BUS 271 EXAM 1
10. While the lowering of trade barriers made globalization of markets and production a theoretical possibility, _____ has made it a tangible reality. A. technological change B. the rise of nuclear powers C. elasticity of demand D. corporate supremacy
A
12. Over the past quarter of a century, in the context of the global economy, it is being witnessed that: A. as economies have advanced, more nations are joining the ranks of the developed world. B. globalization now appears inevitable. C. globalization is only benefiting the developed world. D. commitment to free trade is decreasing rapidly.
A
25. As a result of _____ protection, the Nike "Swoosh" logo is protected from being used by any other shoe manufacturer. A. trademark B. copyright C. patent D. warrant
A
26. The U.S. has the most extensive civil and criminal liability laws. Many business executives argue that this: A. makes American businesses less competitive in the global marketplace. B. offers American businesses protection from foreign competitors. C. raises ethical issues in doing business in the country. D. makes it cheaper to do business in the country.
A
47. Southstar Corporation has uniformly high sales targets for its employees all across the globe, regardless of the individual constraints in each market. Employees are penalized for any shortfall. This has caused many employees to falsify the values of their sales. In this case, the roots of unethical behavior can be traced to: A. unrealistic performance expectations. B. personal ethics. C. making decisions based only on business variables. D. varying ethical standards in different cultures.
A
48. Which of the following philosophers is credited with contributing to the development of the utilitarian approaches to ethics? A. David Hume. B. Milton Friedman C. Immanuel Kant D. Leon Sullivan
A
8. The G20 is comprised of representatives of the European Union, the European Central Bank, and representatives of the 19 largest economies of the world. Who are the representatives of these economies? A. Finance ministers and central bank governors B. Prime ministers and defense ministers C. Presidents and finance ministers D. Heads of government and army chiefs
A
20. Which of the following can be traced to the ancient Greek philosopher, Aristotle? A. Collectivism B. Individualism C. Socialism D. Totalitarianism
B
24. When public officials such as politicians and government bureaucrats extort income or resources from property holders, this can be described as a: A. patents violation. B. public action. C. warrants action. D. private action.
B
27. It has been found that the more _____ a country had between 1975 and 1995, the more economic growth it achieved and the richer its citizens became A. protectionism B. economic freedom C. economic regulation D. trade tariffs
B
34. _____ means an understanding of how cultural differences across and within nations can affect the way business is practiced. A. Ethnocentricity B. Cross-cultural literacy C. Pan-culture integration D. Acculturation
B
46. Which of the following arguments strengthens the ethical case for never engaging in corruption, no matter how compelling the benefits might seem? A. There are cases where side payments to government officials can remove the bureaucratic barriers to investments that create jobs. B. Corruption tends to corrupt both the bribe giver and the bribe taker. C. In the context of pervasive and cumbersome regulations in developing countries, corruption may improve efficiency and help growth. D. Giving bribes might be the price that must be paid to do a greater good.
B
9. In 2001, the WTO launched a new round of talks aimed at further liberalizing the global trade and investment framework. It was held at: A. Uruguay. B. Doha. C. Kyoto. D. Seattle.
B
11. Which of the following had the greatest share of the world exports in 2012? A. United States B. Japan C. China D. Germany
C
23. The common law system enjoys a degree of flexibility not found in other systems because: A. common law system is usually found in democratic republics. B. common law system originated from Great Britain and can be found in almost all of its former colonies. C. law courts can interpret common law with regard to tradition, precedent, and custom. D. common law system is based on codified laws that encompass a wide spectrum of cases.
C
29. The absence of a legal system that protects property rights, and the machinery to enforce that system, usually results in: A. the raising of barriers to foreign direct investment and international trade. B. a collectivist approach to business and commerce. C. a reduction in the incentive to engage in productive economic activity. D. deregulation and privatization of the economy.
C
36. It can be concluded that the class system in the United States is less pronounced than in Britain because _____ in the United States: A. class membership is determined to a much greater degree by background and schooling B. only money begets money C. individuals can move smoothly from the working class to the upper class in a lifetime D. upward mobility could not normally be achieved in one generation
C
37. How does the operation of a conventional bank differ from that of an Islamic bank? A. Islamic banks are allowed to charge higher interest rates on loans. B. Islamic banks cannot accept private deposits. C. Islamic banks cannot pay or charge interest. D. Islamic banks are not subject to any form of law.
C
38. Some scholars maintain that the influence of _____ ethics on the culture of China, Japan, South Korea, and Taiwan may help explain their economic success. A. Buddhist B. Jewish C. Confucian D. Hindu
C
49. Subsequent to a trade agreement, firms from country A have regularly been dumping millions of substandard and toxic toys into the market in country B, where it is sold cheap on the streets and in stores. These toys have been implicated in several deaths from choking and lead poisoning in country B. Who, according to rights theorists, would bear the obligation for protecting the rights of consumers to safety in a case like this? A. Country A B. The street vendors and toy store owners C. All the moral agents involved in compromising the safety of consumers. D. Country B
C
19. Political systems can be assessed according to the degree to which they emphasize_____ and the degree to which they are _____. A. equal opportunity and adult franchise; open to free trade versus protectionism B. democratic versus individualistic; market oriented as opposed to being production oriented C. capitalism over socialism; collectivist or individualistic D. collectivism opposed to individualism; democratic versus totalitarian
D
21. To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal representative democracy has a number of safeguards. Which of the following is NOT an example of a safeguard in an ideal representative democracy? A. A fair court system that is independent from the political system B. Universal adult suffrage C. An individual's right to freedom of expression, opinion, and organization D. Unlimited terms for elected representatives
D
22. Which of the following is an advantage of private ownership? A. It protects businesses from volatile economic conditions. B. It helps businesses to take advantage of state subsidies. C. It eliminates competitors and reduces pressure to lower production costs. D. It gives entrepreneurs an incentive to search for better ways of serving consumer needs.
D
28. New information and communication technologies like the Internet have reduced the state's ability to control access to uncensored information. What is one of the possible political fallouts of this development? A. It has undermined democratic ideology. B. Most countries have banned or gagged the Internet. C. Internet-based businesses are under risk in Communist countries. D. It has been a factor in the spread of democracy in the modern world.
D
35. In many Western societies, such as the U.S., the _____ is the basic building block of social organization. A. family B. community C. peer group D. individual
D
39. Making a circle with the thumb and the forefinger is a friendly gesture in the United States, but it is a vulgar sexual invitation in Greece and Turkey. Similarly, while most Americans and Europeans use the thumbs-up gesture to indicate that "it's all right," in Greece the gesture is obscene. These instances reflect that: A. the Greek society is more conservative. B. Americans are generally perceived as being aggressive and pushy. C. unspoken language is not an important factor in communication. D. many nonverbal cues are culturally bound.
D
40. Which of the following countries scores high on the individualism scale and low on the power distance scale? A. Mexico B. Japan C. India D. Great Britain
D
45. Which of the following statements is true about Sullivan principles? A. They were widely opposed by U.S. firms, such as GM, operating in South Africa. B. Western businesses that followed these principles were considered unethical. C. It has been argued that they led to the violation of human rights in South Africa. D. They promoted the abolition of apartheid laws.
D
50. Which one of the following is an internal stakeholder group of a company? A. Unions B. Suppliers C. Governments D. Employees
D
14. The most common form of theocratic totalitarianism is based on Islam and is exemplified by states such as Iran and Saudi Arabia.
T
16. Contracts drafted under a common law framework tend to be very detailed with all contingencies spelled out.
T
2. Over its entire history, the WTO has promoted the lowering of barriers to cross-border trade and investment.
T
3. Moore's Law predicts that the power of microprocessor technology doubles and its cost of production declines in half every 18 months.
T
30. There are cultures that embrace several nations.
T
31. Primacy of the group is criticized for being incompatible with ideas of dynamism and entrepreneurship.
T
32. Scholars are divided in their assessment of the relationship between religious and ethical systems, and business practice in a society.
T
33. India boasts of a rapidly growing economy in spite of, rather than because of, the values of asceticism preached by Hinduism.
T
4. Most forecasts now predict a rapid rise in world output accounted for by developing nations such as China, India, and South Korea, and a relative decline in the share enjoyed by rich industrialized countries such as Britain and the United States.
T
41. Investment in China is frequently justified on the grounds that although China's human rights record is often questioned by human rights groups, and although the country is not a democracy, continuing inward investment will help boost economic growth and raise living standards and usher in political change.
T
43. Situations in which none of the available alternatives seems ethically acceptable present an ethical dilemma.
T
5. Throughout most of Latin America, governments have sold state-owned enterprises to private investors, and foreign investment is welcomed.
T
6. Despite all the talk about the emerging global village, differences between countries such as cultures and political systems are profound and enduring.
T
7. Boeing outsources nearly 30% of the production of its aircraft to foreign suppliers. What could be the rationale behind such a move? A. It is difficult for firms like Boeing to achieve the optimal dispersion of their productive activities to locations around the globe. B. Outsourcing to foreign suppliers is in accordance with diplomatic treaties signed with other countries. C. Foreign suppliers are not governed by strict regulations followed by companies in the U.S. and Boeing also saves on tax payments. D. A global web of suppliers yields a better final product, which enhances the chances of Boeing winning a greater share of total orders for aircraft.
D
13. In the early twentieth century, the socialist ideology split into two broad camps: communists and capitalists.
F
15. In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply.
F
17. A copyright grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention.
F
18. The Nobel Prize-winning economist Amartya Sen has argued that development should be viewed purely as an economic process and not as a political one.
F
42. Evidence indicates that the Foreign Corrupt Practices Act of the United States put U.S. firms at a substantial competitive disadvantage.
F
44. In his doctrine of business ethics, Milton Friedman explicitly argues against ethical behavior by firms.
F
Because of globalization, companies rarely need to customize marketing strategies, product features, and operating practices in different countries.
F
