Global Business, Ethics, and International Finance Practice Flashcards

These flashcards cover themes of globalization types, outsourcing strategies, trade policies, business ethics and sustainability certifications, corporate social responsibility, financial market concepts, international trade terms (Incoterms), and performance metrics.

How is "Globalization" defined in the lecture notes?

The idea that the world is developing a single economy and culture as a result of improved technology and communication and the influence of very large multinational companies.

What are two positive consequences of economic globalization?

Increased trade and investment, and greater competition and efficiency.

What does political globalization refer to?

The increased cooperation and interdependence of countries on global issues such as security, human rights, and the environment.

What is the difference between Insourcing and Outsourcing?

Insourcing involves assigning a project to a person or department within the company, whereas Outsourcing is hiring an external party outside the organization to perform tasks.

How is "Nearshoring" defined?

A specific type of offshoring where the external company is located in a nearby or neighboring country, such as a U.S. company outsourcing manufacturing to Mexico.

What are the five reasons listed for companies choosing Onshoring over Offshoring?

1. Economic Incentives, 2. Job Creation, 3. National Security, 4. Better Quality and Intellectual Property Protection, and 5. Resilience and Agility.

What is the core concept of Free Trade?

A system where countries exchange goods and services without restrictions such as tariffs, duties, or quotas.

What is the role of the World Trade Organisation (WTO)?

It is an international body that helps ensure global trade flows smoothly, freely, and predictably.

What is Protectionism and what is its main aim?

Economic policies taken to restrict international trade (particularly imports) to protect domestic industries, preserve jobs, and support national economic growth.

What is the difference between a Tariff and a Quota?

A tariff is a tax or duty imposed on imported goods to raise their price, while a quota is a limit on the quantity or volume of specific goods that can be imported.

What are the 5 SHIFT strategies for sustainable behavior?

1. Social Influence, 2. Habits, 3. Individual Self, 4. Feelings and Thoughts, and 5. Tangibility.

According to the notes, what does an ethical business do?

It goes beyond what is legally required and operates in a way that is fair to its employees, suppliers, customers, and the environment.

What are the Fair Trade certification standards?

Fair wages and labor conditions, no child or forced labor, safe working environments, sustainable farming practices, democratic organization of workers, and community development premiums.

What requirements must a product meet to receive the USDA Organic label?

It must be grown without prohibited substances for $3$ years before harvest, produced without synthetic additives, and use only approved methods listed in the USDA's National Organic Program (NOP).

What is "Greenwashing"?

When companies use vague terms like "eco-friendly" or "natural" without strict definitions or verification to make consumers believe they are ethical.

What are the three components of the "triple bottom line" in CSR?

Profit (money), People (employees, customers, and society), and Planet (the environment).

What are the four categories CSR is often broken into?

Environmental Responsibility, Ethical Responsibility, Philanthropic Responsibility, and Economic Responsibility.

What does SDG stand for and what is its target year?

Sustainable Development Goals; the goal is to reach them by the year $2030$.

What were the Millennium Development Goals (MDGs)?

A set of $8$ goals made in the year $2000$ by leaders from $189$ countries to end extreme poverty and improve life by $2015$..

In the stock market, what is a "bubble"?

When the price of something goes too high, more than it is really worth, because people keep buying in hopes prices will rise, eventually leading to a fast fall when the bubble "bursts."

What does "HFT" stand for and what does it involve?

High-Frequency Trading; it involves computers making many trades very fast (in seconds or less) to make small profits from price changes.

What is a Neobank?

A bank that works only online with no physical branches, typically offering simple services with low or no fees, often working with traditional banks for FDIC protection up to $250,000$.

Define the international payment term "Factoring."

Selling accounts receivable to a third party at a discounted price for immediate cash.

What are Incoterms and who publishes them?

Standardized trade terms that define responsibilities, risks, and costs between buyers and sellers; they are published by the International Chamber of Commerce (ICC).

Contrast the Incoterms EXW and DDP.

In EXW (Ex Works), the buyer assumes full responsibility from the seller's premises. In DDP (Delivered Duty Paid), the seller handles everything (shipping, insurance, customs, duties) until delivery at the final destination.

What does the SMART criteria stand for in relation to KPIs?

Specific, Measurable, Achievable, Relevant, and Time-bound.

What are the five steps of market trend analysis?

1. Find new competitors/products, 2. Look at numbers (quantitative data), 3. Read what customers say (qualitative data), 4. Ask real people (primary research), and 5. Test a small offer (beta offer).