AACSB
an international organization that promotes a set of principles promoting the teaching of responsible management in business schools.
Association to advance Collegiate Schools of Business
AACSB
Behavioral Economics
assumes that economic decisions are influenced by human behavior. Also assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb.
Bimodel Wealth Distribution
Occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources.
Desirable Common Values
integrity, family and community unity, equality, honesty, fidelity, sharing, and unselfishness.
Undesirable Common Values
ignorance, pride, and egoism, selfish, desires, lust, greed, adultery, theft, deceit, lying, murder, hypocrisy, slander, and addiction.
Consumerism and Consumption
Those who ascribe to consumerism believe that consumers, not producers, should dictate the economic structure of a society. As a business facilitates exchanges, consumption beyond basic needs will increase globally. The important issues related to consume
Two developing countries
China and India
Cultural Relativism
The concept that morality varies from one culture to another and that "right" and "wrong" are defined differently. When in Rome, do as the Romans do, or you must adapt to the cultural businesspeople sometimes offer for straying from their own ethical valu
Dumping
The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting.
Geerft Hofsted
Identified four cultural dimensions that can have profound impact on the business environment: Individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.
Global Business
Involves transactions across national boundaries. It is a practice that brings together people who have different cultures, values, laws, and ethical standards.
Global Ethical Risk
As outlined by the Eurasia Group, areas of global ethical risk include political instability, strained relations with China, instability in emerging markets, and the outlook for Euro-zone countries remains weak.
Global Sullivan Principles
These values were developed by a reverend and the UN Secretary General. They express support for universal human rights.
International Monetary Fund
Emerged from Breeton Woods agreement of 1944, where a group of international leaders decided that the primary responsibility for the regulation of monetary relationships among national economies or nations should rest in an extra national or external body
John Maynard Keynes
Argued during the 1930s that the state could stimulate economic growth and improve stability in the private sector.
Laissez Faire
A term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also know as the "invisible hand.
Laissez Faire Economics
Assumes that the market, through its own inherent mechanisms, will keep commerce in equilibrium.
Living Wage
The minimum wage that worker requires to meet basic needs.
Made-to-Break
Products encourage customers to return and buy more. This approach is also known as planned obsolescence.
Multinatinal Corporations (MNCs
corporate organizations that operate on a global scale without significant ties to any one nation or region.
Criticisms of MNC
They transfer jobs overseas, where wage rates are lower; they increase the gap between rich and poor nations; they exploit the labor markets of host countries; and they have an unfair advantage when competing with local businesses.
National Culture
Includes everything in our surroundings made by people both tangible items, such as artifacts, and intangible entities, such as concepts and values. Language, law, politics, technology, education, social organizations, general values, and ethical standard
Power Distance Dimensions/Scale
refers to the "power inequality" between superiors and subordinates. Saudi Arabia probably ranks high on the power distance scale because it is an oil rich nation.
Rational Economics
Based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.
Risk Compartmentalization
occurs when various profit centers within and organization become unaware of the consequences of their actions on the firm as a whole.
Self Reference Criterion
An unconscious reference to one's own cultural values, experiences, and knowledge.
Social Democracy
Allows for private ownership of property and features a large government equipped to offer such services as education and health care to its citizens.
Socialism
A concept that refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production.
Uncertainty Avoidance
Refers to how members of a society respond to ambiguity. A high score means that a culture tends to minimize risk-taking.
UN Global Compact
The purpose is to promote human rights, sustainability, and eradicate corruption.
UN Human Rights Declaration
The freedom of religion, the right to work in favorable conditions, the right to a home adequate for health and well-being, and mothers and children are entitled to a special level of care.
World Trade Organization
Formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations.
According to the World Trade Orgainization
shoes, cars, and steel products and services, are the most vulnerable to protectionism.
The World Trade Organization has the power
to enact legally binding ground rules for international commerce and trade policy