International Business

Organizational culture refers to the system used to create job levels and hierarchies within a company

False

__________argued that it was ethically justified for General Motors to operate in South Africa so long as conditions of disobeying and prompting the abolition of apartheid laws were fulfilled

Leon Sullivan

Which well known advocate for human rights was elected president of South Africa following the apartheid movement in South Africa?

Nelson Mandela

What is the correct definition of business ethics?

The principles that govern the proper conduct and moral decisions that arise in a business environment

Which accurately describes developed nations in terms of the environment?

They have more substantive environmental regulations

International businesses have gained economic advantages by making payments to corrupt government officials

True

TimeTurner corp. is a company based in the United States that manufactures luxury wrist watches. By western standards if the company uses sweatshop labor to make these watches it is most likely to be considered

Unethical

According to the Convention on Compacting Bribery of Foreign Public Officials in International Business Transactions, the bribery of a foreign public official is considered

criminal defense

Organizational ___________ is the name given to the values and norms that are shared among employees of an organization

culture

Scandinavia scores high on the individualism and uncertainty avoidance measures of societal culture. According to Hofstedes dimensions of societal culture, Scandinavia is more likely to engage in _________ business behavior than countries who score high on masculinity and power distance measures.

ethical

When Phil's manufacturing company was fined by the US government for the amount of carob dioxide it released into the air, it decided to move its business to Thailand where it knew there were fewer restrictions on air emissions. Environmentalists would most likely question the ______________ implications of this decision.

ethical

Sharon is visiting her company's manufacturing subcontractor in Pakistan. She is disturbed when she notices children working on the machinery with no air conditioning and little access to water, but she also knows these children are probably supporting their families. This is an example of

ethical dilemma

Young children are permitted to work in the manufacturing of soccer balls in Pakistan, but this would not be legal in the United States. Yet a company wants to sell these soccer balls in the United States. This is one example of a(n)

ethical dilemma

Which of the following statements explains how a manager's personal ethics might be challenged in international business?

expatriate managers may face more pressure to violate their personal ethics

An amendment to the Foreign Corrupt Practices Act allowed for the use of ___________ in which a business ensured that it will receive the standard treatment it ought to receive from a foreign government

facilitating payments

Roboton Inc. has moved its production to a new nation. It freely dumps its harmful waste in the rivers and causes environmental degradation there. In this case, Roboton has contributed to the

global tragedy of the commons

After US companies objected that the FCPA would put them at a competitive disadvantage, the Foreign Corrupt Practices Act was eventually amended to allow for

grease payments

Because ____________ violations were so prevalent in Myanmar in the 1990s many Western companies could no longer condone doing business there

human rights

Heidi told her husband there was no possible way she could meet her monthly sales goal now that her manager had doubled it. She decided the only way to make the new goal was to add 5% to every sales order and hide this cost under "personal needs" when she submitted her report. What is causing Heidi to act in this unethical manner?

unrealistic performance goals

Garrett's company believes minimizing air emissions is the right thing to do, and it will not contract with a supplier who thinks otherwise. This idea about what the company believes to be right is an example of a

value

The ____________ of a company reflect what the company believes to be good, right, and desirable

values

In the 1980's, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there_____

violated basic human rights

Trevor told his foreign-born roommate it was socially acceptable in the United States to question a professor if you believed he or she was saying something that was not true. This example of a social rule that governs behavior demonstrates the idea of a

norm

Rights such as freedom of association and freedom of speech are

not universally accepted

Ethical Dilemmas

situation when there is no ethically acceptable alternative

What are determinants of ethical behavior?

Societal culture, leadership, organizational culture, personal ethics

Garrett Hardin described how herders shared common land for grazing. It was advantageous to the poor to place more and more livestock on the commons because it would mean more income. Why did the actions result in ultimate tragedy?

The commons were overgrazed and eventually destroyed by the livestock

Ethical Strategy

a course of action that does not violate a company's business ethics

It is wrong to cheat on a test, conversely, it is right to

accept responsibility for your actions

Business Ethics

accepted principles of right or wrong governing the conduct of businesspeople

A policy of racial segregation and political and economic discrimination against nonwhites in South Africa was known as the

apartheid system

Organizational Culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

When a company acts in its own self-interest and abuses a resource that isn't owned by anyone, such as a river, it is participating in the

tragedy of commons

Business people may behave unethically because they forget to ask whether the decision or action they are making is ethical

true

Jennifer doesn't understand why the management team decided to continue supporting the supplier in India when it was obvious that a better product at a better price was available from a supplier in Indonesia. According the the text, what is the best starting point to understand this decision?

understand the process the management team uses to make decisions