BUS 345 Chapter 10

One of the things that makes it difficult for U.S. MNCs to deal with sweatshops is that they only occur in foreign countries.

F

The Alien Tort Claims Act has recently been interpreted by the U.S. Supreme Court to apply not only within the U.S., but outside it as well.

F

Which of the following is not part of the anticorruption movement?

World Trade Organization

Ethical issues in the global envirornnent include all of these except:

production efficiency

Regarding the infant formula controversy, Nestle was criticized for all of these actions except:

providing purified water with the formula.

All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except

providing retirement benefits

Which of the following is not an SA8000 standard proposed to improve sweatshop conditions?

provision of educational opportunities for workers

Multinational corporations are all of the following except

financial powerhouses

Which of the following is not a characteristic of sweatshops?

forced prostitution

Economic integration of many formerly national economies into one worldwide economy is called

globalization

The Foreign Corrupt Practices Act allows

grease payments.

Which of the following is not a strategy for improving global business ethics?

imposing the home country's ethical standards on the host country

In 2012, the United States' rank in the Corruption Perception Index was:

in the top 20.

Which of the following is not an example of corruption?

negotiating for the lowest price on a contract

Moving jobs that have historically resided in the home country to a lower-cost host country is called

offshoring

The most challenging situation for an MNC to face is

operating in less-developed countries.

Which of the following is not one the broad issues facing MNCs in their relationships with host countries?

religious and other traditional holidays

Global trade is:

slowing down.

U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because

they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.

In the 1970s, because of the differing safety standards around the world, American firms:

took all of these actions

Peter Drucker has labeled the expanded global marketplace the

transnational economy

The ethics and global strategy plan for improving global business ethics has as its central idea

utilizing ethical standards as significant inputs into top-level strategy formulation and implementation.

International markets must be pursued if firms want to remain

competitive

Which of the following is not one of home/host stakeholder pressures?

economic system

Payment of a bribe implies some type of

quid pro quo.

One of the fortunate things about ethical issues in the global market is that they do not affect domestic operations.

F

Which of the following is not an argument commonly used against bribery?

Bribes are unfair because foreigners can get them, while U.S. citizens cannot.

Most of the ethical problems that arise in international markets are very different than the moral issues encountered in their home countries.

F

According to Transparency International's Corruption Perception Index (CPI), underdeveloped countries typically rank low in corruption.

F

Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country.

F

Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow while doing business around the world.

F

MNCs often pay their employees in underdeveloped countries less than the average local wage.

F

A major ethical challenge of MNCs is that their firms' cultures and philosophies may differ from that of their host countries.

T

Corruption, at its core, is essentially an abuse of power.

T

Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place to help protect their citizenry.

T

Cultural differences between an MNC's horne country and its host country sometimes make it difficult to distinguish between cultural issues and ethical issues.

T

Despite the poor economy, there is a backlash against globalization.

T

For an MNC to be perceived as legitimate in the eyes of a host country, it must fulfill its social responsibilities.

T

Involving two or more cultures in ethical issues makes their resolution much more difficult.

T

MNCs based in the United States and in the European Union have played a key leadership role in world affairs.

T

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.

T

One way to resolve ethical conflicts between an MNC's horne country and host country is to simply stop doing business in the host country.

T

The FCPA has had a significant impact on the way American firms do business globally.

T

The Nestle 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.

T

The ethical issues encountered in underdeveloped countries are often more difficult than those found in industrialized nations.

T

The opposite of cultural relativism is ethical imperialism.

T

The Alien Tort Claims Act applies to:

actions that occur on U.S. soil.

The FCPA differentiates between:

bribes and grease payments

Current standards for SA800 include all the following except

certifications

All of the following groups have criticized MNC labor practices except

church groups.

The criticism of their use of sweatshops has led MNCs to do all of these things except::

create the Fair Labor Association (FLA).

The philosophy of Western industrialized nations and their MNCs includes all of these factors except:

decentralization

The advantages of offshoring to developing countries have been:

decreasing

An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in

ethical impact statements.

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

ethical imperialism.

The position that advocates that an MNC follow the host country's ethical standards is called

ethical relativism

Which of the following is not a feature of the global economy?

international laws governing fair trade

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

internationalization

All of the following are arguments in support of bribery except

it is a way of providing needy foreigners with money they need.

The Foreign Corrupt Practices Act

makes it illegal for the representative of an American corporation to offer or pay officials offoreigu governments for the purpose of getting or maintaining business.

Arguments against bribery include all the following except

managers can deal with corrupt governments

Major strategies MNCs may use to conduct global business, but still maintain an ethical sensitivity include all of these

modify or redesign products.

Grease payments are all of following except

monies given to high ranking officials

Arguments in favor of bribery include

necessary for profit