in the U.S.
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Term
| Why is the Argument, "anything that is legal is ethical," is Insufficient? |
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Definition
| The law is an important basis for ethical behavior, but not all unethical behavior is illegal; thus ethical behavior must go beyond the law to include common decency. |
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Term
3 Overall Effects of Foreign Direct Investment
(Labor and Host Country Effects)
#1 |
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Definition
1) Home-country labor claims that jobs are lost through FDI.
2) Host-countries may gain from FDI through:
- More optimal use of production factors
- Use of unemployed resources
- Upgrading of resource quality
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Term
3 Overall Effects of Foreign Direct Investment
(Labor and Host Country Effects)
#2 |
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Definition
3) Host-countries may lose if investments by MNEs:
- Replace local companies
- Take the best resources
- Destroy local entreprenuership
- Decrease local R&D undertakings
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Term
3 Overall Effects of Foreign Direct Investment
(Areas to Consider) |
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Definition
1) Stakeholder Trade-Offs
2) Cause-and-Effect Relationships
3) Individual and Aggregate Effects |
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Term
Relativism
vs.
Normativism |
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Definition
Relativism-holds that ethical truths depend on the values of a particular society, and may vary from one soceity or country to another.
- It wouldn't be appropriate to inject or enforce one's ethical values on another
Normativism-there are universal standards of behavior that all cultures should follow.
- From their perspective, nonintervention is unethical
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