AGB 302 EXAM ASU 100% SOLUTION

AGB 302 EXAM ASU 100% SOLUTION ethics - ANSWER the principles of right and wrong that guide an individual in making decisions ethical strategy - ANSWER a course of action that does not violate a company's business ethics Friedman Doctrine - ANSWER the only social responsibility of business is to increase profits, so long as the company stays within the rules of law Culturual Relativism - ANSWER belief that cultures should be judged by their own standards Utilitarian Approach - ANSWER guided by what will result in the greatest good for the greatest number of people john rawls - ANSWER veil of ignorance a class system is more or less rigid than a caste - ANSWER less Max Weber - ANSWER The Protestant Ethic and the Spirit of Capitalism buddhism does not support - ANSWER the caste system tragedy of the commons - ANSWER people acting individually and in their own interest use up commonly available but limited resources facilitating payments - ANSWER Payments made to foreign officials to ensure that there is no obstruction to the transaction. Noblese Oblige - ANSWER idea that they upper classes have the responsibility/right to take care of those under them free trade - ANSWER international trade left to its natural course without tariffs, quotas, or other restrictions. david ricardo - ANSWER theory of comparative advantage heckscher ohlin - ANSWER export goods that make intensive use of factors that are locally abundant raymond vernon - ANSWER Product life cycle theory new trade theory - ANSWER countries specialize because in certain industries the world market can only support a limited number of firms (entering the market early is better) Mercantilism - ANSWER max exports min imports (ZERO-SUM GAME) absolute advantage creator - ANSWER adam smith when is ppf a straight line - ANSWER constant return to specialization diminishing returns - ANSWER benefit from an extra unit of an input declines as the quantity of the input increases Product Life Cycle Theory - ANSWER observation that most new world products are from the U.S. economies of scale - ANSWER unit cost reductions associated with a large scale of output (reduced ability to make variety) Porter's Theory of National Competitive Advantage - ANSWER -factor endowments -demand conditions -related and supporting industries -firm strategy, structure, and rivalry firms involved with international trade influence - ANSWER government policy voluntary export retraint - ANSWER a quota on trade imposed by the exporting country what is the goal of tariff rate quotas - ANSWER limit imports over quota how does a voluntary export restraint benefit domestic producers - ANSWER limiting import competition dumping - ANSWER Selling goods in another country below market prices smoot-hawley act - ANSWER protected american industries during the great depression removing tariff barriers in agriculture could - ANSWER lower prices to consumers uruguay round - ANSWER extended gatts rules to cover trade in services millenium round - ANSWER further reduced barriers to cross border trade and investment ad volerem tariffs - ANSWER levied as a proportion of the value of the imported good quota rent - ANSWER extra profit producers make when supply is artificially limited by an import quota why is government intervention good? - ANSWER -protecting jobs -protecting national security -retaliation by keeping others in check -sanctions strategic trade policy - ANSWER first mover advantage