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