Question 1

McDonald's,a fast food chain headquartered in the United States,applies the morality it practices in the United States to all foreign countries in which it operates.McDonald's is adhering to ________.

Accepted Answer

A)  moral universalism 
B)  ethical relativism 
C)  ethnocentrism 
D)  geocentrism

Question 2

What level of social responsibility is expected from domestic firms? What level is expected from international firms?

Accepted Answer

The answer of What level of social responsibility is expected...

Question 3

Payments to expedite routine transactions are often referred to as ________.

Accepted Answer

A)  slotting fees 
B)  grease money 
C)  gray funds 
D)  expropriation

Question 4

What is sustainable development? Why is sustainability a dilemma for MNCs?

Accepted Answer

The answer of What is sustainable development? Why is sustainability...

Question 5

The term "moral idealism" is used to address the need for a moral standard that is accepted by all cultures.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the first step of making an ethical decision?

Accepted Answer

A)  consulting the International Codes of Conduct for MNEs 
B)  consulting the superiors if clarification is sought 
C)  consulting the company's code of ethics and established norms 
D)  consulting the laws of both the host and the home countries

Question 7

The profitability of individual companies depends on a cooperative and constructive attitude toward ________.

Accepted Answer

A)  moral idealism 
B)  macropolitical interdependence 
C)  global interdependence 
D)  corporate technoglobalism

Question 8

Which of the following often forces the MNC to act in accordance with ethnocentric value systems?

Accepted Answer

A)  moral universalism 
B)  environmental policies in the home country 
C)  public pressure in the home country 
D)  media pressure

Question 9

One of the primary complaints about the Foreign Corrupt Practices Act is that the legislation ________.

Accepted Answer

A)  puts U.S. firms at a competitive disadvantage 
B)  fails to enforce equal punishments on U.S. firms 
C)  encourages U.S. managers to hire local agents 
D)  requires U.S. firms to adhere to host country laws

Exam 2: Managing Interdependence, Social Responsibility, and Ethics