A dictator game involves two participants, a proposer, who unilaterally makes a
decision about how much of an endowment to keep and how much to contribute to a
responder, who takes no action and simply receives the contribution.
Answer:
The biggest advantage of the euro system was that the ECSB could control monetary
policy, while the member states controlled their own fiscal policies.
Answer:
The effectiveness of nonmarket action is dependent on the resources available to the
interest groups.
Answer:
Nonmarket strategies serve the objective of superior performance by developing and
sustaining the competitive advantage required to take advantage of market
opportunities.
Answer:
Behavioral ethics experiments suggest that relational contracts supported by reciprocity
are unlikely to be effective in improving the performance of workers and firms.
Answer:
Plaintiffs in defamation against the media need not prove malicious intent.
Answer:
Positioning in legal space affects not only the liabilities to which a company is exposed
but also a company’s market and nonmarket strategies.
Answer:
Institutions include only principal government institutions and cannot be established by
private parties.
Answer:
According to the Wilson-Lowi Matrix, beneficiaries in client politics face low risk of
opposition from the other side.
Answer:
The Federal Reserve Bank of New York serves as overseer of banks and managed the
bailout of banks during the financial crisis.
Answer:
In the aftermath of World War II, the sudden increase in trade barriers was largely the
result of U.S. hegemony.
Answer:
Vertical practices under the antitrust laws involve allocation of territories by a
manufacturer among distributors or retailers, refusals to deal, and tying.
Answer:
Horizontal practices that come under the antitrust laws are those involving firms in a
supply arrangement or a channel of distribution.
Answer:
The Troubled Asset Relief Program (TARP) is administered by the Department of the
Treasury.
Answer:
The political economy theory views regulation as shaped by market imperfections,
institutions and their officeholders, and the nonmarket action of private interests.
Answer:
Utilitarianism coincides with self-interest only when societal consequences are
prioritized over private consequences.
Answer:
Confucian behavioral norms display a strongly particularistic, as opposed to universal,
inclination.
Answer:
A firm that undertakes social activities motivated by moral principles will act only
when there is an opportunity for profits or when forced to act by its nonmarket
environment.
Answer:
The value of a nonmarket capability depends on the effectiveness of a firm’s allies in
addressing nonmarket issues.
Answer:
Moral philosophy concentrates on how the state should grant and limit liberties, and
ensure justice.
Answer:
The EPA was created by an executive order of President Clinton to control greenhouse
gas emissions by the developing countries.
Answer:
Subsidization in the form of high feed-in tariffs raises electricity prices.
Answer:
When a bank buys mortgage loans and issues new securities, it engineers the new
securities so as to ensure that it alone benefits from the financial gain.
Answer:
A granted proposition is one that has been established either by ethical consensus or by
an authoritative body such as government.
Answer:
Basic liberties such as freedom of speech and rights such as equal opportunity are
fundamental concepts that express considerations of freedom, autonomy, and basic
equality.
Answer:
Political information pertains to the impact of an alternative on the constituents or
policy interests of an officeholder.
Answer:
Firms susceptible to a crisis need a crisis management team that can be mobilized
quickly and can substantively address the root cause of a crisis.
Answer:
Under the FCPA, it is unlawful to make any “offer, payment, promise to pay, or
authorization of the payment of any money, or offer, gift, promise to give, or
authorization of anything” to influence a decision, omit a required action, or give “any
improper advantage” to the company.
Answer:
Private politics can be motivated by self-interest and broader concerns.
Answer:
The principal market opportunities in India stemmed from international demand.
Answer:
Opportunities can be controlled by actions such as protests, boycotts, and public
criticism.
Answer:
The appropriate response to a crisis depends on the root cause and the specifics of the
situation.
Answer:
The policies of the European Union and the United States are very similar on matters
pertaining to the protection of personally identifiable information.
Answer:
Monitoring of the firm by stakeholders and other parties such as NGOs tends to
decrease the moral cost of violating ethics standards or shying away from moral duties.
Answer:
In addition to covering direct harm done to the insured, insurance also compensates for
damage done to a firm’s reputation.
Answer:
China censored the content on the Internet as well as blocked responses to searches on
topics such as ________.
a) Confucian ethics
b) guanxi
c) the Household Responsibility System
d) the spiritual Falun Gong movement
Answer:
In terms of campaign financing, hard money refers to ________.
a) the amount of money required to buy a favor from officeholders
b) the impact of an alternative on the constituents or policy interests of an officeholder
c) contributions to a candidate’s campaign
d) expenditures in electoral campaigns
Answer:
Which of the following is true with regard to the era of reforms in China?
a) In the agricultural sector, the government replaced a contracting system with
mandatory grain purchases known as the danwei system.
b) Recognizing that China needed more exposure to Western products, ideas, and
capital, Beijing lifted import restrictions in 1978 under its open-door policy.
c) Deng’s economic reforms were headlined by the “Five Relationships.”
d) In the cities, SOEs were given reduced discretion over their profits,
and individual managers were made less accountable for their performance.
Answer:
Which of the following is true with regard to the OECD Anti-Bribery Convention?
a) The Convention requires signatories to make the act of bribery and the making of
other forms of illicit payments to foreign public officials a criminal offense, whether
paid directly or indirectly.
b) Small “facilitation” payments that are not made “to obtain or retain business” are
viewed as an offense.
c) According to the Convention, the definition of a foreign public official excludes
officials of public agencies and public enterprises at least 50 percent owned by the
government.
d) The Convention pertains to private-to-private bribery.
Answer:
The fair trade system attempts to intervene directly on both the ________ and the
________ sides of the market by coordinating the flow of consumer revenue to
participating producers.
a) production, distribution
b) branded, non-branded
c) demand, supply
d) regulated, unregulated
Answer:
Which of the following is an example of a global market strategy?
a) universal ethics principles
b) intellectual property rights enforcement
c) tax policy
d) pharmaceuticals approval
Answer:
A car manufacturing firm is deliberately neglecting state environmental laws. Which of
the following responses from the society is applicable here?
a) society may control the exercise of market power through regulation
b) society may rely on market forces to develop substitute products
c) society cannot require disclosure of nonmarket actions
d) society can rely on countervailing influences from opposing interests to mitigate
business nonmarket power
Answer:
Lobbying does not involve ________.
a) constituency connection
b) personal relationship
c) campaign contribution
d) threats and coercion
Answer:
The societal significance perspective differs from the intrinsic audience interest
perspective in that the societal significance perspective ________.
a) does not assume the role of serving the people’s right to know about issues
b) is not protected under the First Amendment
c) promotes social issues based on audience interest
d) tries to create social awareness on issues by increasing its media perception
Answer:
Which of the following is true with regard to international law?
a) International law consists of national laws that pertain to foreign persons, entities,
and other nations.
b) International law does not include intergovernmental treaties and agreements.
c) International law does not include rulings by international courts.
d) Sanctions in international law are highly credible and enforcement is rarely left to
individual nations.
Answer:
Which of the following is true of Adam Smith’s view of markets and resource
allocation?
a) Markets allow decentralized decision making.
b) Markets discourage innovation.
c) Efficient markets depend on the goodwill of individuals.
d) Markets are usually inefficient in allocating scarce resources to the society.
Answer:
________ are intended to be applied in situations in which institutions are imperfect,
entitlements and their protection are unclear, or transactions costs prohibit bargaining to
resolve the issue.
a) Pareto’s principles
b) Donaldson’s guidelines for “ethical leadership”
c) The Calabresi and Melamed principles
d) The “Five Modernizations”
Answer:
________ is the principal political activity for implementing both representation and
informational strategies in the European Union.
a) Canvassing
b) Lobbying
c) Petitioning
d) Tax resistance
Answer:
Nozick’s theory has been criticized for its sole reliance on ________
a) free consent
b) paternalism
c) moral standards
d) casuistry
Answer:
Which of the following is true of defense against defamation?
a) The media is given absolute protection from defamation by the First Amendment.
b) The truth defense constitutes an absolute defense in all U.S. states.
c) The truth defense is subject to limitations in certain states of the U.S.
d) The defense of privilege cannot be bought against written or broadcast statements.
Answer:
The extent to which a firm encounters demands for payments in a host country depends
on its ________.
a) lines of business
b) organizational talent pool
c) potential to acquire smaller companies
d) annual sales forecast
Answer:
Which of the following is a distinctive trait of incentive approaches?
a) Incentive approaches impose a cost on pollution-causing activities, leaving it to
individual polluters to decide how best to respond.
b) Incentive approaches attain social efficiency by requiring polluters to externalize the
social costs of pollution externalities.
c) Incentive approaches does not take into account the benefits and costs of attaining
environmental objectives.
d) Incentive approaches centralize pollution-control decisions.
Answer:
International law differs from domestic law in that ________.
a) international law is arbitrary and does not command respect
b) in international law, sanctions are highly credible
c) in international law, sanctions may not be credible and enforcement is often left to
individual nations.
d) in international law, sanctions are enforced by the International Criminal Court
Answer:
As the severity of the crisis became clearer in 2008, the Bush administration and
Congress created the ________, which was authorized with funding up to $700 billion
to be used to shore up banks and stimulate the provision of credit to borrowers.
a) Making Homes Affordable Program
b) Making Work Pay Program
c) Affirmative Action Program
d) Troubled Asset Relief Program
Answer:
________ is the unit of analysis in structured pluralism.
a) Nonmarket issue
b) Market issue
c) Government institution
d) Crisis preparedness
Answer:
Which of the following is true with regard to the communist era in China?
a) With the aid of Soviet loans, the CCP industrial policy emphasized the consumer
goods sector at the expense of sectors such as steel, petroleum, and chemicals.
b) In keeping with Marxist philosophy, the CCP sought to control all commerce.
c) The end of the Korean War allowed policymakers to concentrate on their next task:
the transformation of the Chinese economy into a capitalist system.
d) The Cultural Revolution minimized the army’s status within the party hierarchy.
Answer:
For Kant freedom and ________ are the foundations of a theory of morality.
a) sociability
b) rationality
c) fraternity
d) attitude
Answer:
Which of the following can a company do to make it less attractive to a confrontational
activist?
a) adopt an external certification from an NGO
b) neglect required practices
c) adopt a nontransparent policy
d) adopt internal certification
Answer:
Which of the following should a firm’s management do to establish an environment in
which ethical behavior in encouraged, supported, and rewarded?
a) encourage formal and informal communication about exemplary conduct and
leadership by deed as well as by word
b) decrease endowment substantially
c) trust the personal integrity of employees and allow them to operate in an ethics
vacuum
d) encourage retributive justice to prevent self-disclosure
Answer:
Which of the following is a principal purpose of company codes?
a) increase output
b) discourage self-disclosure and whistle-blowing
c) make it easier for employees to say no to demands for pay
d) maintain status quo
Answer:
Bella, a depositor with Curio Bank, wishes to withdraw her funds. The bank ________.
a) is not obliged to pay Bella
b) must convince Bella to take out a loan in order to reap monthly savings
c) is required to pay Bella only a fraction of the amount originally deposited by her in
order to keep the reserve requirement intact
d) must replace the funds with other deposits or reduce its loans after paying Bella
Answer:
Which of the following is true with regard to the challenges faced by companies
operating in developing countries?
a) In developing countries, the liability system assigns the social cost of injuries to
producers and consumers.
b) In developing countries, poverty, lack of education, and inadequate health care create
situations in which individuals cannot be expected to make the same decisions that
would be made in a developed country.
c) Developing countries are twice as vulnerable as developed countries to natural
calamities causing considerable difficulties to companies operating in those countries
d) In developing countries, regulation establishes safety standards and requires
information and warnings about hazards.
Answer:
Article XVI of the GATT ________.
a) allows for temporary safeguard relief from imports
b) is the subsidies code
c) covers antidumping and countervailing duties
d) sets a framework for the elimination of quantitative restrictions on trade
Answer:
Write a short note on business groups in India.
Answer:
What is the first step in the methodology of rights analysis?
a) determine which claimed rights satisfy moral standards
b) identify the actions consistent with the protection or promotion of any morally
justified rights
c) identify the rights claimed and their claimed moral bases
d) identify conflicts among rights
Answer:
Which of the following is one of the “Five Relationships” that, according to the
Zhongyong, must be perfected before social harmony is achieved?
a) the relationship between mother and daughter
b) the relationship between mother and son
c) the relationship between father and daughter
d) the relationship between father and son
Answer:
Which of the following is true with regard to the trust gap between firms and the public
in general?
a) The greater the size of the firm, the greater the trust accorded to it.
b) The public trust in large firms is low, and criticisms of business are often viewed
with a degree of credibility that is not accorded to the communication by firms.
c) The apparent lack of trust in NGOs stands in stark contrast to the trust in global
companies.
d) The public trust in large firms is higher than that in smaller firms because large firms
are less vulnerable to social pressures.
Answer:
The Uruguay Round negotiators reached a new Government Procurement Agreement
(GPA), which is a ________ agreement among 39 WTO members.
a) bilateral
b) unilateral
c) plurilateral
d) multilateral
Answer:
What are the different forms of treatments that news media coverage can provide?
Answer:
Describe the relationship between utilitarianism and self-interest.
Answer:
List the principal conclusions of the majority of members of The Financial Crisis
Inquiry Commission (FCIC).
Answer:
Describe the pattern of crisis development.
Answer:
Explain briefly the rationale behind the launch of the Great Proletarian Cultural
Revolution in What was the aftermath of the revolution?
Answer:
Write short notes on credit card regulation.
Answer:
Bartlett and Ghoshal characterized market strategies as multidomestic, international,
and global. Compare and contrast between the three types.
Answer:
Write a short note on the costs of subsidization.
Answer:
Differentiate between an unconditional and a conditional altruist.
Answer:
Write a short note on political entrepreneurs.
Answer:
Discuss the implications of the ethics experiments for ethical conduct and management
in the nonmarket environment.
Answer:
Describe the EU legislative process. What changes did the Single European Act make to
it?
Answer:
What are the seven factors that explain the resilience of emerging market economies
(EMEs) during the recent global financial and economic crisis?
Answer:
What are the principles of effective lobbying?
Answer:
What remedies do courts use in the event of breach?
Answer:
Differentiate between act utilitarianism and rule utilitarianism.
Answer:
Write a short note on casuistry. Why is this approach considered dangerous?
Answer:
State and explain the different components of the control of an externality in a tradable
permits system.
Answer:
What do you understand by the intervention stage of crisis development?
Answer: