Business exam 1

What is an ethical dilemma?

A decision that involves a conflict of values

What countries represent the largest global business opportunities for the next decade? What factors determines the size of the opportunity?

China and India due to their large populations and economic growth

Cons of Direct Investment

Cost is high, risk from political change

Define sustainable development

Doing business to meet the needs of the current generation, without harming the ability of future generations to meet their needs.

What are the five dimensions of the business environment?

Economic, competitive, technological, social, global

What are the factors of production?

Natural resources, capital, Human Resources, entrepreneurship

Cons of Licensing/Franchising

No control over sales, may lose intellectual property

Cons of exporting

Possibility of exchange, collection of complications

How did the global economic crisis unfold?

The economy changed for the worse when the dot com bubble burst in 200 and 9/11 terrorists attacks in 2001

Why does quantity supplied tend to increase when prices go up and decrease when prices go down? Why does quantity demanded move in the opposite direction?

If there isn't any competition customers will buy it and they need to supply more of it and can sell it with higher prices. If there is competition the prices have to go down and the producers don't need to sell as much cause there's competition.

What are the risks of foreign outsourcing?

Loss of control, inadequate communication, technological issues, reliability and security, and cultural differences

Compare and contrast microeconomics and macroeconomics.

Macroeconomics is the study of a country's overall economy. Microeconomics focuses on smaller economic units.

Pros of direct investment

More control over sales, employment boost

Why is outsourcing such an attractive way for firms to tap into foreign markets?

Outsourcing manufacturing or logistics to partners in other countries can help companies enter local markets by reducing the costs of market entry, building an understanding of local requirements, overcoming barriers to entry and supporting market expansion services.

What are the fundamental elements of the free market economic system?

Rights to own businesses and keep after tax profits, right to private property, the right to free choice, and the right to fair competition

Pros of exporting

Strong opportunity, low costs per unit, diversification

pros of licensing/franchising

Businesses expand, access to better workers

What are some key strategies for developing a competitive edge in today's competitive global market?

Figuring how what consumer demands are

How has the global free trade move,ent impacted business? Who benefits? Who loses?

Goods move more freely than ever across international boundaries. Developing countries are able to access new markets. Worked lose because of income inequality

Explain the meaning of strong currency and weak currency. What are the advantages and disadvantages?

Strong and weak currencies refer to how much your national currency is worth in reference to other countries.

What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade?

Technology and free access to wifi, accelerate

Define the concept of planned obsolescence. Is this strategy ethically unsound?

To design a product to fail so that the consumer has to buy the product again in a short amount of time

Describe the key principles of socialists and communists economic systems. Does more government control mean less economic oppurtunity?

The government should own and operate key enterprises that directly affect public welfare such as utilities and healthcare systems that calls for public ownership of virtually all enterprises.

Compare the role of the individual and the role of the organization in ethical decision making.

The individual roles comes with making decisions that will affect you, your family, and your religion. The organization role affects people who work for the organization and ultimately the people who make the decisions reputation.

How has the ride of the World Wide Web changed business practices?

The internet creates a vortex, businesses are constantly trying to get a competitive edge

When might the need for social responsibility conflict with the need to maximize profits? When the needs conflict, how should a firm decide which path to pursue?

The two might conflict when the business is not doing to well and they need to maximize their profits. But at the same time they haven't contributed anything in a long time. They have to make the decision whether they want to keep the money and maximize profits or contribute.

How has NAFTA impacted the U.S.?

The us economy has grown significantly since the implementation of NAFTA.

How can domestic companies that outsource manufacturing to foreign factories ensure that their vendors adhere to ethical standards?

They can monitor, enforce, and commit to finding solutions that work for all parties involved.