Business Ethics Ch 10 Test Questions
21. The opposite of cultural relativism is ethical imperialism. a. True b. False
True
32. The philosophy of Western industrialized nations and their MNCs includes all of these factors except: a. economic growth. b. decentralization. c. efficiency. d. free trade.
b
33. All of the following are issues that include an ethical dimension and are national security versus profits issues except a. increasing b. sweatshops c. harboring terrorists. d. mining of the ocean floor.
b
38. Regarding the infant formula controversy, Nestlé was criticized for all of these actions except: a. distributing free samples. b. providing purified water with the formula. c. promoting bottle-feeding over breast-feeding. d. the use of so-called "milk nurses."
b
39. All of the following groups have criticized MNC labor practices except a. social activist groups. b. church groups. c. labor unions. d. grassroots organizations.
b
1. One of the fortunate things about ethical issues in the global market is that they do not affect domestic operations. a. True b. False
False
14. MNCs often pay their employees in underdeveloped countries less than the average local wage. a. True b. False
False
15. 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. a. True b. False
False
17. According to Transparency International's Corruption Perception Index (CPI), underdeveloped countries typically rank low in corruption. a. True b. False
False
18. Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country. a. True b. False
False
19. Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow while doing business around the world. a. True b. False
False
9. Most of the ethical problems that arise in international markets are very different than the moral issues encountered in their home countries. a. True b. False
False
43. The Alien Tort Claims Act applies to: a. actions that occur on foreign soil. b. actions that occur on U.S. soil. c. actions that occur in the host country where a U.S. firm is based. d. actions that occur in a foreign country where a foreign firm is based.
b
50. Payment of a bribe implies some type of a. extortion. b. quid pro quo. c. gambling. d. physical harm to the payee.
b
53. Global trade is: a. speeding up. b. slowing down. c. doing about the same. d. diminishing exponentially.
b
61. 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.
b
23. International markets must be pursued if firms want to remain a. competitive. b. ethical. c. free from corruption. d. legitimate.
a
27. Economic integration of many formerly national economies into one worldwide economy is called a. globalization. b. world-system theory. c. capitalization. d. material diversification.
a
37. Major strategies MNCs may use to conduct global business, but still maintain an ethical sensitivity include all of these except: a. modify or redesign products. b. link ethics with global strategy. c. suspend business activities in certain countries. d. conduct ethical audits.
a
55. 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.
a
57. Current standards for SA800 include all the following except a. certifications. b. remuneration. c. management systems. d. child labor.
a
62. 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.
a
41. Which of the following is not an SA8000 standard proposed to improve sweatshop conditions? a. prohibition on employing workers under a certain age b. provision of a safe and healthy working environment c. provision of educational opportunities for workers d. prohibition of discriminatory practices
c
42. All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except a. allowing workers to form unions. b. prohibiting corporal punishment. c. providing retirement benefits. d. limiting work to a maximum of 48 hours per week.
c
45. Which of the following is not an example of corruption? a. bribery b. paying for political favors c. negotiating for the lowest price on a contract d. paying protection money to the police
c
47. Which of the following is not an argument commonly used against bribery? a. Bribes are inherently wrong. b. Bribes create dependence on corrupt individuals. c. Bribes are unfair because foreigners can get them, while U.S. citizens cannot. d. Once bribes start, they never stop.
c
48. The Foreign Corrupt Practices Act a. governs the operations of foreign MNCs in the United States. b. makes it illegal to make any type of payment to a foreign citizen for the purpose of doing business. c. makes it illegal for the representative of an American corporation to offer or pay officials of foreign governments for the purpose of getting or maintaining business. d. makes it illegal for American government officials to accept bribes from foreign nationals.
c
52. In 2012, the United States' rank in the Corruption Perception Index was: a. first, being least corrupt. b. in the top 10. c. in the top 20. d. at the very bottom.
c
54. 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 a. ethical relativism. b. ethical egoism. c. ethical imperialism. d. ethical hegemony.
c
56. Which of the following is not one of home/host stakeholder pressures? a. culture b. system of government c. economic system d. laws
c
58. Arguments 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.
c
59. 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
c
63. Anticorruption programs have steps including: a. performing drug tests on employees. b. making grease payments. c. establishing hotlines or helplines for all members. d. suspending operations.
c
64. 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
c
46. All of the following are arguments in support of bribery except a. everybody does it. b. it is normal practice in many countries. c. it is a form of commission, tax, or compensation for doing business between cultures. d. it is a way of providing needy foreigners with money they need.
d
49. The Foreign Corrupt Practices Act allows a. bribes under $10,000. b. bribes, as long as the firm does not deduct them on its tax return. c. bribes, as long as they are disclosed to shareholders. d. grease payments.
d
51. Which of the following is not part of the anticorruption movement? a. Transparency International b. OECD antibribery initiatives c. individual country initiatives d. World Trade Organization
d
60. 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.
d
10. The ethical issues encountered in underdeveloped countries are often more acute than those found in industrialized nations. a. True b. False
True
11. 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. a. True b. False
True
12. One of the ethical issues that is exacerbated by operating in developing countries is that the host nation's citizens often do not understand the technology being used, nor do they recognize its potential dangers. a. True b. False
True
13. Cheap labor factories that abuse women, children, and workers are called sweatshops. a. True b. False
True
16. Corruption, at its core, is essentially an abuse of power. a. True b. False
True
2. Involving two or more cultures in ethical issues makes their resolution much more difficult. a. True b. False
True
20. 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. a. True b. False
True
22. The FCPA has had a significant impact on the way American firms do business globally. a. True b. False
True
3. Despite the poor economy, there is a backlash against globalization. a. True b. False
True
4. Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place to help protect their citizenry. a. True b. False
True
5. MNCs based in the United States and in the European Union have played a key leadership role in world affairs. a. True b. False
True
6. For an MNC to be perceived as legitimate in the eyes of a host country, it must fulfill its social responsibilities. a. True b. False
True
7. Cultural differences between an MNC's home country and its host country sometimes make it difficult to distinguish between cultural issues and ethical issues. a. True b. False
True
8. A major ethical challenge of MNCs is that their firms' cultures and philosophies may differ from that of their host countries. a. True b. False
True
26. Growth of global business as a critical element in the world economy is known as: a. legitimization. b. internationalization. c. market awareness. d. multinationalism.
b
29. The practice of offering something in order to gain an illicit advantage is called a. offshoring. b. bribery. c. corruption. d. grease payments.
b
24. Peter Drucker has labeled the expanded global marketplace the a. moral free space. b. hypercompetitive economy. c. transnational economy. d. multinational competitive sphere.
c
30. The FCPA differentiates between: a. domestic and international disputes b. land ownership and building rental c. bribes and grease payments d. entry fees and corporate filing fees
c
31. Grease payments are used to get minor officials to do all the following except a. what they are supposed to do. b. what they are supposed to do, but faster. c. what the FCPA wants them to do. d. what they are supposed to do, but better.
c
36. Ethical issues in the global environment include all of these except: a. product safety. b. human resource management. c. production efficiency. d. advertising practices.
c
25. 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
d
28. The criticism of their use of sweatshops has led MNCs to do all of these things except:: a. work to improve working conditions. b. establish codes of conduct. c. perform social or ethical audits. d. create the Fair Labor Association (FLA).
d
34. What questions were raised because of the Bhopal tragedy? a. To what extent should MNCs maintain identical standards at home and abroad regardless of how lax laws are in the host country? b. How wise are laws that require plants to be staffed entirely by local employees? c. Should certain kinds of plants even be located in developing nations? d. All of these questions.
d
35. Hypernorms are justified if: a. there is undisputed consensus the principle is universal. b. they are supported by NGOs. c. they are a component of well-known global industry standards. d. All of these.
d
40. Which of the following is not a characteristic of sweatshops? a. child labor b. low pay c. poor working conditions d. forced prostitution
d
44. U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because a. they could allow the firm to recoup some costs of incorporating overseas. b. they could allow the firm to sue foreign firms on a reciprocal basis. c. they provide an insight in the customs of the host country. d. they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.
d