Nonmarket issues come from both external forces and the firm’s actions.
Answer:
Emerging market countries face financial restrictions, price controls, and regulatory
risks when doing business in developed countries.
Answer:
There are no limits on contributions to candidates’ campaigns as it would violate the
First Amendment.
Answer:
An issue is considered more newsworthy if it has a degree of immediacy.
Answer:
The last stage in the life cycle of a crisis is intervention.
Answer:
The General Agreement on Trade in Services (GATS) covers all services and provides
for MFN and national treatment.
Answer:
In the absence of trade, the consumption possibilities of each country are its own
production possibilities.
Answer:
From the perspective of Chicago school economists, regulation initially will be found
where there are market imperfections and over time will evolve to serve the interests of
the regulated industry.
Answer:
In politically responsive institutions success depends more on the provision of technical
information.
Answer:
Cost pressure and information demand are primary nonmarket assets for firms and
interest groups for strategy formulation.
Answer:
In a case in which several parties have a role in an injury, such as a manufacturer and a
distributor or a manufacturer and the government, all may be held liable.
Answer:
Rights can be instrumental or intrinsic.
Answer:
The Chinese tendency toward small, family-owned businesses that operate within tight
networks shows many traces of the Confucian heritage.
Answer:
Moral rights in the Kantian system are extrinsic.
Answer:
An experiment is anonymous if the experimenters do not know which participants are
in which roles.
Answer:
The New York v. Sullivan defamation case only pertains to celebrities.
Answer:
Beijing lifted import restrictions in 1978 under its open-door policy recognizing China’s
need for exposure to Western products, ideas, and capital.
Answer:
Consequentialist ethics systems focus on the good and evaluate the good in terms of
individuals’ preferences for consequences.
Answer:
Aggregate well-being does not take into account the harm from an externality and the
social costs of reducing that harm.
Answer:
Intellectual property is generally protected indefinitely.
Answer:
A market is the logical extension of a decentralized system in which entitlements are
assigned and can be traded.
Answer:
Behavioral ethics approaches moral issues through fundamental moral principles such
as Kant’s categorical imperative and the utilitarian principle of maximizing aggregate
well-being.
Answer:
The Politburo is responsible for the ongoing administration of the CCP.
Answer:
The fair trade movement started in the United States in 1988.
Answer:
The audience effect should be stronger the broader is the audience and the more
important is the moral issue to members of the audience.
Answer:
The source of all the revolutions in the Middle East was to seek democracy.
Answer:
Ownership of the firm is never mentioned in the Roundtable statement, which suggests
that the corporation exists as a legal entity.
Answer:
Credit card borrowings and mortgage loans are the largest securitization categories.
Answer:
Managerial capitalism can result in inefficiency when the incentives of management are
not structured properly.
Answer:
A company that manufactures products with high switching costs is susceptible to
private politics.
Answer:
The ordinary legislative procedure of the EU is said to be unicameral, since it only
requires the approval of the Council of Ministers.
Answer:
Seawell is a retail company with branches all over Georgia. Seawell has experienced
several tropical cyclones and decided to stock essentials like bottled water, flash-lights,
and survival food in the cyclone-prone areas. Which of the following components of a
crisis management program is applicable here?
a) resolution
b) response
c) preparedness
d) avoidance
Answer:
Which of the following is true with regard to contracts?
a) A contract is an agreement that has no scope for bargaining.
b) In a contract both parties seek assurances.
c) Contracts are rarely entered into to induce reliance.
d) Contracts do not cover promises to take particular actions in the future.
Answer:
Firms deploy nonmarket capabilities to ________.
a) beat the competition
b) create new markets
c) test new strategies
d) add value
Answer:
Which of the following is a feature of property rules?
a) Property rules provide incentives to create assets.
b) Property rules inhibit bargaining.
c) Property rules pose considerable difficulties in the way of economic transactions.
d) Property rules prevent gains from trade to be realized.
Answer:
Article 1, Section 8 of the U.S. Constitution gives ________ the power “to regulate
commerce with foreign nations” and to “lay and collect duties.”
a) the secretary of state
b) the Congress
c) domestic peak organizations
d) multinational corporations
Answer:
Libel differs from slander in that libel does not________.
a) pertain to statements that are published or broadcast
b) apply to statements made to third parties
c) require a showing of actual damages
d) come under the purview of any state law
Answer:
The Volcker Rule was aimed at ________.
a) penalizing customers who defaulted on interest payments
b) increasing the regulation of credit card issuers
c) reducing speculative investments by banks
d) regulating credit rating agencies
Answer:
Nonmarket strategies are the link between ________.
a) institutions and institutional officeholders
b) objectives and the specific actions taken to achieve them
c) motivations and incentives of an issue
d) the demand for and supply of nonmarket action
Answer:
To which page of the newspaper is advocacy journalism is usually restricted?
a) editorial
b) classifieds
c) feature article
d) cover page
Answer:
Which of the following is an example of morally motivated social performance?
a) An international retailer that sells diamond jewelry strengthened its sourcing and
auditing policies after allegations that diamonds were being imported from
conflict-ridden countries in Africa.
b) A leading cosmetic company that supports animal rights presented a petition to the
European Union against the use of whale oil in products to raise awareness about the
issue.
c) An infant formula manufacturer stopped exporting breast milk substitute baby food
to developing countries after a boycott campaign that raised awareness of the product’s
health hazards.
d) After a worldwide campaign against obesity, a leading fast food chain introduced
healthy salads and options to buy smaller portions.
Answer:
Write a short note on poverty, microlending, and its alternatives in India.
Answer:
The World Bank provides an evaluation of the Ease of Doing Business in a country,
which reflects the ________.
a) relationship between economic prosperity and economic freedoms
b) bureaucratic, regulatory, and administrative barriers a company can face
c) demand size of corruption in a country
d) freedom for countries around the world
Answer:
Which of the following forms a part of the four I’s?
a) injunction
b) information
c) instant justice
d) internal trade barriers
Answer:
How can socially responsible mutual funds make takeover of firms less likely?
a) by discouraging diversification of firms and businesses that engage in social
activities
b) by discouraging innovation in bleeding-edge technologies
c) by decreasing service convenience for competing firms that engage in social
activities
d) by raising the share price of firms that engage in social activities
Answer:
Consequentialist systems are criticized because they ________.
a) tend to favor fundamental rights over instrumental rights
b) treat aspirations, wants, needs, liberties, and opportunities as relevant regardless of
their consequences
c) focus solely on the welfare of human beings
d) do not give adequate attention to intrinsic rights and liberties, which are said to be
fundamentally important
Answer:
Discuss the piracy issues plaguing China. Why was it difficult to stop piracy?
Answer:
The Single European Act mandated the realization of a single market which involved
the removal of three types of barriers: physical, technical, and fiscal. The removal of
physical barriers pertained to ________.
a) restricting the entry of people
b) eliminating customs and other goods inspections
c) prohibiting individuals from working in any member state
d) deposing dictatorial governments
Answer:
A general principle advanced in conceptions of justice is that an injustice is morally
tolerated ________.
a) only if it is necessary to avoid a greater injustice
b) only if it protects the interest of the elite in the society
c) only if it protects traditionalism by resisting social change
d) only if it is necessary to avoid the negative aftermaths of social change
Answer:
Grameen Bank loaned to groups or circles of women, who were responsible for
allocating the borrowings among themselves and for ensuring that the borrowings were
repaid. This is an example of ________.
a) market risk hedging
b) microfinance
c) micropatronage
d) fair trade movement
Answer:
What does liberalism emphasize?
a) prioritization of rights
b) paternalism
c) the liberty of individuals
d) the dissolution of liberal autocracies
Answer:
Statements of corporate responsibility and codes of conduct should ________.
a) encourage top management to allow an ethics vacuum within the organization
b) rely on the personal integrity of employees
c indicate how to reason about situations and issues
d) encourage paternalism
Answer:
The demand for nonmarket action is characterized by ________.
a) costs of organizing for collective action
b) direct costs of undertaking nonmarket action
c) effectiveness of nonmarket action
d) alternative means for achieving benefits
Answer:
Which of the following is true with regard to the EU’s Common Agriculture Policy
(CAP)?
a) It provided a vision for the free circulation of labor and the rights to fair wages,
improvement of living and working conditions.
b) It provided subsidies to farmers totaling €41 billion in
c) It substantially reduced farming subsidies in 2009 leading to widespread protests.
d) It aimed at limiting competition by proposing internal barriers to trade.
Answer:
Which of the following is an example of a global institution?
a) Department of Homeland Security
b) Environmental Protection Agency
c) Mercosur
d) Kyoto Treaty
Answer:
Specific performance is a form of relief provided by courts for cases in which
________.
a) there is more than one party responsible for the injury received
b) firms are unable to pay damages because they have filed for bankruptcy
c) the government is implicated in the plaintiff’s lawsuit
d) it is difficult to determine the actual damages incurred as a consequence of a breach
Answer:
When legislation is being drafted or rewritten, lobbying often centers on ________ .
a) senator
b) executive branch officials
c) committee staff
d) high-level managers
Answer:
Which of the following is true with regard to peak associations?
a) The use peak organizations for political and other nonmarket actions is not
customary in Europe.
b) Peak associations play a number of roles, including the monitoring of government
activities, the funneling of information and expertise from their members to the
government, and lobbying.
c) The role of peak organizations is insignificant at the EU level.
d) Peak organizations do not participate in lobbying.
Answer:
Which of the following should a company follow when opposing an activist campaign?
a) invest in reputation management
b) file a lawsuit
c) develop an alternative organization
d) develop a corporate campaign
Answer:
Generic nonmarket representation strategies are based on ________.
a) developing the needed votes in a legislature to enact or defeat a bill
b) the consequences of alternatives for constituents of government officeholders
c) providing information to government officeholders
d) analyzing industrial costs structures
Answer:
________ is/are defined as the rules of the game in a society that shape human
interactions and provide arenas in which interests seek to influence the outcomes on
issues.
a) Institutions
b) Individualism
c) Collectivism
d) Issue identification
Answer:
Rawls provides a theory of distributive justice set in the tradition of the social contract
theory of ________.
a) Hegel
b) Marx, Adorno, and Schopenhauer
c) Descartes
d) Locke, Rousseau, and Kant
Answer:
Moral philosophy is concerned with deducing moral standards from ________.
a) self-evident principles
b) legal precepts
c) tautological statements
d) political maxims
Answer:
One advantage of the pharmaceutical companies was that doctors tended to prescribe
drugs using brand names, and pharmacists were prohibited from substituting another
generic equivalent drug. This led to ________.
a) an increase in the competitiveness among generics
b) pharmaceutical companies marketing their drugs directly to the public
c) companies introducing generic drugs with brand names
d) a governmental ban on pharmaceutical advertisements
Answer:
India has avoided the financial crises and recessions stemming from the United States
and Europe because ________.
a) the economy of India is not intertwined with those of the developed countries
b) underdeveloped and developing countries are immune to inflation
c) the Indian government is not in debt
d) all goods and services have been heavily subsidized by the government
Answer: