World Business
The integration and free movement of people, goods, services, and capital across borders.
What is globalization?
Cultural norms, religion, and social values fall under this global force.
What are sociocultural forces?
A firm allows a foreign company to manufacture its product in exchange for a fee.
What is licensing?
A tax placed on imports to make them more expensive than domestic goods.
What is a tariff?
The lowest level of the ethical standards hierarchy.
What is the law?
Three major tech advances that have accelerated globalization.
What are communication, information processing, and transportation technologies?
Exchange rates determine how much of this you get when exchanging in another country.
What is foreign currency?
A business model where someone buys the rights to use a company’s name/product in a specific area.
What is franchising?
Government payments to domestic producers to help them compete.
What are subsidies?
Ethics in an organization start at this level.
What is the top (leadership)?
This type of trade involves the movement of goods across nations without barriers.
What is free trade?
A high-value dollar makes these types of goods less expensive for U.S. consumers.
What are foreign goods?
A shared major project between two or more companies.
What is a joint venture?
A limit on how much of a product can be imported.
What is an import quota?
One of the four basic consumer rights that ensures buyers are protected from harmful products.
What is the right to safety?
According to the slides, countries with abundant natural resources need these from other countries.
What are foreign markets or technological resources?
Government policies and laws fall under this category of global market forces.
What are regulatory forces?
A partnership formed to help each firm build competitive advantage, but not share profits or management.
What is a strategic alliance?
A self-imposed restriction by an exporting country to reduce shipments to another country.
What is a voluntary export restraint?
Unrealistic performance goals can encourage this type of behavior.
What is unethical behavior?
A country has this when it can produce a specific product more efficiently than anyone else.
What is absolute advantage?
This force includes weather, natural resources, and geographic conditions.
What are physical and environmental forces?
Buying permanent property or businesses in a foreign country.
What is foreign direct investment?
Policies used to punish firms selling goods abroad at unfairly low prices.
What are antidumping policies?
One main reason people behave unethically without realizing it is because they fail to do this.
What is ask questions of their managers?