44. One of the ways that the Chamber of Commerce has regained its power is
by
a. making large campaign contributions on its own behalf.
b. dispensing favors to individual businesses that do not want their company name associated with
lobbying
efforts.
c. hiring outside lobbyists to help it attract more
members.
d. focusing on international trade issues.
45. The National Association of Manufacturers
(NAM):
a. receives accolades from its small and medium-sized members for focusing on their particular
needs.
b. advocates for protectionist trade
policies.
c. voted to act against the wishes of its membership, which led to the creation of a new organization, the
AAF.
d. is credited with helping create the gain in manufacturing
jobs.
46. The Business Roundtable is an association
of
a. Fortune 500 companies.
b. CEOs of leading
companies.
c. leading consulting
fmns.
d. human resource
executives.
47. The primary focus of the Business Roundtable is
a. free trade
policies.
b. opposing shareholder
empowerment.
c.
the economic well-being of the nation.
d. executive
compensation.
48. The National Federation
oflndependent
Businesses (NFIB) attributes its newfound power to
a. the growth of multinational companies.
b. globalization.
c. its new status as a trade
association.
d. its success at grassroots
lobbying.
49. Distinct groups or parties that realize they have something in common, so that it makes sense for them to join
forces,
typically form
a. joint
ventures.
b.
partnerships.
c.
coalitions.
d. limited
liability
corporations.
50. The principal instruments through which business uses its fmancial resources to influence government
are
a. umbrella organizations.
b. political action committees.
c. trade
associations.
d. lobbyists.
51. The Golden Rule of Politics is
a. do unto others before they do unto
you.
b. do unto others as you would want done to
you.
c. he who has the gold,
rules.
d. do unto others as they would want done to
them.
52. The top PAC contributor during 2011-2012
was:
a. National Association of
Realtors.
b.
Teamsters.
c. Service Employees International
Union.
d. Lockheed
Martin.
53. The channels through which corporations can make political contributions are.
a. limited.
b. many and
varied.
c. difficult to navigate.
d. primarily tax loopholes.
54. Studies offrnancial performance outcomes on political
spending
a. show a strong correlation between contributions to PACs, and corporate financial
performance.
b. show a weak correlation between contributions to PACs, and corporate financial
performance.
c
.
are
inconclusive.
d. apply only to political outcomes.
55. Universities do more lobbying when congressional appropriations committee members serve the districts in
which
they are located. This targeted lobbying is:
a.
successful
b.
unsuccessful.
c. mixed.
d.
untested.
56. PAC contributions were more influential when given to House members than Senate members
because:
a. House members were elected every two
years.
b. House members were subject to more interest
groups.
c. House members were generally
poorer.
d. Senate members refused PAC
money.
57. Which of the following conditions is not conducive to the effectiveness of PAC
contributions?
a. when the issue is
specialized
b. when the issue is
narrow
c. when PACs adapt lobbying techniques to their contribution strategies
d. when the issue is highly
visible
58. Which of the following is not a level at which businesses lobby?
a.
individual
company.
b. sectoral trade
associations.
c. umbrella trade associations.
d. All of these are levels at which businesses
lobby.
59. Corporations which donate to PACs may
encounter.
a. leadership problems.
b. agency
problems.
c. coalition problems.
d. political problems.
60. Regarding the independence of SuperPacs from the political candidates they support, it is most correct to
say:
a. they are completely independent of any political candidate.
b. they coordinate with the political candidate of their choice behind closed
doors.
c. those who run the SuperPac know the candidate so well, they do not need to consult to coordinate efforts.
d. None of these is
true.
61. Green rankings can be misleading
because:
a. they focus on compliance with regulations.
b. they focus on operational impacts.
c. they focus on overall practices, while iguoring the finn’s political advocacy activities.
d. All of these are
correct.
62. The relationship between Congress and lobbying fmns has been referred to
as:
a. cordial.
b. friendly.
c. a back
door.
d. a revolving door.
63. To fight for tort reform, the U.S. Chamber of Commerce
established:
a. The Institute for Tort
Reform.
b.
The Institute for Legal
Reform.
c. The U.S. Chamber for Tort
Reform.
d. The American League for Tort
Reform.
Provide
a short answer to each of these
questions.
Be sure to fully explain your
answer.
64. Describe the role of political activity to the success of
business.
65. Why should we be vigilant of possible abuses of power or violations of sound ethics as we investigate the political
influence of business?
66. Federal laws require a waiting period of one year before former goverrnnent officials can discuss private
business
matters with anyone in the White House. Why does this provision exist? Is one year a sufficient waiting
period?
67. Lobbyists often show legislators the benefits and detriments of complex legislation. Discuss the wisdom of
allowing
lobbyists to perform this
function.
68. The National Association of Manufacturers (NAJ\1) experiences conflict among its members over the question
of
free trade among nations. Why is this a contentious issue for NAM
members?
69. The Chamber of Commerce has reinvigorated itself partially by representing the interests of individual
companies
that
do not want their names attached to certain lobbying efforts. Certain coalitions also provide companies with this
anonymity. Why would a company want to keep its name out of the public eye in lobbying efforts? and
what
resulting
impacts has this had for
them?
70. Are the arguments for PACs more compelling than those against these organizations? Explain your position.
71. Why might PACs lose their
effectiveness?
72. What can be done to limit the influence of money on the political process?
73. What’s the danger of a company not being able to defme a public
issue.
74. What has been the impact of the Citizens United and Speechnow decisions on campaign
funding?
Utilize the
knowledge
you have gained to
respond
to the
following
essay
questions. Your answers should
state
your position and use logical
arguments
and
content
from this and
other chapters
in the
textbook to
support it.
75. Microsoft was able to effectively defend against an antitrust suit by the United States, but lost a similar case in
the
European Union. The European Commission charged that Microsoft exploited its monopoly position in
several
foreign countries. Investigate the resolution of this
case.
Also, how did Microsoft take advantage of its win in the
U.S.?
76. Lobbyists have been identified as having very narrow self-interests. Apparently some of these interests go no
further
than lining their own pockets, with no regard for their clients’ needs. Research the activities of Jack Abramoff
and
Michael Scanlon in connection with their representation of several Native American tribes and their
gambling
cas1nos.
77. The textbook notes that Rep. Billy Tauzin of Louisiana, chief architect of the new Medicare prescription drug
law,
has received a lucrative job lobbying for the pharmaceutical industry. News commentators have suggested that
he
has already earned his salary because the Medicare bill is expected to provide windfall profits for the
drug
companies. Chapter 10 said that one of the reasons government regulates business is to control excess profits. Are
“windfall” profits for the pharmaceutical industry “excessive?” If so, how can we reconcile government’s efforts to
regulate against excess profits with Tauzin’s ability to draft legislation that provides windfall profits?
78. Should PACs be outlawed? Why or why
not?
79. Suppose that tobacco companies are faced with the threat of legislation that would make all tobacco products
illegal
to sell. How would these companies keep this issue off the public agenda and out of the limelight?