1. One of the
fortunate
things about ethical issues in the global
market
is that they do not affect
domestic operations.
a. True
b.
False
2.
Involving
two or more cultures in ethical issues makes their resolution much more
difficult.
a. True
b.
False
3. Despite the poor
economy,
there is a backlash against
globalization.
a. True
b.
False
4. Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place
to
help protect their citizenry.
a. True
b.
False
5. MNCs based in the United States and in the European Union have played a key leadership role in world
affairs.
a. True
b.
False
6. For an MNC to be perceived as legitimate in the eyes of a host country, it must fulfill its social responsibilities.
a. True
b.
False
7. Cultural differences between an MNC’s horne country and its host country sometimes make it difficult to distinguish
between cultural issues and ethical
issues.
a. True
b.
False
8. A major ethical challenge
ofMNCs
is that their fmns’ cultures and philosophies may differ from that of their
host
countries.
a. True
b.
False
9. Most of the ethical problems that arise in international markets are very different than the moral issues
encountered
in their horne countries.
a. True
b.
False
10. The ethical issues eucountered in underdeveloped countries are ofteu more difficult than those found in industrialized
nations.
a. True
b.
False
11. The Nestle infant formula case is one in which a normal business practice in the frrm’s horne country proved to
be
problematic in the host
countries.
a. True
b.
False
12. One of the ethical issues that is exacerbated by operating in an developing countries is that the host nation’s
citizeus
ofteu do not understand the technology being used, nor do they recognize its poteutial dangers.
a. True
b.
False
13. One of the things that makes it difficult for U.S. MNCs to deal with sweatshops is that they only occur in
foreign
countries.
a. True
b.
False
14. MNCs often pay their employees in underdeveloped countries less than the average local
wage.
a. True
b.
False
15. The Alien Tort Claims Act has recently been interpreted by the U.S. Supreme Court to apply not only within
the
U.S., but outside it as
well.
a. True
b.
False
16. Corruption, at its core, is essentially an abuse of
power.
a. True
b.
False
17. According to Transparency International’s Corruption Perception Index (CPI), underdeveloped countries
typically
rank low in corruption.
a. True
b.
False
18. Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host
country.
a. True
b.
False
19. Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow
while
doing business around the world.
a. True
b.
False
20. One way to resolve ethical conflicts between an MNC’s horne country and host country is to simply stop
doing
business in the host country.
a. True
b.
False
21. The opposite of cultural relativism is ethical imperialism.
a. True
b.
False
22. The FCPA has had a significant impact on the way American firms do business
globally.
a. True
b.
False
23. International markets must be pursued
iffmns
want to
remain
a. competitive.
b. ethical.
c. free from
corruption.
d. legitimate.
24. Peter Drucker has labeled the expanded global marketplace
the
a. moral free
space.
b. hypercompetitive economy.
c. transnational
economy.
d. multinational competitive sphere.
25. Which of the following is not a feature of the global
economy?
a. international movement
oflabor
b. more trade in goods than in
services
c. international flow of capital
d. international laws governing fair
trade
26. The process by which firms increase their awareness of the influence of international activities on their future
and
establish and conduct transactions with firms from other countries is known as
a. legitimization.
b. internationalization.
c. market
awareness.
d. multinationalism.
27. Economic integration of many formerly national economies into one worldwide economy is called
a. globalization.
b. world-system theory.
c. capitalization.
d. material diversification.
28. The criticism of their use of sweatshops has led MNCs to do all of these things
except::
a. work to improve working conditions.
b. establish codes of
conduct.
c. perform social or ethical audits.
d. create the Fair Labor Association
(FLA).
29. Moving jobs that have historically resided in the horne country to a lower-cost host country is
called
a. expense minimization.
b. offshoring.
c. career
displacement.
d. employment modernization.
30. The FCPA differentiates
between:
a. domestic and international disputes
b. land ownership and building rental
c. bribes and grease
payments
d. entry fees and corporate filing
fees
31. The most challenging situation for an MNC to face is
a. operating in socialist countries.
b. operating in more than ten countries at the same
time.
c. operating is less-developed
countries.
d. operating without a clearly defined strategic plan.
32. The philosophy of Western industrialized nations and their MNCs includes all of these factors
except:
a. economic
growth.
b. decentralization.
c.
efficiency.
d. free
trade.
33. The advantages of offshoring to developing countries have
been:
. .
a. mcreasmg
b.
decreasing
c. staying the
same
d. doubling each
decade
34. In the 1970s, because of the differing safety standards around the world, American
fmns:
a. continued to export drugs that had been banned in the
U.S.
b. continued to export pesticides that had been banned in the
U.S.
c. built asbestos manufacturing plants, banned in the U.S., in other
countries.
d. took all of these
actions.
35. Which of the following is not one the broad issues facing MNCs in their relationships with host
countries?
a. cultural
aspects
b. business/goverrunent interactions
c. exploration of global markets
d. religious and other traditional holidays
36. Ethical issues in the global envirornnent include all of these
except:
a. product
safety.
b. human resource
management.
c. production efficiency.
d. marketing.
37. Major strategies MNCs may use to conduct global business, but still maintain an ethical sensitivity include all of
these
except:
a. modify or redesign products.
b. link ethics with global strategy.
c. suspend business activities in certain
countries.
d. conduct ethical audits.
38. Regarding the infant formula controversy, Nestle was criticized for all of these actions
except:
a. distributing free samples.
b. providing purified water with the
formula.
c. promoting bottle-feeding over breast-feeding.
d. the use of so-called “milk
nurses.”
39. All of the following groups have criticized MNC labor practices
except
a. social activist
groups.
b. church
groups.
c. labor unions.
d. grassroots
organizations.
40. Which of the following is not a
characteristic
of
sweatshops?
a. child labor
b. low pay
c. poor working conditions
d. forced prostitution
41. Which of the following is not an SA8000 standard proposed to improve sweatshop
conditions?
a. prohibition on employing workers under a certain
age
b. provision of a safe and healthy working
environment
c. provision of educational opportunities for
workers
d. prohibition of discriminatory practices
42. All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions,
except
a. allowing workers to form unions.
b. prohibiting corporal punishment.
c.
providing retirement benefits.
d. limiting work to a maximum of 48 hours per
week.
43. The Alien Tort Claims Act applies to:
a. actions that occur on foreign
soil.
b. actions that occur on U.S.
soil.
c. actions that occur in the host country where a U.S. firm is
based.
d. actions that occur in a foreign country where a foreign firm is
based.
44. U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act
because
a. they could allow the finn to recoup some costs of incorporating
overseas.
b. they could allow the finn to sue foreign fmns on a reciprocal basis.
c. they provide an insight in the customs of the host
country.
d. they are increasingly being named as defendants in tort cases for doing business in countries with
repressive
governments.
45. Which of the following is not an example of corruption?
a. bribery
b. paying for political favors
c. negotiating for the lowest price on a
contract
d. paying protection money to the
police