GMS 520 Lecture Notes - Lecture 5: Extortion, Iso 9000, Sa8000
10 May 2016
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Document Summary
Week 4: intern"l trade, the global corporation, social responsibility & ethics. Five forces model: method of competitive analysis that considers the industry forces working against/for a firm. Analyzes industry attractiveness: competitive rivalry, power of buyers, power of suppliers, threat of new entrants, threat of substitutes. Csr: corporate social responsibility represents a tradeoff between profit and social needs. Host countries add complexity to this trade-off, adding cultural and economic conditions. A firm"s concern towards the community, workers, and environment in which it operates. (enviro!) Moral universalism - moral standard accepted by all. Ethnocentrism - forcing your own morality on a host country. Ethical relativism - adopting the local moral code of the host country. Parochialism - expecting those from or in another country to automatically fall into patterns of behavior common in their own country. Role of governments: four categories of trade barriers: economic (tariffs or subsidies, technical (design, certification standards, sociocultural (islamic finance, communication, religion, ethical barriers.
