Deck 10: Globalization of Ethical Decision Making

Question 1

Business transactions across national boundaries are called

A) a multinational corporation.
B) culture.
C) business ethics.
D) global business.
E) national business.

Answer 1

global business.

Question 2

Desirable ____, such as integrity, honesty and unselfishness are shared across most cultures.

A) country cultural values
B) amakudari
C) multinational corporations
D) global common values
E) products

Answer 2

country cultural values

Question 3

The practice of ____ is common in the Japanese banking industry, in which businesspeople demonstrate trust by hiring retired Japanese bureaucrats to become auditors, directors, executives, and presidents.

A) trust
B) respect for one's elders
C) poaching competitors' employees
D) amakudari
E) secrecy

Answer 3

amakudari

Question 4

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

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.
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 some countries.
E) Because of their size and power, MNCs have been the subject of much ethical criticism and the source of a number of ethical issues.

Question 5

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

A) MNCs are trying to prevent the formation of labor unions.
B) MNCs are trying to halt the establishment of minimum wage laws.
C) MNCs are trying to avoid the United Nations' efforts to monitor them.
D) Host governments have levied import taxes to lower the prices MNCs charge for their products.
E) Host governments have levied export taxes to force MNCs to share more of their profits.

Question 6

____, which is related to behavioral economics, states that how information is presented to consumers will affect their choices.

A) A framing effect
B) Dumping
C) Bi-modal wealth distribution
D) Culture
E) Social democracy

Question 7

Risk compartmentalization occurs when

A) companies separate 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.

Question 8

Adam Smith encouraged ____, or the invisible hand, in which markets keep commerce in equilibrium.

A) laissex-faire economics
B) socialism
C) multinational corporations
D) stability
E) bribery

Question 9

____ states that the way something is presented to a consumer can affect the choices he or she makes.

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

Question 10

Culture is defined as

A) everything in our surroundings made by people.
B) tangible items.
C) intangible concepts.
D) intangible values.
E) All of these make up culture.

Question 11

Which of the following is not an issue raised by the debate over the pros and cons of capitalism?

A) Should governments be more protectionist in order to aid domestic industries?
B) Is western-style capitalism, with minimal government intervention, the best kind?
C) Is minimal government intervention best in terms of encouraging the free flow of goods and services?
D) Does capitalism encourage the formation of cartels?
E) Do enough corporations take into account social responsibility?

Question 12

What is the purpose of the UN Global Compact?

A) Support free trade unions
B) Abolish child labor
C) Protect the natural environment
D) To allow international corporations to indicate their commitment to social responsibility and ethics
E) All of these are purposes of the UN Global Compact.

Question 13

Which of the following is not a step in forming an effective global code of conduct?

A) Set clear objectives.
B) Hold focus groups.
C) Translate the code.
D) Use the same code of conduct you would for a domestic firm.
E) Have knowledge about graphic design.

Question 14

According to the text, as business facilitates exchanges, consumption will increase globally. The important issues related to consumerism include all but which of the following?

A) The impact of production on the environment.
B) The impact of differing forms of consumption on society
C) How much of what we deem necessary for consumption is influenced by corporations?
D) What are necessities and luxuries?
E) What is the impact of poor countries' consumption patterns on wealthy countries?

Question 15

Human rights

A) are defined as an inherent dignity.
B) is not a new concept.
C) include inalienable rights like freedom and justice.
D) was not a consideration of firms several decades ago.
E) All of these statements are true.

Question 16

Globally, one billion people lack access to ____ systems and approximately 11 million children under the age of 5 die from malnutrition and mostly preventable diseases each year.

A) community
B) education
C) healthcare
D) political

Question 17

According to the text, one of the most pressing international issues related to the UN Human Rights Declaration is

A) privacy and the Internet.
B) equal pay.
C) the hostile work environment.
D) sexual harassment.
E) maternal leave.

Question 18

____ is an issue growing in urgency among lawmakers and businesses as the effects of climate change grow more extreme.

A) Labor rights
B) Sustainable development
C) How to extract maximum resources
D) Education
E) Religious freedom

Question 19

The IMF

A) originated from the Bretton Woods agreement.
B) plunged Latin America into a decade of decline in the 1980s.
C) suggests that governments adopt a binding code of conduct across nations.
D) has the responsibility for the regulation of monetary relationships.
E) All of these statements are true.