Exam 19: Social Responsibility and Corruption in the Global Marketplace

Money laundering involves showing the source of ill-gotten funds by channeling them into legitimate business activities and bank deposits.

Ethical behavior implies not only following the rule of law but also attending to the values, norms and concerns of the home and host environments.

It was impossible for us to do business without getting involved in corruption. So we took the logical step and accepted the consequences. That meant packing our bags. Who said this?

All corruption violates the law.

Wholly owned U.S. subsidiaries and other U.S. entities controlled by foreign corporations, including their directors, employees, and agents are examples of segments of U.S. firms that are not subject to the Foreign Corrupt Practices Act (FCPA)

Accepting large sums of money to provide entry to another country is an example of smuggling.

Foreign investors may be reluctant to invest in an economy known for its corrupt practices.

The contiguous border between Hong Kong and Southern China is a prime example of where smuggling is more likely to take place.

Smuggling does not diminish national control over trade policies.

Diminished national control over trade policies, damages incurred by legitimate importers, and manufacturers whose reputations are tarnished are examples of some of the effects that are a result of ____________________.

The illegal trade and transportation of goods is devised to circumvent custom duties, quotas, and other constraints on the movement of ____________.

Copying computer software is an example of __________________.

Counterfeiting means attempting to pass the copied product as an original, such as producing and selling a fake Gucci bag or a Rolex watch.

Which of the following attributes has NOT been important to MNEs in regard to corporate social responsibility?

What have been especially appealing to smugglers the world over due to high taxes and tariffs and the relative ease of transportation?

MNEs should engage in transfer pricing policies that modify the tax bases on which their entities are assessed.

Nigeria has become infamous for it corrupt practices.

In piracy, intellectual property, such as computer software, music discs, and videos, is an example of a minor threat to original manufacturers.

_____________ focuses on the structures and processes necessary for the pursuit of shareholder value.

Which of the following is NOT a predictor of corruption?