CHAPTER 10 REVIEW

      “We” versus “them” is referred to as self-reference criterion—                               unconscious reference to one’s own culture values, experiences,                           and knowledge.

      Dumping—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, and the country has a number of anti-dumping laws.

      Culture consists of everything in our surroundings that is made by people—both tangible items and intangible things like concepts and values. Language, religion, law, politics, technology, education, social organizations, general values, and ethical standards are all included within this definition.

      One significant area of cultural differences is language.

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

–         Ethical relativism — one culture defines
ethical behavior for the whole globe, no
exceptions

–         Business relativist — there may be no ethical standards except for the one in the transaction culture

      A set of global or universal ethical standards, such as Michael Josephson’s:

–         Trustworthiness            – Responsibility

–         Honesty                        – Fairness

–         Integrity                        – Caring

–         Promise keeping           – Citizenship

–         Loyalty                        

–         Respect for others

Multinational corporations (MNCs) are public companies that operate on a global scale without significant ties to any one nation or region.

Price Discrimination

      Occurs when a firm charges different prices to different groups of consumers

–         Allowable if justified, based on costs

      Price gouging—a  price increase exceeding the costs of additional                                             expenses (taxes, etc.)

Money laundering 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.

Intellectual property refers to the ideas and creative materials that individuals develop to solve problems, to carry out applications, and to educate or entertain others. It is generally protected through patents, copyrights, and trademarks.

Intellectual property refers to ideas and creative materials people develop to solve problems, carry out applications, educate, and entertain others.

      Patents

–         Legal document issued to an inventor that grants the right to exclude others from using or selling the product for a period                                      of time

      Copyrights

–         Protection that covers published and unpublished literary, scientific and artistic works

The WTO addresses economic and social issues involving agriculture, textiles and clothing, banking, telecommunications, government purchases, industrial standards, food sanitation regulations, services, and intellectual property. It also provides legally binding ground rules for international commerce and trade policy.

Most countries have a strong orientation toward ethical compliance or laws.   FALSE

The self-reference criterion is an unconscious reference to one’s own culture values, experience and knowledge. TRUE

Culture differences also relate to differences in body language. TRUE

MNC have identifiable home countries but operate globally. FALSE

Certain facilitating payments are acceptable under the Foreign Corrupt Practices Act. TRUE

What is the symbol for copyrighted material?