Business Chapter 2-5

Standards of conduct and moral values regarding right and wrong action in the work environment.

What are the stages of ethical development?

Situation in which an employee must choose between a business's welfare and personal gain

Adhering to deeply felt ethical principles in business situations

Employee's disclosure to company officials, government authorities, or the media of illegal, immoral, or unethical practices committed by an organization

Formal statement that defines how an organization expects its employees to resolve ethical issues

Is the action legal?
Does it comply with our values?
If you do it, will you feel bad?
How will it look in the newspaper?
If you know it's wrong, don't do it!
If you're not sure, ask!
Keep asking until you get an answer.

Top management should reflect the same ethical values they want lower division employees to follow

Business's consideration of society's well being and consumer satisfaction, in addition to profits.

Effort of an organization to make a contribution to the communities in which it earns profit

Public demand that a business consider the wants and needs of its customers in making decisions

Study of small economic units, such as individual consumers, families, and businesses.

Social science that analyzes the choices people and governments make in allocating scarce resources.

Study of a nation's overall economic issues, such as how an economy maintains and allocates resources and how a governments's policies affect the standards of living of its citizens

Willingness and ability of buyers to purchase goods and services

Willingness and ability of sellers to provide goods and services

Graph of the amount of a product that buyers will purchase at different prices. Slopes down and to the right.

Graph that shows the relationship between the different prices and the quantities that sellers will offer for sale, regardless of demand. Slopes up and to the right.

Prevailing market price at which you can buy an item

Market structure in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.

Market structure in which large numbers of buyers and sellers exchange heterogeneous products so each participant has some control over price

Market situation in which relatively few sellers compete and high start up costs form barriers to keep out new competitors

Market situation in which a single seller dominates trade in a good or service for which buyers can find no close substitutes.

Government controls determine business ownership, profits, and resource allocation to accomplish government goals rather than those set by individual firms

Economic system in which all property would be shared equally bu the people of a community under the direction of a strong central government.

Economic system characterized by government ownership and operation of major industries such as communications

Economic system that draws from both types of economies, to different degrees

Unemployment remains low, consumer confidence about future leads to more purchases, and businesses expand

Cyclical economic contraction that lasts for six months or longer

Economic slowdown continues in a downward spiral over an extended period of time

The economy emerges from recession and consumer spending picks up steam.

Relationship between the number of units produced and the number of human and other production inputs necessary to produce them

Sum of all goods and services produced within a country's boundaries during a specific time period, such as a year

Rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production.

Measurement of the monthly average change in prices of goods and services.

Percentage of the total workforce actively seeking work but are currently unemployed

Government actions to increase or decrease the money supply and change banking requirements and interest rates to influence bankers' willingness to make loans

Responsible for formulating and implementing the nation;s monetary policy

Governments spending and taxation decisions designed to control inflation, reduce unemployment, improve the general welfare of citizens, and encourage economic growth

Domestically produced goods and services sold in other countries

Foreign goods and services purchased by domestic customers

Making a product for which it can maintain a monopoly or that it can produce at a lower cost than any competitor

Supplying products more efficiently and at a lower price than it can supply other goods, compared with the outputs of other countries.

If a country exports more than it imports, it achieves a positive balance of trade

If a country imports more than it exports, it produces a negative balance of trade

Difference between a nation;s exports and imports

Overall money flows into and out of a country

Value of one nation's currency relative to the currencies of other countries

Basic systems of communication, transportation, and energy facilities in a country

Tax imposed on imported goods

Limit set on the amounts of particular products that can be imported

Total ban on importing specific products or a total halt to trading with a particular country

Restriction on importation of certain products or against certain companies to reduce trade and expenditures of foreign currency

153 member international institution that monitors GATT agreements and mediates international trade disputes

Organization established by industrialized nations to lend money to less developed countries

Organization created to promote trade, eliminate barriers, and make short term loans to member nations that are unable to meet their budgets

Trade freely among themselves without tariffs or trade restrictions

Sets up a free trade area and specifies a uniform tariff structure for members trade with nonmember nations

Members go beyond a customs union and try to bring all of their trade rules into agreement, Also known as economic union.

When a firm brings in goods produced abroad to sell domestically

When companies produce or purchase goods at home and sell them in overseas markets

Barter agreement whereby trade between two or more nations involves payment made in the form of local products instead of currency

International agreement in which one firm allows another to produce or sell its product. or use its trademark, patent, or manufacturing processes, in a specific geographical area in return for royalties or other compensation

Contractual agreement in which a franchise gains the right to produce and/or sell the franchiser's products under that company's brand name if they agree to certain operating requirements

Investing directly in production and marketing operations in a foreign country is the ultimate level of global involvement

A company purchases another existing firm in the host country

Partnership between companies formed for a specific undertaking

Developing and marketing products to serve different needs and tastes of seperate national markets