Business Foundations Test 1

Macroeconomic

The operation of a nation’s income as a whole 

Microeconomics 

The behavior of people and organizations in markets for particular products or services

resource development

study of how to increase resources and create conditions that will make better use of them

economic growth and development

Businesses can contribute to an economic system by inventing products that greatly increase available resources

invisible hand

self directed gain lead to social and economic benefits for all

capitalist nation

all or most of the factors of production and distribution are privately owned and operated for profit

Not good for social country

brain drain

brain drain

loss of the best and brightest people to other countries

Mixed economy

exist where some allocation of resources is made by the market and some by the government.

Business cycle

recession

depression

recovery

when a country produce products and service, more efficient than any other country, what do we call that?

comparative advantage

comparative advantage

country sells products it produces most efficiently and buys products it cannot produce as efficiently

When a country is the only country in the world that can produce a particular product, what do we call that

absolute advantage

absolute advantage

country has a monopoly on producing a specific product or produces it more efficiently than other countries

When a country measures its import and export, what do we call that?

Balance of trade

When a country sells more to the world than they buy

Trade surplus

When a country buys more than they sell to the world

Trade deficit

What is dumping

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

Why licensing is attractive

-gain revenue

-spend little to no money to produce or market their product

The US prohibits questionable payment to foreign gov officials, what law is that?

Foreign corrupt practices act of 1978

What do we call it when a government limits import from a particular country to protect an industry in the US?

Trade protectionism

What do we call it when US countries hire foreign worker in another country for less money?

outsourcing

Ethics

Standard of moral behavior that are accepted by society as right vs wrong

Ethical dilemma

Is it legal?

Is it balanced?

How will it make me feel about myself?

Organisational ethics begins with what?

Begins at the top, and the leadership and examples of strong managers can help instill corporate values in employees

Compliant based ethics

Emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers

Integrity-based ethics code

define the organization’s guiding values, create an environment that supports ethically sound behavior and stress shared accountability

US Business ethics

• top management must adopt and support an explicit corporate code of conduct

• employees must act ethically

• managers and employees must consider the ethical implication of all business decisions

• an ethics office must be set up to communicate anonymously for whistleblowers

• deal ethically with suppliers, subcontractors, distributors and customers

• ethics code must be enforced

Corporate social responsibility 

The concern business have for the welfare of society

When relative of yours asked you to buy a stock, what is it called?

insider trading

Company making the community look good

social audit

What is the description of american businesses

Demand socially responsible behavior from their international suppliers