Intro to Business Chapter 3-4

devaluation-

lowering the value of a nations currency relative to other currencies.

ethics

standards of moral behavior, that is, behavior accepted by society as right vs wrong

strategic alliance

a long term between two or more companies established to help each company build competitive market advantages.

joint venture

a partnership in which two or more companies join to undertake a major product

tariff

a tax imposed on imports

Corporate Social Responsibility

a business's concern for the welfare of society

common market

A group of countries that acts as a single market, without trade barriers between member countries.

insider trading

An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends

corporate responsibility

Business contributions to the community through the actions of the business itself rather than donations of money and time

Integrity-based ethics codes

Defines the organization's guiding values, create an environment that supports ethically sound behavior and stress a shared accountability among employees.

comparative advantage

Each nation should sell to other countries those goods that it can produce most efficiently and effectively, and buy goods from other countries that it does not produce efficiently or effectively.

Compliance-based ethics codes

Emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers.

corporate social initiatives

Enhanced forms of corporate philanthropy directly related to the company's competencies

counter trading

a complex way of trading goods for goods

trade surplus

a favorable balance of trade occurs only when the value of a countries exports exceeds that of its imports

contract manufacturing

a foreign country's production of private-label goods to which a domestic company then attaches it own brand name or trade mark

licensing

a global strategy in which the firm allows a foreign company to produce its product in exchange for a fee

multinational corporation

an organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

trade deficit

an unfavorable balance of trade, occurs only when the value of a countries imports exceeds that of its imports

importing

buying products from another country

corporate policy

dimension of social responsibility that refers to the position a firm takes on social and political issues

whistleblowers

insiders who report illegal or unethical behavior

absolute advantage

only exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than other countries.

dumping

selling products in a foreign country at lower prices than those charged in the producing country

exporting

selling products to another country

foreign direct investment

the buying of permanent property and business in foreign nations

balance of payments

the difference btw money coming into a country (from exports) and money leaving the country (for imports) plus money flows coming into or leaving a country from other factors.

Corporate philanthropy

the dimension of social responsibility that includes charitable donations

free trade

the movement of goods and services among nations without political or economical barriers

balance of trade

the total value of the nations exports compared to its imports measured over a particular period.

trade protectionism

the use of government regulations to limit the important of goods and services

exchange rate

the value of one nation's currency relative to the currencies of other countries