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Test 1 study guide B
vocab
41
Business
Undergraduate 2
09/15/2008

Additional Business Flashcards

 


 

Cards

Term
comparative advantage theory
Definition
country should trade with countries that produce a product more efficiently
Term
absolute advantage
Definition
exists when a country has a monopoly on producing a specific product most efficiently
Term
competing in global markets
Definition
knowledge and information have the most impact in competition. (US is good at creativity/new designs)
Term
balance of trade
Definition
the total value of a nation's exports compared to its imports measured over a particular period
Term
trade deficit
Definition
an unfavorable balance of trade. value of a country's imports exceeds that of its exports
Term
balance of payments
Definition
difference between money coming into a country and money leaving the country plus the money flows form other factors such as tourism, foreign aid, military expend., and foreign investments.
Term
dumping
Definition
selling products in a foreign country at lower prices than those charged in the producing country
Term
continuum for risk and profits in reaching global markets
Definition
licensing, exporting, franchising, contract manufacturing, joint ventures, strategic alliances, foreign direct investments
Term
licensing
Definition
a firm (licensor) allows a foreign company (licensee) to produce its product in exchange for a fee/royalty
Term
contract manufacturing
Definition
a foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark
Term
joint venture
Definition
partnership in which two or more companies join to undertake a major project
Term
strategic alliance
Definition
a long-term partnership between two or more companies established to help each company build competitive market advantages
Term
foreign direct investment
Definition
the buying of permanent property and businesses in foreign nations
Term
multinational
Definition
an organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management
Term
exchange rate
Definition
the value of one nation's currency relative to the currencies of other countries
Term
devaluation
Definition
lowering the value of a nation's currency relative to other currencies
Term
countertrading
Definition
a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services
Term
trade protectionism
Definition
the use of government regulations to limit the import of goods and services
Term
tariff
Definition
a tax imposed on imports
Term
import quota
Definition
a limit on the number of products in certain categories that a nation can import
Term
embargo
Definition
a complete ban on the import or export of a certain product or stopping all trade with a particular country
Term
General Agreement on Tariffs and Trade
Definition
GATT. a 1948 agreement that established an int'l forum for negotiating mutual reductions in trade restrictions. Replaced by WTO
Term
World Trade Org.
Definition
WTO. the int'l org. that replaced GATT and was assigned the duty to mediate trade disputes among nations
Term
common market
Definition
a regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange. ex. Euro. Union
Term
NAFTA
Definition
free trade among US, Canada, and Mexico
Term
ethics
Definition
standards of moral behavior, that is, behavior that is accepted by society as right versus wrong
Term
Ethics questions
Definition
Is it legal? Is is balanced? how will it make me feel about myself?
Term
compliance-based ethics codes
Definition
ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers. punishment
Term
integrity-based ethics codes
Definition
standards that define the organization's guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees
Term
steps to improve US business ethics
Definition
top management support, employee's understanding, manager's training, ethics office, outsiders must be informed, and enforcement of ethics code
Term
whistleblowers
Definition
people who report illegal or unethical behavior 'snitch'
Term
ways to monitor employees
Definition
internet, background exams, store/review email and computer files, videotape
Term
Corporate Social Responsibility
Definition
commitment to: integrity, fairness, and respect
Term
CSR critics
Definition
corp. should make money for owners
Term
CSR defenders
Definition
corps owe existence to society
Term
corporate philanthropy
Definition
dimension of social responsibility that includes charitable donations
Term
corporate social initiatives
Definition
enhanced forms of corporate philanthropy that are more directly related to the company's competencies
Term
corporate responsibility
Definition
dimension of social responsibility that includes everything from hiring minority workers to making safe products
Term
corporate policy
Definition
dimension of social responsibility that refers to the position a firm takes on social and political issues
Term
insider trading
Definition
an unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends
Term
social audit
Definition
a systematic evaluation of an organizations' progress toward implementing programs that are socially responsible and responsive
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