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Mercantilism
This theory had countries maximizing exports and minimizing imports.
Absolute Advantage Theory
Adam Smith states that countries should specialize in the production of goods for which they can produce most efficiently and then trade these for goods produced by other countries.
Comparative Advantage Theory
David Ricardo states that it makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries.
Heckscher-Ohlin Theory
This theory predicts that countries will export those goods that make intensive use of factors that are locally abundant and import goods that make intensive use of factors that are locally scarce.
The product life cycle theory
This theory, initially proposed by Raymond Vernon, points out that where a new product is introduced is important. Over time, cost considerations start playing a greater role in the competitive process.
New trade theory
Through its impact on economies of scale, trade can increase the variety of goods available to consumers while decreasing the average cost of those goods.
National competitive advantage theory
Michael Porter contends that the degree to which a nation is likely to achieve international success in a certain industry is a function of the combined impact of factor endowments.
Factor Endowments
the quantity and quality of resources a country has for production, such as land, labor, capital, and entrepreneurship.
Zero-sum game
A situation in which an economic gain by one country results in an economic loss by another is called a
Why do firms disperse production activities?
To take advantage of efficiencies, more efficient use of factor endowments.
China has been accused of manipulating its currency in support of neo-mercantilist policy. What is a neo-mercantilist policy?
Revived theory of mercantilism that emphasizes trade restrictions to increase domestic income and employment
According to porters diamond two additional variables can influence an industry’s success. What are they?
Chance and government
The routine conventions of living, thinking, and acting in a group are called Blank______.
Folkways
What are three principles of social stratification?
It involves beliefs as well as inequality.
It is generally universal.
It carries over to the next generation.
Monica asked her manager if appropriate dress for the meeting was business casual or traditional business. Monica is inquiring about the Blank______ associated with the meeting.
Folkway
The set of moral principles that are used to guide and shape behavior are called Blank______.
Ethics
Hindus believe in Blank______, the behaviors and responsibilities governing individual conduct.
Dharma
What is used to direct the attention of a society to specific components of the world and structures how people perceive them?
Language
What are three examples of the "hidden curriculum" of schools?
Being on time
Respect for others
Obedience to authority
What is the focus of Hofstede's power distance dimension?
People are not equal in physical capabilities.
Facilitating payments
Which congressional act outlaws the payment of bribes to foreign government officials to gain businesses?
Foreign corrupt practices act
What are four determinants of ethical behavior?
Organizational culture
Societal culture
Personal ethics
Leadership
The social rules and guidelines used to determine appropriate behavior in a particular setting are known as Blank______.
norms
The managers of Simple Sound Manufacturing are struggling to meet their quota that was recently increased by upper management. They decide to eliminate two quality control steps in the manufacturing process. This is unethical behavior that was a result of
Unrealistic performance goals
Unrealistic performance goals can often only be attained by
taking shortcuts or behaving in an unethical manner.
A person who follows the idea of Blank______ says that the multinational's home-country standards of ethics are the appropriate approach to follow in foreign countries
A righteous moralist
Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way?
Rawl's theory of justice
Rights theories
______ refers to the moral obligation to act in an honorable and benevolent manner.
Noblise Oblige
Some ethics experts have proposed practical guides or ethical Blank______ to make ethical decisions in a systematic way.
Algorithms
According to Vernon's product life-cycle theory, while demand for a product is starting to grow rapidly in the United States, demand for the product in other countries is limited to Blank______.
High-income groups
Ricardo's theory of comparative advantage assumes Blank______ returns to scale.
Constant
Which two simultaneous outcomes are implied by new trade theory?
A nation can increase the variety of goods available to consumers.
A nation can lower the cost of the goods being offered to consumers.
Which theory was based on the observation that early in the development of a commodity, all the parts and labor come from the area in which it was invented?
Product-life cycle
Which trade theory has these implications: (1) nations may benefit from trade even when they do not differ in resource endowments or technology; and (2) specialization allows for scale economies and lower production costs?
New Trade
Porter states that Blank______ can influence each of the four components of the diamond through subsidies, education policies, and policies toward capital markets.
Government
Porter argues that achieving international success in a certain industry is a function of factor endowments, domestic demand conditions, related and supported industries, and Blank______.
Domestic Rivalry
Kantian ethics
Belief that people should be treated as ends and never as means to the ends of others.
Rights-theories
twentieth-century theories that recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures.
