Business Ethics + International Business

Ethics

Rules that help us differentiate right and wrong

Values

What we think is important

Morals

rules we use to decide what is good or bad

Code of Ethics

a document that explains how employees respond in certain situations

Whistle-Blowing

When an employee informs officials or the public about an illegal or ethical violation

Fraud

a crime committed by lying

Accounting Scandal

Publicly exposed crime involving accountants altering records for personal benefit

Embezzlement

When a fake account is made to redirect money for personal gain

Insider trading

Buying or selling shares with confidential information

Corporate social responsibility

A companies values, ethics, and contributions

includes:

Safe and healthy work environment

Fair labour

Protecting the environment

Tim hortons smile cookies

Ronald Mcdonald House

Patagonia

Discrimination

denying a qualified individual an interview, job, or promotion based on religion, gender, sexual, orientation, or physical disabilities

Examples of Fraud

• Bank fraud ( loans to non-existent businesses)

• Consumer fraud (Business tricks using false advertising)

• Contract fraud (bribed to get a contract)

• Pyramid scheme (Ponzi schemes)

Glass ceiling

A social barrier preventing women from being promoted to top jobs in management.

Harassment

vexatious comments or conduct that is unwelcomed

Fair Trade

Fair prices are paid to producers

• Good work conditions

• No child labour

• Fair payment

• Respect for the environment

International Business/Foreign Trade

Business taking place across international borders. Trading goods or services with other countries.

Domestic transaction vs International Transaction

Selling items produced in the same country

Selling of items produced in other countries

Global economy

participating in an international transaction contributes to global economy

6 benefits of international trade

1. Access to markets

2. Global product

3. Cheaper Labour

4. Increased quality of goods

5. Increased quantity

6. Access to resources

5 ps of international business

1. product

2. price

3. proximity

4. preference

5. promotion

Offshore Outsourcing

Producing all or parts of goods in countries with lower labour costs

Environmental degradation

Consumption of natural resources

pollution, greenhouse emissions

Sustainable developments

Tariffs and Duties

tax on certain imports on a percentage basis to protect domestic industries

Issue: consumer ends up paying the tax, may lead to domestic also raising prices

Barriers

prohibits illegal narcotics, weapons and products made of endangered animals. Goods coming into Canada are inspected and require a permit or labeling. This protects domestic business and consumers.

Import

into canada

Export

Leave Canada

Balance of Trade

reduce trade deficits because it provides less jobs, more money flows out. Surplus benefits domestic production

Trade deficit

Value of imports is more than exports

Trade surplus

Value of Exports is more than imports

Trade agreements

World trade agreement created General Agreement on Trade in Services. NAFTA then became USMCA - Trade agreement in north america. European union - joined after ww2 to stimulate economies and strengthen partnerships.

Shipping

1. go around south america - time consuming, long distance

2. panama canal - less distance, fees makes money, ship size limits, ruined chili economy, benefits USA

3. artic - no size limits, benefits canada, less distance, less oil, less time