GGC - Global Business - Chapter 5, 7, 8, & 9

The practice of giving employees company cell phones has led to employees talking and texting while driving.

true

The public perception of the acceptability of embryonic stern cell research is evolving, with more people believing it is ethical.

true

The revolution in biotechnology is a result of DNA research.

true

With regard to data security, data breaches are on the rise.

true

Exchange rate

Rate at which one currency is exchanged for another

Why is protection of children an important ethical issue in the use of the Internet?

A casual reading of the textbook might leave the student with the impression that protection of children is primarily an issue of protecting them from viewing pornographic websites. However, access to pornography is only part of a larger issue. Making ethical choices assumes a fully developed rationality, which children have not developed. Therefore, the need to protect children using the Internet is a broader issue than just pornography. It is one of limiting access to any type of website that is beyond children's developmental levels.

Discuss the benefits and problems associated with labeling genetically modified foods (GMFs).

Because GMFs are new, and their potential long-term effects are unknown, many consumers want more information before eating them. At the very least, these consumers want to know that the food they see in the grocery store contains GMFs. Producers, on the other hand, object to labeling the food as GMF, citing additional costs, lack of evidence showing harm to humans, and possible stigmatization from fearful consumers. It seems that consumers should be informed that a food product contains GMFs. First, the lack of evidence showing harm does not mean that the GMFs are safe. Second, additional costs and lack of consumer acceptance are common business issues that all fmns must combat. Using those reasons to keep relevant information from consumers is an inadequate argument.

Eurobond

Bond issued outside the country in whose currency it is denominated. (Bond issued by a Venezuelan company in US dollars sold in France)

Foreign Bond

Bond sold outside the borrower's country and denominated in the currency in which it is sold

Offshore financial center

Country of territory whose financial sector features very few regulations and few if any, taxes.

Investors use the foreign exchange market for four main reasons

Currency Conversion Currency Hedging Currency Arbitrage Currency Speculation

Two ways firms obtain external finacing

Debt Equity

Liquidity

Ease with which bondholders and shareholders may convert their investments into cash

Purpose of the international capital markets

Expands the money supply for borrowers Reduces the cost of money for borrowers Reduces risk for lenders

Advances in information technology and biotechnology are a. slowing down. b. accelerating. c. occurring mainly in the United States. d. being used primarily to improve the lives of people in developing countries.

b. accelerating.

Using biology to discover, develop, manufacture, market, and sell products and services is called a. bioethics. b. biotechnology. c. bionics. d. bio-commerce.

b. biotechnology.

Technology has advanced society's capacity to grasp its consequences. a. slower than b. faster than c. only with d. at about the same rate as

b. faster than

The major issue related to electronic surveillance is a. productivity. b. invasion of privacy. c. company loyalty. d. legality.

b. invasion of privacy.

A technique that lures prey into revealing passwords and other private data by providing a convincing offer is called a. nunmg. b. phishing. c. data trapping. d. ultra-collecting.

b. phishing.

The imperative that states "what can be developed will be developed" is a. economic determinism. b. technological determinism. c. the iron law of technology. d. rationality.

b. technological determinism.

The most significant obstacle to the use of biotechnology is a. fear that the technology will not work. b. the potential for public backlash. c. lack of funds to support research. d. government requirements for prolonged tests on human subjects.

b. the potential for public backlash.

Evaluate the use of GPS to monitor the activities and locales of employees.

From the company's perspective, it is paying the employee to perform work on the finn's behalf. Therefore, it should be able to monitor the employee's whereabouts and activities. Companies have done this without GPS for centuries. Managers keep track of where their employees are and what they are doing. GPS technology is simply an extension of that activity to a wider geography. But the employee can easily see this as an invasion of privacy, or at the least, signs of distmst from managers. As long as employees are informed that GPS is being used to track them, it seems that the company has a right to utilize the technology. However, because doing so could easily convey that managers do not trust their employees, careful consideration should be given before implementing such a policy.

Which of the four categories of technology's undesirable side effects is most worrisome? Why?

I would have to include two of the side effects in my answer: environmental pollution and depletion of natural resources. I chose these two because of their potentially life threatening consequences. Either of these issues, or both combined, could possibly end life on Earth. Technological unemployment and the creation of unsatisfying jobs, while important considerations, are not life threatening.

Forces expanding the international capital markets

Information Technology Deregulation Financial instruments

Consider an anecdote of a woman renting a car in California and being charged a large penalty because she drove out of state. The rental car company had tracked her locales through a global positioning system (GPS), allegedly without telling the woman that they would be doing so. Apparently the woman was upset because she was not told about the GPS. Is the failure to tell her the main issue?

Informing a customer that she will be tracked through GPS is certainly an important component of this scenario. Because the company owns the automobile, which, by its nature, is an asset susceptible to damage, breakdown, theft, or simply getting lost, it seems reasonable for the firm to install GPS in its cars. Likewise, because cars have a limited useful life dependent, in part, on the length they are driven (not to mention that mileage is one of the factors used to determine the amount of charges), it seems reasonable to install GPS. However, is it reasonable to track the movements of a renter without telling her that you will be doing so? It seems only fair for the company to inform its renters that it will be using GPS.

Currency arbitrage

Instantaneous purchase and sale of a currency in different markets for profit.

Interbank interest rate

Interest rate that the world's largest banks charge one another for loans.

International capital market componets

International Bond market international equity market Euro-currency Market

Debt

Loan in which the borrower promises to repay the borrowed amount (the Principle) plus a predetermined rate of interest.

International Bond Market

Market consisting of all bonds sold by issuing companies, governments, or other organizations outside their own countries.

International Equity Market

Market consisting of all stocks bought and sold outside the issuer's home country.

Foreign Exchange Market

Market in which currencies are bought and sold and their prices determined

Euro currency Markets

Markets consisting of all the world's currencies (referred to as Eurocurrency) that are banked outside their countries of origin.

International Capital Markets

Network of individuals, companies, financial institutions, and governments that invest and borrow across national boundaries

Equity

Part ownership of a company in which the equity holder participates with other part owners in the company's financial gains and losses.

Currency hedging

Practice of insuring against potential losses that result firm adverse changes in exchange rates.

Interest arbitrage

Profit motivated purchase and sale of interest paying securities denominated in different currencies.

Stock

Shares of ownership in a company's assets that give shareholders a claim on the company's future cash flows

Ethical lag is a situation in which a. scientists have not been schooled in moral philosophy. b. the speed of technological change far exceed that of ethical development. c. technology takes the place of ethical deliberation. d. computer programs are not developed with an ethics loop.

b. the speed of technological change far exceed that of ethical development.

Four Factors for the growth in international equity markets

Spread of Privatization Economic growth in emerging markets Activity of investment banks Advent of cybermarkets

Capital market

System that allocates financial resources in the form of debt and equity according to their most efficient uses.

Main appeal of the eurocurrency market

The complete absence of regulations

Evaluate the Goverruuent's involvement in internet privacy protection.

The federal government has gotten involved in protecting consumers' privacy, but many observers believe it is not doing enough. The Financial Services Modernization Act of 1999 was landmark legislation that permitted banks, insurers, and brokers to join forces. Under the law, it is now possible for consumers to get their credit cards, checking accounts, investments, home loans, and health insurance from one company. This is convenient for consumers. However, the law also empowered these companies to develop exceptionally detailed portraits of their customers just by merging files about their income, assets, debts, health, spending habits, and other personal data. Increasingly, this sensitive data is becoming a public commodity. Over the past several years, a number of different bills designed to protect consumer privacy on the Internet have been filed but have not yet passed. Many of the legislators have been uncertain whether a broad privacy bill is even needed or what it should look like. Though privacy continues to be an ongoing technology issue in Congress, many lawmakers have indicated they wanted to study the issue before throwing support behind new privacy measures.i The Federal Trade Commission (FTC) is the primary government agency concerned with protecting consumers' privacy today. Under the FTC Act, the commission guards against unfairness and deception. The primary legislation now governing consumers' privacy include the Financial Services Modernization Act (Gramm-Leach-Biiley Act), concerned with financial privacy. the Fair Credit Reporting Act. and the Children's Online Privacy Protection Act. Other legislation regulating consumer and employee privacy may come soon, but Congress seems preoccupied with other priorities.

Some companies involved in biotech research hire bioethicists to monitor the ethical issues raised by their investigations. Can these bioethicists, paid by the firm doing the research, be objective?

The simple answer is no, because no human is capable of full objectivity. We all have our biases and perceptual distortions that affect how we see and interpret things. For example, a bioethicist who deeply believes that human life begins at conception (i.e., when sperm and egg are united) would have a difficult time being completely objective about the ethics of embryonic stern cell research. However, the real question is whether bioethicists are biased in favor of the company that is paying their salary. On this question, the answer is less clear. Is everyone "loyal" to the finn paying their salary? As evidenced by the existence of whistle blowers, the answer is clearly no- some people are able to, and do, disagree with their employers. Bioethicists, by their training and their position, should be better prepared to dissent than other employees.

Evaluate the High Tech!High Touch authors' solution for technological intoxication.

The solution is to find the right balance between technology that enhances our humanity and that which diminishes us. Although this sounds reasonable, The High Tech!High Touch authors are asking us to do the very thing that the intoxication inhibits. Using the obvious analogy of alcohol, the authors are, in essence, asking an intoxicated person to make rational, clear-headed choices about the use of drink. If we are already intoxicated with technology, it will be difficult to make rational choices. The second concern with their advice is that it depends on accurate predictions of technology's effects on our lives. As previously noted, understanding the ramifications of new technologies is difficult at best.

Discuss some of the challenges that technology presents to society.

Two of the main challenges created by technology are technological determinism and spreading the benefits of technology. Technological determinism is the concept that "what can be developed will be developed." This is closely associated with the idea in science of "if we can, we must." By its nature, the advancement of technology is a process of discovery, and discovery means venturing into the unknown. It is therefore possible that some of the technological discoveries will prove harmful rather than helpful. Thus, we should use caution in pursuing possibilities just because they are there. Spreading the benefits of technology is simply a more specific example of the concept of distributive justice. What is a just or fair way of spreading wealth and income among the people of the world? The extremes of systems of distribution would be complete equality and solely economic affordability (only those who can afford something get it). Obviously, there are no easy answers to this question.

One of the ways to make judgments about the ethical impacts of technology is to employ prevailing norms of acceptability in determining what is fair and to avoid harm. Provide a critique of using this criterion.

Using prevailing norms of acceptability to make ethical judgments about technological advances is problematic, for the simple reason that prevailing norms may not be applicable to new technologies. We currently see this in the debate over embryonic stern cell research. The key question in this debate is what constitutes human life; alternatively, when does life begin? Our prevailing norms of acceptability leave this question unanswered. We can't even use current standards to adequately answer the question of abortion, much less the less known implications of stern cell research.

All of the following are commandments of computer ethics except a. Thou shalt not use the company's computer for personal business. b. Thou shalt not snoop around in other people's computer files. c. Thou shalt not copy or use proprietary software for which you have not paid. d. Thou shalt not appropriate other people's intellectual output.

a. Thou shalt not use the company's computer for personal business.

Selling products and services online is known as a. e-commerce. b. e-marketing. c. electronic persuasion. d. simulated marketing.

a. e-commerce.

A continuing concern in the reahn of privacy issues is: a. identity theft. b. DNA duplication. c. theft of intellectual property. d. the distinction between "opting in" versus "opting out."

a. identity theft.

At one time, it was assumed that the use of robotics in the workplace would lead to: a. more jobs b. fewer jobs c. no change in the number of jobs d. higher tech jobs

a. more jobs

Which of the following is not considered a questionable business practice made possible by the Internet? a. plagiarism b. pornography c. gambling d. music downloading

a. plagiarism

"Access" in e-commerce ethics refers to a. the difference in computer availability between the rich and the poor. b. the ability to download certain types of privately-owned knowledge. c. children's ability to visit certain websites. d. companies' ability to gain information about consumers' private lives.

a. the difference in computer availability between the rich and the poor.

Technology is a. the scientific method used in achieving a practical purpose. b. the science of replacing human effort with mechanical power. c. used primarily in the computer field. d. the opposite of art.

a. the scientific method used in achieving a practical purpose.

The most basic moral question involved in stern cell research is a. what constitutes human life. b. who "owns" the embryo. c. the use to which the results of the research will be applied. d. who will benefit from the research.

a. what constitutes human life.

The development of smarter high-tech tools was advanced by: a. technological advances since the tum of the century. b. robotics. c. 9-11. d. the internet.

c. 9-11.

Which of the following is not a symptom of technological intoxication? a. We favor the quick fix. b. We fear and worship technology. c. We become satisfied with the level of available technology. d. We blur the distinction between what is real and what is fake.

c. We become satisfied with the level of available technology.

Which of the following is not an undesirable side effect of technology? a. environmental pollution b. creation of unsatisfying work c. clash of cultural and religious forces d. depletion of natural resources

c. clash of cultural and religious forces

One of the most serious invasion of privacy issues with respect to e-cornrnerce is a. access to pornography sites. b. downloading copyrighted material. c. collection and use of personal information. d. sharing medical information with unauthorized users.

c. collection and use of personal information.

The most intensely monitored employee activities are a. productivity and break times. b. alcohol and tobacco consumption. c. e-mail and Internet usage. d. break times and absenteeism.

c. e-mail and Internet usage.

Our world is currently dominated by a. industrial technology. b. robotics. c. information technology and biotechnology. d. spiritual technology.

c. information technology and biotechnology.

Copyrighted material, such as songs or poems, are often referred to as a. e-commerce. b. legally protected digitals. c. intellectual property. d. downloadables.

c. intellectual property.

One of the main issues related to genetically modified foods (GMFs) is a. whether the federal government will provide research funding. b. whether the living organism can be patented. c. labeling requirements. d. the ability to export and import GMFs.

c. labeling requirements.

Which of the following is not a way that businesses attempt to protect consumers' privacy? a. ethical leadership b. privacy policies c. periodic purges of databanks d. chief privacy officers

c. periodic purges of databanks

The number one ethical issue in doing business over the Internet is a. intellectual property. b. pornography. c. possible invasion of privacy. d. security of frnancial information.

c. possible invasion of privacy.

Ways that companies can address issues related to the ethical use of technology include all of the following except a. management guidelines. b. use of the Information Systems Society's code of ethics. c. relying on local and federal laws. d. collaboration between managers and workers.

c. relying on local and federal laws.

All of the following are symptoms of technological intoxication except a. accepting violence as normal. b. loving technology as a toy. c. relying on technology to accelerate production. d. living our lives distanced and distracted.

c. relying on technology to accelerate production.

The use of electronic means by a company to watch or monitor its employees is called a. management. b. control. c. surveillance. d. mentoring.

c. surveillance.

A major concern for employers is their workers' use of cell phones a. to photograph sensitive sales documents. b. to record private employee records. c. while driving. d. to converse with friends, instead of performing their duties.

c. while driving

Which of the following is not one of the Ten Commandments of Computer Ethics? a. Thou shalt not use a computer to harm other people. b. Thou shalt not use a computer to steal. c. Thou shalt not use a computer to bear false witness. d. Thou shalt not use a computer to spy on fellow employees.

d. Thou shalt not use a computer to spy on fellow employees.

The Non GMO Project is: a. non-profit collaboration of manufacturers, retailers, processors, distributors, farmers, seed companies and consumers b. mission driven to ensure the lack of non-GMO choices c. about everyone having limited availability of non-GMO choices d. about genetically modified foods

d. about genetically modified foods

Most applications of biotechnology will come in the fields of a. health care. b. pharmaceuticals. c. agriculture. d. all of these.

d. all of these.

Privacy and informed consent are issues that a. are the same whether one is surfmg the Web or visiting the local hardware store. b. are always readily apparent to users of the Internet. c. are of little importance to consumers of e-commerce. d. become even more important on the Internet than in brick-and-mortar businesses.

d. become even more important on the Internet than in brick-and-mortar businesses.

Developing Internet policies, helping their companies avoid consumer litigation, and handling consumer complaints are all functions of a a. chief executive officer (CEO). b. chief operating officer (COO). c. chieffmancial officer (CFO). d. chief privacy officer (CPO).

d. chief privacy officer (CPO).

"Big Data" is: a. the world's largest super computer. b. Google's data store. c. the largest size hard drive that can hold data. d. data proliferation and overload.

d. data proliferation and overload.

One major study of workers found that employees admitted engaging in the following unethical act(s): a. wrongly blamed an error the employee had made on a technological glitch. b. copied the company's software for horne use. c. accessed private computer files without permission. d. employees engaged in all of these acts.

d. employees engaged in all of these acts.

All of the following are technological means by which companies invade consumer privacy except a. cookies b. spam c. botnets d. facebook

d. facebook

Technology has benefited society in all of the following ways except a. increasing production. b. reducing the amount of labor needed to produce goods and services. c. raising the standard ofliving. d. improving the sustainability of life on Earth.

d. improving the sustainability of life on Earth.

Which of the following is not a valid defmition of technology? a. the totality of the means employed to provide objects necessary for human sustenance and comfort b. a scientific method used in achieving a practical purpose c. all the ways people use their inventions and discoveries to satisfy their needs and desires d. the science of replacing human effort with mechanical power

d. the science of replacing human effort with mechanical power

Surveillance and security by use of computer technology got a big boost as a result of a. lower costs. b. enhanced resolution of digital photos. c. relaxation of rules governing international travel. d. the terrorist attacks of September II, 200 I.

d. the terrorist attacks of September II, 200 I.

Bioethics deals with the ethical issues embedded in a. human and animal cloning. b. embryonic stern cell research. c. extraordinary means to prolong life. d. the use of biotechnology.

d. the use of biotechnology.

Bond

debt instrument that specifies the timing of principle and interest payments

A survey of Fortune 500 nonmanagement employees shows that workers do not want managers telling them how to use computers in an ethical manner.

false

At this time, a majority of companies have strict policies against using a cell phone while driving.

false

Business-to-consumer (B2C) transactions are anticipated to be the greatest area of e-commerce growth in the comrng years.

false

Consumers typically have little resistance to the government use of biometrics.

false

Human cloning is illegal in the United States.

false

People who express concerns about the ethical issues involved in technological advances are generally against the use of technology.

false

Surveys in the United States show that people are about evenly split on the idea of human cloning.

false

Technology has benefited society with no associated ill effects.

false

A business's technological environment represents the total set of technology-based advancements or progress taking place in society.

true

Companies use technology through the use of cookies and spam to invade consumer privacy.

true

Data breaches at businesses are on the rise.

true

Employers' monitoring of workers is not limited to their use of computers and the Internet.

true

Genetic profiling, which provides a perfect means for identifying a person, raises questions of privacy and possible discrimination.

true

In increasing numbers, employees are losing their jobs to robotics.

true

One of the main reasons that we have experienced technological harms is that some technologies were implemented without much thought given to possible side effects.

true

One of the primary problems associated with electronic commerce has been the proliferation of online scams.

true

Plaintiffs who have been injured by drivers talking on cell phones are holding the drivers' employers responsible as well.

true

Studies have shown that drivers who are talking on cell phones have slower reaction times than drivers who are legally drunk.

true