In India, it is legal for a medical professional to reveal the sex of fetuses to their
parents.
Answer:
Since the general public sentiment favors righteousness, private politics does not need
to implement strategies to influence the outcome of an issue.
Answer:
When it is clear what the implications are for stakeholders, audience effects can be
weaker, and less corporate social responsibility would then be expected.
Answer:
Many emerging markets countries have domestic business groups which are family
controlled.
Answer:
Nonmarket risks can arise from private politics, including consumer reactions, activist
and NGO challenges, and changes in public sentiment.
Answer:
Activities in the nonmarket environment may be voluntary, as when the firm cooperates
with government officials or an environmental group, or involuntary, as in the case of
government regulation or a boycott of a firm’s product led by an activist group.
Answer:
On nonmarket issues a company or an industry association engages in implicit and not
explicit bargaining.
Answer:
In both democracies and nondemocracies, however, obtaining access to government
officeholders, whether for the purpose of lobbying or using personal ties or political
relationships, can be important for success.
Answer:
Government enforcement of antitrust laws is more widespread than private
enforcement.
Answer:
China has no tradition of an independent judiciary.
Answer:
The European Economic and Social Committee is an advisory body whose members
represent employees, employers, farmers, trades, and other interests.
Answer:
Expertise in dealing with the news media is a market asset.
Answer:
As an issue progresses through its life cycle, management’s range of discretion in
addressing the issue correspondingly increases.
Answer:
Relying only on utilitarianism and ignoring intrinsic rights or justice considerations can
result in conduct that violates ethics standards that people hold to be important.
Answer:
The nature of political competition depends on the relative concentration and dispersion
of the benefits and harm from enactment of a nonmarket alternative.
Answer:
Behavioral ethics experiments conclude that the higher the cost (moral or otherwise) of
acting ethically, the less likely is ethical behavior.
Answer:
Social importance and potential audience base are factors that influence the media
coverage of an issue at the core of the crisis.
Answer:
With the growing scientific evidence indicating global climate change, the George W.
Bush administration made the political and economic choice to support the Kyoto
Protocol.
Answer:
The principles of nonmarket strategy for operating in democracies cannot simply be
transported to emerging markets, particularly for countries that are not democratic and
where the rule of law is weak.
Answer:
The First Amendment does not provide absolute defense for the news media against
defamation charges.
Answer:
With its emphasis on hierarchy, deference, moral rectitude, and behavioral norms,
Confucianism was well suited to the needs of social stability and significantly
contributed to China’s long existence as a unified nation.
Answer:
Nonmarket issues high on firms’ agendas include environmental protection, health and
safety, regulation and deregulation, intellectual property protection, international trade
policy, antitrust as well as other issues such as human rights.
Answer:
Communication with a firm’s stakeholders and employees is unnecessary if the firms’
management can control the crisis.
Answer:
In lobbying, senior members, and particularly the chairs of committees and
subcommittees, should receive more contributions than other members.
Answer:
Guanxi ties create a form of diffuse reciprocity, allowing individuals to exchange favors
even years after a formal relationship has been dissolved.
Answer:
All institutions represent a set of countries.
Answer:
Donaldson argues that all nations, firms, and individuals do not have a duty to respect
the freedom of physical movement.
Answer:
Although regulation is one response to moral hazard problems, but regulation can also
cause moral hazard problems.
Answer:
The evaluations of ethics claims and the application of normative principles occur in
which stage of the framework for the analysis of nonmarket issues?
a) screening
b) identification
c) analysis
d) choice
Answer:
In public politics, nonmarket strategies are ultimately directed at ________.
a) government officeholders
b) customers
c) stakeholders
d) interest groups
Answer:
Which of the following implementation activities is the most expensive?
a) judicial action
b) letter-writing
c) e-mailing
d) testimony
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’ articles is most likely to be high on societal significance but high
on audience interest?
a) Jessica
b) Mark
c) Joan
d) Steiner
Answer:
Indira Gandhi’s socialist policies resulted in ________.
a) the eradication of poverty
b) greater government efficiency
c) economic stagnation
d) the persecution of stall retailers
Answer:
________ raised concerns about the future development of the Indian health care
market.
a) Indian patent laws
b) Multiple acquisitions of Indian firms
c) The enactment of protectionist measures
d) Low health-standards
Answer:
In the context of Rawls’s principles of justice, which of the following does the equal
liberty principle pertain to?
a) the freedom to act paternalistically
b) the freedom to wage war
c) the freedom to persecute minorities
d) the freedom of conscience
Answer:
GreenYouth Corp is a waste management company based in Colorado. It is discovered
that one of its plantsin Saguache and Rio Blancois violating environmental laws. Which
of the following is the last step to crisis management?
a) Company officials arrange a meeting with the stakeholders and a public
announcement on the actions to be taken by them.
b) Company officials are notified of the sickness of the residents of Saguache and Rio
Blanco due to ground water pollution.
c) Company officials discover that officials at the Saguache and Rio Blanco plants have
been dumping hazardous waste at a local dump.
d) Company officials agree to a three-year contract with the government to assure
public safety in Saguache and Rio Blanco.
Answer:
Which of the following violations is not per se illegal in antitrust laws?
a) allocation of customers among competitors
b) maximum price resale maintenance
c) price fixing
d) output restraints
Answer:
A dictator game involves ________.
a) a self-interested proposer and a responder who receive equal endowment before
making a moral decision
b) a proposer and a responder who bilaterally make a decision about how much
endowment to keep and how much to contribute
c) a proposer who unilaterally makes a decision about how much endowment to keep
and how much to contribute to a responder, who takes no action and simply receives the
contribution
d) a responder who unilaterally makes a decision about how much endowment to keep
and how much to contribute to a proposer, who takes no action
Answer:
________ is an aspect of an avoidance strategy.
a) Budgeting
b) Auditing
c) Organizational learning
d) Root cause analysis
Answer:
Write a short note on workers’ rights in China. What are the different aspects of the
Labor Contract Law?
Answer:
An assessment of the nonmarket environment of an emerging market economy will
include ________.
a) demand and supply relations in the market
b) competitiveness of incumbent companies
c) assessment of the labor market
d) understanding the impact of corruption
Answer:
________ does not help a firm to directly manage a crisis situation?
a) Insurance
b) Risk assessment
c) Auditing
d) Organizational learning
Answer:
Which of the following is a nonmarket action?
a) A company requires extensive submission of paperwork to receive a refund for a
product purchased from one of its outlets.
b) A company decides to hire temporary employees to handle its new project.
c) A company arranges a group of lawyers to lobby at the county level to influence the
government about financial regulations.
d) A company decides to open another branch in California to expand its businesses.
Answer:
The TTC News Channel is covering a natural fire that has started in the vicinity of the
village of San Cristen, prompting the possibility of a complete evacuation of the village.
Some of the houses of San Cristen have already been destroyed. According to the
theory of media coverage and treatment, which of the following would most likely
increase the newsworthiness of this issue on the third day of the fire?
a) an interview with a resident of San Cristen who has been an eyewitness to the fire
b) an interview with a celebrity on what he or she thinks of the San Cristen fire
c) an interview with a forest ranger on how the forest’s ecology could change after the
fire
d) an interview with a political representative of San Cristen on how to avoid further
fires in San Cristen
Answer:
Which of the following social activities can be referred to as corporate social
performance?
a) social activities that involve the public redistribution of private property
b) social activities that increase the shareholder value
c) social activities that increase sales and revenue
d) social activities that involve the private provision of public goods or private
redistribution
Answer:
GreenYouth Corp is a waste management company based in Colorado. It is discovered
that one of its plantsin Saguache and Rio Blancois violating environmental laws. Which
of the following is the first step to crisis management?
a) Company officials arrange a meeting with the stakeholders and a public
announcement on the actions to be taken by them.
b) Company officials are notified of the sickness of the residents of Saguache and Rio
Blanco due to ground water pollution.
c) Company officials discover that officials at the Saguache and Rio Blanco plants have
been dumping hazardous waste at a local dump.
d) Company officials agree to a three-year contract with the government to assure
public safety in Saguache and Rio Blanco.
Answer:
Which of the following are government institutions?
a) labor unions
b) regulatory agencies
c) news agencies
d) for-profit organizations
Answer:
In what stage can a crisis explode as a result of media coverage, government actions, or
company actions?
a) reconciliation
b) identification
c) intervention
d) escalation
Answer:
From a utilitarian perspective, bribery ________.
a) encourages competition leading to increased output
b) distorts markets and reduces economic efficiency
c) is reversible
d) is morally justified
Answer:
Which of the following is true with regard to casuistry?
a) Casuistry is principled reasoning.
b) Casuistry has been characterized as a false art of making exceptions in particular
situations, resulting in the violation of underlying principles.
c) Casuist approach is similar to the ethics systems and is intended to apply universally.
d) The casuist approach involves the application of principles in favor of conceptions of
responsibility that is consistent with moral standards.
Answer:
In considering countries and cultures, Sen (1997) warned against generalizations that
“hide more than they reveal.” He advocated the recognition of ________.
a) the importance of taking a static view of cultures
b) the necessity of recognizing heterogeneity within given communities
c) the importance of restricting social change
d) the need to encourage stereotypes in order to create a strong organizational culture
Answer:
A stakeholder relationship centers on ________.
a) an exchange
b) rapport with peak organizations
c) voting rights
d) a niche market
Answer:
Antitrust policies are not concerned with ________.
a) conduct of market participants
b) structure of markets
c) protecting competition
d) protecting competitors
Answer:
The most effective means of integrating market and nonmarket strategies is ________.
a) to incorporate nonmarket strategy formulation into the process of developing a
market strategy
b) to incorporate market strategy formulation into the process of developing a
nonmarket strategy
c) to incorporate both into the business strategy process
d) to view both as separate strategies unified by the goal of profit maximization
Answer:
Which of the following is true of the Super 301?
a) Super 301 convinced most countries to pursue market opening through unilateral
negotiations under the WTO.
b) Super 301 contributed substantially to the strengthening of trade relations between
the United States and the European Union.
c) Super 301 deems negotiation as the most effective means of addressing foreign
barriers to trade.
d) Super 301 provided for mandatory sanctions against countries that engaged in unfair
trade practices that injured U.S. industries.
Answer:
Which of the following is true with regard to social pressure as a motivator of corporate
social performance (CSP)?
a) Social pressure cannot affect the financial performance of a firm directly.
b) Social pressure is rarely targeted to individual firms or industries.
c) Responsive CSP could relieve social pressure that affects financial performance.
d) The presence of social pressure discourages firms to conduct social activities.
Answer:
Under China’s ________ policy, Hong Kong was to retain its autonomy, including a
separate currency, for 50 years.
a) “One Country, One System”
b) “One Country, Two Systems”
c) “Two Countries, One System”
d) “Two Countries, Two Systems”
Answer:
Ethics principles prescribe behavior based on considerations that take precedence over
________.
a) consequentialism
b) altruism
c) societal wellbeing
d) self-interest
Answer:
Which of the following forms a part of the principal conclusions reached by the
majority of members of the Financial Crisis Inquiry Commission (FCIC) with regard to
the causes of the financial crisis?
a) that there was no systematic breakdown in accountability and ethics
b) that the financial crisis was unavoidable
c) that the contribution of over-the-counter derivatives to the crisis was insignificant
d) that the failures of the credit rating agencies were essential cogs in the wheel of
financial destruction
Answer:
Which of the following is the first stage in the nonmarket issue life cycle?
a) interest group formation
b) legislation
c) issue identification
d) administration
Answer:
Which of the following portrays horizontal price fixing arrangement subject to antitrust
scrutiny?
a) Three manufacturers with a large market share for printed circuit for cell phones
agree to control the prices in the industry.
b) A cell phone hardware manufacturer requires dealers to carry only its parts.
c) A leading cell phone manufacturer requires retailers to sell at the price specified by
the company.
d) Two manufacturers of printed circuit for cell phones announce a merger that would
create a monopoly in the industry.
Answer:
Indian companies were the leaders in the ________ movement.
a) exporting
b) importing
c) outsourcing
d) resourcing
Answer:
In the United States, the regulation of telecommunications is being replaced by
________.
a) nationalization
b) market competition
c) monopolization
d) privatization
Answer: