Business Management - Chapt. 2 & 3 Terms Review

Importing

Buying products from another country

Exporting

Selling products to another country

Comparative Advantage Theory

A country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently

Trade Protectionism

The use of government regulations to limit the import of goods and services

Embargo

A complete ban on the import or export of a certain product, or the stopping of all trade with a particular country

Import Quota

A limit on the number of products in certain categories that a nation can import

Tariff

A tax imposed on imports

Common Market

A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange

Multinational Corporations

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management

Subsidies

Money given to domestic businesses to help them survive

Corporate Social Responsibility

A business’s concern for the welfare of society

Ethics

Standards of moral behavior; behavior accepted as right versus wrong

Utilitarianism

A decision-making approach that seeks to create the greatest good for the greatest number of people affected by the decision

Conflict of Interest

A situation in which an employee is in a position to derive personal benefit from decisions made in their official capacity

Whistleblowing

When an employee discloses information that exposes illegal or unethical behavior on the part of the organization they work for

Code of Ethics

A set of guiding principles that outline the expected standards of behavior for individuals or organizations

Social Audits

A systematic evaluation of an organization’s progress towards implementing socially responsible and responsive programs

Corporate Philanthropy

Donating time, money or resources to charitable organizations