Chapter 5 key terms​_

Asia-Pacific Economic Cooperation (APEC) Euro

A trade organization, created in 1989, that unites twenty-one of  The European currency unit adopted by the European Union and 
the countries surrounding the Pacific Ocean to co-operate on  used in most of the EU countries. 
regional trade. APEC is not established by treaties, but is based on   
consensus, and commitments are voluntary. 

European Union (EU) Group of Eight (G8)

A trade agreement signed on November 1, 1993, encompassing  A trade organization encompassing the major economies of the 
twenty-seven countries in Europe and a population of almost half a  world—France, the United States, Canada, Great Britain, Italy, 
billion people. It has its own flag, anthem, and currency, and common  Germany, Japan, and Russia—which meet to discuss macroeconomic 
financial, security, and foreign policies.  issues such as economic growth, trade liberalization, and helping 
developing countries. 

Group of Twenty (G20) International Monetary Fund (IMF)

A trade organization established during the economic crisis of the  An organization with 186 member countries whose purpose is to 
1990s to provide a discussion forum for the major economies of the  promote financial stability, prevent and solve economic crises, 
world beyond the G8. The G20 focuses on economic and employment  encourage growth, assuage poverty, by encouraging countries to 
growth, elimination of trade barriers, reforming financial institutions  adopt responsible economic policies, lending money to emerging and 
and regulations, and restructuring global financial organizations such  developing countries, and providing technical training in areas such 
as the International Monetary Fund and The World Bank.  as banking regulations and exchange rate policies. 

North American Free Trade Agreement Organization for Economic Co-operation

(NAFTA) and Development (OECD)

Trade agreement launched in January 1994, between Canada, the  A trade organization with thirty member countries, established in 
United States, and Mexico, which sets the rules surrounding the  1961 to promote the advancement of democracy and market 
movements of goods, services, and investments across North  economies. OECD members have worked together to eliminate 
America. The countries involved in NAFTA from the world's largest  bribery, money laundering, and fraud. 
free trading area.  

Trade agreement Trade organizations

An enforceable treaty between two or more countries that involves  Groups established to help with the free flow of goods and 
the movement of goods and services, elimination of trade barriers,  services. These organizations may be global in their scope, such as 
establishment 0f tersm of trade, and encouragement of foreign  the WTO or APEC, or they may national organizations created by 
investment.  individual governments to help domestic companies expand into 
international markets. 
 

World Bank World Trade Organization (WTO)

An organization of 186 member countries that provides monetary  An international organization established in 1995 (which now has 150 
and technical support for developing countries. The World Bank is  member countries) that promotes trade liberalization throughout 
composed of two separate institutions: the International Bank for  the world. The three main purposes of the WTO are to provide a 
Reconstruction and Development (IBRD) and the International  forum for countries to negotiate trade, to provide rules that guide 
Development Association (IDA).  trade between nations, and to help settle disputes that arise over 
the interpretation of trade agreements. 
 Chapter 6 key terms​_
CORPORATE SOCIAL RESPONSIBILITY (CSR) BUSINESS ETHICS

The duty of a companies management to work in the best interests  A set of rules or guidelines that management or individuals follow 
of the society it relies on for its resources (human, material, and  when making decisions facing their company. 
environmental), to advance the welfare of society, and to act as a   
good global citizen through its policies.  

ETHICAL IMPERIALISM CULTURAL RELATIVISM

Also known as ethical absolutism, a view of culture based on the  A view of culture based on the idea that a culture’s different values 
idea that there are certain universal truths or values that are  should be respected, as the ethics of one culture are not better 
standard across cultures; if something is wrong in one country, it is  than those of another. 
wrong in all countries. 

POLLUTION RESOURCE DEPLETION

The contamination of the environment caused by the manufacture  The consumption of scarce or non-renewable resources. These 
or use of commodities. It can take many forms such as ozone  include fossil fuels, minerals, forests, fish, and water. 
depletion; acid rain; air, water, and land pollution; and nuclear waste. 

SWEATSHOPS CORPORATE CORRUPTION

Factories in underdeveloped and developing countries in which  The involvement in illegal activities, such as bribery and fraud, to 
employees work in unsafe environments, are treated unfairly, and  further one’s business interest. 
have no chance to address these conditions. 

DUMPING PREDATORY DUMPING

In an international business context, selling products in a foreign  An anti-competitive business practice in which foreign companies 
country below the cost of production or below the price in the  price their products below market value to increase sales and force 
home country.  domestic competition out of business, then raise their prices.  

MICROCREDIT NON-GOVERNMENTAL ORGANIZATIONS (NGOS)

The granting of very small loans (often as little as $100) to those in  Non-profit organizations with a service and development focus that 
poverty to spur entrepreneurship. Entrepreneurs, who do not  are composed mostly of volunteers. These organizations work for 
require a down payment or a credit history, use the microloans to  the benefit of their members or other groups in the world’s 
start small businesses such as farms.  population.