Question 1

Discuss the ethical issues associated with multinational corporations.

Accepted Answer

The answer of Discuss the ethical issues associated with multinational...

Question 2

What is a major role of the International Monetary Fund (IMF) ?

Accepted Answer

A)   It determines the credit ratings of countries.
B)   It is the lender of last resort for individuals who cannot secure other types of loans.
C)   It functions as a collection agent for global banks.
D)   It makes short-term loans to member countries that have deficits and provides foreign currencies for its members.
E)   It provides mortgage loans to international home buyers. D

Question 3

What is a living wage?

Accepted Answer

A)   The minimum wage that a worker requires to meet basic needs.
B)   The wage at which the average worker can live really well.
C)   It is a synonym for minimum wage.
D)   The wage received by child workers in order to stay alive.
E)   A wage given to workers entirely in the form of food. A

Question 4

These values were developed by a reverend and the UN Secretary General. They express support for universal human rights.

Accepted Answer

A)   The Global Sullivan Principles
B)   Sarbanes-Oxley Act
C)   FSGO
D)   Global common values
E)   UN Global Compact

Question 5

Which of the following is not an article in the UN Human Rights Declaration?

Accepted Answer

A)   Freedom of religion
B)   The right to work in favorable conditions
C)   The right to electricity and running water
D)   The right to a home adequate for health and well-being
E)   Mothers and children being entitled to a special level of care

Question 6

What is the AACSB?

Accepted Answer

A)   A major international institution regulating banks around the world
B)   An accrediting institution for organizational ethics
C)   A non-political international governing body
D)   An international organization that promotes a set of principles promoting the teaching of responsible management in business schools
E)   A group that promotes sustainability and environmental awareness

Question 7

Which of the following has the power to enact legally binding ground rules for international commerce and trade policy?

Accepted Answer

A)   Global Sullivan Principles
B)   World Trade Organization
C)   Global Sullivan Organization
D)   Federal Trade Commission
E)   Global Commerce Association

Question 8

_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the "invisible hand."

Accepted Answer

A)   Consumerism
B)   Cultural relativism
C)   Social democracy
D)   Laissez-fair
E)   Bimodal wealth distribution

Question 9

The _____ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations

Accepted Answer

A)   International Monetary Fund
B)   United Nations
C)   World Trade Organization
D)   North American Free Trade Act
E)   European Union C

Question 10

Those who ascribe to consumerism

Accepted Answer

A)   believe that consumers should purchase everything they can afford.
B)   do not believe in taxes on locally made products.
C)   believe that consumers should own the means of production.
D)   believe that consumers, not producers, should dictate the economic structure of a society.
E)   believe that corporations should have the freedom to do whatever they want.

Question 11

Which of the following statements about multinational corporations (MNCs)  is false?

Accepted Answer

A)   MNCs are corporate organizations that operate on a global scale without significant ties to any one nation or region.
B)   MNCs are inherently unethical and always do harm in the countries in which they operate.
C)   MNCs are characterized by a global strategy of focusing on opportunities throughout the world.
D)   Some MNCs are so large and powerful that their revenues are greater than the gross domestic products of many countries.
E)   Because of their size and power, MNCs have been the subject of much criticism and the source of a number of ethical issues.

Question 12

How can differences in two countries' cultures create ethical issues in business?

Accepted Answer

The answer of How can differences in two countries' cultures...

Question 13

Power distance dimension refers to the "power inequality" between superiors and subordinates. Which of the following countries probably ranks high on the power distance scale?

Accepted Answer

A)   Saudi Arabia
B)   Austria
C)   England
D)   Denmark
E)   Sweden

Question 14

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as

Accepted Answer

A)   price discrimination.
B)   price gouging.
C)   dumping.
D)   skimming.
E)   loading.

Question 15

The benefit of healthcare is being debated as to whether it is a right or privilege. Which of the following countries does not consider health care to be a right?

Accepted Answer

A)   The United States
B)   France
C)   Sweden
D)   Germany
E)   Canada

Question 16

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production?

Accepted Answer

A)   Rational economics
B)   Socialism
C)   Capitalism
D)   Rational capitalism
E)   Fascism

Question 17

Risk compartmentalization occurs when

Accepted Answer

A)   companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically.
B)   all profit centers within a corporation are aware of the code of ethics.
C)   all profit centers within an organization become aware of the consequences of competitors' actions.
D)   various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.
E)   ethics and compliance programs reduce the risk of misconduct.

Question 18

Which of the following organizations emerged from the Bretton Woods agreement of 1944, where a group of international leaders decided that the primary responsibility for the regulation of monetary relationships among national economies should rest in an extra-national body?

Accepted Answer

A)   International Monetary Fund
B)   United Nations
C)   World Trade Organization
D)   North American Free Trade Act
E)   European Union

Question 19

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

Accepted Answer

A)   Levying import taxes to lower the prices MNCs charge for their products
B)   Halting the establishment of minimum wage laws
C)   Avoiding the United Nations' monitoring efforts
D)   Preventing the formation of labor unions
E)   Imposing export taxes to force MNCs to share more of their profits

Question 20

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.

Accepted Answer

A)   Milton Friedman
B)   Abraham Maslow
C)   Adam Smith
D)   Geert Hofstede
E)   John Maynard Keynes

Exam 10: Globalization of Ethical Decision Making

Discuss the ethical issues associated with multinational corporations.

Correct AnswerverifiedShow Answer

What is a major role of the International Monetary Fund (IMF) ?

Correct AnswerverifiedD

What is a living wage?

Correct AnswerverifiedA

These values were developed by a reverend and the UN Secretary General. They express support for universal human rights.

Correct AnswerverifiedShow Answer

Which of the following is not an article in the UN Human Rights Declaration?

Correct AnswerverifiedShow Answer

What is the AACSB?

Correct AnswerverifiedShow Answer

Which of the following has the power to enact legally binding ground rules for international commerce and trade policy?

Correct AnswerverifiedShow Answer

_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the "invisible hand."

Correct AnswerverifiedShow Answer

The _____ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations

Correct AnswerverifiedC

Those who ascribe to consumerism

Correct AnswerverifiedShow Answer

Which of the following statements about multinational corporations (MNCs) is false?

Correct AnswerverifiedShow Answer

How can differences in two countries' cultures create ethical issues in business?

Correct AnswerverifiedShow Answer

Power distance dimension refers to the "power inequality" between superiors and subordinates. Which of the following countries probably ranks high on the power distance scale?

Correct AnswerverifiedShow Answer

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as

Correct AnswerverifiedShow Answer

The benefit of healthcare is being debated as to whether it is a right or privilege. Which of the following countries does not consider health care to be a right?

Correct AnswerverifiedShow Answer

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production?

Correct AnswerverifiedShow Answer

Risk compartmentalization occurs when

Correct AnswerverifiedShow Answer

Which of the following organizations emerged from the Bretton Woods agreement of 1944, where a group of international leaders decided that the primary responsibility for the regulation of monetary relationships among national economies should rest in an extra-national body?

Correct AnswerverifiedShow Answer

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

Correct AnswerverifiedShow Answer

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.

Correct AnswerverifiedShow Answer

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