Intro to Business - Test 1 (Chapter 3)

A document issued by a transport carrier to an exporter to prove that merchandise has been shipped

A bill of lading is defined as: a. a document that is issued by a bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary. b. providing complete control over operations when exporting through an export-import agent. c. a document that is issued by the exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank. d. a document issued by a transport carrier to an exporter to prove that merchandise has been shipped. e. providing a link between buyers and sellers in different countries that allows both to avoid financial restrictions.

import duty (tariff)

A country may attempt to protect its own domestic industries by imposing a(n) _____, a type of tax, on imported products. a. currency devaluation b. import duty (tariff) c. foreign-exchange control d. embargo e. import quota

the country is receiving more money from trade with foreign countries than it is paying out

A country with a trade surplus generally has a favorable balance of payments, which means: a. more money flows out of the country than into it. b. other nations will probably lose confidence in the country's economy. c. the country may experience declining production and higher unemployment. d. a continual surplus may indicate that the country encourages imports by not imposing trade restrictions. e. the country is receiving more money from trade with foreign countries than it is paying out.

The application of moral standards to business situations

Business ethics

- No false or misleading ads - can't hid language and trick you into signing something

Communications and example

- Don't take advantage of a situation for personal interest rather than employer's interest - Gift that is expensive from an employee

Conflict of interest and example

consists of all activities undertaken to protect the rights of consumers

Consumerism

adopting a strategy to fulfilling economic, ethical, environmental and social responsibilities (using solar panels, airlines giving veterans discounted flights).

Corporate citizenship

increases; decreases

Currency devaluation ___________ the cost of foreign goods and _______ the cost of domestic goods to foreign firms. a. does not change; increases b. increases; decreases c. decreases; does not change d. does not change; decreases e. decreases; increases

- fairness and honesty - organizational relationship - conflict of interest - communication

Ethical issues

refrain from knowingly deceiving, misrepresenting, or intimidating others., obey laws and regulations

Fairness and honesty

- Government- legislate more stringent regulations - Trade associations- guidelines exert pressure on members who stoop to questionable business practices. - Within an organization (firm roles)- code of ethics, organizational environment (management direction, employee training, ethics officer) Whistle-blowing

How can ethical behavior be encouraged?

- affirmative action - hardcore unemployed - reduce sexual harassment and abusive behavior

What are the 3 types of employment practices

- Right to safety - Right to be informed - Right to choose - Right to be heard - Right to consumer education - Right to service

What are the consumer bill of rights?

Workers with little education or vocational training and a long history of unemployment

What is hardcore unemployed?

Most-favored-nation status (MFN)

What is the famous principle of the General Agreement on Tariffs and Trade (GATT), which means that each member nation is to be treated equally by all contracting nations? a. Most-favored-nation status (MFN) b. Economic community c. Negotiation rounds d. Brexit e. The Trans-Pacific Partnership (TPP)

Informing the press or government officials about unethical practices within one's organization

What is whistle-blowing?

The North American Free Trade Agreement (NAFTA)

Which of the following agreements, when ratified, created a free trade area among the United States, Mexico, and Canada? a. The Central American Free Trade Agreement (CAFTA) b. The North American Free Three c. General Agreement on Tariffs and Trade (GATT) d. The Commonwealth of Independent States e. The North American Free Trade Agreement (NAFTA)

seven

Sub-Saharan Africa is home to __________ of the top-ten fastest-growing economies in the world. a. two b. seven c. ten d. five e. three

Ethics and the organization

Organizational relationship

It adopted tough new protections for employees who report corporate misdonduct.

What is the Sarbanes-Oxley Act of 2002?

licensing

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as: a. countertrade. b. licensing. c. joint venture. d. strategic alliance. e. export-import agent

multinational enterprise

A firm that operates on a worldwide scale without ties to any specific nation or region is known as a: a. joint venture. b. multinational enterprise. c. trading company. d. totally owned facilities. e. strategic alliance.

The IMF predicts a gradual global growth in both advanced and developing countries

According to the International Monetary Fund (IMF), what are the world economic growth projections? a. The IMF predicts a rapid global growth in developing countries, but no global growth in advanced countries. b. The IMF predicts a gradual global growth in both advanced and developing countries. c. The IMF predicts negative growth in both advanced and developing countries. d. The IMF predicts little to no global growth in either advanced or developing countries. e. The IMF predicts gradual global growth in advanced countries, but negative growth in developing countries

continue to produce coffee and trade it for U.S. products Brazil needs and cannot produce

Brazil has excellent resources and expertise to farm and produce coffee beans, whereas the United States is ill-suited for the production of coffee. Brazil should: a. continue to produce coffee and trade it for U.S. products Brazil needs and cannot produce. b. abandon coffee and produce a product Brazil's residents strongly demand. c. slow production of coffee and allocate Brazilian resources elsewhere. d. stop trading coffee with the U.S. and only trade coffee with its neighboring countries. e. increase coffee advertising to create a greater demand for coffee in Brazil.

- The study of right and wrong and the morality of choices individuals make - Ethics come from our values, morals and laws

Ethics

1. Commitment by top executive 2. Planning 3. Appoint social responsibility director 4. Social audit - comprehensive review of plan implementation

Implementing social responsibility Program

- Commitment by Top Executives - Planning - Appointment of Social Responsibility Director - Social Audit-define

Implementing social responsibility programs

1. Non-discrimination policies 2. Affirmative action 3. Sexual harassment & bullying 4. Environmental concern

Real life ethical concerns

comparative advantage

The United States is efficient at producing software and engineering services, but cannot produce clothes and electronics as efficiently as other nations. As such, the United States sells software and engineering services to other countries and buys clothes and electronics. This is an example of: a. supply and demand. b. absolute advantage. c. economic profit. d. comparative advantage. e. monopolistic advantage

World Trade Organization (WTO).

The organization established by the Uruguay Round of the GATT, whose purpose is to mediate trade disputes among nations is called: a. World Trade Organization (WTO). b. the European Union. c. the North American Free Trade Agreement (NAFTA). d. the Commonwealth of Independent States. e. trade protectionism

dumping

The selling of products in a foreign country at lower prices than those charged in the producing country is called: a. dumping. b. an import duty. c. an import quota. d. foreign-exchange control. e. an embargo.

- compliance based: punishment - integrity based: rewards

Types of codes of ethics

Designed to increase number of minority employees at all levels within an organization

What are affirmative action programs?

Individual knowledge of an issue, personal values, personal goals

What are some individual factors affecting ethical behavior?

Presence of opportunity (amount of freedom given to an employee to behave ethically), ethical codes, enforcement

What are some opportunities affecting ethical behavior?

What are some social factors affecting ethical behavior?

What are some social factors affecting ethical behavior?

Individual factors, social factors, and opportunity

What factors affect ethical behavior?

A written guide to acceptable and ethical behavior. Outlines policies, standards, and punishment for violations.

What is code of ethics?

firms recognize that business activities have an impact on society and that impact is considered in firm decision making (ex. Donating proceeds to charity

What is social responsibility?

To assist in financing the exports of American firms

What is the main function of the Export-Import Bank of the United States? a. To provide loans to developing countries to help them grow b. To promote economic and social progress in Asian and Pacific regions c. To foster the economic and social development of its African members d. To assist in financing the exports of American firms e. To make short-term loans to developing countries experiencing balance-of-payment deficits

Advocacy Center

Which U.S. government export assistance program facilitates advocacy to assist U.S. firms competing for major projects and procurements worldwide? a. International Trade Administration b. Small Business Administration c. STAT-USA/Internet d. Federal Trade Commission e. Advocacy Center

Canada and Mexico

Which countries are the United States' best trading partners for U.S. exports? a. Japan and India b. Canada and Mexico c. China and the United Kingdom d. Canada and Brazil e. Canada and China

International Trade Administration

Which of the following U.S. government export assistance programs offers assistance and information to exporters through its domestic and overseas commercial officers? a. Federal Trade Commission b. Small Business Administration c. STAT-USA/Internet d. International Trade Administration e. Advocacy Center

The International Monetary Fund (IMF)

Which of the following banks specifically makes short-term loans to developing countries experiencing balance-of-payment deficits? a. The Inter-American Development Bank (IDB) b. The Asian Development Bank (ADB) c. The African Development Bank (AFDB) d. The International Monetary Fund (IMF) e. The European Bank for Reconstruction and Development

Protection for new or weak industries

Which of the following is a reason for trade restrictions? a. Protection for new or weak industries b. Cutbacks in jobs c. Restriction of consumers' choices d. Higher prices for consumers

Small Business Administration

Which organization or U.S. government export program publishes guides that offer assistance and exporting information to small and medium-sized companies? a. Advocacy Center b. Federal Trade Commission c. International Trade Administration d. STAT-USA/Internet e. Small Business Administration

Industrialized nations

Who supports multilateral development banks (MDB)? a. Industrialized nations b. Developing nations c. The governments of the countries being assisted d. Industrialized nations other than the United States e. Only the United States

elimination of discrimination against minorities

employment practices

starts and run a business to achieve goal

social entrepreneurship