10 Questions
Why does privatization typically occur?
To promote competition and efficiency
What types of industries are candidates for privatization?
Industries where competition can improve efficiency
What problems in international markets can be created by counterfeiting and intellectual property theft?
Erosion of brand value and revenue losses
In which of the following countries are interest-bearing transactions not allowed?
Iran
Which of the following best explains why looting was uncommon in Japan after the country's 2011 earthquake and tsunami?
Importance of group membership
What are some examples of specific behaviors that can demonstrate the core value of honesty in a code of ethics?
Accurate record keeping or truthful reporting in internal and external communications
Why is it important for a code of ethics to provide practical guidance with specific examples?
To offer clear examples of acceptable behavior in different situations
Why should an effective code of ethics be accepted by those who are expected to follow it?
To ensure that employees understand why they should adopt the code and its provisions into their daily work activities
Why is it necessary for ethical codes of conduct to have enforceable mechanisms?
To monitor compliance, deal with breaches, and enforce sanctions against transgressors
Why should effective codes of ethics be regularly reviewed and revised?
To keep pace with changes in business practices, technology, legislation, and social norms
Study Notes
Business Ethics and International Business
- Gift exchange in business relationships is more common in high-context, power-respecting cultures than in low-context, power-tolerant cultures.
Whistleblowing
- Whistleblowing is when an individual reports a wrongdoing, such as a supervisor using corporate funds for a personal vacation.
International Business
- International business differs from domestic business due to differences in culture, language, politics, and economies.
- It is important for business students to learn about international business to understand the global market and opportunities.
E-Commerce and International Business
- The Internet has helped small businesses compete in global markets by reducing entry costs.
CAGE Model
- The CAGE Model refers to the cultural, administrative, geographic, and economic distances between countries.
- Geographic distance refers to the physical, communications, and transportation links between countries.
Importing and Exporting
- Importing is the buying of products made in other countries for use or resale in one's own country.
International Business Success
- Companies doing international business are more likely to be successful when they understand local market characteristics.
Global Marketplaces and Business Centers
- Understanding global marketplaces and business centers is important for managers to make informed decisions.
- It is also important to have an understanding of international income data.
Legal Systems
- China has a system based on bureaucratic law.
- Common law systems are based on judicial decisions, while civil law systems are based on comprehensive codes.
Code of Ethics
- A code of ethics is a set of principles that guides an organization's operations and conduct.
- Characteristics of an effective code of ethics include:
- Clear and concise language
- Comprehensiveness
- Specificity
Test your knowledge on international business concepts such as exporting, importing, and currency denomination. Explore key factors that contribute to the success of companies engaging in international business.
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