International Business Chapter 5 Ethics

Which statement accurately depicts the current policy on facilitating payments adopted by many multinational companies?

Many multinationals have adopted a zero-tolerance policy.

Rights that are taken for granted in developed nations, such as freedom of association and freedom of speech are

Not universally accepted

General Motors adopted the Blank______ principles in order to continue business operations in South Africa during the apartheid movement.

Sullivan Principal

Ethics

The accepted principles of right and wrong that guide a person's decisions are called

What is an accurate description of developed nations with regard to the environment?

They have more substantive environmental regulations.

Which company is contributing to the global tragedy of the commons? Top Line Appliance imports parts from an eastern nation that uses child labor. Perfect Paint Supply plans to open a manufacturing plant in Italy since 40 percent of its sales are in Europe. Wood Form Corp. implemented a waste disposal system that complies with government regulations. Virtual-Day Inc. moved production to a South American country with lower environmental regulations and sends pollutants freely into the air.

Virtual-Day Inc. moved production to a South American country with lower environmental regulations and sends pollutants freely into the air.

One justification given for investment in China, which has a questionable human rights record, is that investment will

boost economic growth and raise the standard of living.

Ethical issues arise in international business when

environmental regulations in host nations are less stringent than those in the home country.

Which aspect of international business convinced Leon Sullivan to lead the way in eliminating apartheid in South Africa?

ethics

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

human rights

Up until the 1990s, companies conducted business in Myanmar and South Africa. However, it soon became evident that extreme Blank______ existed there, and companies began to leave.

human rights violations

The tragedy of the commons phenomenon was named when Garrett Hardin noticed

large open areas were free for all to use as pasture.

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

As demonstrated by the Nike example in the text, which situation is generally MOST preferred when considering employment practices in international business?

Requiring good conditions in home and foreign operations even when this results in a smaller profit margin

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

violated basic human rights.

Tragedy of the commons

when a resource held in common by all but owned by no one is overused by individuals resulting in degradation. Named by Garret Hardin.

Global warming is said to be the result of which greenhouse gas?

Carbon dioxide

Gemini Corp. is a multinational company. Which argument should the company use to justify conducting business in a repressive country?

Continuing inward investment helps boost economic growth and living standards in the country.

The Organization for Economic Cooperation and Development adopted conventions in 1999 that obligated member states to reject the use of facilitating payments. T or F

False

The Foreign Corrupt Practices Act was amended to include ______ because some U.S. businesses complained the act would put U.S. firms at a competitive disadvantage.

facilitating payments

Generon 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, Generon has contributed to the

global tragedy of the commons.