International Business
EXAM 1 REVIEW
About an hour and a half long. * On chapters 1-6 * 10 questions (short response) * 6 or 7 sentences each (you can bullet some of them) * Focus on main concepts of chapters
* Know what Externalization is (pg. 233-234) * People maintain the view that corporations have responsibilities that go beyond making money because of their great social and economic power. Business is governed by an implicit social contract that requires it to operate in ways that benefit society. In particular, corporations must take responsibility for the unintended side effects of their business transactions (externalities) and weigh the full social costs of their activities. * In recent years, we have grown more aware of the possible deleterious side effects of business activity, something economists refer to as… * Externalities: the unintended negative (or positive sometimes) consequences that an economic transaction between 2 parties can have on some third party. * Cost externalizing is a socio-economical term describing how a business maximizes its profits by off loading indirect costs and forcing negative effects to a third party. * Know difference between legality and morality (pg. 19) * Legality is basically when an act becomes legal or illegal according to whether or not it contravenes any of the laws of the land. What the laws do not prohibit is legal and what the laws do not allow is illegal. * Morality concerns the principles that do or should regulate people’s conduct and relations with others. An act is moral or immoral according to whether it contravenes a moral standard. To this extent morality is similar to legality because in each case the act must be referred to some other standard to know whether it is moral or immoral, legal or illegal. * An action can be illegal but morally right, and legal but morally wrong. Legality is based on laws, regulations, etc. Morality concerns
About an hour and a half long. * On chapters 1-6 * 10 questions (short response) * 6 or 7 sentences each (you can bullet some of them) * Focus on main concepts of chapters
* Know what Externalization is (pg. 233-234) * People maintain the view that corporations have responsibilities that go beyond making money because of their great social and economic power. Business is governed by an implicit social contract that requires it to operate in ways that benefit society. In particular, corporations must take responsibility for the unintended side effects of their business transactions (externalities) and weigh the full social costs of their activities. * In recent years, we have grown more aware of the possible deleterious side effects of business activity, something economists refer to as… * Externalities: the unintended negative (or positive sometimes) consequences that an economic transaction between 2 parties can have on some third party. * Cost externalizing is a socio-economical term describing how a business maximizes its profits by off loading indirect costs and forcing negative effects to a third party. * Know difference between legality and morality (pg. 19) * Legality is basically when an act becomes legal or illegal according to whether or not it contravenes any of the laws of the land. What the laws do not prohibit is legal and what the laws do not allow is illegal. * Morality concerns the principles that do or should regulate people’s conduct and relations with others. An act is moral or immoral according to whether it contravenes a moral standard. To this extent morality is similar to legality because in each case the act must be referred to some other standard to know whether it is moral or immoral, legal or illegal. * An action can be illegal but morally right, and legal but morally wrong. Legality is based on laws, regulations, etc. Morality concerns