Question 1

Which of the following is an example of extraterritoriality?

Accepted Answer

A)  a U.S. subsidiary operating in China that is forced to follow some U.S. laws, even though China has no comparable laws 
B)  a U.S. sweatshop operating in Thailand that does not follow U.S. labor laws but allows children to work 60 hours a week 
C)  an MNE manager who, after working in the host country, tries to implement foreign practices in the home-country office 
D)  a British subsidiary operating in Indonesia that maintains the same health and safety standards for its foreign factories that are required in Great Britain, even though the British government does not require it to use those standards 
A)  a U.S. subsidiary operating in China that is forced to follow some U.S. laws, even though China has no comparable laws 
B)  a U.S. sweatshop operating in Thailand that does not follow U.S. labor laws but allows children to work 60 hours a week 
C)  an MNE manager who, after working in the host country, tries to implement foreign practices in the home-country office 
D)  a British subsidiary operating in Indonesia that maintains the same health and safety standards for its foreign factories that are required in Great Britain, even though the British government does not require it to use those standards

Question 2

Quantum Footwear is an MNE that manufactures inexpensive shoes. Quantum outsources portions of its production to independent companies located in Bangladesh and India where child labor is common. Other clothing and footwear firms have recently faced criticism regarding the use of child labor,and Quantum executives want to avoid similar problems. Which of the following guidelines enforced by Quantum would LEAST likely be supported by the International Labor Organization?

Accepted Answer

A)  establishing bridge schools 
B)  monitoring workplace safety 
C)  allowing children ages 10-15 to work a maximum of 4 hours per day 
D)  prohibiting abusive labor conditions 
A)  establishing bridge schools 
B)  monitoring workplace safety 
C)  allowing children ages 10-15 to work a maximum of 4 hours per day 
D)  prohibiting abusive labor conditions

Question 3

Which of the following is permitted by the Foreign Corrupt Practices Act?

Accepted Answer

A)  a bribe paid by foreign firms operating in U.S. territories 
B)  a bribe paid by U.S. firms operating in a foreign country that permits bribes to be paid 
C)  a payment to a foreign government official to influence a customs official 
D)  a payment to a customs official to clear legitimate merchandise 
A)  a bribe paid by foreign firms operating in U.S. territories 
B)  a bribe paid by U.S. firms operating in a foreign country that permits bribes to be paid 
C)  a payment to a foreign government official to influence a customs official 
D)  a payment to a customs official to clear legitimate merchandise

Question 4

Which of the labor issues identified by the Ethical Trading Initiative (ETI)receives the most attention?

Accepted Answer

A)  safe and hygienic working conditions 
B)  reasonable living wages 
C)  inhumane treatment 
D)  child labor 
A)  safe and hygienic working conditions 
B)  reasonable living wages 
C)  inhumane treatment 
D)  child labor

Question 5

Which of the following is a reason for an MNE to base its standards for ethical behavior on a country's laws?

Accepted Answer

A)  The law embodies many of a country's moral beliefs but is an inadequate guide for proper conduct. 
B)  The law contains unenforceable rules that are impossible for society to follow. 
C)  The law represents a consensus derived from significant deliberation. 
D)  The law is based on precisely defined moral concepts. 
A)  The law embodies many of a country's moral beliefs but is an inadequate guide for proper conduct. 
B)  The law contains unenforceable rules that are impossible for society to follow. 
C)  The law represents a consensus derived from significant deliberation. 
D)  The law is based on precisely defined moral concepts.

Question 6

According to the text,which of the following has resulted from GE's Ecomagination initiative?

Accepted Answer

A)  rising profitability for many GE products 
B)  increasing doubt among GE's foreign partners 
C)  reducing investments by GE due to poor returns 
D)  improving pollution levels near GE plants in China 
A)  rising profitability for many GE products 
B)  increasing doubt among GE's foreign partners 
C)  reducing investments by GE due to poor returns 
D)  improving pollution levels near GE plants in China

Question 7

A government that enforces its own laws on foreign subsidiaries of its domestic companies practices ________.

Accepted Answer

A)  civil law 
B)  relativism 
C)  externality 
D)  extraterritoriality 
A)  civil law 
B)  relativism 
C)  externality 
D)  extraterritoriality

Question 8

Encouraging ethical behavior for the purpose of developing competitive advantages will most likely result in all of the following for a firm EXCEPT ________.

Accepted Answer

A)  strategic accomplishment 
B)  consumer commitment 
C)  industry resolutions 
D)  financial success 
A)  strategic accomplishment 
B)  consumer commitment 
C)  industry resolutions 
D)  financial success

Question 9

What is the primary argument against extraterritoriality?

Accepted Answer

A)  increases opportunities for corporate bribery 
B)  contradicts demands for increased globalization 
C)  requires oversight by nongovernmental organizations 
D)  prohibits firms from expanding into foreign territories 
A)  increases opportunities for corporate bribery 
B)  contradicts demands for increased globalization 
C)  requires oversight by nongovernmental organizations 
D)  prohibits firms from expanding into foreign territories

Question 10

Which of the following is NOT a likely reason for companies to act more ethically?

Accepted Answer

A)  Consumer boycotts may result from unethical corporate behavior. 
B)  Irresponsible and unethical actions may lead to legal problems for MNEs. 
C)  Unethical or irresponsible behavior can negatively impact employee morale. 
D)  The U.N. Global Compact enforces fines on global firms that fail to act ethically. 
A)  Consumer boycotts may result from unethical corporate behavior. 
B)  Irresponsible and unethical actions may lead to legal problems for MNEs. 
C)  Unethical or irresponsible behavior can negatively impact employee morale. 
D)  The U.N. Global Compact enforces fines on global firms that fail to act ethically.

Question 11

Which stakeholder group primarily wants additional sales and increased productivity?

Accepted Answer

A)  customers 
B)  shareholders 
C)  society at large 
D)  government 
A)  customers 
B)  shareholders 
C)  society at large 
D)  government

Question 12

Medco Pharmaceuticals charges a market price for heart medication to distributors in Italy and a discounted price for the same medication to distributors in Bangladesh. Medco is most likely using ________.

Accepted Answer

A)  discounted pricing 
B)  skimmed pricing 
C)  penetrated pricing 
D)  tiered pricing 
A)  discounted pricing 
B)  skimmed pricing 
C)  penetrated pricing 
D)  tiered pricing

Question 13

Relativism is the theory that ethical truths depend on the values of the groups holding them; thus,MNEs should adhere to or adopt the cultures of the countries in which they are located.

Accepted Answer

A) True 
 B)False

Question 14

A manager practicing relativism would most likely ________.

Accepted Answer

A)  adapt to local conditions instead of implementing home-country practices 
B)  enforce home-country laws on host-country employees and suppliers 
C)  refuse to change company policies and procedures to comply with local norms 
D)  apply universal laws to each country despite local customs and traditions 
A)  adapt to local conditions instead of implementing home-country practices 
B)  enforce home-country laws on host-country employees and suppliers 
C)  refuse to change company policies and procedures to comply with local norms 
D)  apply universal laws to each country despite local customs and traditions

Question 15

How can an MNE operating in a developing country have a positive influence on labor policies? Illustrate your answer with an example.

Accepted Answer

MNEs operating in countries with very di

Question 16

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

Accepted Answer

A)  utilitarianism 
B)  extraterritoriality 
C)  absolute advantage 
D)  relative advantage 
A)  utilitarianism 
B)  extraterritoriality 
C)  absolute advantage 
D)  relative advantage

Question 17

Which of the following most likely complicates ethical behavior for firms that expand overseas?

Accepted Answer

A)  local laws and values 
B)  expatriate management 
C)  unstable financial settings 
D)  international codes of conduct 
A)  local laws and values 
B)  expatriate management 
C)  unstable financial settings 
D)  international codes of conduct

Question 18

Which stakeholders must companies satisfy? What role should stakeholders play in a firm's internal code of conduct?

Accepted Answer

Stakeholders include stockholders,employ

Question 19

A 1998 U.S. law that outlaws bribery payments by U.S. firms to foreign government officials is known as the ________.

Accepted Answer

A)  Anti-Bribery Act of 2004 
B)  Foreign Corrupt Practices Act 
C)  Zero Tolerance Initiative 
D)  Sarbanes-Oxley Act 
A)  Anti-Bribery Act of 2004 
B)  Foreign Corrupt Practices Act 
C)  Zero Tolerance Initiative 
D)  Sarbanes-Oxley Act

Question 20

Monique has recently been hired as an accounts supervisor at Ballston Enterprises. She wants to understand Ballston's values and its expectations for employee behavior. Which of the following would most likely provide Monique with this information?

Accepted Answer

A)  mission statement 
B)  code of conduct 
C)  vision statement 
D)  employee contract 
A)  mission statement 
B)  code of conduct 
C)  vision statement 
D)  employee contract

Which of the following is an example of extraterritoriality?

Which of the following is permitted by the Foreign Corrupt Practices Act?

Which of the labor issues identified by the Ethical Trading Initiative (ETI)receives the most attention?

Which of the following is a reason for an MNE to base its standards for ethical behavior on a country's laws?

According to the text,which of the following has resulted from GE's Ecomagination initiative?

A government that enforces its own laws on foreign subsidiaries of its domestic companies practices ________.

Encouraging ethical behavior for the purpose of developing competitive advantages will most likely result in all of the following for a firm EXCEPT ________.

What is the primary argument against extraterritoriality?

Which of the following is NOT a likely reason for companies to act more ethically?

Which stakeholder group primarily wants additional sales and increased productivity?

Medco Pharmaceuticals charges a market price for heart medication to distributors in Italy and a discounted price for the same medication to distributors in Bangladesh. Medco is most likely using ________.

Relativism is the theory that ethical truths depend on the values of the groups holding them; thus,MNEs should adhere to or adopt the cultures of the countries in which they are located.

A manager practicing relativism would most likely ________.

How can an MNE operating in a developing country have a positive influence on labor policies? Illustrate your answer with an example.

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

Which of the following most likely complicates ethical behavior for firms that expand overseas?

Which stakeholders must companies satisfy? What role should stakeholders play in a firm's internal code of conduct?

A 1998 U.S. law that outlaws bribery payments by U.S. firms to foreign government officials is known as the ________.

Monique has recently been hired as an accounts supervisor at Ballston Enterprises. She wants to understand Ballston's values and its expectations for employee behavior. Which of the following would most likely provide Monique with this information?

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

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Exam 5: Globalization and Society

Which of the following is an example of extraterritoriality?

Which of the following is permitted by the Foreign Corrupt Practices Act?

Which of the labor issues identified by the Ethical Trading Initiative (ETI)receives the most attention?

Which of the following is a reason for an MNE to base its standards for ethical behavior on a country's laws?

According to the text,which of the following has resulted from GE's Ecomagination initiative?

A government that enforces its own laws on foreign subsidiaries of its domestic companies practices ________.

Encouraging ethical behavior for the purpose of developing competitive advantages will most likely result in all of the following for a firm EXCEPT ________.

What is the primary argument against extraterritoriality?

Which of the following is NOT a likely reason for companies to act more ethically?

Which stakeholder group primarily wants additional sales and increased productivity?

Medco Pharmaceuticals charges a market price for heart medication to distributors in Italy and a discounted price for the same medication to distributors in Bangladesh. Medco is most likely using ________.

Relativism is the theory that ethical truths depend on the values of the groups holding them; thus,MNEs should adhere to or adopt the cultures of the countries in which they are located.

A manager practicing relativism would most likely ________.

How can an MNE operating in a developing country have a positive influence on labor policies? Illustrate your answer with an example.

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

Which of the following most likely complicates ethical behavior for firms that expand overseas?

Which stakeholders must companies satisfy? What role should stakeholders play in a firm's internal code of conduct?

A 1998 U.S. law that outlaws bribery payments by U.S. firms to foreign government officials is known as the ________.

Monique has recently been hired as an accounts supervisor at Ballston Enterprises. She wants to understand Ballston's values and its expectations for employee behavior. Which of the following would most likely provide Monique with this information?

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