Question 1

Why is the argument that "anything legal is ethical" most likely insufficient?

Accepted Answer

A)  Everything that is unethical is also illegal. 
B)  The law is an extremely efficient way to solve ethical dilemmas. 
C)  Laws are frequently based on imprecisely defined moral concepts. 
D)  Laws can never be changed; thus, rules for all possible ethical dilemmas are found in the law. 
A)  Everything that is unethical is also illegal. 
B)  The law is an extremely efficient way to solve ethical dilemmas. 
C)  Laws are frequently based on imprecisely defined moral concepts. 
D)  Laws can never be changed; thus, rules for all possible ethical dilemmas are found in the law. C

Question 2

The OECD Convention against bribery is an example of an agreement that targets the demand side of bribery.

Accepted Answer

A) True 
 B)False  False

Question 3

What is the difference between relativism and normativism? How do these concepts relate to ethical behavior in international business?

Accepted Answer

Relativism affirms that ethical truths depend on the groups holding them.This makes intervention by outsiders unethical.The idea of relativism can be expressed by the statement "When in Rome,do as the Romans do." Normativism holds that there are universal standards of behavior (based on people's own values)that all cultures should follow,making nonintervention unethical.Managers thus struggle with implementing a "universal" set of truths versus adapting to local conditions on the assumption that every place is different and should be treated differently.Often,a company faces certain pressures to comply with local norms.These may take the form of laws that permit-or even require-only certain practices that grant competitive advantages to firms accepting local norms while throwing up roadblocks in front of companies that try to impose home-country practices in the local arena.Conversely,firms may face certain pressures not to comply from its home-country government,or even from constituencies that threaten retaliatory action if it submits to objectionable foreign practices.

Question 4

Which stakeholder group is most interested in trustworthy behavior by corporate executives and increased corporate taxes?

Accepted Answer

A)  shareholders 
B)  society 
C)  employees 
D)  customers 
A)  shareholders 
B)  society 
C)  employees 
D)  customers

Question 5

The belief that there are universal standards of behavior that all cultures should follow is called ________.

Accepted Answer

A)  humanism 
B)  relativism 
C)  normativism 
D)  naturalism 
A)  humanism 
B)  relativism 
C)  normativism 
D)  naturalism

Question 6

According to the Ethical Trading Initiative,child labor cannot be used unless there are no suitable alternatives for employees.

Accepted Answer

A) True 
 B)False

Question 7

Bantam Enterprises,a multi-national enterprise,makes significant efforts to avoid being perceived as socially irresponsible. What is the most likely reason for this?

Accepted Answer

A)  Social irresponsibility can lead to labor strikes by international unions. 
B)  Socially irresponsible companies usually have fewer exports and more imports. 
C)  Cultural barriers increase for companies that are socially irresponsible, which hinders expansion into additional countries. 
D)  Social irresponsibility can lead to negative publicity from nongovernmental organizations, which could hurt a company's reputation. 
A)  Social irresponsibility can lead to labor strikes by international unions. 
B)  Socially irresponsible companies usually have fewer exports and more imports. 
C)  Cultural barriers increase for companies that are socially irresponsible, which hinders expansion into additional countries. 
D)  Social irresponsibility can lead to negative publicity from nongovernmental organizations, which could hurt a company's reputation.

Question 8

The U.N. Global Compact is best described as a(n)________.

Accepted Answer

A)  corruption mandate 
B)  environmental initiative 
C)  external code of conduct 
D)  international trade guideline 
A)  corruption mandate 
B)  environmental initiative 
C)  external code of conduct 
D)  international trade guideline

Question 9

The argument that "anything legal is ethical" is insufficient as a basis for ethical behavior because the law usually does not apply to everyone and does not have enforceable rules.

Accepted Answer

A) True 
 B)False

Question 10

Which level of moral development involves an individual learning role-conformity from peers,parents,and laws?

Accepted Answer

A)  conventional 
B)  principled 
C)  autonomous 
D)  preconventional 
A)  conventional 
B)  principled 
C)  autonomous 
D)  preconventional

Question 11

What is the Foreign Corrupt Practices Act? How has this law affected ethical behavior among international businesses?

Accepted Answer

The FCPA outlaws bribery payments by U.S

Question 12

Which of the following statements describes an inconsistency of the FCPA?

Accepted Answer

A)  Facilitation payments are classified as bribery. 
B)  Facilitation payments are excluded from the FCPA's definition of bribery. 
C)  Payments to officials who are not directly responsible for carrying out the law are legal. 
D)  Payments to foreign officials who carry out the law are considered illegal by provisions of the FCPA. 
A)  Facilitation payments are classified as bribery. 
B)  Facilitation payments are excluded from the FCPA's definition of bribery. 
C)  Payments to officials who are not directly responsible for carrying out the law are legal. 
D)  Payments to foreign officials who carry out the law are considered illegal by provisions of the FCPA.

Question 13

Ethical dilemmas tend to be ________ for MNE managers than for domestic managers.

Accepted Answer

A)  more complicated 
B)  less controversial 
C)  easier to decide 
D)  less common 
A)  more complicated 
B)  less controversial 
C)  easier to decide 
D)  less common

Question 14

All of the following are levels of moral development EXCEPT the ________.

Accepted Answer

A)  preconventional level 
B)  autonomous level 
C)  internalized level 
D)  conventional level 
A)  preconventional level 
B)  autonomous level 
C)  internalized level 
D)  conventional level

Question 15

The requirement by the U.S. government that its subsidiaries abroad comply with trade restrictions with Cuba is an example of externalities.

Accepted Answer

A) True 
 B)False

Question 16

Stockholders are typically more interested in corporate social responsibility than in earning profits.

Accepted Answer

A) True 
 B)False

Question 17

According to the teleological approach,individuals base moral decisions on ________.

Accepted Answer

A)  personal and social responsibilities 
B)  consequences of an action 
C)  cultural value systems 
D)  opinions of peers 
A)  personal and social responsibilities 
B)  consequences of an action 
C)  cultural value systems 
D)  opinions of peers

Question 18

Which of the following has been the primary reason for the recent growth of India's pharmaceutical industry?

Accepted Answer

A)  globalized supply chains 
B)  tiered pricing guidelines 
C)  patent-protection laws 
D)  foreign investors 
A)  globalized supply chains 
B)  tiered pricing guidelines 
C)  patent-protection laws 
D)  foreign investors

Question 19

The OECD Convention against bribery is an example of a(n)________.

Accepted Answer

A)  bilateral agreement developed for the EU 
B)  agreement that targets the demand side of bribery 
C)  agreement that targets the supply side of bribery 
D)  UN Convention dominated by developing countries 
A)  bilateral agreement developed for the EU 
B)  agreement that targets the demand side of bribery 
C)  agreement that targets the supply side of bribery 
D)  UN Convention dominated by developing countries

Question 20

General Electric's Ecomagination initiative is responding in part to the fact that it is operating in many countries which require compliance with higher environmental standards than exist in the United States.

Accepted Answer

A) True 
 B)False

Why is the argument that "anything legal is ethical" most likely insufficient?

The OECD Convention against bribery is an example of an agreement that targets the demand side of bribery.

What is the difference between relativism and normativism? How do these concepts relate to ethical behavior in international business?

Which stakeholder group is most interested in trustworthy behavior by corporate executives and increased corporate taxes?

The belief that there are universal standards of behavior that all cultures should follow is called ________.

According to the Ethical Trading Initiative,child labor cannot be used unless there are no suitable alternatives for employees.

Bantam Enterprises,a multi-national enterprise,makes significant efforts to avoid being perceived as socially irresponsible. What is the most likely reason for this?

The U.N. Global Compact is best described as a(n)________.

The argument that "anything legal is ethical" is insufficient as a basis for ethical behavior because the law usually does not apply to everyone and does not have enforceable rules.

Which level of moral development involves an individual learning role-conformity from peers,parents,and laws?

What is the Foreign Corrupt Practices Act? How has this law affected ethical behavior among international businesses?

Which of the following statements describes an inconsistency of the FCPA?

Ethical dilemmas tend to be ________ for MNE managers than for domestic managers.

All of the following are levels of moral development EXCEPT the ________.

The requirement by the U.S. government that its subsidiaries abroad comply with trade restrictions with Cuba is an example of externalities.

Stockholders are typically more interested in corporate social responsibility than in earning profits.

According to the teleological approach,individuals base moral decisions on ________.

Which of the following has been the primary reason for the recent growth of India's pharmaceutical industry?

The OECD Convention against bribery is an example of a(n)________.

General Electric's Ecomagination initiative is responding in part to the fact that it is operating in many countries which require compliance with higher environmental standards than exist in the United States.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 5: Globalization and Society

Why is the argument that "anything legal is ethical" most likely insufficient?

The OECD Convention against bribery is an example of an agreement that targets the demand side of bribery.

What is the difference between relativism and normativism? How do these concepts relate to ethical behavior in international business?

Which stakeholder group is most interested in trustworthy behavior by corporate executives and increased corporate taxes?

The belief that there are universal standards of behavior that all cultures should follow is called ________.

According to the Ethical Trading Initiative,child labor cannot be used unless there are no suitable alternatives for employees.

Bantam Enterprises,a multi-national enterprise,makes significant efforts to avoid being perceived as socially irresponsible. What is the most likely reason for this?

The U.N. Global Compact is best described as a(n)________.

The argument that "anything legal is ethical" is insufficient as a basis for ethical behavior because the law usually does not apply to everyone and does not have enforceable rules.

Which level of moral development involves an individual learning role-conformity from peers,parents,and laws?

What is the Foreign Corrupt Practices Act? How has this law affected ethical behavior among international businesses?

Which of the following statements describes an inconsistency of the FCPA?

Ethical dilemmas tend to be ________ for MNE managers than for domestic managers.

All of the following are levels of moral development EXCEPT the ________.

The requirement by the U.S. government that its subsidiaries abroad comply with trade restrictions with Cuba is an example of externalities.

Stockholders are typically more interested in corporate social responsibility than in earning profits.

According to the teleological approach,individuals base moral decisions on ________.

Which of the following has been the primary reason for the recent growth of India's pharmaceutical industry?

The OECD Convention against bribery is an example of a(n)________.

General Electric's Ecomagination initiative is responding in part to the fact that it is operating in many countries which require compliance with higher environmental standards than exist in the United States.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters