INTL Business Midterm - CH 3 & 4 & 5 REVIEW
Gross Domestic Product (GDP)
A measurement of the total goods and services produced within a country.
Purchasing Power Parity
An adjustment in gross domestic product per capita to reflect differences in the cost of living
six determinants of ethical behavior
Personal ethics Decision making processes Organizational culture Unrealistic performance goals Leadership Societal culture
unrealistic performance goals
Pressure from parent company to meet goals that are unrealistic and can only be attained by acting in an unethical manner
social structure
a pattern of organized relationships among groups of people within a society
World Values Survey (WVS)
a research project spanning more than 100 countries that explores people's values and norms, how they change over time, and what impact they have in society and business
social stratification
a system by which a society ranks categories of people in a hierarchy
Culture
a system of values and norms that are shared among a group of people and that when taken together constitute a design for living
Societal Culture
firms headquartered in cultures where individualism and uncertainty avoidance are strong are more likely to stress ethical behavior than firms headquartered in cultures where masculinity and power distance rank high
Entrepreneur
first to commercialize innovative products and processes
development requires removing major impediments to freedom:
poverty, tyranny, poor economic opportunities, systematic social deprivation, neglect of public facilities
Hofstede's Cultural Dimensions
power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, short-/long-term orientation
Determinants of Culture
religion, political philosophy, economic philosophy, education, language, social structure
Deregulation
removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which private enterprises operate
Norms
social rules and guidelines that prescribe appropriate behavior in particular situations
legal systems
system of rules that regulate behavior and the processes by which the laws of a country are enforced and through which redress of grievances is obtained
human rights
the basic rights to which all people are entitled as human beings
Personal Ethics
the generally accepted principles of right and wrong governing the conduct of individuals
organizational culture
the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
Privitization
transfers the ownership of state property into the hands of private investors
cross-cultural literacy
understanding of how cultural differences across and within nations can affect the way business is practiced
the shift toward a market-based system involves:
- Deregulation - Privatization - A legal system to safeguard property rights
Trends that foster greater economic development
-democratic forms of government -market based economic reforms -legal systems that better enforce property rights
Decision Making Process
The process of choosing between two or more alternatives or options; most logical way to make a decision.
society
a group of people sharing a common set of values and norms
market economy
economic system in which decisions on production and consumption of goods and services are based on voluntary exchange in markets
planned economy
economy that relies on a centralized government to control all or most factors of production and to make all or most production and allocation decisions
The most common ethical issues in business involve:
employment practices human rights environmental regulations corruption moral obligations
Examples of human rights
freedom of association freedom of speech freedom of assembly freedom of movement freedom from political repression
Leadership
helps to establish the culture of an organization and set the examples that others follow
Values
ideas about what is right or wrong, good or bad, desirable or worthy in a particular group
Human Development Index (HDI)
measures the quality of human life in different nations - life expectancy, educational attainment, average income
innovation
new products along with new processes, new organizations, new management practices, and new strategies