International Business terms to study harder

Code of ethics

a document that describes the values and expectations that guide decision making by all employees in the firm

code of conduct

a document that translates the code of ethics into specific rules regarding behaviors and practices that are prohibited or required

CES (corporate social responsibility, ethics, sustainability

corporate goverance acronym

PELE (philanthropic, ethical, legal, economic)

pyramid of ethical behavior

Community, environment, marketplace, workplace

CSR

utilitarian approach

most good/ least harm

rights approach

best protects and respects the moral rights of everyone

fairness approach

everyone should be treated equally and fairly

common good approach

welfare of the entire community/nation, respect and compassion for all

virtue approach

ideal virtues that provide for the full development of our humanity

IECAR

ethical framework

corporate governance

the system of procedures and processes by which corporations are managed, directed, and controlled

state owned enterprise (SOE)

a company that is founded and owned by a government in order to undertake commerical activities on the government’s behalf

small and medium sized enterprise (SME)

a company with 500 or fewer employees (as defined in Canada and the US)

multinational enterprise (MNE)

a large company with substantial resources that performs various business activities through a network of subsidiaries and affiliates located in multiple countries

international trade

exchange of products and services across national borders, typically through exporting and importing

international portfolio investment

passive ownership of foreign securities such as stocks and bonds for the purpose of generating financial returns

globalization of markets

ongoing economic integration and growing interdependency of countries worldwide

focal firm

The initiator of an international business transaction, which conceives, designs, and produces offerings intended for consumption by customers worldwide. they are primarily MNEs and SMEs

facilitator

a firm or an individual with a special expertise in banking, legal advice, customs clearance, or related support services that assists focal firms in the performance of international business transactions

distribution channel intermediary

a specialist firm that provides various logistics and marketing services for focal forms as part of the international supply chain, both in the home country and abroad

commerical risk

firm’s potential loss or failure from poorly conceived or executed business strategies, tactics, or procedures

value chain

the sequence of value-adding activities the firm performs in the course of developing, producing, marketing, and servicing a product

world trade organization (WTO)

a multilateral governing body empowered to regulate international trade and investment

uncertainty avoidance

the extent to which people can tolerate risk and uncertainty in their lives

socialization

the process of learing the rules and behavioral patterns appropriate to one’s given society

self-reference criterion

the tendency to view others cultures through the lens of one’s own culture

power distance

describes how a society deals wth the inequalities in power that exist among people

geocentric orientation

a global mindset that enables the manager to understand a business or market without regard to country boundaries

cultural metaphor

a distinctive tradition or institution strongly associated with a particular society

critical incident analysis (CIA)

a method for analyzing awkward situations in cross-cultural encounters by developing objectivity and empathy for other points of view

acculturation

the process of adjusting and adapting to a culture other than one’s own

sustainability

meeting humanity’s needs without harming future generations

intellectual property rights

the legal claim through which the proprietary assets of firms and individuals are protected from unauthorized use by other parties

intellectual property

ideas or works created by individuals or firms, including discoveries and inventions; artisitc, musical, and literary works; and words, phrases, symbols, and designs

ethical dilemma

a problem that involved two or more possible solutions, all of which entail violating moral principles and values

ethics

Moral principles and values that govern the behavior of people, firms, and governments regarding right and wrong

corruption

the practice of obtaining power, personal gain, or influence through illegitimate means, usually at other’s expense

corporate social responsibility (CSR)

a manner of operating a business that meets or exceeds the ehtical, legal, commerical, and public expectations of stakeholders, including customers, shareholders, employees, and committees