Ethics systems are classified as categorical imperative or theoretical imperative.
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Rights based on moral principles can be publicly enforced.
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The domestic politics of international trade are asymmetric due to sunk resources and
the rents on those resources.
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Utilitarianism gives equal weight to the utilities of all persons.
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A waste disposal company misrepresents information on ground water toxicity level to
the residents near its plant. This is a form of manipulation in business nonmarket
activity.
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Firms do not have the right to participate in political processes because of the particular
interests they represent.
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From the perspective of structural pluralismthreat of legislation and regulation are
considered as principal drivers of public policies.
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From Friedman’s perspective, the responsibility of managers, serving as agents of the
owners of the firm, the principals, is to maximize profits (shareholder value) by
engaging in free and open competition.
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From a pluralist perspective, public interest is identified by the interests of individuals
and groups in the context of political institutions.
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Technical information does not interest officeholders but is still a part of lobbying.
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Ethics principles are to be culturally determined rather than universal.
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Assessing intrinsic audience interest in issues such as international trade policy and
product safety generally lies in the domain of measurement rather than judgment.
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The signatories to the Kyoto Protocol agreed to use an emissions permits trading system
to reduce the cost of achieving their commitments.
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The greater the coverage by the members of an interest group, the less effective is its
nonmarket action.
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The fair trade movement was begun to improve the lives of poor farmers and workers
trapped by market conditions.
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The triple bottom line is intended to measure the pressure on individuals as generated
by the society.
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Defamation cases are governed by state law and the common law.
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It is easier to assess the moral dimension of interests that motivate actions than to assess
their distributive consequences.
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Indirect subsidies such as high feed-in tariffs were funded by higher prices to
consumers of electricity.
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High feed-in tariffs and RPS were more likely to be victims of the budget process.
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As a result of the agreement between the Department of Justice and the Federal Trade
Commission, cases are allocated primarily by the nature of the complaint and
secondarily by industry.
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The sex ratio imbalance in India is no longer a problem.
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The liability system impedes decentralized decision making on the part of producers
and consumers.
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The media has a responsibility to report the world as it sees fit.
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A firm that decides to enter a country that has open markets relies primarily on a
nonmarket strategy.
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Use of secondary sources, such as, policy studies or scientific investigations to call
attention to an issue restricts the social pressure of activists.
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The European Parliament (EP) does not have the power of “democratic supervision.”
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Judicial actions pertain only to those cases in which a firm finds itself the defendant and
not to those in which it initiates legal action as a component of a nonmarket strategy.
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The duty of care pertains to conflicts of interest and requires that directors serve the
interests of the corporation and its shareholders.
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Crisis response involves communication and rectification.
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Outcomes of nonmarket actions are independent of the institutions that deal with the
issue.
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Issues such as the environment, sustainability, human rights, privacy, health, and safety
seldom attract private politics but are the subject of public politics.
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Which of the following refers to a principal category of justice theories?
a) vigilante
b) retributive
c) teleological
d) deontological
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Act utilitarianism focuses on ________.
a) making exceptions in particular situations, resulting in the violation of underlying
principles
b) institutions to govern the interactions among individuals
c) the consequences of a particular action in a particular situation
d) balancing competing considerations by making exceptions to ethics principles
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A(n) ________ may be granted for an invention of “any new and useful process,
machine, manufacture, or composition of matter, or any new and useful improvement
thereof.”
a) trademark
b) patent
c) industrial design right
d) copyright
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Which of the following is true with regard to the EPA enforcement process?
a) The EPA does not have the authority to forward cases to the Department of Justice.
b) As a rule, the EPA enforcement process does not allow the federal government to
seek both civil and criminal convictions of polluters.
c) The EPA enforcement process requires the filing of a notice of a complaint and a
hearing before an administrative law judge (ALJ).
d) Typically, the EPA seeks involuntary compliance.
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No company is allowed wholly foreign-owned enterprise (WFOE) status in China.
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The ________ of a firm determines the scope of the social pressure the firm could face.
a) brand reputation
b) line of business
c) stock price
d) product switching costs
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In which of the following ways does private politics shape the nonmarket environment?
a) It attempts to influence public policy through Congress.
b) It informs the management of a corporation about relevant social issues.
c) It organizes labor unions by delivering votes.
d) It enables corporations to make donations to candidates for Federal offices.
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A non-profit campaigning organization arranges a demonstration in front of the office
of a company violating laws on proper waste disposal. The group has reports on the
company’s improper activities and forewarns that consumers will boycott its products.
What of the following is applicable to the method used by the campaigning
organization?
a) peaceful assembly
b) letter campaigns
c) confrontational
d) exclusive lobbying
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Which of the following is true of the Omnibus Trade and Competitiveness Act of 1988
that amended the Foreign Corrupt Practices Act?
a) A payment to a foreign individual became legal under the act even if it was illegal in
the foreign country.
b) The language of the act was clarified to indicate that payments that secured
performance of routine government actions, such as signing customs documents and
unloading or loading cargoes, were illegal.
c) The amendments provided firms with a number of affirmative defenses, including
consistency with host country laws and legitimate business expenses.
d) If a payment were legal in the foreign country, the defendant in an action brought
under the act could not use that legality as a defense.
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Shelly DuMason is reporting on a new government deregulation measure related to
manufacturing. The deregulation addresses greater leeway being given to U.S. toy
manufacturers using a special kind of paint. Shelly covered the story with factual detail,
but got very less coverage on the report. According to the audience interest/societal
significance continuum, which of the following will most likely help Shelly get
extensive coverage with possible position-taking stance on the deregulation?
a) if she reports on the technology involved in manufacturing such toys
b) if she reports on the possible health risks of introducing such a deregulation
c) if she reports on the possible corruption that could arise from such a deregulation
d) if she reports on the possible effects on international trade by such a deregulation
Answer:
Which of the following is an example of an institution specific to the United States?
a) Congress
b) KORUS
c) Kyoto Treaty
d) News Media
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The Williamson’s Daily, a newspaper publication in the state of Gretshen, had 4 main
news articles on a particular day. Of their four main reporters, Steiner was covering the
hospitalization of a famous baseball player due to an overdose of permitted steroids;
Joan was covering the possible landfall from a hurricane; Mark was covering corruption
charges alleged against a state senator; and Jessica was covering the reduction in
employment rates in the local district of Kross due to a successful government program.
According to the audience interest/societal significance continuum, who among the
following reporters’ articles has high societal significance but has very low audience
interest?
a) Steiner
b) Joan
c) Mark
d) Jessica
Answer:
Which of the following is a horizontal practice subject to antitrust scrutiny?
a) A manufacturer of flight navigation system requires retailers to sell at a price it
specifies.
b) A manufacturer of flight communication system grants exclusive rights to a
distributing firm.
c) Navigation system manufacturers of U.S refuse to sell these critical parts to a leading
aircraft manufacturer.
d) Two aircraft manufacturers announce a merger that would create a monopoly in the
national aircraft manufacturing industry.
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The ________ is associated with identifying, contacting, motivating, and organizing
those with aligned interests.
a) amount of market action
b) demand for market action
c) amount of nonmarket action
d) demand for nonmarket action
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What are the two basic strategies of activists?
a) putting direct pressure on firms and working through public institutions
b) putting indirect pressure on firms and direct pressure on government
c) putting little pressure on firms and lots of indirect pressure on government
d) putting pressure on firm boards of directors and working with public entities
Answer:
________ involves providing information to officeholders about the likely
consequences of policy alternatives.
a) Corporate social responsibility
b) Channel selection
c) Lobbying
d) Public relations
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Which of the following reflects a firm’s nonmarket assets?
a) switching costs
b) customer loyalty
c) reputation of the top management
d) investment in mutual funds
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________ is a situation in which harm to people or property either has occurred or is
imminent.
a) Crisis
b) Insolvency
c) Bankruptcy
d) Liquidation
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The ________ are a locus of expertise and play important roles in how a member state
votes in the Council of Ministers.
a) regional trade associations
b) lobby unions
c) national ministries
d) petition committees
Answer:
The United States more frequently relies on the ________ approach to regulation, as in
the case of Internet privacy.
a) command-and-rule
b) voluntary
c) preemptive
d) incentive-based
Answer:
In terms of business nonmarket action, ________ can take two basic forms: one
involves misrepresentation and the other involves exploiting institutional features.
a) nonmarket analysis
b) lobbying
c) manipulation
d) strategy formulation
Answer:
Labor was furnished through the ________ system, under which workers were
permanently assigned to enterprises upon completing their education.
a) Five Relationships
b) Four Modernizations
c) danwei
d) guanxi
Answer:
Under which of the following situations are courts most likely to assess comparative
damages for cases?
a) when the producer is unable to compensate for the damage caused
b) when the consumer cannot prove that the damage occurred
c) when both the producer and consumer are from different states
d) when both the producer and the consumer are responsible for the injury
Answer:
The Chicago school of thought to reasoning about antitrust focuses on the ________.
a) functioning of markets and the nature of competition
b) conduct that may foreclose opportunities or diminish competition
c) social and political objectives of industries
d) implication of informational asymmetries among market participants
Answer:
________ provides the basis for resolution of the present crisis, avoidance of future
crises, and preparedness for crises that do result.
a) Auditing
b) Root cause analysis
c) Insurance
d) Risk assessment
Answer:
Which of the following is true of nonmarket positioning?
a) It should be dictated by a firm’s market positioning or by those in its environment.
b) It provides a platform on which both market and nonmarket strategies can be
constructed.
c) It is not influenced by the firm’s market strategy.
d) It should neither be a conscious nor a strategic choice.
Answer:
Which of the following is true of emerging markets?
a) Changes occur rapidly in emerging markets countries and risk often accompanies
opportunity.
b) Making generalizations helps business in emerging market countries because they
share similar problems.
c) The principles of nonmarket strategy in democracies can be simply transported to
emerging markets that are not democratic.
d) Foreign direct investment has flowed to relatively unstable and high-risk countries.
Answer:
The Williamson’s Daily, a newspaper publication in the state of Gretshen, had 4 main
news articles on a particular day. Of their four main reporters, Steiner was covering the
hospitalization of a famous baseball player due to an overdose of permitted steroids;
Joan was covering the possible landfall from a hurricane; Mark was covering corruption
charges alleged against a state senator; and Jessica was covering the reduction in
employment rates in the local district of Kross due to a successful government program.
According to the audience interest/societal significance continuum, who among the
following reporters is most likely to get extensive coverage with position taking and
advocacy for their articles?
a) Steiner
b) Joan
c) Mark
d) Jessica
Answer:
________ serve as the core principles that guide the strategies and practices of the
company as it strives to achieve its objectives.
a) Organizational objectives
b) Intrinsic rights
c) Organizational values
d) Instrumental rights
Answer:
Joint ventures are illegal in China.
Answer:
Solar power plants in California faced nonmarket opposition because ________.
a) political lobbies encouraged the use of coal and natural gas
b) most solar power plants failed to meet the specified safety regulations and standards
c) of protests from environmentalists who claimed that such projects posed a veritable
threat to the wildlife of the region
d) the government failed to communicate the benefits of renewable energy to people
residing in the region
Answer:
Which of the following challenges did American renewable energy companies face in
2011?
a) heavy taxation by a debt-ridden government
b) diminishing competition in the market
c) innovation and technological change
d) public ignorance over environmental issues
Answer:
________ distorts economic activity and can substantially reduce GDP.
a) Personal autonomy
b) Competitiveness
c) Economic freedom
d) Corruption
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How does the news media help identify and interpret nonmarket issues?
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Describe the three-component approach to managing policy risk that was proposed by
Henisz and Zellner.
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Write a short note on the Social Charter and European Labor Markets.
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Describe the broadening of the scope of lobbying.
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Who bears the cost of protectionism and how?
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Explain, with examples, the nonmarket positioning that takes place in public sentiment,
political and legal spaces.
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What are the criticisms of Rawl’s theory of justice?
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According to Donaldson, what are the three general principles that should guide
companies in their global business activity?
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Write a short note on confrontational private politics.
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Explain the different approaches used by managers to address nonmarket issues.
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Describe the nonmarket issue life cycle. List and explain the different stages.
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Write a short note on the sources of unethical behavior.
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Informational strategy is a key component of lobbying. Discuss.
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For many managers who venture overseas to do business in the global marketplace, the
challenge of facing some questionable practices and different ethical principles can be
overwhelming. Discuss.
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You are a newly appointed vice president in a large chemical firm. One of your first
tasks is to develop a crisis management program for the company. Outline the steps in
such a program.
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