Part 2 Management

Identify the three principal organizations designed to facilitate international trade.

World Bank World Trade Organization International Monetary Fund

History shows that countries used to be concerned only with regulating their own economies. As times have changed, goods, people, and money now move more freely throughout the world. These changes reflect the idea of _____.

a global economy

A group of nations within a geographical region that have agreed to remove trade barriers with one another is called _____

a trading bloc

The ability to operate in different cultures is the definition of _____.

cross-cultural awareness

The exchange rate is defined as the rate at which the

currency of one area or country can be exchanged for the currency of another's.

People who are outside an organization but are still affected by the organization are called the ______.

external stakeholders

Maquiladoras are

foreign-owned manufacturing plants that operate in Mexico in exchange for employing Mexican citizens.

Nations are easily able to trade with one another when there aren't any political or economic obstructions hampering the process. This is known as _____.

free trade

The ability to move goods and services among nations without any political or economic obstruction is called _____.

free trade

An organization's macroenvironment is also known as its _______ environment.

general

Corporate _______ is the system of company oversight designed to ensure that the interests of owners and other stakeholders are protected.

governance

Which of these are examples of devices countries use to exert trade protectionism?

import quotas embargoes tariffs

As the CEO of a pharmaceutical company, Simone learned that the government was about to block the import of one of the company's biggest-selling drugs. She decides to sell her shares of stock before the information is made public. Since she used confidential information to make her decision, she is guilty of _____.

insider trading

People who buy or sell stock illegally based on confidential company information are engaging in _____.

insider trading

A condition in which a country grants other countries favorable trading treatment such as the reduction of import duties is known as ________ trading status

most favored nation

The act of contributing money in order to benefit society is referred to as _______.

philanthropy

Countries grant most favored nation status as a way to

promote strong and more stable ties between countries

What are actions your book suggests that individuals can take to become more ethical consumers?

purchase fair trade items don't buy knockoff items don't purchase items that aren't ethically made or sourced provide your own bags at the grocery store

Three important developments in globalization are the:

rise of the "global village" and electronic commerce world's becoming one market instead of many national ones rise of both megafirms and Internet-enabled minifirms worldwide

A manager's responsibility to take actions that benefit both society and the business is known as _____ responsibility.

social

Which of the following aspects of a company's performance are measured by the company's triple bottom line? (Select all that apply.)

social financial environmental

The World Trade Organization, the World Bank, and the International Monetary Fund are the three principal organizations designed to facilitate international _____.

trade

The use of government regulations to limit the import of goods and services is called _____.

trade protection

An economic community, also known as a _______, is a group of nations within a certain geographical region that have agreed to remove trade barriers with one another.

trading bloc

The ______ approach to solving ethical dilemmas involves ethical behavior being guided by what will result in the greatest good for the greatest number of people.

utilitarian

True or false: Ethical standards do not vary among countries or cultures.

FALSE

True or false: Currently, the United States exports more than it imports.

False

_____ managers believe that their native country, culture, language, and behavior are superior to all others.

Ethnocentric

True or False: Milton Friedman would have been highly supportive of today's notion of corporate social responsibility.

False

True or false: Unlike generations before them, Millennials have little concern for the environment and are more interested in profit over planet.

False

Place the following obligations of a corporation (as identified by Archie B. Carroll) in order, starting with the highest-level responsibility at the top of the list and placing the most fundamental obligation at the bottom of the list.

Highest-level responsibility 1. Being a good global corporate citizen 2. Being ethical in its practices 3. Obeying the law 4. Making a profit

What are two ways the Internet and World Wide Web give a small business the ability to go global?

It is easier to get started because products can be sold online. A small business can adjust to changes in the business environment quicker.

Which generation seems more concerned with finding work/life balance than other generations?

Millennials

Which of these are forces within an organization's general environment?

Political-Legal Sociocultural Economic Technological International Demographic

The Internet and World Wide Web allow almost any business to be global. What are two important results of this process?

Small companies can get started more easily. Small companies can maneuver faster.

Select four groups that make up the task environment.

Strategic allies Government regulators Local communities Distributors

Which of these events are credited with setting up the conditions by which the global economy - goods, people, and money moving freely throughout the world - could flourish.

The worldwide trend of governments deregulating their economies The fall of the Berlin Wall Asian countries opening their economies to foreign investors

Which of these are identified as being important skills workers will need in a globally connected world?

ability to sense and respond to new contexts adaptability to changing circumstances linguistic skills

A nation's culture:

can seem intangible and perplexing to outsiders unconsciously teaches us how to walk, talk, behave, and relate to other people operates in large part outside of individual awareness is made up of many nuances

The purpose of a code of ethics is to

clearly state top management's expectations for all employees

Major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades is known as _______.

climate change

A formal set of standards guiding an organization's actions is called a _____.

code of ethics

The situational or environmental characteristics that affect a person's behavior are called _____.

context

Running a company and protecting the interests of owners and other stakeholders is known as _____.

corporate governance

Today, it is stressed even more that companies go beyond just making a profit and take into consideration the environment and philanthropic initiatives. This is known as practicing ______.

corporate social responsibility

What two things are credited with creating the "global village?"

electronic media convenient air travel

An organization's internal stakeholders consist of

employees, owners, and the board of directors.

Understanding context:

enables you to more effectively communicate with and influence others enhances your ability to fit comfortably into a particular context gives you insights that let you correctly interpret the "what" and "why" of someone's behavior

A(n) _____ dilemma is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal.

ethical

An organization's standards of right and wrong that influence employee behavior are referred to as _______.

ethics

The rate at which the currency of one country can be exchanged for the currency of another country is called the _____ rate.

exchange

People who have citizenship in one country, but who live and work in a foreign country, are known as _____.

expatriates

Purchasing _____ items increases the chances that your money will help provide a decent wage for the people who made them.

fairtrade

An ethical dilemma in an organization:

forces you to decide whether to pursue a course of action that may be good for you or the company, but that is unethical and possibly illegal often involves choosing between economic performance and social performance

The rise in the average temperature near the Earth's surface due to an increase in greenhouse gases in the atmosphere is called _____ and is one aspect of climate change.

global warming

Problems associated with using expatriate employees include: (select all that apply)

high costs to the organization that sends its employees overseas as expatriates. failure to effectively manage the return of expatriates, ultimately reducing the organization's return on investment. early turnover.

Select all of the statements that accurately represent Hurley's views on the most important crisis in business today.

in business today, there is a crisis of trust what is important is that organizations deliver every day on what they promise companies may think certain organizations are ethical, but that does not mean they should trust them

Globalization is the trend of the world economy becoming a more _______ system.

interdependent

The people inside of an organization who have an important stake in how it performs are the organization's _____ stakeholders.

internal

A person from Germany is from a ____________ culture, because shared meanings are primarily derived from written and spoken words.

low-context

In a ______ culture, shared meanings are often derived from written and spoken words.

low-context

According to Archie B. Carroll, the responsibilities of an organization can be arranged as a pyramid, with _____ at the base and _____ at the top.

making a profit; corporate citizenship

According to free-market economist Friedman, what is the only social responsibility of a business?

making profits

Foreign companies with manufacturing plants that are allowed to operate in Mexico with special privileges in exchange for employing Mexican citizens are known as _______.

maquiladoras

______ time is a preference for doing one thing at a time.

monochromatic

When Matt was meeting with Susan, he focused exclusively on the meeting. He did not check his incoming texts or respond to a phone call. This reflects a preference for ______.

monochronic time

A company that has operations in several countries is called a(n) ______.

multinational corporation

Wal-Mart is an example of a(n) ______ because it is a business with operations in multiple countries.

multinational corporation

Using suppliers outside of the company to provide materials to make goods and services is called _____.

outsourcing

Another way to describe ethnocentrism is as a narrow view in which people see things solely through their own perspective. This is called _____.

parochialism

A company's triple bottom line represents which three aspects?

people planet profit

Target donates millions of dollars each year in education-related grants for arts and cultural experiences, field trips, and reading programs, as well as grants to promote public safety. This is an example of _______.

philanthropy

A company's decision to move its operations out of the country will affect its employees, owners, suppliers, distributors, and everyone else who has an interest in the business. All of these groups together make up the company's _____.

stakeholders

Which broad term identifies anyone impacted by a business, including but not limited to stockholders, employees, and customers?

stakeholders

The ten groups that present a company with its daily tasks to handle represent the company's _____ environment.

task

A company's external environment consists of which two environments?

task & general

The "shrinking" of time and space as air travel and the electronic media make it easier for people of the world to communicate with one another refers to _____.

the global village

According to Fordham professor Hurley, there is not a crisis of ethics in business today but a crisis of _____.

trust

When forced to select between a US-produced product and a less expensive imported product, _____ of Americans say they would choose the cheaper option.

two-thirds

outsourcing is

using suppliers outside the company to provide goods and services

Managers often use a(n) _____ approach when making organizational decisions - using financial performance such as profit as the best definition of what constitutes an ethical choice for the company.

utilitarian

______ is a shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people.

A culture