Deck 19: Social Responsibility and Corruption in the Global Marketplace

Question 1

Janet visited China recently and decided to bring a suitcase filled with imitated brand name shoes to sell in the United States without declaring them at the customs. This is an example of

A) money laundering.
B) counterfeiting.
C) smuggling.
D) piracy.

Answer 1

C

Question 2

Euphemisms such as: fees, commissions, gratuities, and sweeteners are often used when describing _____________________

A) money laundering
B) smuggling
C) bribery
D) counterfeiting

Answer 2

C

Question 3

Copying computer software is an example of __________________.

A) counterfeiting
B) piracy
C) Smuggling
D) bribery

Answer 3

B

Question 4

______________involves concealing the source of ill-gotten funds.

A) Smuggling
B) Bribe paying
C) Money laundering
D) Piracy and counterfeiting

Question 5

________________diminishes national control over trade policies.

A) Smuggling
B) Money laundering
C) Piracy and counterfeiting
D) Bribe paying

Question 6

Which of the following is not a common form of corruption?

A) smuggling
B) money laundering
C) FCPA
D) piracy and counterfeiting

Question 7

Which of the following is not a condition that tends to increase the probability of corruption?

A) lack of adequate legal framework and weak enforcement
B) a high level and scope of government involvement in and regulation of economic activity
C) stable government and adequate legal framework
D) lack of transparency

Question 8

By definition, corruption is ________________ to measure.

A) difficult
B) easy
C) unimportant
D) none of the above

Question 9

An employee of Shell who has been found to give or receive any type of bribe is instantly _______________.

A) rewarded
B) fired
C) prosecuted
D) none of the above

Question 10

What are particularly appealing to smugglers?

A) drugs
B) liquor
C) guns
D) all of the above

Question 11

What have been especially appealing to smugglers the world over due to high taxes and tariffs and the relative ease of transportation?

A) hats
B) money
C) cell phones
D) cigarettes

Question 12

The illegal trade and transportation of goods is devised to circumvent custom duties, quotas, and other constraints on the movement of ____________.

A) goods
B) trade
C) smuggling
D) markets

Question 13

It was impossible for us to do business without getting involved in corruption. So we took the logical step and accepted the consequences. That meant packing our bags. Who said this?

A) Shang-jin
B) Dr. Fisher
C) Unilever official
D) Shenkar

Question 14

An exchange between two partners (the demander and the supplier which (a) has an influence on the allocation of resources either immediately or in the future; and (b) involves the use or abuse of public or collective responsibility for private ends. That is the definition of

A) customs.
B) accepted norms.
C) corruption.
D) legislation.

Question 15

Which of the following is considered unethical?

A) intentionally misleading a customer
B) accepting a financial endorsement in return for political backing
C) obtaining offshore accounts to avoid paying taxes on the money
D) all of the above

Question 16

An example of ___________________ is shipping a load of cigarettes to Mexico but avoiding the payment of tariffs, custom duties, import quotas, and other constraints in order to increase profit margin.

A) bribery
B) money laundering
C) piracy
D) smuggling

Question 17

Selling a breakfast cereal in a box that looks very similar to Kellogg's packaging of Cornflakes is an example of____________________.

A) unethical practice
B) a "knock off"
C) competitive advantage
D) both A and B

Question 18

___________ is the illegal trade and transportation of goods devised to circumvent custom duties, quotas, and other constraints on the movement of goods.

A) Smuggling
B) Laundering
C) Counterfeiting
D) Piracy

Question 19

Which of the following is NOT a predictor of corruption?

A) culture
B) level of government involvement
C) having adequate legal framework
D) none of the above

Question 20

There are many global guidelines by which MNEs measure their social responsibility. Which of the following is NOT the more prominent types of guidelines?

A) the environment and supply-chain management
B) hiring practices, community relations, and internal management
C) external reporting and internal management
D) none of the above

Question 21

_____________ focuses on the structures and processes necessary for the pursuit of shareholder value.

A) Financial governance
B) Consumer protection
C) Environmental governance
D) none of the above

Question 22

Which of the following attributes has NOT been important to MNEs in regard to corporate social responsibility?

A) corporate reputation
B) women and minority employment
C) employee safety and health
D) none of the above

Question 23

Which of the following is not a component of ISO 14000?

A) environmental management systems
B) environmental auditing
C) life cycle assessment
D) environmental index unit

Question 24

Which of the following is correct?

A) MNEs should request the intervention of their home governments in disputes with host governments.
B) MNEs should not resolve disputes arising from expropriation by host governments under the domestic laws of the host countries.
C) MNEs should not pay bribes or render improper benefits to any public servant.
D) none of the above

Question 25

Which of the following is incorrect?

A) MNEs should cooperate with government policies regarding local equity participation.
B) MNEs should not dominate the capital markets of the countries in which they operate.
C) MNEs should not engage in transfer pricing policies that modify the tax bases on which their entities are assessed.
D) none of the above

Question 26

Global payment systems that place priority on speed of transaction rather than knowing whether the electronic money transfers are legal is an example of a practice that encourages_________________.

A) early withdrawal penalties
B) bribery
C) counterfeiting
D) money laundering

Question 27

Which of the following is an example of international business corruption?

A) a request from an exporter to pay a fee to "expedite" custom clearance
B) a "consultant fee" demanded from a foreign investor by government officials involved in project approval
C) a bid awarded to regulators and their proxies
D) all of the above

Question 28

Diminished national control over trade policies, damages incurred by legitimate importers, and manufacturers whose reputations are tarnished are examples of some of the effects that are a result of ____________________.

A) tariffs
B) smuggling
C) quotas
D) bribery

Question 29

An example of a country with increased probability of corruption is ______________.

A) a country with a well-developed economy
B) a country where institutes tend to lead economic and social change
C) a country with adequate legal framework and strong enforcement
D) a country with developing and transitional economies

Question 30

Communications, infrastructure, energy, and transportation are examples of areas prone to _____________________.

A) mistakes
B) political agendas
C) ethical practices
D) corruption

Question 31

An MNE's corporate social responsibility is typically not focused on the relationships with several major stakeholders and solely depends on the company's executives only.

Question 32

Philanthropic responsibilities reflect expectations that business will engage in social activities that are neither mandated by law nor generally expected of business in an ethical sense.

Question 33

Global business ethics are essentially about the reconciliation of home- and host-country ethical standards and the identification of norms that will satisfy both.

Question 34

Piracy and counterfeiting are not the same.

Question 35

Smuggling does not diminish national control over trade policies.

Question 36

Nigeria has become infamous for it corrupt practices.

Question 37

Foreign investors may be reluctant to invest in an economy known for its corrupt practices.

Question 38

All corruption violates the law.

Question 39

While ethical issues have been on the radar screen of MNEs for a long time, corruption was often an issue not talked about.

Question 40

Ethical behavior implies not only following the rule of law but also attending to the values, norms and concerns of the home and host environments.

Question 41

Counterfeiting means attempting to pass the copied product as an original, such as producing and selling a fake Gucci bag or a Rolex watch.

Question 42

Money laundering involves showing the source of ill-gotten funds by channeling them into legitimate business activities and bank deposits.

Question 43

Steel smuggling involves falsifying shipping documents to conceal the product source or its classification.

Question 44

Smuggling diminishes national control over trade policies.

Question 45

Corruption also produces incomplete, distorted and undisclosed information, allowing one party to take advantage of another

Question 46

While ethical issues have been on the radar screen of MNEs corruption was often an issue talked about.

Question 47

A lack of public disclosure of financial information is a good example of one of the many factors involved with high corruption levels.

Question 48

A solid example of how corruption obstructs firm growth is the financial cost incurred in indirect payments as well as in direct costs.

Question 49

The Corruption Perception Index (CPI) is an example of one way to estimate corruption based on multiple survey responses.

Question 50

Corporate social responsibility encompasses the economic, legal, ethical and philanthropic, or discretionary expectations that society has of an organization at a given point of time.

Question 51

ISO 14000 contains

Question 52

MNEs should not refrain from improper or illegal involvement in local political affairs.

Question 53

MNEs should engage in transfer pricing policies that modify the tax bases on which their entities are assessed.

Question 54

Philanthropic responsibilities reflect expectations that business will engage in social activities that are neither mandated by law nor generally expected of business in an ethical sense.

Question 55

The ethical category is where divergent views traceable to different cultures are likely to be most significant.

Question 56

Thailand, Zimbabwe, and Poland are a few examples of the many governments establishing independent commissions against corruption.

Question 57

Wholly owned U.S. subsidiaries and other U.S. entities controlled by foreign corporations, including their directors, employees, and agents are examples of segments of U.S. firms that are not subject to the Foreign Corrupt Practices Act (FCPA)

Question 58

In piracy, intellectual property, such as computer software, music discs, and videos, is an example of a minor threat to original manufacturers.

Question 59

Producing and selling a fake Gucci bag or Rolex watch are examples of piracy.

Question 60

Accepting large sums of money to provide entry to another country is an example of smuggling.

Question 61

High taxes are one example of why cigarettes have become less appealing to smugglers the world over.

Question 62

The contiguous border between Hong Kong and Southern China is a prime example of where smuggling is more likely to take place.

Question 63

The Shell Company was heavily criticized for its attempt to dump a trash barge in the North Sea.