why should nations trade with other nations?

Ch 3

(1) No country is self-sufficent

(2) other countries need products that prosperous countries produce

(3) natural resources & technologial skills are not distributed evenly around the world. 

Comparative Advantage 

Ch 3

Contends that a country should make and then sell those products it produces most efficently but buys those it cannot produce as efficiently

 Exists if a country produces a specific product more efficiently than any other country.

What terms are imporant in inderstanding world trade?

Exporting, selling products to other countries

Importing, Buying products from other countries 

Balance trade, relationship of exports and imports

Balance payments, balance of trade plus of other flows such as tourism and foreign aid.

Dumping, is selling products for less in foreign country than in your oen country.

Companies engage in global business 

Licensing, exporting, franchising, contract manufacurng, joint ventures & strategic alliances and direct foreign investment. 

Mulinational corportaions Vs. Other companies that participate in global business

 They have manugfacturng facilities or other physical presence abroad. 

Sociolocultural forces, economic & financial forces, legal & reuglatory forces and physical & environmetal forces.

 Trade protectionism is the use of government regualations to limit the import of goods & services. 

Advocators beleieved it allowed doemestic producers to grow, producing more jobs.

Key Tools: Tariffs, import quotas & embargos 

Tariffs

Taes on foerign products, protective tariifs taxes raise the pric of foreign products and protect demoestic industries: revenue tariffs raise money ofor the government.

Prohibts tge importing or exporting certain prducts

That is debatable, because it offers pluses and minuses

Whe do governments continue such practices?

Ch 3

The theory of mercentilism started the practice of trade protectionism and it has persisted, through in a weaker form, ever since.

What is offshore outsourcing? why is ita major concern for the future?

ch 3

Outsourcing= is the purchas of goods & sevices frm outside a firm rather than providing them inside the company.

There are more businesses that are outsourcing manufactuig and services offshore.

Many fear that growing numbers of jobs in the U.S will be lost dure to offshore outsourcing and that the quality of products produced could be inferior. 

How is legality different from ethics? 

Ch 4

Ethics= goes beyond obeying laws to include abiding by the moreal standards accepted by society. Reflects people's proper relationships with one another.

Legality= more limiting; refers only to laws written to protect people from fraud, theft and violence.

asking questions:

(1) Is i legal?

(2) Is it balanced?

(3) How will it make me feel?

Often set formal ethical standards, but more important are the messages they send through their actions.

Tolorance or intolerance of ethical misconduct influences empoyees more than any written ethics codes. 

Compliance- based ethics codes are concerned with avoiding legal punishment.

Integrity based ethics codes define the organizationization's guiding value, create an environment that suports ethically sound behavior and stress a shared accountability among employees. 

Resource development: study how to increase resources & to create the conditions that will make better use of those resources. Invisible hand: (Adam Smith) describe the process that turns self-directed gain into social & economic benefits for all.

Competition with free markets: (1) Perfect competition: many sellers in the market & none is larger enough to dictate the price of product. (2) monopolistic: larger number of sellers produce very similar products that buyers nevertheless perceive as different. (3) Oilgopoly: few sellers dominate the market. (4) Monopoly: one seller controls the total supply of a product or service and sets the price.  Keynesian economic theory: the theory that a government policy of increasing spending could stimulate the economy in a recession. Monetary policy: the management of the money supply & interest rates by the Federal Reserve.

Comparative advantage theory: country should sell to other countries those products that it produces most effectively & efficiently & buy from other countries products that it cannot produce as effectively efficiently.

Absolute advantage: country produces a specific product more efficiently than all other countries. Balance trade: total value of a nation’s exports compared to the imports measured over a period of time. Trade surplus: value or country’s exports exceeds that of its imports.

Trade deficit: unfavorable balance, occurs when the value of a country’s exports are less than it’s imports.

Balance payments: difference b/w money coming into a country and money leaving the country.

General Agreement on Tariffs & Trade (GATT): negotiating mutual reductions in trade regulations.

World Trade Organization (WTO): general agreement on tariffs & trade.

Common market: countries that have common external tariff, no internal tariffs (trading bloc=laws facilitate trade). Corporate social initiatives: enhanced forms of corporate philanthropy directly related to the company’s competencies (social charitable donations).

Venture capitalist: individual companies that invest in new businesses in exchange for partial ownership of those businesses.

Management: planning, leading, organizing, controlling. Four types of planning: strategic (outlines goals of the organization), tactical(short-term planning that has objectives), operational (sets specific timetables & standards), contingency (developing alternatives set of plans in case something does not work.

Three levels of management corporate hierarchy: (1) top management (2) middle management (3) supervisory management. Leaders: Communicate a vision and rally others around that vision, Establish corporate values, promote ethics, embrace change, stress accountability & responsibility. Transparency= company’s facts & figure in a way that is clear & appreciate to all stakeholders. Autocratic leadership= making managerial decisions without consulting others.

Participative leaders ship & free-rein leadership. Enterprise resource planning: finance, human resources, order fulfillment single software program. 

Resource development: study how to increase resources & to create the conditions that will make better use of those resources. Invisible hand: (Adam Smith) describe the process that turns self-directed gain into social & economic benefits for all.

Competition with free markets: (1) Perfect competition: many sellers in the market & none is larger enough to dictate the price of product. (2) monopolistic: larger number of sellers produce very similar products that buyers nevertheless perceive as different. (3) Oilgopoly: few sellers dominate the market. (4) Monopoly: one seller controls the total supply of a product or service and sets the price.  Keynesian economic theory: the theory that a government policy of increasing spending could stimulate the economy in a recession. Monetary policy: the management of the money supply & interest rates by the Federal Reserve.

Comparative advantage theory: country should sell to other countries those products that it produces most effectively & efficiently & buy from other countries products that it cannot produce as effectively efficiently.

Absolute advantage: country produces a specific product more efficiently than all other countries. Balance trade: total value of a nation’s exports compared to the imports measured over a period of time. Trade surplus: value or country’s exports exceeds that of its imports.

Trade deficit: unfavorable balance, occurs when the value of a country’s exports are less than it’s imports.

Balance payments: difference b/w money coming into a country and money leaving the country.

General Agreement on Tariffs & Trade (GATT): negotiating mutual reductions in trade regulations.World Trade Organization (WTO): general agreement on tariffs & trade.

Common market: countries that have common external tariff, no internal tariffs (trading bloc=laws facilitate trade). Corporate social initiatives: enhanced forms of corporate philanthropy directly related to the company’s competencies (social charitable donations).

Venture capitalist: individual companies that invest in new businesses in exchange for partial ownership of those businesses.

Management: planning, leading, organizing, controlling. Four types of planning: strategic (outlines goals of the organization), tactical(short-term planning that has objectives), operational (sets specific timetables & standards), contingency (developing alternatives set of plans in case something does not work.

Three levels of management corporate hierarchy: (1) top management (2) middle management (3) supervisory management. Leaders: Communicate a vision and rally others around that vision, Establish corporate values, promote ethics, embrace change, stress accountability & responsibility. Transparency= company’s facts & figure in a way that is clear & appreciate to all stakeholders. Autocratic leadership= making managerial decisions without consulting others.

Participative leaders ship & free-rein leadership. Enterprise resource planning: finance, human resources, order fulfillment single software program.

Resource development: study how to increase resources & to create the conditions that will make better use of those resources. Invisible hand: (Adam Smith) describe the process that turns self-directed gain into social & economic benefits for all.

Competition with free markets: (1) Perfect competition: many sellers in the market & none is larger enough to dictate the price of product. (2) monopolistic: larger number of sellers produce very similar products that buyers nevertheless perceive as different. (3) Oilgopoly: few sellers dominate the market. (4) Monopoly: one seller controls the total supply of a product or service and sets the price.  Keynesian economic theory: the theory that a government policy of increasing spending could stimulate the economy in a recession. Monetary policy: the management of the money supply & interest rates by the Federal Reserve.

Comparative advantage theory: country should sell to other countries those products that it produces most effectively & efficiently & buy from other countries products that it cannot produce as effectively efficiently.

Absolute advantage: country produces a specific product more efficiently than all other countries. Balance trade: total value of a nation’s exports compared to the imports measured over a period of time. Trade surplus: value or country’s exports exceeds that of its imports.

Trade deficit: unfavorable balance, occurs when the value of a country’s exports are less than it’s imports.

Balance payments: difference b/w money coming into a country and money leaving the country.

General Agreement on Tariffs & Trade (GATT): negotiating mutual reductions in trade regulations.World Trade Organization (WTO): general agreement on tariffs & trade.

Common market: countries that have common external tariff, no internal tariffs (trading bloc=laws facilitate trade). Corporate social initiatives: enhanced forms of corporate philanthropy directly related to the company’s competencies (social charitable donations).

Venture capitalist: individual companies that invest in new businesses in exchange for partial ownership of those businesses.

Management: planning, leading, organizing, controlling. Four types of planning: strategic (outlines goals of the organization), tactical(short-term planning that has objectives), operational (sets specific timetables & standards), contingency (developing alternatives set of plans in case something does not work.

Three levels of management corporate hierarchy: (1) top management (2) middle management (3) supervisory management. Leaders: Communicate a vision and rally others around that vision, Establish corporate values, promote ethics, embrace change, stress accountability & responsibility. Transparency= company’s facts & figure in a way that is clear & appreciate to all stakeholders. Autocratic leadership= making managerial decisions without consulting others.

Participative leaders ship & free-rein leadership. Enterprise resource planning: finance, human resources, order fulfillment single software program.

Resource development: study how to increase resources & to create the conditions that will make better use of those resources. Invisible hand: (Adam Smith) describe the process that turns self-directed gain into social & economic benefits for all.

Competition with free markets: (1) Perfect competition: many sellers in the market & none is larger enough to dictate the price of product. (2) monopolistic: larger number of sellers produce very similar products that buyers nevertheless perceive as different. (3) Oilgopoly: few sellers dominate the market. (4) Monopoly: one seller controls the total supply of a product or service and sets the price.  Keynesian economic theory: the theory that a government policy of increasing spending could stimulate the economy in a recession. Monetary policy: the management of the money supply & interest rates by the Federal Reserve.

Comparative advantage theory: country should sell to other countries those products that it produces most effectively & efficiently & buy from other countries products that it cannot produce as effectively efficiently.

Absolute advantage: country produces a specific product more efficiently than all other countries. Balance trade: total value of a nation’s exports compared to the imports measured over a period of time. Trade surplus: value or country’s exports exceeds that of its imports.

Trade deficit: unfavorable balance, occurs when the value of a country’s exports are less than it’s imports.

Balance payments: difference b/w money coming into a country and money leaving the country.

General Agreement on Tariffs & Trade (GATT): negotiating mutual reductions in trade regulations.World Trade Organization (WTO): general agreement on tariffs & trade.

Common market: countries that have common external tariff, no internal tariffs (trading bloc=laws facilitate trade). Corporate social initiatives: enhanced forms of corporate philanthropy directly related to the company’s competencies (social charitable donations).

Venture capitalist: individual companies that invest in new businesses in exchange for partial ownership of those businesses.

Management: planning, leading, organizing, controlling. Four types of planning: strategic (outlines goals of the organization), tactical(short-term planning that has objectives), operational (sets specific timetables & standards), contingency (developing alternatives set of plans in case something does not work.

Three levels of management corporate hierarchy: (1) top management (2) middle management (3) supervisory management. Leaders: Communicate a vision and rally others around that vision, Establish corporate values, promote ethics, embrace change, stress accountability & responsibility. Transparency= company’s facts & figure in a way that is clear & appreciate to all stakeholders. Autocratic leadership= making managerial decisions without consulting others.

Participative leaders ship & free-rein leadership. Enterprise resource planning: finance, human resources, order fulfillment single software program.

Resource development: study how to increase resources & to create the conditions that will make better use of those resources. Invisible hand: (Adam Smith) describe the process that turns self-directed gain into social & economic benefits for all.

Competition with free markets: (1) Perfect competition: many sellers in the market & none is larger enough to dictate the price of product. (2) monopolistic:

larger number of sellers produce very similar products that buyers nevertheless perceive as different.

(3) Oilgopoly: few sellers dominate the market.

(4) Monopoly: one seller controls the total supply of a product or service and sets the price. 

 Keynesian economic theory: the theory that a government policy of increasing spending could stimulate the economy in a recession.

Monetary policy: the management of the money supply & interest rates by the Federal Reserve.

Comparative advantage theory: country should sell to other countries those products that it produces most effectively & efficiently & buy from other countries products that it cannot produce as effectively efficiently.

Absolute advantage: country produces a specific product more efficiently than all other countries.

Balance trade: total value of a nation’s exports compared to the imports measured over a period of time.

Trade surplus: value or country’s exports exceeds that of its imports.

Trade deficit: unfavorable balance, occurs when the value of a country’s exports are less than it’s imports.

Balance payments: difference b/w money coming into a country and money leaving the country.

General Agreement on Tariffs & Trade (GATT): negotiating mutual reductions in trade regulations.

World Trade Organization (WTO): general agreement on tariffs & trade.

Common market: countries that have common external tariff, no internal tariffs (trading bloc=laws facilitate trade).

Corporate social initiatives: enhanced forms of corporate philanthropy directly related to the company’s competencies (social charitable donations).

Venture capitalist: individual companies that invest in new businesses in exchange for partial ownership of those businesses.

Management: planning, leading, organizing, controlling.

Four types of planning: strategic (outlines goals of the organization), tactical(short-term planning that has objectives), operational (sets specific timetables & standards), contingency (developing alternatives set of plans in case something does not work.

Three levels of management corporate hierarchy: (1) top management

(2) middle management

(3) supervisory management. Leaders: Communicate a vision and rally others around that vision, Establish corporate values, promote ethics, embrace change, stress accountability & responsibility.

Transparency= company’s facts & figure in a way that is clear & appreciate to all stakeholders. Autocratic leadership= making managerial decisions without consulting others.

Participative leaders ship & free-rein leadership.

Enterprise resource planning: finance, human resources, order fulfillment single software program.