What Business Ethic Need to Be Followed in Terms of Decision Making Flashcards

• the unconscious reference to one’s own cultural values, experiences, and knowledge. When confronted with a situation we react on the basis of knowledge accumulated over life, which is usually grounded in our culture of origin.

The practice of charging high prices for products sold in domestic markets while selling the same products in foreign markets at low prices, often below the costs of exporting them—is viewed negatively

Consists of everything in our surroundings that is made by people—both tangible items and intangible things like concepts and values. Ex: language, religion, law, politics, technology, education, social organization, general values, and ethical standards.

The concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures.

Public companies that operate on a global scale without significant ties to any one nation or region. They represent the highest level of international business commitment and are characterized by a global strategy of focusing on opportunities throughout the world. Ex: Shell Oil, Nike, Monsanto, and Cisco Systems.

When a firm changes different prices to different groups of customers. Differential pricing is legal if it does not substantially reduce competition or if it can be justified on the basis of costs.

Cost of transportation, taxes, tariffs, and other expenses are increased beyond the level they’re needed to meet the cost of these additional costs.

Giving bribes

Prohibits U.S. companies from offering or providing payments to officials of foreign governments for the purpose of obtaining or retaining business abroad

Reduced FCPA legislation in certain areas and repealed the Eckhardt amendment, which prevented senior managers from using agents or employees as scapegoats when bribes were given. Ot makes the prosecution of bribery even more difficult, thus decreasing the power abd applicability of the FCPA in global business settings.

Consists of using or transferring illegally received funds in a financial transaction in order to conceal their source of ownership or to facilitate an illegal activity.

Refers to the ideas and creative materials that individuals develop to solve problems, to carry out applications, and to educate or entertain others.

Established in 1995, 133 members, 33 nations applied for membership and hold observer status. WTO administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations. They address economic and social issues involving agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards, food sanitation regulations, services, and intellectual property. It provides legally binding ground rules for international commerce and trade policy. It attempts to reduce barriers to trade between and within nations and settle trade disputes