exam #1 on 2/24
what is management?
The process of completing activities with AND through people
what are areas of international management affected by technology?
- Biotechnology and nanotechnology - Satellites - Automatic translation telephones - Artificial intelligence and embedded learning technology - Silicon chips - Advancements in computer chip technology - Supercomputers
what is biotechnology?
- Creation of agricultural or medical products through industrial use and manipulation of living organisms - Advancement has led to pharmaceutical competition and cloning of animals
What is Islamic law?
- Derived from interpretation of the Qur'an and teachings of Prophet Muhammad - Found in most Islamic countries in the Middle East and Central Asia
what is multinational corporations (enterprises) A.K.A. MNCs?
- Engage in activities with its own affiliates in several countries - International sales - A mix of nationalities among managers and owners Firms that have: - Operations in more than one country - International sales - Mix of nationality among managers and owners Managers are required to develop international management expertise Increasingly coming from developing nations like China and India
what is a market economy?
- Exists when private enterprises reserve the right to own property and monitor production and distribution of goods and services - management is effective (private ownership provides local evaluation and understanding) - least restrictive form of economy (resource allocation is determined by the law of demand) - general balance between supply and demand sustains prices (imbalance creates price fluctuation) - competition is encouraged (helps promote innovation, economic growth, high quality, and efficiency) - optimal growth is facilitated by focusing on how to best serve the customer - monopolies or restrictive business practices may be prohibited to maintain the integrity of the economy
what are global foundations of law?
- Islamic law - socialist law - common law - civil or code law
what are ethical theories and philosophy?
- Kantian philosophical traditions - Aristotelian virtue ethics - utilitarianism - eastern philosophy
what is the Legal and Regulatory Environment?
- Many different laws and regulations in global business operations create confusion and pose challenges to MNCs - Adhering to disparate legal frameworks can prevent MNCs from capitalizing on manufacturing economies - MNCs must carefully evaluate legal framework in each market before doing business
what is the North American Free Trade Agreement (NAFTA)?
- Member nations include the United States, Canada, and Mexico - Helped eliminate tariffs and import and export quotas - Opened government procurement markets to companies in the other two nations - Increased opportunity to make investments in each other's country - Increased the ease of travel between countries - Removed restrictions on agricultural products, auto parts, and energy goods
what are regional agreements?
- North American free trade agreement (NAFTA) - US-Singapore free trade agreement - US-central American free trade agreement (CAFTA and CAFTA-DR) - European Union (EU) - transatlantic trade and investment partnership (T-TIP) - association of Southeast Asian Nations (ASEAN) - trans-pacific partnership (TPP)
what are U.N. sustainable development goals?
- Poverty = End poverty in all its forms everywhere - Food = End hunger, achieve food security and improved nutrition, and promote sustainable agriculture - Health = Ensure healthy lives and promote well-being for all at all ages - Education = Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all - Women = Achieve gender equality and empower all women and girls - Water = Ensure availability and sustainable management of water and sanitation for all - Energy = Ensure access to affordable, reliable, sustainable, and modern energy for all - Economy = Promote sustained, inclusive, and sustainable economic growth; full and productive employment; and decent work for all - Infrastructure = Build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation - Inequality = Reduce inequality within and among countries - Habitation = Make cities and human settlements inclusive, safe, resilient, and sustainable - Consumption = Ensure sustainable consumption and production patterns - Climate = Take urgent action to combat climate change and its impacts - Marine ecosystems = Conserve and sustainably use the oceans, seas, and marine resources for sustainable development - Ecosystems = Protect, restore, and promote sustainable use of terrestrial ecosystems; sustainably manage forests; combat desertification; halt and reverse land degradation; and halt biodiversity loss - Institutions = Promote peaceful and inclusive societies for sustainable development; provide access to justice for all; and build effective, accountable, and inclusive institutions at all levels - Sustainability = Strengthen the means of implementation and revitalize the global partnership for sustainable development
what are types of E-business?
- business to business (B2B) - business to consumer (B2C) - E-retailing - financial services (e-cash)
what is a mixed economy?
- combination of market and command economy - helps raise the standard of living (Aided by regulations concerning minimum wage standards, Social Security, Environmental Protection, and the advancement of civil rights) - ownership of organizations that are critical to the nation may be transferred to the state (subsidizes costs and allows the firms to flourish)
what is Russia?
- dismantled price controls - privatized businesses previously owned by the government - direct investment and membership in international monetary fund (IMF) helped to raise GDP and decrease inflation
what is the Russian economy?
- early economy was boosted by abundant oil and high global energy prices (recent decreases in demand have pushed Russia into a recession) - likely to undergo many years of economic instability and recurrent political problems - challenges= persistent crime, corruption, and lack of public security
what is Chile?
- economic growth has fluctuated between 3% and 6% since the 2000s - attracts FDI, mainly dealing with gas, water, electricity, and mining
what is the evaluation of the world's economies?
- established economies (North America, the European Union, and Japan) - emerging economies (central and Eastern Europe, China, India, and other emerging markets of Asia such as South Korea, Hong Kong, Singapore, and Taiwan) - developing economies (South America, Middle East and Central Asia, and Africa)
what is emerging and developing economies?
- face relatively low GDP per capita - have an unskilled or semi-skilled workforce - involve considerable government intervention in economic affairs - can be viewed as developing economies that exhibit sustained economic reform and growth
what is a command economy?
- government holds explicit control over the price and supply of a good or service - businesses are owned by the state (insures that investments and other business practices are done in the best interest of the nation and management ignores demographic information) - creates an environment where little motivation exists
what is Russell Athletics?
- it offshores to Honduras - headquartered in Kentucky
what are global economic systems?
- market economy - command economy - mixed economy
what is the European Manuel (EU)?
- objectives and goals are to eliminate all trade barriers among member nations and follow a certain single currency, the euro, and a regional central bank - firms have the benefit of manufacturing high quality, low cost goods and shipping manufactured goods across the EU without paying duties or being subject to quotas - challenges are absorbing its eastern neighbors that could result in a giant single European market, large deficits faced by several European governments (that have resulted from structural conditions and shorter term economic pressures and placed pressure on the euro), and maintaining a unified EU in the coming decades
what is international management?
The process of applying management concepts and techniques in a multinational environment and adapting management practices to different economic, political, legal, and cultural contexts International management is the process of: - Applying management concepts and techniques in a multinational environment - Adapting management practices to different economic, political, and cultural contexts
what are labor, employment, and business practices in china?
Workers are not paid well - Forced to work 12-hour days, seven days a week to meet demand - Some cases involve the usage of child labor Example = Foxconn - 2010 - Issue of low wages headlined after a number of workers committed suicide
what is trends in technology, communication, and innovation?
Computers, telephones, televisions, and wireless forms of communication have merged to create multimedia products - Allow users anywhere in the world to communicate with one another Internet allows people to obtain information from several sources Open-source model allows for free and legal sharing of software and code - Can be utilized by underdeveloped countries in an attempt to gain competitive advantage while minimizing costs For-profit and nonprofit firms have created low-cost computers - Provided them to several children in the developing world Great potential exists for disruptions as the world relies more and more on digital communication and imaging
what is treatment and rights of aliens?
Countries have the legal right to: - Refuse admission of foreign citizens - Impose special restrictions on a foreign citizen's conduct, their right of travel, where they can stay, and what business they may conduct Nations can deport aliens, which may result in worker shortages
what is China?
considerable decline in GDP current challenges - massive savings glut in corporate sector - globalization of manufacturing networks - vast developmental needs - unemployment (15-20 million new jobs required annually) - social unrest
what are changing global demographics?
Factors contributing to the increase in the median global population age - Increase in global life expectancy due to improvements in technology and healthcare - Increase in time spent in retirement due to increase in life expectancy - Decline in global fertility rate
what is Aristotelian virtue ethics?
Focus on core, individual behaviors and actions and how they express and form individual character Consider social and institutional arrangements and practices in terms of their contribution to the formation of good character in individuals For Aristotle, moral success and failure largely come down to a matter of right desire, or appetite Virtue theory - States that one's formation is a social process - Relies heavily on existing practices to provide an account of: - - What is good - - What character traits contribute to pursuing and realizing the good in concrete ways
What is utilitarianism?
Form of consequentialism Favors the greatest good for the greatest number of people under a given set of constraints Acts are morally correct if they maximize utility - Attained when the ratio of benefit to harm is greater than the ratio resulting from an alternative act
what are other anticorruption measures?
Formal agreement by many industrialized nations to outlaw the practice of bribing foreign government officials - Includes nations that belong to the Organization for Economic Cooperation and Development (OECD) - Fails to outlaw most payments to political party leaders but does indicate growing support for antibribery initiatives Organization of American States (OAS) Inter-American Convention Against Corruption - Established by Latin American countries Transparent Agents Against Contracting Entities (TRACE) standard - Developed as a means of preventing the shift of corrupt practices to suppliers and intermediaries
what are global agreements?
General Agreement on Tariffs and Trade (GATT) - Helped in the dramatic reduction of tariff and nontariff barriers among nations World Trade Organization (WTO) - Oversees rules and regulations for international trade and investment
what are issues faced by women in the workplace - examples?
Japan - Women employees are subject to sexual harassment, two-track recruiting processes, and unequal opportunities for growth France, Germany, and Great Britain - Witnessed an increase in the number of women in managerial positions but only in low-level managerial positions
what is South America?
faced many economic problems - accumulated heavy foreign debt obligations - experienced severe inflation implemented economic reforms to reduce debt - periodic economic instability and the emergence of populist leaders have had an impact on the attractiveness of countries in this region
what is Argentina?
has an overall strong economy - due to abundance of natural resources, highly literate population, export-oriented agriculture, and diversified industrial base has suffered recurring economic problems - inflation, external debt, capital flight, and budget deficits
what is Africa?
has considerable natural resources but remains very poor and underdeveloped - international trade is only beginning to serve as a major source of income risk for foreign investors arises from: - overwhelming diversity of the population - major political instability economic setbacks are caused due to: - tragic tribal wars - spread of diseases such as AIDS, malaria, and Ebola - lack of institutions, infrastructure, and economic capacity to take full advantage of globalization - poverty, malnutrition, illiteracy, corruption, social breakdown, vanishing resources, overcrowded cities, drought, and homeless refugees economic growth and dynamism have accelerated in recent years - rise in GDP - growth in telecommunications, banking, and retailing
what are responses to social and organizational obligations?
MNCs follow codes of conduct, including the U.N. Global Compact, the Global Reporting Initiative, and "SA8000" standards - Commit to maintain certain standards in their domestic and global operations - Help offset the concern that companies move jobs to avoid higher labor or environmental standards - Contribute to raising the standards in the developing world Fair trade - Organized social movement and market-based approach - Aims to help producers in developing nations obtain better trading conditions and promote sustainability
what is the foreign corrupt practices act (FCPA)?
Makes it illegal for U.S. companies and their managers to attempt to influence foreign officials through: - Personal payments - Political contributions In complying with the provisions, U.S. firms must be aware of changes in the law - Makes FCPA violators subject to Federal Sentencing Guidelines
what is foreign corrupt practices act (FCPA)?
Makes it illegal to influence foreign officials through personal payment or political contributions Objectives of the FCPA - Stop U.S. MNCs from initiating or perpetuating corruption in foreign governments - Upgrade the image of both the United States and its businesses abroad Implementation allowed the U.S. Justice Department to uncover several developments - MNCs found that they could live within the guidelines set down by the FCPA - Many foreign governments applauded the investigations under the FCPA - - Helped them crack down on corruption in their own country
what are issues faced by women in the workplace?
Most still experience the effects of a glass ceiling - Lack of promotions to upper management positions - Partially due to social factors and perceived levels of opportunity or lack thereof - Pervasive throughout the world
what are environmental protection and development?
Poor countries are more focused on improving the welfare of their citizens Environmental Kuznets Curve (EKC) - Relationship between per capita income and the use of natural resources and/or the emission of wastes has an inverted U-shape
what are labor policy issues?
- political, economic, and cultural differences interfere with the establishment of a universal foundation for employment practices - difficulty in deciding working conditions, expected consecutive work hours, and labor regulations - frequent offshoring due to differences in labor costs - ensuring that all contractors along the global supply chain are compliant with company standards
what is Middle East and Central Asia?
- possess large oil reserves - have highly unstable geopolitical and religious forces= try to balance these forces with economic viability and activity in the international business arena - rely almost exclusively on oil production
what are benefits of globalization?
- wealth - better jobs - access to technology - lower prices - availability of goods
what is changing global demographics: developing countries on the rise?
1950 - first= china - second= soviet union - third= india - fourth= united states - fifth= japan - sixth= indonesia - seventh= germany - eighth= brazil - ninth= united kingdom - tenth= italy - eleventh= france - twelfth= bangladesh 2017 - first= china - second= india - third= united states - fourth= indonesia - fifth= brazil - sixth= pakistan - seventh= nigeria - eighth= bangladesh - ninth= russia - tenth= mexico - eleventh= japan - twelfth= ethiopia 2050 - first= india - second= china - third= nigeria - fourth= united states - fifth= indonesia - sixth= pakistan - seventh= brazil - eighth= bangladesh - ninth= congo - tenth= ethiopia - eleventh= mexico - twelfth= egypt
what is the political spectrum?
<- radical <-> communism (totalitarianism) <-> socialism <-> socialist democracy <-> liberalism <-> centrist <-> conservatism <-> fascism
what is eastern philosophy?
Broadly includes various philosophies of Asia - Indian philosophy, Chinese philosophy, Iranian philosophy, Japanese philosophy, and Korean philosophy Holds that: - People are an intrinsic and inseparable part of the universe - Attempts to discuss the universe from an objective viewpoint are inherently absurd
what is corporate social responsibility (CSR) versus Ethics?
CSR - actions taken by a firm to benefit society beyond the requirements of the law and the direct interests on the firm - based more on voluntary actions ethics - study of or the learning process involved in understanding morality - area of ethics has a lawful component and implies right and wrong in a legal sense
what is civil or code law?
Derived from Roman law Found in non-Islamic and nonsocialist countries - France - Some Latin American countries - Louisiana in U.S.
what is common law?
Derives from English law Foundation of legal system in: - United States - Canada - England - Australia - New Zealand - Several other nations
what is sustainability?
Development that meets humanity's needs without harming future generations Helps companies recognize that dwindling resources will eventually halt productivity World Economic Forum, Davos, Switzerland - Focused on how sustainable consumption can be used to ease problems related to the need for rapid business scaling
what is the phenomena in response to globalization?
Difficulty in attempts to balance organizational and cultural roots Offshoring low-cost labor-intensive practices Transferring a large percentage of current employees of all types to foreign locations - Creates issues related to corporate citizenship
what are ethical dilemmas?
Dilemmas arising from conflicts between ethical standards of a country and business ethics are most evident in: - Employment and business practices - Recognition of human rights, including women in the workplace - Corruption
what are Kantian philosophical traditions?
Entities have responsibilities based on a core set of moral principles that go beyond those of narrow self-interest Reject consequences as morally irrelevant when evaluating the choice of an agent Ask one to consider choices as implying a general rule, or maxim - Must be evaluated for its consistency as a universal law
what is financial services regulation?
Global financial crisis of 2008-2010 underscored: - Integrated nature of financial markets around the world - Reality that regulatory failure in one jurisdiction had severe and immediate impacts on others Crisis and its broad economic effects have prompted regulators to tighten the financial services regulation
what is globalization and internationalization?
Globalization - Process of social, political, economic, cultural, and technological integration among countries around the world - Evidence can be seen in increased levels of trade, capital flows, and migration Internationalization - Process of a business crossing national and cultural borders
what is principle of sovereignty?
Holds that governments have the right to rule themselves as they see fit - One country's court system cannot be used to rectify injustices or impose penalties in another country unless that country agrees
what is Central and Eastern Europe?
Hungary - privatization of state-owned businesses - joint ventures between local and western firms - received direct investments from MNC's Poland - only economy in the EU to continue to grow during the global recession of 2008-2009 Key for Albania and other Eastern European countries is to make themselves less risky and more attractive for international business - maintain social order - establish rule of law - rebuild collapsed infrastructure - get factories and other value-added, job-producing firms up and running
what is regulation of trade and incestment?
Individual countries use legal and regulatory policies to affect the international management environment Trade practices that distort trade - Countries engage in government support - MNCs are required to accept local partners - MNCs are mandated to employ a certain percentage of local workers or produce a specific amount in their country Trade agreements require that countries extend most-favored-nation status - Questioned by regional trade agreements
what are jurisdictional principles of international law?
Nationality principle: - Every country has jurisdiction over its citizens no matter where they are located Territoriality principle: - Every nation has the right of jurisdiction within its legal territory Protective principle: - Every country has jurisdiction over the behavior that adversely affects its national security Doctrine of comity - Mutual respect for laws, institutions, and governments of other countries in the matter of jurisdiction over their own citizens - Part of international custom and tradition and not part of international law Act of state doctrine - All acts of other governments are considered to be valid by U.S. courts - - Even if such acts are inappropriate under U.S. law
what is corporate governance: crony capitalism?
Occurs in nations with: - Less well-developed legal and institutional protections - Poor property rights Emerges where weak corporate governance and government interference can lead to: - Poor performance - Risky financing patterns - Macroeconomic crises
what are criticisms of globalization?
Offshoring of service jobs to lower-wage countries - Companies and countries place downward pressure on wages and working conditions Growing trade deficits and slow wage growth could lead to economic collapse Concerns over environmental and social impacts
what is socialist law?
Originates from Marxist socialist system Continues to influence regulations in former and current communist countries - Soviet Union - China and Vietnam - North Korea and Cuba Forces MNCs to shy away from countries that follow this law
what are human rights issues?
Present challenges for MNCs - Absence of universally adopted standards of what constitutes acceptable behavior Basic rights - Life, freedom from slavery or torture, freedom of opinion and expression, and a general ambiance of nondiscriminatory practices Women's rights and gender equity can be considered a subset of human rights
what is International Business?
Profit-related activities conducted across national boundaries
what is the environmental Kuznets curve (EKC)?
Reasons behind the inverted U-shape of the EKC - Composition of production and/or consumption - Preference for environmental quality - Institutions that are needed to internalize externalities - Increasing returns to scale associated with pollution abatement
what is bureaucratization?
Restrictive foreign bureaucracies are one of the biggest problems facing MNCs - Particularly true when bureaucratic government controls are inefficient and left uncorrected In many developing and emerging markets, bureaucratic red tape impedes business growth and innovation
what are sustaining sustainable companies?
Shift in focus from traditional market-responsive strategies to broader approaches - Help incorporate business and social or environmental goals Triple bottom line approach - Simultaneously considers social, environmental, and economic sustainability - Could help harness business and managerial skills to impact human and environmental conditions
what is corporate social responsibility (CSR)?
Social, economic, and environmental expectations of each company are based on the desires of the stakeholders - Pressurize MNCs to pay greater attention to CSR Nongovernmental organizations (NGO) - Private, not-for-profit organizations - Seek to serve society's interests by focusing on social, political, and economic issues
what is international law?
Sources - Laws of individual countries - Treaties - Universal, multilateral, and bilateral - Conventions - Geneva Convention on Human Rights or the Vienna Convention of Diplomatic Security Contains unwritten understandings that arise from repeated interactions among nations
what is economic performance in emerging markets?
South Korea - Chaebols= large, family-held conglomerates that have considerable economic and political power - has a solid economy with moderate growth and inflation, low unemployment, an export surplus, and fairly equal distribution of income Hong Kong - headquarters for some of the most successful multinational operations in Asia Singapore - emerged as an urban planner's model and the leader and financial center for Southeast Asia Taiwan - progressed from a labor-intensive economy to one dominated by technologically sophisticated industries Thailand, Malaysia, Indonesia, and Vietnam - have a large population base with inexpensive labor despite lack of natural resources - known to have social stability but have suffered from turmoil in the aftermath of recent economic crisis
what are ethics?
Study of morality and standards of conduct Victim of subjectivity as it yields to the will of cultural relativism - Cultural relativism = Belief that: - - Ethical standard of a country is based on the culture that created it - - Moral concepts lack universal application
what is corporate governance?
System by which businesses are directed and controlled - Specifies distribution of rights and responsibilities among stakeholders - Spells out rules and procedures for corporate decision-making Provides the structure for setting company objectives and means for attaining those objectives and maintaining performance Rules and regulations differ among countries and regions - The UK and U.S. systems are outsider systems because of dispersed ownership of equity among a large number of outside investors - Many continental European countries are insider systems in which ownership is more concentrated Differences in legal systems affect shareholders' and other stakeholders' rights
what are factors that facilitate globalization?
Technological advances in transnational communications, transport, and travel Offshoring - Companies undertake some activities at offshore locations instead of in their home countries Outsourcing - Subcontracting or contracting out of activities that had previously been performed by the firm to external organizations
what are telecommunications?
Technological leapfrogging is allowing the entire world to have global access to affordable cell phone services Merging of telephone and the Internet has replaced access via computers Wireless technology has been beneficial to less developed countries Reason for the rapid increase in telecommunications services - Many countries believe that without an efficient communications system, their economic growth may stall - - Governments cede control to private industry to attract foreign investments Developing countries are eager to attract telecommunication firms and offer liberal terms
what are technological advancements, outsourcing, and offshoring?
Technology has reduced and eliminated middle management and white-collar jobs Global competition has forced MNCs to outsource or offshore production Emerging technology has made work more portable - Advantage = Reduction in cost of doing business - Disadvantage = Loss of jobs or reduction in salaries
what is North America?
The United States - firms maintain dominant global positions in technology intensive industries - considered to be a lucrative market for expansion by foreign MNC's - Canada is the largest trading partner (most of the largest foreign owned companies in Canada are totally or heavily US owned and legal and business environments are similar to that in the US) Mexico - strongest Latin American economy - has free trade agreements with over 46 countries - competes with Asia for the US market And has the benefit of proximity and lower cost labor (facilitated by the maquiladora system) - increased trade with both Europe and Asia
what is forum for hearing and settling disputes?
U.S. courts: - Can dismiss cases brought before them by foreigners - Are bound to examine issues such as: - - Where the plaintiffs are located - - Where the evidence must be gathered - - Where the property to be used in restitution is located
what is nongovernmental organizations (NGOs)?
Urge MNCs to be more responsive to a range of social needs in developing countries Activism has helped generate substantial changes in corporate management, strategy, and governance Regarded as counterweights to business and global capitalism Collaborate with MNCs on social and environmental projects - Contribute to the well-being of the community and to the reputation of the MNC
what is South America: Brazil?
attracted considerable foreign investment - through privatization of power, telecommunications, and other infrastructure sectors benefited from one of the most stable governments throughout Latin America
what is China: Major risk for investors?
caused due to: - delicate nature of one country, two systems balance (communism and capitalism) - concerns about undervaluation of China's currency - unpredictable and fluid nature of policies toward foreign firms
what is the environment of the global manager?
political environment - form of government - political stability - foreign policy - state companies - role of military - level of terrorism - restrictions on imports/exports economic environment - economic system - state of development - economic stability - GNP - international financial standing - monetary/fiscal policies - foreign investment regulatory (legal) environment - legal system - prevailing international laws - protectionist laws - tax laws - role of contracts - protection for proprietary property - environmental protection technological environment - level of technology - availability of local technical skills - technical requirements of country - appropriability - transfer of technology - infrastructure
what is India?
recent trend of locating software and higher value-added services has bolstered middle-and-upper-class market for goods and services attractive to U.S. and British investors - presence of English-speaking, well-educated, and technologically sophisticated workers - availability of government funds for economic development
what is shifting balance of economic power in the global economy?
result of economic integration and rapid growth of emerging markets emerging and developing nations might play a dominant role in the global economic system - BRIC countries (brazil, russia, india, and china) - E7= seven major emerging economies (brazil, china, india, indonesia, mexico, russia, and turkey) - N-11= next wave of emerging markets (bangladesh, egypt, indonesia, iran, mexico, nigeria, pakistan, philippines, turkey, south korea, and vietnam) - african countries can benefit from the increase in price of commodities (gas and oil, agricultural products, and mineral and mining products)
what is trends in trade and international investment?
since the global recession in 2009, global trade and investment have continued to grow foreign direct investment (FDI) - amount invested in property, plant, or equipment in another country - growing at a slow but steady rate in the years since the global recession - may reach $1.7 trillion by 2017
why are there sweatshops in places like Honduras?
they have limited regulations and they are usually in places where there is high poverty
why is Russell Athletics offshoring?
they want cheap labor
What is Japan?
unprecedented economic success in the 1970s and the 1980s - huge positive trade balance - strong yen - gained recognition the world leader in manufacturing and consumer goods remains a formidable international competitor and is well poised in all major economic regions early success can be attributed to: - the ministry of international trade and industry (MITI)= governmental agency that identifies and ranks national commercial pursuits and guides the distribution of national resources to meet these goals - keiretsus= large, vertically integrated corporations whose holdings supply much of the assistance needed in providing goods and services to end users
who suffers the most in developing countries?
women
Do sweatshops still exist in the United States according to the U.S. Department of Labor?
yes
what is political systems: democracy?
•Government is controlled by citizens either directly or through elections •Democratic society cannot exist without at least a two-party system - Once elected, representative is held accountable to the electorate for his or her actions - Apart from getting reelected, the number of terms is limited - Winner can get voted out if he or she does not adhere to the goals of the majority ruling
what is political environment?
•Ideology underlies the actions of government - Reflects beliefs and values and behavior and culture of nations and their political systems •Dimensions in evaluating political systems - Rights of citizens based on a system of government, ranging from democratic to totalitarian - Focus of political system on individualism or collectivism - Democratic nations emphasize individualism - Totalitarian nations lean toward collectivism
what is the political environment in the middle east?
•In Iran and Saudi Arabia, laws and government are based on Islamic principles •Arab countries operate business that is in many ways similar to the West - Seeking modern technology and having the financial ability to pay for quality services •Worldwide fallout from war on terrorism has made business environment risky and potentially dangerous
what is the political environment in China?
•Making trade liberalization a top priority since joining WTO in 2001 •Supporting a more open and democratic society •Shifting toward greater tolerance of individual freedoms •Seeking to unleash a more dynamic market economy
what is political system: totalitarianism?
•Only one representative party, which exhibits control over every facet of political and human life •Power maintained by suppression of opposition - Dominant ideals = Media censorship, political repression, and denial of rights and civil liberties •Common form = Communist totalitarianism
what is individualism?
•People should be free to pursue economic and political endeavors without constraint •Similar to capitalism and connected to free-market society - Private property is more successful, productive, and progressive than communal property - Encourages betterment of society, which is related to level of freedom individuals have to pursue economic goals - Research has shown that team performance is negatively influenced by individualists - Competition stimulates motivation and encourages increased efforts to achieve goals - Principles were evolved by David Hume, Adam Smith, and Aristotle - International managers must remain alert as to how political changes may impact their business (Continuous struggle for a foothold in government power affects leaders in office)
what is social democracy?
•Socialist movement that achieved its goals through nonviolent revolution •Reasons for not being viable - Businesses that were nationalized were inefficient due to the guarantee of funding and the monopolistic structure - Citizens suffered a hike in both taxes and prices, which was contrary to the public interest and the good of the people •Reasons for nationalization of businesses - Ideologies of the country encourage the government to extract more money from the firm - Government believes the firm is hiding money - Government has a large investment in the company - Government wants to secure wages and employment status because jobs would otherwise be lost
what is socialism?
•Society in which there is government ownership of institutions but profit is not the ultimate goal •Has been practiced in China, North Korea, Cuba •Democratic socialism - More moderate form of socialism - Practiced by Great Britain's Labor Party, Germany's Social Democrats, and in France, Spain, and Greece •Modern socialism draws on philosophies of Karl Marx, Friedrich Engels, and Vladimir Ilyich Lenin - Marx believed that governments should own businesses because in a capitalistic society only a few would benefit •Communism - Extreme form of socialism
what is collectivism?
•Views the needs or goals of society as a whole as more important than individual desires •Plato believed individual rights should be sacrificed and property should be commonly owned •Has no rigid form as societal goals differ greatly among cultures - Reflects some attributes of fascism *Nationalism and authoritarianism *Militarism and corporatism *Collectivism *Totalitarianism *Anticommunism *Opposition to economic and political liberalism