Exam 3

The United Nations Universal Declaration of Human Rights, related to employment, upholds which principle?

(NOT) prohibition of trade unions, (Maybe) protection against unemployment

Business ethics that either deny the value of business ethics or apply the concept in a very unsatisfactory way are termed

(NOT) rights theories, (Maybe) straw man

In a business setting, what is taken to mean benevolent behavior that is the responsibility of successful enterprises?

(NOT)Sullivan's principles, noblesse oblige (Maybe)

________ argued that countries should specialize in the production of goods for which they have an absolute advantage.

Adam Smith

The ________ obliges member states to make the bribery of foreign public officials a criminal offense and excludes facilitating payments made to expedite routine government action.

Convention on Combating Bribery of Foreign Public Officials

John Rawls would agree with which statement?

Each person should be permitted the maximum amount of basic liberty compatible with a similar liberty for others.

________ are unit cost reductions associated with a large scale of output.

Economies of scale

A manager from the United States is sent to Kenya to supervise the construction of a road. As a righteous moralist, he is likely to learn the ethics and values of Kenya and follow them, even if they don't concur with his own.

False

According to Rawls, inequalities are unjust even if the system that produces inequalities is to the advantage of everyone.

False

Cultural relativism suggests that even if slavery is culturally acceptable in a country, a foreign firm operating in that country should avoid using slave labor.

False

Ethical strategies are the accepted principles of right or wrong governing the conduct of businesspeople.

False

Fostering ethical behavior in a company is easily achieved by simply providing a company-specific code of ethics.

False

International business executives find that making payments to corrupt government officials never results in economic advantages.

False

Mercantilist doctrine advocates unrestricted free trade between countries.

False

Some of the arguments made by the product life-cycle theory seem ethnocentric and increasingly dated when viewed from an Asian or European perspective.

False

To establish moral intent, managers need to stand in the shoes of a stakeholder and ask how a proposed decision might impact that stakeholder.

False

Utilitarian philosophy, based on the principle of justice, is considered fair and equitable.

False

________ means standing in the shoes of a stakeholder and asking how a proposed decision might impact that stakeholder.

Moral imagination

________ is a French term that refers to honorable and benevolent behavior, considered the responsibility of people of high (noble) birth.

Noblesse oblige

________ recognize that human beings have fundamental rights and privileges that transcend national boundaries and cultures.

Rights theories

A key assumption in the Heckscher-Ohlin theory is that technologies are the same across countries.

True

Corporations can contribute to the global tragedy of the commons by pumping pollutants into the atmosphere or dumping them in oceans or rivers in locations with weak environmental standards.

True

Ethics officers are hired by many businesses to make sure that all employees are trained to be ethically aware and to address employees' questions about issues that may be ethical or unethical.

True

Factor endowments refer to a country's factors of production, such as land, labor, and capital.

True

From a profit perspective, it makes sense for firms to disperse their productive activities to those countries where they can be performed most efficiently.

True

Managed trade can be described as a situation in which issues related to trade—such as what can be traded and in what quantities—are determined by market forces, government mandates, and negotiated agreements.

True

Most moral philosophers see value in utilitarian and Kantian approaches to business ethics.

True

Social responsibility refers to the idea that businesspeople should favor decisions that have both good economic and social consequences.

True

Tiana is a cultural relativist, which means she likely believes

a firm should adopt the ethics of the culture in which it is operating.

Which term refers to a situation where a government does not attempt to influence through quotas or tariffs what its citizens can buy from another country?

free trade

Grant works at a fast-food restaurant. One day he noticed a coworker giving free food to a friend. In not knowing how to handle the situation, Grant will most likely follow the example of

his supervisor

According to John Rawls's difference principle,

inequalities are justified if they benefit the position of the least-advantaged person.

Expatriate managers may experience more than the usual degree of pressure to violate their personal ethics because they

may be based in a culture that does not place the same value on ethical norms important in the manager's home country.

New trade theory suggests that nations

may benefit from trade even when they do not differ in resource endowments or technology.

Which is a basic factor that a nation will possess as proposed by Porter?

natural resources

What theory that supports the view that, in some cases, countries export because in certain industries the world market can support only a limited number of firms?

new trade theory

Which theory can be used to justify limited government intervention to support the development of certain export-oriented industries?

new trade theory

The Kantian approach to ethics suggests that

people should be treated as ends and never purely as means to the ends of others

Facilitating payments are

permitted under the amended Foreign Corrupt Practices Act.

The principle of mercantilism views trade as a(n) ________ game.

zero-sum

Which theory emphasizes the interplay between the proportions in which the factors of production are available in different countries and the proportions in which they are needed for producing particular goods?

Heckscher-Ohlin theory

Identify the correct statement about the rights theories.

Human beings have fundamental rights and privileges that transcend national boundaries.

Which person believed that people should be treated as ends and never purely as means to the ends of others?

Immanuel Kant

A neo-mercantilist strategy would promote

boosting exports and limiting imports.

According to the Friedman doctrine,

businesses should not undertake social expenditures beyond those mandated by the law and required for the efficient running of a business.

Regarding the four components of the diamond, Porter contends that government

can influence each of the four components of the diamond either positively or negatively

What is the term for a company's formal statement of the ethical priorities it expects all of its employees to follow?

code of ethics

The idea that businesspeople should consider the social consequences of economic actions when making business decisions and that there should be a presumption in favor of decisions that have both good economic and social consequences is known as

corporate social responsibility.

According to the ________ point of view, a firm should adopt the ethics of the culture in which it is operating.

cultural relativism

A(n) ________ is considered an external stakeholder of an organization

customer

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes

facilitating payments made to expedite routine government action.

What is one of the four attributes present in Porter's diamond?

factor endowments

The Heckscher-Ohlin theory is considered the best predictor of real-world international trade patterns.

false

The rationale for the ________ theory is that the wealth and size of the U.S. market gave U.S. firms a strong incentive to develop new consumer products.

product life-cycle

According to Ricardo's theory of comparative advantage, a country should produce goods

that it can produce most efficiently.

The ________ occurs when a resource held in common by all, but owned by no one, is overused by individuals, resulting in its degradation.

tragedy of the commons