...International Business Environment BE2501 – Summary Chapter 1 Globalization – refers to the shift toward a more integrated and interdependent world economy. Globalization of markets – refers to the merging of historically distinct and separate national markets into one huge global marketplace. Globalization of products – refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production (such as labor, energy, land and capital) General Agreement on Tariffs and Trade (GATT) World Trade Organization (WTO) – is primarily responsible for policing the world trading system and making sure nation-states adhere to the rules laid down in the trade treaties signed by WTO member states. International Monetary Fund (IMF) and the World Bank (WB) were both created in 1944 by 44 nations that met at Bretton Woods, New Hampshire. The IMF was established to maintain order in the international monetary system; The WB was set up to promote economic development. United Nations (UN) – was established on October 24, 1945, by 51 countries committed to persevering peace through international cooperation and collective security. International trade occurs when a firm exports goods or services to consumers in another country. Foreign Direct Investment (FDI) occurs when a firm invests resources in business activities outside its home country. Stock of foreign direct investment – refers...
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...Legal and Ethical Environment of Business Thomas Matthew October 9, 2013 American InterContinental University Eric Baime * Analyze and explain the state of our legal system in terms of ethics. The basis of our legal system was and is to protect the wealth of a very few by imposing laws on the less fortunate class of society. Tribal leaders and kings that were capable of forming armies to their benefit developed this system years ago. They formed this cartel and enforced their rules upon a society who lacked the power to contest the laws imposed on them. This system has evolved in our society in the form of a government who utilize the police and military to dictate the lives of the public. They inform the public that these laws exist to protect the interests of the people within the society. If these laws were actually created for the overall good of humanity then indeed they would be ethical but in reality people in power abuse these laws for their benefit. The laws within our legal system do consist of some ethical components and are considered either valid or invalid. Since our legal system was created by the wealthy they essentially do have opposing ethical views. The conflicting viewpoints exist in the legal system because the laws strip freedom and justice from one person in order to provide it to another. This implies that unethical laws are present giving power to more and limiting it to some. The legal system consists of laws that prohibit ethical...
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...Chapter 01 Globalization Answer Key True / False Questions 1. As a result of globalization, we have been moving toward a world in which national economies are (p. 7) relatively self-contained entities. FALSE Over the past three decades a fundamental shift has been occurring in the world economy. We have been moving away from a world in which national economies were relatively self-contained entities. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Understand what is meant by the term globalization. Topic: Introduction 2. By offering the same basic product worldwide, firms help to create a global market. TRUE Consumer products such as Citigroup credit cards, Coca-Cola soft drinks, video games, McDonald’s hamburgers, Starbucks coffee, and IKEA furniture are frequently held up as prototypical examples of this trend. The firms that produce these products are more than just benefactors of this trend; they are also facilitators of it. By offering the same basic product worldwide, they help to create a global market. AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 01-01 Understand what is meant by the term globalization. Topic: What Is Globalization? 3. A company has to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets. FALSE A company does not have to be the size of multinational giants to facilitate, and benefit from, the ...
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...A S S I G N M E N T O N Business Ethics Submitted to Dr. A. H. M Habibur Rahman Course Teacher Managing Organization Department of Finance Dhaka University Bangladesh. Submitted by Md.Mostafijur Rahman ID- 22055 Semester: Fall 2012 MBA(Evening) Program Department of Finance Dhaka University Bangladesh. Submission Date: 2 October 2012 Introduction Ethics, also known as moral philosophy, is a branch of philosophy that involves systematizing, defending, and recommending concepts of right and wrong behavior. It comes from the Greek word “ethos”, which means "character". It is the study of morality. It is the value that is worth pursuing in life. Ethics is relative. It depends on several factors: world views, descriptive values and moral values. Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer. Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior. Definition Business ethics can be defined as written and...
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...Business Ethics Dirty To The Core Seandel Gibson Business-Law Professor- Mr. McLamore June 11, 2012 Business Ethics Abstract Ethical behavior isn’t an act but a habit, just as good health requires cultivating the habits of getting enough sleep and eating wholesome food, Aristotle believed that right action was the result of developing good moral habits. In a business context, this means training and, at the deepest level, something we call “corporate culture.’ Although Ethical management is being given a higher priority by many management teams, a wealth of evidence reveals that managers are still unclear about how to institute strategies and systems that encourage ethical conduct and help create a moral corporate culture. Many managers have opted for the simple route of promulgating rules and instructing everyone to follow them. Not only is this approach providing ineffective in today’s decentralized business environment, it also denies employees any chance to become part of the ethical fabric of the organization. Business Ethics Corruption is defined by transparency international as the misuse of public power for private gain. It takes many forms and can be intensely...
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...Abstract In this essay I will explain the results of my research of a major organization’s code of ethics. I will also describe how ethical principles can address organizational issues. Other issues such as external social pressures will also be covered in this paper. The organization I selected to research was the largest retailer in the United Sates of America, Wal-Mart. Over the past decade Wal-Mart has experienced quite a number of controversies that have generated world- wide news. So some individuals may say that there is no reason to research an organization that underpays their employees and forces so many local businesses to close because of a perceived unfair advantage of selling goods at a cut rate price. This paper will not argue for or against Wal-Mart. This report will simply focus on the company’s written code of ethics. Organizational Ethics In all facets of our life ethics play a role, from the way we deal with the local store clerk to the way we file our taxes, we are burdened with a general code of ethics. Organizations have to do the same or more for the image of their organization to remain positive. A negative reputation in ethics in the business world will overtime cost that company more profits. And with the intense media coverage of negative stories… every aspect of the company is an organizational issue. Wal-Mart is in the business of wholesale retail to consumers of the world, and with every new store that opens, also opens the opportunity to criticize...
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...Practice of the International Business Ethics Gabriela Dubcová* ABSTRACT The ethics triangle: national law, culture and political economic system. Key factors of current ethics issues in an international environment. The most visible changes in environment dimensions. Principles of international business ethics. Current ethics challenges in international environment. Common issues of the international business ethics. Comparison of ethical standards in different cultures. Accelerating development of globalization and assimilation between Europe and the USA. Differences between Europe, the United States and Asia in the business ethics perspective. Development processes of global business ethics. Levels of global business ethic level. Principle of normative guidelines for business conduct of multinational corporations. Current functioning of institution engaged in the international business ethics. Key words: The ethics triangle; Current ethics issues; International business ethics; Ethical standards; Global business ethics; Institution engaged in the International Business Ethics. JEL classification: K2, M1 Introduction The present economic situation in the globalized world generates very efficient processes in international companies with large profits for managers but with a relevant risk in economic and noneconomic ambit to eliminate any negative impacts of the crisis from one country to another. In this case, it is necessary to enact and apply ethics principles in international...
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...“Marketing Leaders and Ethical Issues in Advertising” ABSTRACT The purpose of this project is to point out some different measures used in advertising for defining problems and to note ethical and moral problems that advertising can and does raise and, finally, to suggest certain steps for the marketing leaders of those professionally involved in advertising. The project examines what the ethical problems in advertising are and why many marketing leaders create unethical advertisements. In order to demonstrate the unethical advertising, I provided some examples. I added to the project a list of ethical and legal issues when creating advertisements can help you to craft legal, responsible advertisement messages. The project also examines ways of solving ethical issues in advertising and what advertisers, marketing leaders should do to be in the money. INTRODUCTION Communication stimulation was known in ancient times. With banners and signs and graffiti dealers notified the citizens about the availability of certain goods on the stalls, as well as future events, such as the slave trade or the gladiators. Due to mass illiteracy traders also had to resort to touts - people standing in the streets or on the busy intersections of the city and loudly informed the passers on the goods. While advertising was of informative, it did not have the elements of persuasion. The flourishing of the advertising business falls on XIX century, when the first public relations man, began...
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...Code of Business Ethics Third Edition Reprint Third Edition tA B L E o F C o n t E n t S oUR EtHICAL FoUndAtIon, oUR CoRE VALUES And oUR KEy dRIVERS ........................1 Our Code of Business Ethics ..........................................2 We are passionately focused on business results and customer success. ........................................14 Fair Dealing .....................................................................14 SECtIon I EtHICAL BEHAVIoR We uphold the highest ethical standards and are accountable for all we do. .................................5 Antitrust and Competition .............................................5 Anti-corruption and Bribery ..........................................6 Gifts .....................................................................................7 Integrity of Commercial Transactions ..........................7 International Trade Laws ................................................7 We are good citizens, protect employee health and safety, and manage natural resources responsibly. .......................................................8 Our Expectations in Doing Business ...........................14 Competitive Information ..............................................14 SECtIon III oUR CULtURE We treat each other with dignity and respect, and believe in diversity of thought, culture and background. ...............................................16 Our Responsibilities...
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...An Article On Business Ethics and Global Dimension of Business Business Ethics and Global Dimension of Business October 19, 2014 Ethical issues have been around for a long time and its association with globalization has been documented. The effects on the association with globalization are similar and closely related to that of international marketing. As a result, the increased globalization over the years has brought an increase in many problems associated with global trading including ethical ones. (WTO, 2011). As indicated by World Trade organization in 2011, there was significant expansion in world trade from 1950 to 2000. This increase was documented to be over twenty-fold with foreign direct investment and exports playing a significant role. This increase in world trade in the middle to late 20th century also saw small businesses increasing their investments in cross border trading. This resulted in an increase in the average yearly outflow of Foreign Direct Investment (FDI) from about $25 billion in 1975 to a record $1.3 trillion in 2000. (UN, 2001). This means that there were a great number of business people with different social and cultural backgrounds doing business in other areas of different geographical, political, legal, social and cultural environments. The challenges that confronted these business people working in these different environments with its associated social and cultural problems created a platform for indulgence in ethical problems and other...
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...MBA505 INTERNATIONAL BUSINESS MANAGEMENT REV11A CHAPTER 1: ASSESSING THE ENVIRONMENT POLITICAL, ECONOMIC, LEGAL, TECHNOLOGICAL CHAPTER SYNOPSIS This chapter explains the elements of International Business Management. It gives a sound understanding of factors such as Political and Economic Environment, Legal Environment, and Technological Environment. Also, it covers the effects of Regional Trading Blocks, Information Technology, The Globalization of Human Capital, The Global Manager’s Role CHAPTER OUTLINE The Global Business Environment Regional Trading Blocks Information Technology The Globalization of Human Capital The Global Manager’s Role The Political and Economic Environment The Legal Environment The Technological Environment ISSUES FOR REVIEW AND DISCUSSION I. The Global Business Environment A. Global management Global management is the process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage. 1. Globalism “Global competition characterized by networks that bind countries, institutions and people in an interdependent global economy.” 2. Evidence/Indicators of Globalism The growth rate of the trade of goods has grown faster than the world production of goods. The European Union has now caught up with the United States to share the position of the world’s largest investor. 2011 AMERICAN CITY UNIVERSITY Page 1 of 28 MBA505 INTERNATIONAL BUSINESS MANAGEMENT REV11A ...
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...School of Business & Entrepreneurship Assignment for Course: | MGT 5012: 21st Management Practices | Submitted to: | Dr. Bahaudin G. Mujtaba | Submitted by: | Kandis D. Gaines | | N01408070 | | 5800 Lake Pointe Village Cir #617 Orlando Fl 32822 | | 386-316-1449 | | | Date of Submission: December 8, 2013 Title of Assignment: Final Term Paper: Business Ethics and the Moral Foundation of Effective Leadership CERTIFICATION OF AUTHORSHIP: I certify that I am the author of this paper and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: _____Kandis D. Gaines_________________________ ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments: Business Ethics and the Moral Foundation of Effective Leadership Introduction In the global business spectrum, ethics play a huge role within any form of business where key ethical principles such as morals, values, and judgment determine the overall success and direction of the company. Managers and entrepreneurs who make moral determinations behind ethics build trust and create positive relationships with their employees, consumers, and investors. This form of ethical behavior leads...
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...managerial perceptions, attitudes and organizational perspectives. -Top two exogenous risks facing business leaders and policy makers for 2012 and the next decade would be severe income disparity (The unequal distribution of household or individual income across the various participants in the economy) and chronic fiscal imbalances (situation where all of the future debt obligations of a government are different from the future income streams) -Other issues: natural disasters such as 2011 earthquake in Japan, flood in Thailand, Political uncertainty in China and Middle East -Globalization has compounded the types and level of business risks. *Typical challenges that managers face involve politics, cultural differences, global competition, Terrorism and Technology. Managers in companies are struggling to find ways to balance their social responsibilities, their images, and their competitive strategies. -PESTEL- An analytical tool to develop and understanding of exogenous risk -Pestel analysis- Political, Ethical, Social, Technological, Environmental and legal understanding or environmental scanning that is CRITICAL if we are to strategically plan and develop our value proposition. -> Exogenous creates Endogenous RISK SWOT Analysis- an analytical tool that helps you develop an understanding of how exogenous risks influences endogenous risks for the firm The Global Business environment Globalisation- Global competition characterized by networks of international linkages...
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...the ethical dilemma faced by Jextra’s country manager, Tom Chong, who was responsible for Neighbourhood Markets in Malaysia. Jextra Stores was a Hong Kong based company that operated retail stores in China, Hong Kong, Philippines, Malaysia, Thailand, Singapore, and Vietnam. In 2005, the company successfully entered Malaysia, operating supermarkets under the name of Neighborhood Markets (Inkpen, 2010). Jextra identified a promising site in Klang, near the capital of Kuala Lumpur, to open a new supermarket (Inkpen, 2010). Mr. Chong needs to evaluate a proposal made by the Mayor of Kang, which might be considered bribery. In this case, Mr. Chong faces social and ethical challenges that may affect the company’s operations, performance, and competitiveness in the region as well as Mr. Chong’s career. The major social issues include those related to law, culture, and ethics. The report also analyzes anti-bribery corruption enacted by the U.K Bribery Act and the U.S. Foreign Corrupt Practices Act (FCPA). The report concludes with recommendations to Jextra such as seeking proper legal advice, implementing an effective business code of conduct, providing inter-cultural and ethics training to managers, using a geocentrism approach and conducting an internal investigation for the Malaysian category manager. Analysis Social, Ethical, or Legal Challenges International firms operating abroad often face social challenges because they operate in markets with different legal and...
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...Quiz # 1 Note’s Chapter # 1-3 Business Ethics Chapter # 1 1. Why Business Ethics? * Business decisions under great scrutiny Global financial crisis created diminished stakeholder trust Deals with questions about whether practices are acceptable No universally-accepted approach for resolving issues 2. Business Ethics * Comprises principles, values, and standards that guide behavior in the world of business 3. Principles: Specific boundaries for behavior that are universal and absolute Freedom of speech, civil liberties 4. Values: Used to develop socially enforced norms Integrity, accountability, trust, Norms: Accepted behaviors. Morals: Rules of right conduct: right/wrong 5. A Crisis in Business Ethics * Consumer trust of businesses is declining, No sector is exempt from ethical misconduct, Stakeholders determine what is ethical/unethical ,Investors Employees, Customers, Interest groups, Legal system, Community 6. Why Study Business Ethics? * Reports of unethical behavior are on the rise, Society’s evaluation of right or wrong affects its ability to achieve its business goals, Studying business ethics is a response to Sarbanes-Oxley, FSGO, and stakeholder demands for ethics initiatives, Individual ethics alone is not sufficient, Studying business ethics helps identify ethical issues to key stakeholders 7. A Timeline of Ethical and Socially Responsible Concerns * Environmental issue, Civil right issue, increased employee employer...
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