Q&A Hero

Q: The public and government use all of the following methods of influencing each other except a. politicking. b. voting. c. forming special-interest groups. d. coercion.

Q: Which of the following is not a method that government uses to influence business? a. lobbying b. taxation c. regulation d. industrial policy

Q: When it comes to the government business relationship, the public thinks: a. the government is doing too much. b. the government is doing too little. c. the government needs to adapt to new realities. d. All of these.

Q: Government is generally thought to follow the ethic of a. deontology. b. collectivism. c. individualism. d. socialism.

Q: Business generally follows the ethic of a. deontology. b. collectivism. c. individualism. d. socialism.

Q: The clash of ethical systems between government and business is centered around a. growth and sustainability. b. economic goals and social welfare. c. individualist and collectivist ethics. d. privatization and federalization.

Q: Modern goals for business include all of the following except a. safe working environments. b. fair pay. c. promoting the social welfare. d. equal employment opportunities.

Q: After the 1950s, most Congressional legislation that affected business was a. economic in nature. b. concerned largely with the quality of life. c. supportive of business. d. aimed at promoting competition.

Q: Most Congressional legislation before the 1950s that affected business was a. economic in nature. b. social regulation. c. aimed at protecting individuals' rights. d. to protect consumers' privacy.

Q: Government's new role in its relationship with business during the New Deal era was one of a. partner. b. servant. c. master. d. restoring prosperity and promoting economic growth.

Q: The reason that the United States government passed anti-trust legislation was a. to conform to Adam Smith's economic theory from Wealth of Nations. b. due to lobbying efforts by private citizens' groups. c. due to the anti-competitive practices of some large trusts. d. to restrict competition.

Q: Government intervention in business began with a. opening of settlements. b. a push for tariffs. c. governments giving of land grants. d. the creation of the Interstate Commerce Commission.

Q: One of the recurring problems in industries that have been deregulated is that they tend to become dominated by a few firms. a. True b. False

Q: Deregulation has provided uniform benefits for all parties affected. a. True b. False

Q: Newer social regulations covers business practices in all industries. a. True b. False

Q: The new social regulation focuses on business's impacts on other businesses. a. True b. False

Q: Early economic regulations and the government bodies that administered them were usually formed along industry lines. a. True b. False

Q: Keeping people informed is an important social goal of government. a. True b. False

Q: Negative externalities are the additional costs incurred by business due to the outside regulations placed by government. a. True b. False

Q: Many government regulations over business have been created by the efforts of special interest groups. a. True b. False

Q: Government regulation generally arises out of some type of market failure. a. True b. False

Q: In many ways the most controversial aspect of the government/business relationship is regulation. a. True b. False

Q: The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government. a. True b. False

Q: When providing loan guarantees for business, the government actually transfers the money to the business. a. True b. False

Q: One of the most direct ways in which government influences business is through transfer payments. a. True b. False

Q: Advocates of privatization base their positions on the need for efficiency and overall performance. a. True b. False

Q: Proponents of privatization want government to be a producer of services. a. True b. False

Q: The relationship between government and business is limited to government's influence over business. a. True b. False

Q: The relationship between government and business has become adversarial, but is improving. a. True b. False

Q: Our goals for business focus solely on the production and distribution of goods and services. a. True b. False

Q: Regulating the way business operates is only one of several roles the government has in its relationship with business. a. True b. False

Q: The level of government regulation of business has always been low. a. True b. False

Q: The two most widely used global standards are the UN Global Compact and the Caux Roundtable Principles. Compare and contrast the two for their approach to human, labor, and environment rights.

Q: Transparency International has sought to fight world corruption. Reflect on the meaning of their five priorities and two principles.

Q: Evaluate Nestl's action in defining the issue and keeping the issue out of the limelight, in the infant formula case.

Q: Bribery can be initiated by either party to the transaction. The person paying the bribe can offer it, or the recipient can demand it. Determine which party is the least ethical one, the payor who offers the bribe, or the recipient who demands it.

Q: One reason that some observers give for the cause of the Union Carbide Bhopal incident is that the company was forced to take on local partners in the project, thus diluting Union Carbide's profit motive. Assuming this argument is valid, evaluate it from a deontological perspective.

Q: Make a case for paying premium wages to workers in less-developed countries.

Q: What are the most important factors leading a firm to take corporate action against corruption?

Q: Provide an example of how the FCPA has cracked down on corrupt practices.

Q: Discuss the best ways to combat bribery.

Q: Evaluate the proposed requirement that MNCs pay workers at least the legal minimum wage or prevailing industry wage in their overseas factories.

Q: According to the textbook, Dow Chemical, which bought Union Carbide in 2001, is still subjected to claims by the survivors of the Bhopal disaster. Based on your understanding of the incident and its aftermath, determine whether or not Dow should continue to be liable to the victims of Bhopal.

Q: Discuss the differing philosophies held by MNCs and less-developed host countries. Which philosophy do you think is more appropriate?

Q: Review the major causes of the Nestl infant formula controversy.

Q: Describe a situation in which the best course of action for an MNC would be to suspend business activities in a host country where it is currently doing or contemplates doing business. What would precipitate such an action?

Q: Describe Earth Hour, and its growth. What has been its effect on awareness of global warming and climate change? Have you ever participated in Earth Hour in your community?

Q: Describe the differences between internationalization and globalization.

Q: Discuss the previous assumption that global trade would expand continually, the effect of the global economic crisis, and the implications of those events.

Q: Grease payments are all of following except a. monies given to minor officials b. get goods through red tape c. monies given to high ranking officials d. small sums of money

Q: Anticorruption programs have steps including: a. performing drug tests on employees. b. making grease payments. c. establishing hotlines or helplines for all members. d. suspending operations.

Q: Arguments in favor of bribery include a. it's necessary for profit. b. nobody does it. c. they are forms of wages. d. they are not expected.

Q: An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in a. social audits. b. ethical impact statements. c. human rights statements. d. environmental impact statements.

Q: The ethics and global strategy plan for improving global business ethics has as its central idea a. placing ethics ahead of profits as the number one priority. b. focusing on human rights rather than profits. c. employing only hypernorms for the MNC's ethical standards. d. utilizing ethical standards as significant inputs into top-level strategy formulation and implementation.

Q: Which of the following is not a strategy for improving global business ethics? a. use of global codes of conduct b. incorporating ethical dimensions into top level strategic planning processes c. imposing the home country's ethical standards on the host country d. suspension of activities

Q: Arguments against bribery include all the following except a. you shouldn't compromise your beliefs. b. bribery is illegal in the United States. c. managers can deal with corrupt governments. d. one should take a stand for honesty.

Q: Current standards for SA800 include all the following except a. certifications. b. remuneration. c. management systems. d. child labor.

Q: Which of the following is not one of home/host stakeholder pressures? a. culture b. system of government c. economic system d. laws

Q: The position that advocates that an MNC follow the host country's ethical standards is called a. ethical relativism. b. ethical egoism. c. ethical imperialism. d. ethical hegemony.

Q: The position that advocates that an MNC should continue to follow its home country's ethical standards even while operating in another country is known as a. ethical relativism. b. ethical egoism. c. ethical imperialism. d. ethical hegemony.

Q: Global trade is: a. speeding up. b. slowing down. c. doing about the same. d. diminishing exponentially.

Q: In 2012, the United States' rank in the Corruption Perception Index was: a. first, being least corrupt. b. in the top 10. c. in the top 20. d. at the very bottom.

Q: Which of the following is not part of the anticorruption movement? a. Transparency International b. OECD antibribery initiatives c. individual country initiatives d. World Trade Organization

Q: Payment of a bribe implies some type of a. extortion. b. quid pro quo. c. gambling. d. physical harm to the payee.

Q: The Foreign Corrupt Practices Act allows a. bribes under $10,000. b. bribes, as long as the firm does not deduct them on its tax return. c. bribes, as long as they are disclosed to shareholders. d. grease payments.

Q: The Foreign Corrupt Practices Act a. governs the operations of foreign MNCs in the United States. b. makes it illegal to make any type of payment to a foreign citizen for the purpose of doing business. c. makes it illegal for the representative of an American corporation to offer or pay officials of foreign governments for the purpose of getting or maintaining business. d. makes it illegal for American government officials to accept bribes from foreign nationals.

Q: Which of the following is not an argument commonly used against bribery? a. Bribes are inherently wrong. b. Bribes create dependence on corrupt individuals. c. Bribes are unfair because foreigners can get them, while U.S. citizens cannot. d. Once bribes start, they never stop.

Q: All of the following are arguments in support of bribery except a. everybody does it. b. it is normal practice in many countries. c. it is a form of commission, tax, or compensation for doing business between cultures. d. it is a way of providing needy foreigners with money they need.

Q: Which of the following is not an example of corruption? a. bribery b. paying for political favors c. negotiating for the lowest price on a contract d. paying protection money to the police

Q: U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because a. they could allow the firm to recoup some costs of incorporating overseas. b. they could allow the firm to sue foreign firms on a reciprocal basis. c. they provide an insight in the customs of the host country. d. they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.

Q: The Alien Tort Claims Act applies to: a. actions that occur on foreign soil. b. actions that occur on U.S. soil. c. actions that occur in the host country where a U.S. firm is based. d. actions that occur in a foreign country where a foreign firm is based.

Q: All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except a. allowing workers to form unions. b. prohibiting corporal punishment. c. providing retirement benefits. d. limiting work to a maximum of 48 hours per week.

Q: Which of the following is not an SA8000 standard proposed to improve sweatshop conditions? a. prohibition on employing workers under a certain age b. provision of a safe and healthy working environment c. provision of educational opportunities for workers d. prohibition of discriminatory practices

Q: Which of the following is not a characteristic of sweatshops? a. child labor b. low pay c. poor working conditions d. forced prostitution

Q: All of the following groups have criticized MNC labor practices except a. social activist groups. b. church groups. c. labor unions. d. grassroots organizations.

Q: Regarding the infant formula controversy, Nestl was criticized for all of these actions except: a. distributing free samples. b. providing purified water with the formula. c. promoting bottle-feeding over breast-feeding. d. the use of so-called "milk nurses."

Q: Major strategies MNCs may use to conduct global business, but still maintain an ethical sensitivity include all of these except: a. modify or redesign products. b. link ethics with global strategy. c. suspend business activities in certain countries. d. conduct ethical audits.

Q: Ethical issues in the global environment include all of these except: a. product safety. b. human resource management. c. production efficiency. d. advertising practices.

Q: Hypernorms are justified if: a. there is undisputed consensus the principle is universal. b. they are supported by NGOs. c. they are a component of well-known global industry standards. d. All of these.

Q: What questions were raised because of the Bhopal tragedy? a. To what extent should MNCs maintain identical standards at home and abroad regardless of how lax laws are in the host country? b. How wise are laws that require plants to be staffed entirely by local employees? c. Should certain kinds of plants even be located in developing nations? d. All of these questions.