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Business Ethics
Q:
To be viewed as legitimate in their host countries, MNCs must fulfill their social responsibilities, including all of the following except
A.economic functions.
B.legal duties.
C.philanthropic opportunities.
D.technological functions.
Q:
The most challenging situation for an MNC to face is
A.operating in socialist countries.
B.operating in more than ten countries at the same time.
C.operating is less-developed countries.
D.operating without a clearly defined strategic plan.
Q:
Which of the following countries was not an original participant in the NAFTA agreement?
A.Canada
B.Puerto Rico
C.United States
D.Mexico
Q:
Moving jobs that have historically resided in the home country to a lower-cost host country is called
A.expense minimization.
B.offshoring.
C.career displacement.
D.employment modernization.
Q:
The center of the controversy that aligns rich nations against poor nations is
A.control of oil.
B.the legitimacy of MNCs in the two types of countries.
C.what the trade rules will be, and who will write the rules.
D.use of natural resources on an equitable basis.
Q:
Economic integration of many formerly national economies into one worldwide economy is called
A.globalization.
B.world-system theory.
C.capitalization.
D.material diversification.
Q:
The process by which firms increase their awareness of the influence of international activities on their future and establish and conduct transactions with firms from other countries is known as
A.legitimization.
B.internationalization.
C.market awareness.
D.multinationalism.
Q:
Which of the following is not a feature of the global economy?
A.international movement of labor
B.more trade in goods than in services
C.international flow of capital
D.international laws governing fair trade
Q:
Peter Drucker has labeled the expanded global marketplace the
A.moral free space.
B.hypercompetitive economy.
C.transnational economy.
D.multinational competitive sphere.
Q:
International markets must be pursued if firms want to remain
A.competitive.
B.ethical.
C.free from corruption.
D.legitimate.
Q:
The FCPA has had a significant impact on the way American firms do business globally.
Q:
In the book Globality, business is about competing with everyone from everywhere for everything.
Q:
One way to resolve ethical conflicts between an MNC's home country and host country is to simply stop doing business in the host country.
Q:
Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow while doing business around the world.
Q:
Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country.
Q:
Transparency International's Corruption Perception Index (CPI) has historically been highest in underdeveloped countries.
Q:
Corruption, at its core, is essentially an abuse of power.
Q:
The Alien Tort Claims Act has had the effect of transforming human-rights ethical issues into financial issues.
Q:
MNCs often pay their employees in underdeveloped countries less than the average local wage.
Q:
One of the things that makes it difficult for U.S. MNCs to deal with sweatshops is that they only occur in foreign countries.
Q:
One of the ethical issues that is exacerbated by operating in an developing countries is that the host nation's citizens often do not understand the technology being used, nor do they recognize its potential dangers.
Q:
The Nestlé infant formula case is one in which a normal business practice in the firm's home country proved to be problematic in the host countries.
Q:
The ethical issues encountered in underdeveloped countries are often more difficult than those found in industrialized nations.
Q:
Most of the ethical problems that arise in international markets are very different than the moral issues encountered in their home countries.
Q:
Two major issues involved in exploring global markets are the strategic alternatives used by MNCs and pursuit of developing Third World markets.
Q:
Cultural differences between an MNC's home country and its host country sometimes make it difficult to distinguish between cultural issues and ethical issues.
Q:
For an MNC to be perceived as legitimate in the eyes of a host country, it must be properly incorporated and pay its fair share of taxes.
Q:
The United States' global economic leadership is demonstrated by the fact that more than half of the world's largest MNCs are based in America.
Q:
Over one-half of the world's largest economies are not nation-states, but are MNCs.
Q:
The most visible issue in the United States related to globalization is moving jobs overseas.
Q:
Involving two or more cultures in ethical issues make their resolution much more difficult.
Q:
One of the fortunate things about ethical issues in the global market is that they do not affect domestic operations.
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Transparency International has sought to fight world corruption. Reflect on the meaning of their five priorities and two principles.
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Evaluate Nestlé's action in defining the issue and keeping the issue out of the limelight, in the infant formula case.
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
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:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Make a case for paying premium wages to workers in less-developed countries.
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Why would people object to global capitalism, as they have done at various meetings of the World Trade Organization, the World Bank, and the G8?
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Provide and example of how the FCPA has cracked down on corrupt practices.
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Discuss the best ways to combat bribery.
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Evaluate the proposed requirement that MNCs pay workers at least the legal minimum wage or prevailing industry wage in their overseas factories.
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
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:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Discuss the differing philosophies held by MNCs and less-developed host countries. Which philosophy do you think is more appropriate?
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Review the major causes of the Nestlé infant formula controversy.
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the MNC's basic barrier to achieving legitimacy in its host country.
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the changing nature of multinational corporations over the past century.
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Describe the differences between internationalization and globalization.
Q:
Provide a short answer to each of these questions. Be sure to fully explain your answer.
Discuss the events that marked the beginning of the new, new world of international business, and the implications of those events.
Q:
The Electronic Industry Citizenship Coalition established a system that enables purchasers to evaluate, compare, and select electronic products based on a total of 51 environmental criteria.
a. True
b. False
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:
If a particular project requires only temporary help, and the workers will not be needed for future projects, the use of contingent workers is a poor approach.
a. True
b. False
Q:
Multinational corporations are all of the following except
A.corporations operating with offices, factories, and headquarters in more than one country.
B.multinational enterprises.
C.financial powerhouses
D.transnational corporations.
Q:
There is no evidence that the hiring of H-1B workers has affected the salaries of U.S. IT workers.
a. True
b. False
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:
Unethical companies cannot use H-1B visas to exploit the average salary requirements for H-1B workers.
a. True
b. False
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:
A key requirement for using H-1B workers is that employers must pay H-1B workers the prevailing wage for the work being performed.
a. True
b. False
Q:
If a whistle-blower wants to remain unknown, the safest course of action is to leak information anonymously to the press.
a. True
b. False
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:
When an organization decides to use contingent workers for a project, it is making a trade-off between completing a single project quickly and cheaply versus developing people within its own organization.
a. True
b. False
Q:
Argument 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:
The deciding factor in whether workers are considered contractors is the agreement signed by the workers, not the degree of control the company exercises over them.
a. True
b. False
Q:
Current standards for SA800 include all the following except
A.certifications.
B.compensations.
C.management systems.
D.child labor.
Q:
Contingent work is a job situation in which an individual has an implicit contract for long-term employment.
a. True
b. False
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:
Depending on how closely workers are supervised and how the job is structured, contingent workers may be viewed as permanent employees by the Internal Revenue Service, the Labor Department, or a state's workers' compensation and employment agencies.
a. True
b. False
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:
A firm is likely to use contingent IT workers if it experiences pronounced fluctuations in its technical staffing needs.
a. True
b. False
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Provide one example of how Internet technology has threatened businesses. Explain how ethics are being violated.
Q:
A person can work for a U.S. employer as an H-1B employee for a maximum continuous period of ten years.
a. True
b. False
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Discuss the merits and shortcomings of the proposed Genetic Information Nondiscrimination Act. In your opinion, should this bill be made into law?
Q:
Electronics manufacturing employees and suppliers at all steps along the supply chain and manufacturing process are at risk of unhealthy exposure to potentially harmful materials.
a. True
b. False
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
Discuss the implications of the "politicalization of bioethics."
Q:
It is fairly simple to prevent contingent workers from passing on corporate processes and strategies to subsequent employers.
a. True
b. False
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
There is some question about the ethics of Internet search engine companies accepting payment from businesses interested in receiving a higher ranking in search categories. Discuss the ethical implications of this practice. Is this an ethical issue, or simply free enterprise at work?
Q:
Contingent workers, H-1B workers, and outsourced offshore workers are examples of nontraditional workers.
a. True
b. False
Q:
Utilize the knowledge you have gained to respond to the following essay questions. Your answers should state your position and use logical arguments and content from this and other chapters in the textbook to support it.
With respect to the three models of management ethics, discuss how technology might affect amoral management.
Q:
The cost advantage of offshore outsourcing to India is continuing to increase.
a. True
b. False