Management Chapters 3 And 4

Front 1

importing

Back 1

buying products from another contry

Front 2

exporting

Back 2

selling products to another country

Front 3

free trade

Back 3

movement of goods and services among nations without political and economical barriers

Front 4

comparative theory

Back 4

theory that states that countries should sell to other countries those products that it produces most effectively and efficiently and buy from countries whose products that it can not produce most effectively and efficiently

Front 5

absolute advantage

Back 5

advantage that exists when a country produces a specific produce more efficiently than all other countries

Front 6

balance of trade

Back 6

total value of a nations exports compared to its imports measured over a particular period

Front 7

trade surplus

Back 7

a favorable balance of trade, occurs when the value of countries exports exceeds that of its imports

Front 8

trade deficit

Back 8

an unfavorable balance of trade, occurs when the value of a countries imports exceeds that of its exports

Front 9

balance of payments

Back 9

difference between money leaving the country from exports and entering the country from imports plus money flows from other factors such as tourism and military expenditures

Front 10

dumping

Back 10

selling products in a foreign country at lower prices than those charged in the producing country

Front 11

licensing

Back 11

global strategy in which a firm (the licenser) allows a foreign company ( the license) to produce its product in exchange form a fee ( a royalty)

Front 12

contract manufacturing

Back 12

a foreigns company's production of private label goods to which a domestic company then attaches its brand name or trademark (type of outsourcing)

Front 13

joint venture

Back 13

a partnership in which two or more companies joint to undertake a major project

Front 14

strategic alliance

Back 14

a long term partnership between two or more companies to help each company build competitive market advantages

Front 15

foreign direct investment (FDI)

Back 15

buying of permanent property or businesses in foreign nations

Front 16

foreign subsidiary

Back 16

a company owned in a foreign country by another company called the parent company

Front 17

multinational corporation

Back 17

an organiation that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

Front 18

sovereign wealth funds (SWFs)

Back 18

investment funds controlled by governtments holding investment stakes in foreign companies

Front 19

exchange rate

Back 19

the value of one nations currency relative to currencies in other countries

Front 20

devaluation

Back 20

lowering the value of a nations currency relative to other currencies

Front 21

counter trading

Back 21

a complex form of battering in which several countries may be involved, each trading goods for goods or services for service

Front 22

trade protectionism

Back 22

use of government regulations to limit to import of goods and services

Front 23

tariff

Back 23

tax imposed on imports

Front 24

import quota

Back 24

limit on the number of products in certain categories that a nation can import

Front 25

embargo

Back 25

a complete ban on the impost or export of a certain product, or the stopping of all trade with a particular country

Front 26

General agreement on tariffs and trade (GATT)

Back 26

a 1948 agreement that established an international forum

Front 27

World Trade organization (WTO)

Back 27

the international organization that replaced the general agreement on tariffs and trade and was assigned the duty to meditate trade disputes among nations

Front 28

common market

Back 28

regional group of countries that have common external tariff no internal tariff and a coordination of laws to facilitate exchange ex; european union

Front 29

north american free trade agreement

Back 29

agreement that created free trade among the united stated, Canada, and mexico

Front 30

ethics

Back 30

standards of moral behavior that is behavior accepted by society

Front 31

compliance based ethics codes

Back 31

ethical standard that emphasize preventing unlawful behavior by increasing control and by penalizing wrongdoers

Front 32

integrity based ethics codes

Back 32

ethical standards that define the organizations guiding values, create an environment that supports ethically sounds behavior and stress a shared accountability

Front 33

whistleblowers

Back 33

insiders who report illegal or unethical behavior

Front 34

corporate social responsibility (CSR)

Back 34

a business's concern for the welfare of society

Front 35

corporate philanthropy

Back 35

the dimension of social responsibility that includes charitable donations

Front 36

corporate social initiatives

Back 36

enhanced forms of corporate philantropy directly related to the companys competencies

Front 37

corporate responsibility

Back 37

the dimension of social responsibility that includes that includes everything from hiring minority workers to making safe products

Front 38

corporate policy

Back 38

the dimension of social responsibility that refers to the position a firm takes on social and political issues

Front 39

insider trading

Back 39

an unethical activity i which insiders use private company information to further their own fortunes or those of their family and friends

Front 40

social audit

Back 40

a systematic evaluation of an organizations progress toward implementing socially responsible and responsive programs