Business Ethics and Trade Theories Overview

Friedman doctrine

A straw man approach to business ethics.

naive immoralist approach

A multinational corporation that adopts this approach will most likely lack cultural sensitivity.

Kantian ethics

A moral philosophy that emphasizes duty and the inherent value of individuals.

Sullivan principle

A guideline for ethical business practices, particularly in South Africa.

utilitarian philosophy

An ethical theory that advocates for actions that maximize overall happiness.

just distribution theory

A concept in ethics that focuses on the fair allocation of resources.

Heckscher-Ohlin theory

The theory that explains why unrestricted free trade benefits a country.

national competitive advantage

A theory that explains how countries gain an edge in specific industries.

free trade

The unrestricted exchange of goods and services between countries.

absolute advantage

The ability of a country to produce a good more efficiently than another country.

zero-sum game

A situation in which one participant's gain is exactly balanced by another participant's loss.

new trade theory

A theory that emerged from the observation that most new products were developed by U.S. firms.

product life-cycle theory

A theory that describes the stages a product goes through from introduction to decline.

mercantilism

An economic theory that emphasizes the role of the state in managing international trade.

comparative advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

entrepreneurism

The process of starting and running one's own business.

monopolies

Market structures where a single seller dominates the market.

globalization

The process of increased interconnectedness and interdependence among countries.

nationalism

A political ideology that emphasizes the interests of a particular nation.

legal system

The framework of laws and regulations that govern a country.

common law

A legal system that evolved in England, based on judicial decisions and precedents.

civil law

A legal system that relies on comprehensive statutes and codes.

theocratic law

A legal system based on religious principles.

traditional law

A legal system based on customs and practices of a particular culture.