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global business occurs when various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole.
consumerism occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and large numbers of poor people with very few resources.
made-to-break a practice that brings together people from countries that have different cultures, values, laws, and ethical standards.
self-reference criterion the concept that morality varies from one culture to another and that the “right” and “wrong” are therefore defined differently.
country cultural values professor of logic and moral philosophy during the late eighteenth century who developed critical economic ideas that are still considered important today.
national culture these are certain values that are broadly accepted worldwide and shared across most cultures.
risk compartmentalization is a much broader concept than organizational culture, and includes everything in our surroundings that are made by people --both tangible items, such as artifacts, and intangible such as concepts and values.
cultural relativism are planned obsolescence products are better for business in that they keep consumers returning to buy more.
global common values created by Adam Smith, and also known as the “invisible hand” and is critical to capitalism in that it assumes that the market, through its own inherent mechanisms, will keep commerce in equilibrium.
John Maynard Keynes emerging in the 1940s this form of democracy allowed for the private ownership of property and features a large government equipped to offer services such as health and education to its citizens.
Adam Smith the belief that the interest of consumers, rather than those of producers, should dictate the economic structure of a society.
laissez-faire based upon two assumptions: 1) that people are predictable and will maximize the utility of their choices relative to their needs and wants; 2) that people act independently on the basis of full and relevant information
social democracy public companies that operate on a global scale without significant ties to any one nation or region, and represent the highest level of international business commitment characterized by a global strategy of focusing on opportunities throughout the world.
Milton Friedman now codified in a UN document, it is an inherent dignity with equal and inalienable rights and the foundation of freedom, justice, and peace in the world.
socialism refers to economic theories advocating the creation of a society in which wealth and power are shared and distributed evenly based on the amount of work expended in production.
behavioral economics  are subjective, are based on the social environment, and are used to develop norms that are socially and legally enforced and can be specific to countries, regions, sects, or groups.
bimodal wealth distribution the practice of charging high prices for products in domestic markets while selling the same products in foreign markets at low prices, often at below cost, and places local firms at a disadvantage and is therefore illegal in many countries.
rational economics argued that government policies could be used to increase aggregate demand thus increasing economic activity and reducing unemployment; also believed government should invest in infrastructure and lower interest rates.
Business for Social Responsibility where a channel member (manufacturer, wholesaler, distributor, or retailer) has control of the entire business system, via ownership or contract, or through its purchasing ability.
International Monetary Fund (IMF) established in 1995, it administers its own trade agreements, facilitates trade negotiations, settles trade disputes, and monitors the trade policies of member nations.
multinational corporations (MNC) assumes that humans may not act rationally because of genetics, emotions, learned behavior, and heuristics, or rules of thumb.
dumping originated from the Bretton Woods agreement in 1944, in which a group of international leaders decided that the primary responsibility for the regulation of monetary relationships among national economies should rest in an extranational body, the IMF which also makes short-term loans to member countries that have deficits and provides foreign currencies for its members.
United Nations Global Compact the unconscious reference to one’s own cultural values, experiences, and knowledge.
World Trade Organization (WTO) having lived through the Great Depression, he rejected Keynesian economics and argued that deregulation could reach equilibrium without government intervention.
vertical system created by the United Nations, it is a set of ten principles that promote human rights, sustainability, and the eradication of corruption.
human rights  a globally based resource system that tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools.

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