Deck 9: Ethics and Globalization

Question 1

According to the principles of utilitarianism, there is no accountability for individual actions when one focuses on doing the greatest good for the greatest number of people.

Answer 1

True

Question 2

Multinational corporations are also known as intranational corporations.

Answer 2

False
Explanation: Multinational corporations are also known as transnational corporations.

Question 3

Ethical relativism refers to a philosophy that dictates that individuals must only make such choices that offer the greatest good for the greatest number of people.

Answer 3

False
Explanation: Ethical relativism refers to a gray area in which one's ethical principles are defined by the traditions of the society, personal opinions, and the circumstances of the present moment. Utilitarianism is the philosophy that dictates that individuals must only make such choices that offer the greatest good for the greatest number of people.

Question 4

Multinational corporations include those corporations that generate products and/or services in multiple countries and implement operational policies (marketing, staffing, and production) that go beyond national boundaries.

Question 5

For organizations, international markets represent new customers as well as sources of cheaper materials and cheap labor.

Question 6

Globalization benefits corporations from economically advanced nations because access to resources in developing nations enables lower production costs that equate to lower prices and higher income standards for their customers.

Question 7

A multinational corporation is a company that provides and sells products and services across multiple national borders.

Question 8

If there are no clear local ethical standards, companies find themselves tempted to take maximum advantage of the less stringent laws and regulations of local markets.

Question 9

The European Economic Community is an example of a regional trade bloc.

Question 10

A developed nation is a country that enjoys a high standard of living as measured by economic, social, and technological criteria.

Question 11

Moving the ethical commitment of an organization to a global stage requires nothing more than increasing the scale of the policies and procedures.

Question 12

The downside of globalization is that corporations are free to take full advantage of less restrictive legal environments in developing countries.

Question 13

The term "globalization" has applications in commercial, economic, social, and political environments.

Question 14

The financial strength of the Western nations has made developing nations more amenable to accepting general standards of business practice.

Question 15

The growth of multinational corporations, as a global phenomenon, has raised no ethical issues.

Question 16

Utilitarianism is a theory in ethics that advocates making choices that offer the greatest good for the greatest number of people.

Question 17

Globalization refers to the expansion of international trade to a point where, across the globe, regional trade blocs have overtaken national markets.

Question 18

The term "globalization" refers to the phenomenon that divided the world into two opposing factions during the Cold War.

Question 19

A less-developed nation is a country that lacks the economic, social, and technological infrastructure of a developed nation.

Question 20

Ethical relativism arises when a multinational company comes up against a policy that is banned both in its own country and in the country with which it's doing business.

Question 21

The UN Global Compact deals exclusively with two key areas of concern: fair pricing and customer satisfaction.

Question 22

The UN Global Compact is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four key areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights.

Question 23

As per the labor standards of the UN Global Compact, businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Question 24

As per the UN Global Compact, businesses should support a precautionary approach to environmental challenges.

Question 25

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were criticized because they failed to address consumer interests.

Question 26

Richard DeGeorge fails to emphasize the importance of working with the local culture in the guidelines he set down for organizations doing business in other countries.

Question 27

The guidelines set down by Richard DeGeorge for organizations doing business in other countries were criticized because they only dealt with the issues of bribery, false advertising, and the use of sweatshops in the production process.

Question 28

The UN Global Compact is a set of mandatory rules to which multinational corporations are expected to adhere. Companies that fail to comply with these rules are blacklisted by the U.S. Government.

Question 29

According to Richard DeGeorge's guidelines for organizations doing business in other countries, multinationals are responsible for redesigning the transfer of hazardous technologies so that such technologies can be safely administered in host countries.

Question 30

In the guidelines he set down for organizations doing business in other countries, Richard DeGeorge stated that it was acceptable for a company to harm the host country only if it served the greatest good for the greatest number of people.

Question 31

The UN Global Compact relies on public accountability, transparency, and the enlightened self-interest of companies, labor, and civil society to initiate and share substantive action in pursuing the principles on which the Global Compact is based.

Question 32

The UN Global Compact actively polices the behavior of multinational corporations.

Question 33

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises do not address the issue of taxation.

Question 34

The global code of conduct is a general standard of business practice that can be applied only to undeveloped countries in accordance with their local customs and social norms.

Question 35

The principles and standards of organizational behavior set down by the UN Global Compact cover more issues than the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises.

Question 36

The UN Global Compact represents a commitment on the part of its members to promote good corporate citizenship.

Question 37

The UN Global Compact, which encourages organizations to make a voluntary commitment to corporate citizenship, is widely recognized as the world's largest initiative of its kind.

Question 38

Enforcing a global ethical standard would require all parties involved to agree on acceptable standards of behavior and appropriate consequences for failing to abide by those standards.

Question 39

The guidelines set down by the Organization for Economic Cooperation and Development are legally binding.

Question 40

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises represents a less governmental approach to the same issues featured in the UN's nongovernmental Global Compact.

Question 41

Which of the following is a disadvantage of globalization?

A)The prices of consumer goods have increased as a result of higher production costs.
B)Multinational corporations no longer see developing countries as potential consumers.
C)Foreign investors focus on developed countries and not the less-developed countries.
D)Multinational corporations are depleting the natural resources of less-developed countries.

Question 42

A general standard of business practice that can be applied equally to all countries over and above their local customs and social norms is called a _____.

A)contextual code of relativism
B)universal code of utilitarianism
C)global code of conduct
D)conceptual code of ethics

Question 43

Which of the following bodies has approached the issue of standardizing global ethical conduct by promoting behavior guidelines that multinational corporations can publicly support?

A)The Organization for Economic Cooperation and Development
B)The Government Accountability Office
C)The Bureau of Economic Analysis
D)The Organization for Economic Growth and Standardization

Question 44

Which of the following is an advantage of globalization?

A)National markets have successfully taken over regional trade blocs on a global scale.
B)Children are no longer offered employment in "sweatshop" production facilities.
C)Multinational corporations are unable to exploit the people of less-developed countries.
D)Developing nations can leverage their natural resources to attract foreign investment.

Question 45

A fact about the effect of globalization is that multinational corporations:

A)often take advantage of the unrestrictive legal environments of less-developed countries.
B)have fewer ways in which they can reduce their production costs or increase their sales.
C)have limited access to the labor force or natural resources of less-developed countries.
D)often exploit the natural resources of developed countries without facing any consequences.

Question 46

_____ refers to ethical choices that consider the greatest good for the greatest number of people.

A)Utilitarianism
B)Centralism
C)Astigmatism
D)Autonomism

Question 47

Which of the following statements is true of less-developed countries and multinational corporations in the context of globalization?

A)Multinational corporations tend not to see less-developed countries as potential consumer markets.
B)The labor power of less-developed countries does not attract the attention of multinational corporations.
C)The long-term economic viability of less-developed countries is threatened by the activities of multinational corporations.
D)Multinational corporations prefer not to invest their time and effort in less-developed countries.

Question 48

Which of the following statements is true of utilitarianism?

A)Its doctrine states that the ends do not justify the means under any circumstances.
B)Its use leads to situations in which there is no accountability for individual actions.
C)It is an ethical philosophy that considers pleasure as the ultimate motive for human actions.
D)It is a theory that considers all action taken in one's self-interest ethical.

Question 49

Which of the following philosophical positions is adopted by multinational corporations when working in countries whose laws and regulations are less restrictive than the one in their own country?

A)Ethical relativism
B)Aesthetic relativism
C)Motive consequentialism
D)Ethical consequentialism

Question 50

Multinational companies are also known as _____.

A)transnational corporations
B)intranational trade blocs
C)regional trade blocs
D)transcontinental bureaus

Question 51

_____ is a gray area in which a person's ethical principles are defined by the traditions of his or her society, personal opinions, and the circumstances of the present moment.

A)Methodological relativism
B)Ethical consequentialism
C)Ethical relativism
D)Motive consequentialism

Question 52

Less-developed nations are countries which:

A)have poor economic, social, and technological infrastructure.
B)are characterized by social stability and high standards of living.
C)are immune to the effects of economic phenomenon like inflation.
D)have strong bureaucracies and are characterized by political stability.

Question 53

Which of the following statements is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries?

A)They represented an ethical ideal that, at best, provided a conceptual foundation.
B)They were lauded for covering all the severe types of business transgressions.
C)They only addressed multinational corporations working in developed countries.
D)They endorsed the principles of utilitarianism which states that the ends always justify the means.

Question 54

Which of the following statements is true of globalization?

A)It makes countries and markets more independent of each other.
B)It leads to the replacement of regional trade blocs with national markets.
C)It impacts the commercial, economic, social, and political environment.
D)It offers multinational companies fewer ways to reduce their expenses.

Question 55

Why were the guidelines offered by Richard DeGeorge for organizations doing business in other countries criticized?

A)They overlooked issues related to the quality of goods produced.
B)They did not advocate working with or respecting local customs of other countries.
C)They represented the utilitarianism belief that the ends justify the means in all circumstances.
D)They advocate doing the greatest good for the greatest number of people.

Question 56

Which of the following statements is true of enforcing global ethics?

A)Nations of the world will experience no difficulty adhering to global standards for ethical performance.
B)Enforcing global ethics requires that all multinational companies follow the philosophy of utilitarianism.
C)Companies may be held accountable for ethical performance within their home countries.
D)Nations of the world will experience no difficulty governing their internal politics when implementing a global ethical standard.

Question 57

How has globalization affected the economy?

A)Transnational markets have given way to national markets.
B)Regional trade blocs have been replaced by domestic markets.
C)National markets are becoming less dependent on each other.
D)National markets are being overtaken by regional trade blocs.

Question 58

Globalization raises concerns about the:

A)restricted access multinational companies have to all less-developed countries.
B)ethical behavior of economically advanced nations toward developing ones.
C)inability of multinational companies to reduce their production costs.
D)lack of currency flow in foreign exchange markets.

Question 59

An organization can move its ethical commitment to a global scale successfully by:

A)creating an ethical standard that respects the local customs of other countries.
B)increasing the scale of their policies and procedures to a higher degree than in other countries.
C)translating all their existing policies into the local language of the countries in which they will operate.
D)working in the absence of standard ethical policies wherever possible.

Question 60

A multinational company working in a less-developed nation will face ethical relativism when:

A)the local customs of the less-developed nation come into conflict with the company's policies.
B)the less-developed nation is characterized by social stability and economic growth.
C)the local customs of the less-developed nation accommodate the company's code of ethics.
D)the less-developed nation possesses a bureaucracy that is related to a logical reality.

Question 61

The UN Global Compact states that businesses should:

A)support a precautionary approach to environmental challenges.
B)avoid involvement in the environmental concerns of other nations.
C)avoid selling their products to the people of less-developed nations.
D)support the employment of children in sweatshop production facilities.

Question 62

A _____ corporation is one that sells products and services across multiple national borders.

Question 63

Which of the following principles and standards of behavior is advocated by both the Organization for Economic Cooperation and Development (OECD) and the UN Global Compact?

A)Businesses should observe only the customs of their own country at all times.
B)Businesses should not involve themselves in the environmental issues of other countries.
C)Businesses should utilize the natural resources of their host country to the fullest.
D)Businesses should abolish child labor, combat bribery, and fight corruption.

Question 64

The Organization for Economic Cooperation and Development (OECD) Guidelines believe that less-developed countries should:

A)not be considered a lucrative market.
B)allow their natural resources to be tapped into freely.
C)benefit from a corporation's advanced technology.
D)avoid trading with developed nations.

Question 65

A _____ nation is one that enjoys a high standard of living as measured by economic, social, and technological criteria.

Question 66

_____ refers to the expansion of international trade to a point where national markets are overtaken by regional trade blocs, leading eventually to a global marketplace.

Question 67

The UN Global Compact:

A)ignores issues of environmental concern.
B)is the largest initiative of its kind in the world.
C)applies only to organizations operating in developed nations.
D)is a regulatory instrument that polices organizations.

Question 68

Which of the following is recommended by the Organization for Economic Cooperation and Development (OECD) Guidelines?

A)Companies should contribute to the innovative capacities of host countries.
B)Companies should encourage developing nations to adopt the principles of socialism.
C)Companies should uphold the effective recognition of the right to collective bargaining.
D)Companies should avoid involving themselves in the environmental issues of other countries.

Question 69

The UN Global Compact focuses on:

A)the welfare of workers around the world.
B)the profitability of small businesses.
C)the inheritance rights of women.
D)the fluctuation of currency standards.

Question 70

Which of the following is a characteristic of the UN Global Compact?

A)It is a standard of business practice that all countries are expected to follow, by law.
B)It is a set of mandatory rules by which multinational corporations are expected to operate.
C)It is a body of rules that deals exclusively with fair pricing and customer satisfaction.
D)It is a voluntary corporate initiative that promotes good corporate citizenship.

Question 71

_____ is one of the four key areas of concern upon which the UN Global Compact focuses.

A)Corporate tax
B)Foreign exchange
C)Anticorruption
D)Over-population

Question 72

A _____ nation is one that lacks the economic, social, and technological infrastructure of a developed nation.

Question 73

Which of the following is true of the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises?

A)They act in opposition to the UN Global Compact.
B)They apply solely to local and regional trade blocs.
C)They carry no criminal or civil enforcement.
D)They are legally binding for American companies.

Question 74

The Organization for Economic Cooperation and Development (OECD) guidelines recommend:

A)actions that consider the greatest good for developed countries.
B)disclosure on all material matters regarding the corporation.
C)against investing money and effort in developed countries.
D)against investing money and effort in less-developed countries.

Question 75

_____ refers to ethical choices that offer the greatest good for the greatest number of people.

Question 76

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were initially a part of the _____.

A)Public Company Accounting Oversight Board
B)International Bureau of Economic Analysis
C)Dodd-Frank Wall Street Reform and Consumer Protection Act
D)Declaration on International Investments and Multinational Enterprises

Question 77

Which of the following is a difference between the UN Global Compact and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises?

A)Unlike the UN Global Compact, the OECD guidelines uses a more governmental approach for the issues featured in the UN's nongovernmental Global Compact.
B)Unlike the OECD guidelines, the UN Global Compact ignores most areas of environmental concern.
C)Unlike the UN Global Compact, the OECD guidelines carry criminal or civil enforcement and are regarded as legally binding.
D)Unlike the OECD guidelines, the UN Global Compact applies only to companies operating in their own country.

Question 78

Fred, a manager in a multinational corporation, is a supporter of Milton Friedman's instrumental contract. Fred believes that corporations:

A)should actively work to protect the environment of the countries in which they operate.
B)must run welfare programs for the people of the countries in which they operate.
C)need to cease working in less-developed countries.
D)carry no moral obligation to the countries in which they operate.

Question 79

Which of the following is true of the concept of global ethics?

A)It is no longer relevant today.
B)It has little backing from the United Nations.
C)It is a highly complex subject.
D)It does not involve less-developed nations.

Question 80

Which of the following statements is true of the UN Global Compact?

A)It encourages actions that cause the greatest good for the greatest number of people.
B)It ignores the exploitation of less-developed countries by multinational corporations.
C)It comprises laws that are legally enforced by the United Nations.
D)It serves as a guideline for transparency and public accountability.