Essay on Ibus 300 Notes

Words: 2884
Pages: 12

Chapter 5: Ethics in International Business

* Opening Case: Exporting used batteries to Mexico * Business Ethics- accepted principles of right or wrong governing the conduct of businesspeople * Ethical Strategy- a course of action that does not violate a company’s business ethics * Ethical Issues in International Business * Employment practices * Nike * Human rights * General Motors in South Africa * Environmental Pollution * Global tragedy of the commons- when a resource is held in common by all, but owned by no one, and is overused by individuals, resulting in its degradation * Corruption * Daimler automotive (page 129) * Foreign Corrupt
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with a similar liberty for others * Once equal basic liberty is assured, inequality in basic social goods is to be allowed only if such inequalities benefit everyone

Chapter 12: the Strategy of International Business

* Opening Case: Ford’s Global Strategy * “One Ford” strategy; historically Ford pursued localization * Strategy and the Firm * Strategy- actions managers take to attain the firm’s goals (for most it is the goal to maximize the value of the firm for its owners, its shareholders) * Profitability- a ratio or rate of return concept (calculated by dividing the net profits of the firm by total invested capital) * Profit Growth- the percentage increase in net profits over time * Value Creation- performing activities that increase the value of goods or services to consumers; measured by the difference between C and V (V-C) * V: the value of a product to a normal consumer * P: the average price that a firm can charge * C: all relevant costs * Profit per unit sold = P-C * Consumer surplus= V-P * Firms usually charge less than the value a consumer places on a good or service, leading to consumer surplus; occurs because firms compete * Page 335-336 * Strategic Positioning * *the strategy, operations, and organization of the firm must all be consistent with each other is it is to attain a competitive advantage and garner