MGT 302 Exam 1 Notes

1. depends on the company's willingness and ability. To sustain involvement at the discretion of managers with the strong influence of shareholders 2. woven into the fabric of the business 3. says that managers should make decisions so as to take account of the interests of all the stakeholders in a firm 4. include all individuals or groups who can substantially affect the welfare of the firm 5. vary significantly in their structure and in the nature of their operations

1. CSR Corporate Social Responsibility 2. social business 3. stakeholder theory 4. stakeholder 5. NGO - Non-governmental Organizations

1. - Understanding how cultural differences across and within nations can affect the way in which business is practiced - Understanding and adapting to the local cultural is important international companies. 2.- social organization (individualistic and stratification) - Terms of values, norms and relationships - How society operates - How people, groups, and companies treat each other

1. Cross-cultural literacy 2. Social Structure

1. holds those decision concerning social responsibility rests on the shoulders of the shareholders, not the executive of a company 2. internet and the explosion of available info in real time has fuled interest in social components for profit businesses and has changed focus of international business 3. - enhancing corporate performance while simultaneously continuing to advance the quality of life for billions of people - trust, authenticity, transparency, care, and love

1. Friedman Doctrine 2. internet and social focus 3. Conscious Capitalism

1. 1. Legal agreement between many countries, whose overall purpose to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas 2. manage, regulate, and police the global marketplace. -policing the world trading systems and agreements. - Policies the world trading system - Makes sure that nation states adhere to the rules laid down in trade treaties 3. maintain order in international monetary systems. If a country feels like it has challenges and can't meet its debt obligations. Lender of last resorts. Low cost loans 4. preserving peace through international cooperation and collective security

1. GATT - General Agreement on Tariffs and Trade: 2. WTO- World Trade Organization 3. IMF- International Monetary Fund 4. UN- United Nations

1. - Seeks to concisely communicate a firms social value that integrates financial and non-financial info about social and environmental metrics using quantitative and qualitative measures 2. - Leads to better decision making - Supports learning and innovation - Critical communication with stakeholders - Work collaboratively - What is measured gets done 3. - An accounting framework with three parts: social, environmental (or ecological), and financial - People, product, planet

1. Integrated reporting/ Social Accounting 2. Benefits to Integrated Reporting 3.Triple Bottom Line (TBL)

1. firms export goods and services to consumers in another country 2. when a firm invests resources (money) in business activities outside of its's home country. 3. any business that has productive activities in two or more countries

1. International Trade 2. FDI- Foreign Direct Investment 3. MNE- Multinational Enterprise

Silent Language of Business 1. __ is different across the world - Form of communication - Ex) everything is urgent in US, but Japan has leverage urgency 2. - Office placement, personal space - Middle east and Latin America= over crowding 3. - Materialism - UK= dependability and respectability vs US= buys loyalty with high salaries 4.- Quick to form friendships and acquaintances - Latin America and Middle East= friends sense your feelings

1. Language of Time 2. Language of Space 3. Language of Materialism 4.Language of friendship

1. to act on their skills in the face of fear 2. Vulnerable to situational influence 3. Space between stimulus and response - magic =

1. Moral courage 2. operation fading- this is business 3. pause button

1. is the desire to promote the welfare of others, expressed especially through generous donations of money 2.- new model - donor as investor - greater emphasis and precision around goals attainment and measurable outcomes

1. Philanthropy 2. Venture Philantropy or Philanthro-capitalism

1. pro-Production is less expensive. con- Jobs are lost to low-wage nations 2. pro- Free Trade - efficiencies con-Not equal for all nations 3. pro-More opportunities con- Political and economic disruptions (Fragile)

1. Production/ factories 2. Opportunity 3.Integrated global economies

changing demographics of the global economy 1. not so much us output diminishing, but the importance of other countries and their output is what's shifting the pie 2. -the long-term growth in cross border flows (ex: people in Japan are investing in the US and people in the US are investing in Columbia) of foreign direct investment -increasing importance of developing nations (ex: Vietnam) as the destination of FDI 3-ex) in 2003 38% of the words 2,000 largest multinationals were US firms, but by 2019 28.8 percent of the top 2,000 global firms were US multinationals 4. growth in medium and small businesses

1. The changing world output and world trade picture 2. The changing foreign direct investment picture 3. The changing nature of the multinational enterprise 4.The Rise of Mini-multinationals

video questions 1. True or False: a country's political, economic, and legal systems are interdependent 2. True or False: The central message of individualism is the idea that people should prioritize the good of society over the welfare of the individual 3. True or False: countries that stress collective goals are likely to have market based economies 4. Common Law is based on 5. according to magatte wade, the primary problem with starting a business in africa is

1. True 2. false 3. false 4. tradition and precedent 5. political corruption, high tariffs, and lack of governmental support

1. - based on tradition, precedent and custom, a system that evolved from England. - More flexible than other systems. - US 2. - courts interpret civil law - reliance of legal codes - Europe 3. - law is based on religious teaching - Islamic law found in Pakistan, Egypt, Malaysia and Iran

1. common law 2. civil law 3. theocratic law

The protection of intellectual property 1. intellectual property 2. patent 3. copyright 4. trademark

1. computer software, screen play, chemical formula 2. inventor's exclusive rights for a defined period. 3. exclusive legal rights of authors, composers, playwrights, artists, and publishers. 4. officially registered designs and names used to differentiate products.

1. a document that specifies the conditions under which an exchange is to occur and details the rights and obligations of the parties 2. body of law that governs contract enforcement 3. - legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource. - Property is a resource that an individual or business owns - Land, buildings, equipment, capital, mineral rights, businesses, intellectual property - Most countries protect property rights 3.a- Theft, piracy, blackmail by private individuals or groups. 3.b- Public officials extort income, resources, or property.

1. contract 2. contract law 3. property rights and corruption 3.a private action 3.b public action and corruption

quiz question chapter 1 1. Globalization has enabled organizations to reduce their costs of production by 2. Those individuals or organizations opposing globalization argue that falling trade barriers 3. The __________ was created in 1944 by 44 nations that met in Bretton Woods, New Hampshire, to promote economic development. This organization provides a wide array of financial products and technical assistance to the world's poorest nations. 4. Considering current events, which factor has led to a decline in world trade and has significantly impacted global supply chains? 5.

1. creating manufacturing units in developing countries. 2. allow firms to move manufacturing activities to countries with lower wage rates. 3. world bank 4 covid-19 pandemic 5. An international business must find ways to work within the limits imposed by government intervention in the international trade and investment system.

1. - System of values and norms that are shared among a group of people and that when taken together constitute a design for living. 2.- Abstract ideas of what is believed to be good, right and desirable - Ex) being supportive and loving with family 3.- Social rules and guidelines that prescribe appropriate behavior - -shaking hands when meeting 4. - The routine conventions of everyday life - Attitude towards time (elastic vs. inelastic)

1. culture 2. values 3. norms 4. folkways

1. - government is by the people, exercised either directly or through elected representatives. - Individualistic 2.- - one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties. - Collectivism, Mussolini and hitler 2a.- socialism can be achieved only through a totalitarian dictatorship. 2b- monopolized by a party, group, or individual that governs according to religious principles. 2c- a party, group, or individual that represents the interests of a particular tribe monopolizes political power 2d- generally, permits individual economic freedom but restricts individual political freedom, including free speech, on the ground that it would lead to the rise of communism. 3. - authoritarian elements have captured some of the machinery of state and use this in an attempt to deny basic political and civil liberties - example, Vladamir Putin in Russia

1. democracy 2. Totalitarianism 2a. Communist totalitarianism: 2b. Theocratic totalitarianism: 2c. Tribal totalitarianism: 2d. Right-wing totalitarianism: 3.a. Pseudo-Democracies

1. -is the fundamental right of every human to control his or her own labor and property -labor, land, and capital to move freely -protect and maintain liberty itself 2a- Countries that stress individual goals= 2b- Countries where state ownership is common= 3. - all productive activities are privately owned, and production is determined by the interaction of supply and demand. 4.- government plans the goods and services that a country produces, the quantity that is produced, and the prices as which they are sold. - Businesses are state owned 5.- certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning. - Some sectors are privately owned , some are government owned

1. economic freedom 2a. have market-based economies 2b. collective goals are dominant 3. market economy 4. command economy 5.mixed economy

1. situations in which none of the available alternatives seems ethically acceptable 2. - social culture -decision-making process -leadership -unrealistic performance goals -organizational culture -personal ethics 3. If work conditions in a host nation are clearly inferior Which standards should apply?

1. ethical dilemmas 2. ethical behavior 3. home, host, or in between

1. principles of right and wrong that govern, conduct of a person, members of profession, and actions of organizations 2. accepted principles of right or wrong governing the conduct of business people 3. course of action preventing violations of company principles while providing ethical awareness and taking action against unethical behavior

1. ethics 2. business ethics 3. ethical strategy

1. - employment practices - human rights - environmental regulations - corruption - moral obligation environmental pollution 2. situation in which individuals with access to a public resource (also called a common) act in their own interest and, in doing so, ultimately deplete the resource. 3. situation enhanced by corporations that move production locations that pump pollutions into atmosphere or dump them in oceans corruption 4.- allow facilitating payments(speed money), regulates conduct of international business taking bribes and other unethical actions 5. makes bribes of foreign officials a criminal offense moral obligation 6. managers consider social consequences of economic action when making business decisions

1. ethics and international business 2. Tragedy of the commons- 3. Global tragedy of the commons 4. Foreign Corrupt Practices Act (FCPA) 5. Convention on Combating Bribery of Foreign Public Officials in International Business Transactions 6. CSR Corporate social responsibility

two aspects of globalization of markets ] 1. globalization of markets- 2. globalization of production- 3.-land, labor,energy,capital

1. increase revenue 2. decrease costs 3. factors of production

Forces that lead to cultural differences western societies 1. - Individual achievement - High levels of entrepreneurship - Lack loyalty - Competition asian societies 2. - discourages job switching - cooperation in solving business problems - may suppress individual creativity 3.- position a person has at birth can be changed - less rigid and social mobility is possible 4. social position is determined by the family at birth 5. social hierarchy 6. extent to which individuals can move out of the strata into which they were born 7. - condition by which people tend to perceive themselves in terms of their background. - shapes their relationships with members of other classes

1. individuals 2. groups 3. class system 4. caste system 5. social strata 6. social mobility 7. class consciousness

globalization debate

1. jobs and incomes 2. labor policies and the environment 3. national sovereignty 4. the world's poor

• 1974 Bangladesh famine, Muhammad Yunus and Microfinance 1. is a moneylender who charges ectermely high interest rates often-times under illegal conditions such as threats od violence 2. loan recipients are compelled to repay their debts by working under dangerous and highly exploitive condition

1. loan shark 2. debt bondage

Grameen Bank formed 1983 1. - Is a source of financial services for entrepreneurs and small business lacking acess to banking and related services 2. - Lending small amounts of money at low interest to new businesses in the developing world 3. - Something pledged as security for repayment of a loan and forfeited in the event of a loan default 4. loans are better than charity to interrupt poberty"

1. microfinance 2. microcredit 3. collateral 4. founding principles

1. -outcome goal: Stakeholder value maximization - strategy: Donation financed 2. -outcome goal: Shareholder/ profit maximization -strategy: Financially sustainable 3. -outcome goal: Stakeholder and shareholder -strategy: Financially sustainable 4. categorize all organizations and firms which are neither driven by market nor bureaucratic chain of command

1. non-profit business (3rd sector) 2. traditional business 3. socially focused business 4. third sector

Roots of Unethical Behavior 1. generally accepted principals of right and wrong governing the conduct of individuals 2. values and norms that are shared among employees of an organization 3. legitimize unethical behavior or reinforce the need for ethical behavior 4. encourage managers to cut corners or act in an unethical manner 5.- helps establish the culture of an organization and set examples that others follows. - Ex) when these people act unethically, subordinates may also act unethically too. 6. emphasize individualism and uncertainty avoidance are more likely to stress ethical behavior

1. personal ethics 2. decision making process 3. organizational culture 4. unrealistic performance goals 5. leadership 6. societal culture

1. the system of government in a nation- who is in charge 2. 1. stresses the primary of collective goals over other individual goals. -advocate state ownership of the basic means of production, distribution, and exchange -manage to benefit society as a whole, rather than individual capitalists -sustainability practices -message= people should prioritize the good of society over welfare of the individual -South America, Asia 3. a. socialism can only be achieved through violent revolution and totalitarian dictatorship 4. a. socialism is achieved through democratic means - state owened enterprises have been privatized

1. political systems 2.collectivism 3. communism 4. social democrats

Hofstede's dimensions 1. - How society deals with the fact that people are unequal in physical and intellectual capabilities - Embraces hierarchy 2. - Extent to which different cultures socialize their members into accepting ambiguous situations and tolerating ambiguity 3. - The relationship between gender and work roles (tough/power vs. tender/nurture) 4. - How comfortable with ambiguity vs anxious about change - Premium on job security, career patters, retirement benefits 5. - Accept delayed gratification of their material, social, and emotional needs 6. - How society suppresses gratification of needs and regulates by means if strict social norms - Enjoying life, having fun -happiness is good, yolo

1. power distance 2. individualism 3. feminine/masculine 4. uncertainty avoidance 5. long-term orientation 6. restraint/Indulgence

1. system of shared beliefs and rituals that are concerned with the realm of the sacred 2. - Protestantism and modern capitalism 3. - Religion is paramount in life, prayer rituals, dress requirements 4. - Judged based on spiritual achievements 5. - Less emphasis on entrepreneurial behavior 6. - Influencing behavior and culture in many parts of Asia

1. religion 2. christianity 3. islam 4. hinduism 5. buddhism 6. confucianism

1. Integrated reporting increases organization transparency, strengthens stakeholder trust and acts as an indicator of future performance for shareholders 2. engage in innovative and market-oriented solutions to solve social problems 3. is an organization that applies commercial strategies to maximize improvements in financial, social and environmental well-being

1. social reporting 2. Social Entrepreneur 3.Social Enterprise

Philosophical approaches to ethics 1. - misrepresent someone's argument to make it easier to attack - offer inappropriate guidelines for ethical decision making 2a. - Only social responsibility of a business is to increase profits. - Focuses on shareholders and profits 2b. regarding the new purpose of a corporation from relying solely on increasing shareholder wealth to taking into account all stake holders including employees, customers and society at large 3. - Culturally determined and firms should adapt the ethics of cultures in which they operate - "when in Rome. Do as the romans do 4. - A multinational's home country standards of ethics should be followed foreign countries - -complexities of rules 5. - If a manager of a multinational sees that firms from other nations are not following ethical norms in host nation, that manager should not either 6. - The moral worth of actions or practices is determined by their consequences 7. - People have dignity and should be respected - People are not machines - People should be treated as ends and never purely as means to ends of others 8. - Human beings have fundamental rights and privileges that transcend national boundaries and cul

1. straw man 2a. friedman doctrine 2b. crafted statement 3. cultural relativism 4. righteous moralist 5. naive immoralist 6. utilitarian 7. kantian ethics 8. rights theory 9. justice theories

1. world's largest corporate sustainability initiative 2 • Human Rights: • Labor: • Environment: • Anti-corruption:

1. un global compact 2. UN Global Compact Principles

1. - creates profit for its shareholders while protecting the environment and improving the lives of those with whom it interacts - people, profit, planet 2. - denotes a popular buzzword for an array of social and environmental causes which elicit emotional responses

1.Sustainability corporation 2. Sustainability

true or false : in ian goldins ted talk he states that globalization has not been inclusive for all the world's economies

True

cultures move toward universally accepted values and norms

convergence hypothesis

-religion -political philosophy -economic philosophy -education -language -social structure

determinants of culture / culture norms and value system

1. Declining trade and investment barriers 2. Role of Technological change: a.communications b.transportation technology c. the internet

drivers of globalization

-The shift toward a more integrated and interdepended world economy -fundamental shift in the world economy -driven by advancements in communication including the internet

globalization

base production in the optimal location for that activity - connection with the local consumer

globalization implications

-world is sees as a market - blurring borders for small and large business -65-80% of college graduates will go to work for MNE -Multi-national enterprises -grow your business - locate production in the most cost-effective locations -disruptions in supply chain

importance of understanding as a business person

- Have the ability to cross boundaries - Recognize their core values (inflexible) and their flex values - Have deep interest in other human beings - Understand personal culture

leaders

1. overcome poverty or social problems 2. financial and economically stable 3. investors get money back and no dividends given beyond investment money 4. when investment amount is paid, company profit stays with the company for expansions and improvements 5. gender sensitive and environmentally conscious 6. workforce gets market wage with better working conditions 7. do it with joy

principles of social business

-countries are different - culture, infrastructure -range of problems is wider and more complex -find ways to work within the limits imposed by governments -conversion of currency- exchange rates

reasons why managing an international business is different

-falling barriers to cross-border trade- through tension and uncertainty -consumer tastes and preferences are converging - unique opportunities -firms offering standardized products worldwide -Technological changes and globalization -A fundamental shift in the world economy - interconnectedness

these led to globalization