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55 Cards in this Set

  • Front
  • Back
Perceptions of business behavior
58% of U.S. adults rate ethical standards of business executives as "fair" or "poor.”
90% think white-collar crime is "very common" or "somewhat common."
41% of 1,694 corporate employees in a recent survey stated that they were aware of ethical problems in their companies.
What are ethics?
are the moral principles and values that govern the actions and decisions of an individual or group
What are business ethics?
basic values that guide a firm’s behavior.
What is a code of ethics?
a formal statement of ethical principles and rules of conduct.
What are some unethical practices by consumers?
warranty claims after the claim period
misredeeming coupons
fraudulent returns of merchandise
inaccurate info on credit applications
What is the consumer's bill of rights?
Right to safety.
Right to be informed.
Right to choose.
Right to be heard.
What is social responsibility?
means that organizations are part of a larger society and are accountable to that society for their actions.
What is global marketing?
is marketing to target markets throughout the world, is an imperative for almost every business.
What must managers in a global market do?
recognize and react to international opportunities
recognize and react to foreign competition via imports
understand how customers and suppliers operate worldwide
What is the Importance of Global Marketing to U.S.?
U.S. exports about 1/5 of its industrial production and 1/3 of its farm products
1/3 corporate profits are derived from international trade and foreign investment
What are the Dynamics Of World Trade Flows?
Dollar value of world trade estimated to exceed $11.5 trillion in 2005.
Manufactured goods and commodities - 75% of world trade; services 25%.
All world trade does not involve money.
15 to 20% involves countertrade
What are quotas?
Limitations on the amount of a product allowed to enter or leave a country.
What are the Market Entry Strategies?
1. Product strategies
-Product extension
-Product adaptation
-Product invention
2. Promotion strategies
-Same promotion
-Adapted promotion
What are pricing strategies?
Pricing considerations must include extra transportation costs, insurance, taxes, and tariffs.
What is social profit?
The benefit an organization and society receive from the organization's ethical practices, community service, efforts to promote cultural diversity, and concern for the natural environment
What are business ethics?
Rules of conduct for an organization
What are codes of ethics?
Written standards of behavior to which everyone in the organization must subscribe
What is consumerism?
A social movement that attempts to protect consumers from harmful business practices
What is corrective advertising?
Adveritising that clarifies or qualifies previous deceptive advertising claims
What is puffery?
Claims made in advertising of product superiority that cannot be proven true or untrue. This is not illegal.
What is slotting allowance?
A fee paid by a manufacturer to a retailer in exchange for agreeing to place products on the retailer's shelves
What is social responsibility?
A management practice in which an organization seeks to engage in activties that have a positive effect on society and promote the public good
What is environmental stewardship?
A position taken by an organization to protect or enhance the natural envirnonment as it conducts its business activities
What is green marketing?
A marketing strategy that supports environmental stewardship by creating an envrionmentally founded differnetial benefit in the minds of consumers
What is cause marketing?
Marketing activities in which firms seek to have their corporate identity linked to a good cause through advertising, public service, and publicity
What is cultural diversity?
A management practice that actively seeks to include people of different sexes, races, ethnic groups, and religiions in an organization's employees, customers, suppliers, and distribution channel partners
What is world trade?
The flow of goods and services among different countries - the value of all the exports and imports of the world's nations
What is countertrade?
A type of trade in which goods are paid for with other items instead of with cash
What are born-global firms?
Companies that try to sell their products in multiple countries from the moment they're created
What is protectionism?
A policy adopted by a government to give domestic companies an advantage
What is the General Agreement on Tariffs and Trade (GATT)?
Intenraitonal treaty to reduce import tax levels and trade restrictions
What is the world trade organization (WTO)?
An organization that replaced GATT, this org. sets trade rules for its member nations and mediates disputes between nations
What are economic communities?
Groups of countries that band together to promote trade among themselves and to make it easier for member nations to compete elsewhere
What is economic infrastructure?
The quality of a country's distribution, financial, and communications systems
What is an LDC?
A less developed country is one that is at the lowest stage in economic development
What is a standard of living?
An indicator of the average quality and quantity of goods and services consumed in a country
What are developing countries?
countries in which the eocnomy is shifting its emphasis from agriculture industry
What is a developed country?
A country that boasts sophisticated marketing ystems, strong private enterprise, and bountiful market potential for many goods and services
What are economic sanctions?
Trade prohibitions imposed by one country against another
What is nationalization?
A domestic government's takeover of a foreign company for its assets with some reimbursement, though often not for the full value
What is expopriation?
A domestic government's seizure of a foreign company's assets without any compensation.
What are local content rules?
A form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industries in the host country
What are cultural values?
A society's deeply held beliefs about right and wrong ways to live
What are colectivist cultures?
Cultures in which people subordinate their personal goals to those of a stable community
What are individualist cultures?
Cultures in which people tend to attach more importance to personal goals than to those of the larget community
What are mores?
Customes with a strong moral overtone
What are conventions?
Norms regarding the conduct of everyday life
What is ethnocentrism?
The tendency to prefer products or people of one's own culture
What are export merchants?
Intermediaries used by a firm to represent them in other countries?
What is licensing (in foreign markets)?
An agreement in which one firm gives another firm the rights to produce an dmarket products in a specific country or region in return for royalties
What is franchising?
A form of licensing involving the right to adapt an entire system of doing business
What is a strategic alliance?
A relationship developed betwene a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country
What is a joint venture?
A strategic alliance in which a new entity owned by two or more firms is created to allow the partners to pool their resources for common goals
What are gray market goods?
Items manufactured outside a country and then iported without the consent of the trademark holder
What is dumping?
A company tries to get a toehold in a forein market by pricing its products lower than they are offered at home