INTB 200 (76-100)

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Which company is contributing to the global tragedy of the commons? A) a firm exploiting the weak employment standards in a host nation B) a firm dumping its chemical wastes directly into a river C) a firm exploiting the weak intellectual property rights in a developing nation D) a neighboring country opposing the introduction of a free trade area E) a country denying its citizens basic human rights

a firm dumping its chemical wastes directly into a river

A righteous moralist is most likely to claim that A) a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. B) a firm should adopt the ethics of the culture in which it is operating. C) people should be treated as ends and never purely as means to the ends of others. D) human beings have fundamental rights and privileges that transcend national boundaries and cultures. E) inequalities are justified if they benefit the position of the least-advantaged person.

a multinational's home-country standards of ethics are the appropriate ones for companies to follow in foreign countries

The theory of __________ was the first to explain why unrestricted free trade benefits a country. A) Heckscher-Ohlin B) national competitive advantage C) free trade D) absolute advantage E) zero-sum game

absolute advantage

One difference between Ricardo's theory and the Heckscher-Ohlin theory is that the Heckscher-Ohlin theory A) makes more simplifying assumptions. B) cannot be subjected to empirical tests. C) actually predicts trade patterns with greater accuracy. D) argues that the pattern of international trade is determined by differences in national factor endowments. E) suggests that trade is a positive-sum game in which all countries that participate realize economic gains.

argues that the pattern of international trade is determined by differences in national factor endowments

A multinational corporation that adopts the naive immoralist approach to ethics will most likely A) lack cultural sensitivity. B) demonstrate moral imperialism. C) be highly ethical in its business in a host nation irrespective of the ethical standards followed by other corporations in that host nation. D) believe that, in a host country, any action is ethically justified if everyone is doing it. E) demonstrate a high degree of ethnocentrism.

believe that, in a host country, any action is ethically justified if everyone is doing it

Which trade theory suggests that trade is a positive-sum game in which all participating countries realize economic gains? A) Heckscher-Ohlin theory B) mercantilism C) comparative advantage D) Leontief's paradox E) Samuelson critique

comparative advantage

The phrase "When in Rome, do as the Romans do" is associated with A) cultural relativism. B) utilitarianism. C) Kantian ethics. D) the Sullivan principles. E) naive immoralists.

cultural relativism

New trade theory argues that, through its impact on economies of scale, trade can A) streamline the variety of goods available to consumers. B) enable the global market to support a wide range of enterprises. C) negatively affect the first-mover advantage for all products D) decrease the average cost of goods. E) prevent diminishing of returns and promote constant returns to specialization.

decrease the average cost of goods

In a business setting, managers sometimes do not realize they are behaving unethically, primarily because they A) fail to take into account the ethical dimension of business decisions. B) ignore business variables such as cost, delivery, and product quality. C) have a strong system of personal ethics. D) abide by the concept of noblesse oblige. E) believe that social investments made by their companies can always compensate for their unethical actions.

fail to take into account the ethical dimension of business decisions

The biggest criticism of the righteous moralist approach to an ethical situation is that it A) ignores home-country standards rather than factoring them into a situation. B) relies on standards set in individual cultures regardless of living conditions. C) opposes ethnocentric beliefs. D) goes too far and not every situation can be approached relying on home-country standards. E) leans too much on cultural relativism.

goes too far and not every situation can be approached relying on home-country standards

The veil of ignorance, a conceptual device designed by John Rawls, supports A) impartiality in justice. B) oppression of people by totalitarian governments. C) economic suppression of people. D) apartheid laws. E) cultural relativism.

impartiality in justice

Straw men approaches to ethics refer to those that are A) inappropriate guidelines. B) accepted worldwide. C) used in democratic but not totalitarian states. D) based on religious values. E) used in masculine societies.

inappropriate guidelines

According to Milton Friedman, the only social responsibility of business is to A) increase profits. B) monopolize an industry. C) demonstrate humanity. D) improve society. E) foster creativity.

increase profits

Economies of scale are achieved as the result of __________ that creates unit cost reductions. A) trade policies B) increased tariffs C) large scale output D) diminishing returns E) absolute advantages

large scale output

The result of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions was to A) make it mandatory for companies to adhere to the pollution control standards of their home country in all the nations in which they do business. B) make bribery of foreign officials a criminal offense but not consider facilitating payments a criminal offense. C) make grease payments mandatory in order to obtain exclusive preferential treatment in a host nation. D) consider payment of speed money to be moral, but illegal. E) make it obligatory for companies to adopt a zero-tolerance approach toward grease payments.

make bribery of foreign officials a criminal offense but not consider facilitating payments a criminal offense

Which trade theory grew out of the fact that for most of the twentieth century, the majority of the new products in the world were developed by U.S. firms and first sold in the U.S. market? A) new trade B) absolute advantage C) product life-cycle D) mercantilism E) comparative advantage

product life-cycle

Justice theories primarily focus on A) minimizing the amount of political liberty permitted to each person. B) the attainment of fair and equitable distribution of economic goods and services. C) the attainment of maximum business profits. D) protecting multinationals in case they violate fundamental human rights. E) minimizing the amount of economic freedom permitted to each person.

the attainment of fair and equitable distribution of economic goods and services

The __________ supports the idea that everyone is imagined to be oblivious to all of his or her particular characteristics, such as, race, sex, intelligence, nationality, family background, and special talents. A) tragedy of the commons B) naive immoralism C) straw man approach D) veil of ignorance E) difference principle

veil of ignorance

The utilitarian philosophy for business ethics primarily focuses on A) applying home-country standards of ethics in foreign countries. B) adopting the ethics of the culture in which a business operates. C) maximizing business profits by increasing employee productivity. D) ensuring justified treatment of any minority. E) weighing the benefits, costs, and risks associated with a course of action.

weighing the benefits, costs, and risks associated with a course of action

In a business setting, which of these practices is most likely to be considered unethical? A) At Kelly Manufacturing, managers act in accordance with rights theories. B) Murphy Auto Group promotes employees who engage in ethical behavior and penalizes those who do not. C) Martin Millwork hires independent auditors to ensure that subcontractors used by the company are applying its code of conduct. D) Creative Color Inc. makes sure that key business decisions make good economic sense irrespective of their social costs and risks. E) During interviews, Barnwell Design informs prospective employees about the ethical climate in the organization.

Creative Color Inc. makes sure that key business decisions make good economic sense irrespective of their social costs and risks

The __________ is a straw man approach to business ethics. A) Friedman doctrine B) Kantian ethics C) Sullivan principle D) utilitarian philosophy E) just distribution theory

Friedman doctrine

According to the Smith, Ricardo, and Heckscher-Ohlin theories, a country's economy may gain if its citizens buy some products from other nations that could be produced in their home nation. What is the reasoning behind this idea? A) The natural resources of a country limit the types and quantities of items that can be produced. B) International trade is typically regulated by government forces that prevent a business from exporting. C) International trade allows a country to specialize in items that can be produced most efficiently in that country. D) First-mover advantages limit a country from producing every product that citizens need or want. E) Innovative products are typically produced in the home country, but high-demand products should be imported.

International trade allows a country to specialize in items that can be produced most efficiently in that country

Which of these employees is facing an ethical dilemma? A) Kyler has felt unsure about a mobile phone he purchased and has been reading only good reviews about the phone to console himself. B) After seeing a whole new collection of televisions at a store, Corinne is regretting the purchase of an outdated television she made last month. C) The manager at Big Wheel Bikes Inc. has to make a vendor choice between his underqualified brother-in-law and a highly-experienced, trusted supplier. D) Renata is responsible for deciding whether she should upgrade the manufacturing unit with new machines and reduce costs or retain the impoverished manual labor force. E) Jenner has to decide whether the annual profits of the company should be distributed to the employees as a salary hike or in the form of nonmonetary benefits.

Renata is responsible for deciding whether she should upgrade the manufacturing unit with new machines and reduce costs or retain the impoverished manual labor force

What is a characteristic of the four attributes that make up Porter's diamond? A) Absence of any single attribute does not impact effectiveness of the diamond. B) The effect of one attribute is contingent on the state of others. C) The diamond is not a mutually reinforcing system. D) Chance events, such as major innovations, do not affect Porter's diamond. E) Only in the absence of one of the four attributes can government policies influence Porter's diamond.

The effect of one attribute is contingent on the state of others

Cast Away Electronics paid a sum of $25,000 to an official of a foreign government to ensure that the company obtained exclusive preferential treatment for the plant it is building. The $25,000 can be classified as A) customs duties. B) excise taxes. C) speed money. D) a bribe. E) repatriation fees.

a bribe


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