Chapter 4
What did Ed's employee Mustafa have for lunch that he has never had before?
PB & J
Why hire women?
They are easier to manage
Bribe?
A payment made for preferential treatment
Mauritania
Most muslim country in the world
ProductLife Cycle Theory?
As demand rises and the U.S. exports more it becomes smarter to produce offshore and become an importer of the product that the U.S. created
Cross-Culture Literacy?
Understanding differences in culture and accepting them
Tragedy of the commons?
A resource owned in common is compromised by an individual or group
Cultural Relativism?
When in Rome, do as the Romans
Mercantilism
Maintain a trade surplus. problem: it's a zero sum game (gain by one country, loss by another)
New Trade Theory?
Economies of scale dictate trade patterns
1. Trade increase variety and lowers price
2. Only a few firms will survive, first mover advantage is important
Guanxi?
Relationships/Connections, systems of reciprocity
Global Tragedy of the commons
Moving your production to a place where there is no law against your pollutant/compromising behavior
The Righteous Moralist?
You follow your home country ethics
Law of diminishing returns?
Absolute advantage
When a country can produce a product more efficiently than any other country
Noblesse oblige
Honorable benevolent behavior that's the responsibility of all successful companies
Naive Immoralist?
If firms from other nations are not following host nations norms, you don't either
Heckscher-Ohlin
Explains international trade patterns by countries resources and environment
What is important and hard to find in business?
The sweet spot
Comparative advantage
Buying goods that you produce less efficiently than other countries
Foreign Corrupt Polices Act (FCPA)
1. Speed money
2. Grease money
3. Facilitating money
Utilitarian Approach (The Sheik)
The moral worth of your actions is based on the consequences
Dr. Leon Sullivan
An African American Baptist minister. The sullivan Principles
Infant Industry Agreement?
Governments should enact policies to help infant industries so they can grow, prosper, employ, and contribute