Question 1

What constitutes ethical behavior varies from person to person.

Accepted Answer

Ethical behavior is subjective and influenced by personal beliefs, cultural norms, and societal values, leading to variations in what is considered ethical across different individuals and groups.

Question 2

An MNE with a factory in Cambodia is being inspected by the International Labor Organization. What is the most likely focus of the inspection?

Accepted Answer

The International Labor Organization is primarily focused on promoting and enforcing safe working conditions for laborers. Therefore, it is the most likely focus of the inspection.

Question 3

Which regulation prohibits the offering of bribes to any foreign government official in order to influence official actions or policies of that official or to gain or retain business?

Accepted Answer

The Foreign Corrupt Practices Act prohibits offering bribes to any foreign government official to influence official actions or policies or to gain or retain business.

Question 4

According to the model developed by Rob van Tulder and Alex van der Zwart, firms that adhere to the Asian Way are more likely to ________.

Accepted Answer

According to the model developed by Rob van Tulder and Alex van der Zwart, firms that adhere to the Asian Way prioritize cooperation with the government over individualism, which means that they are more likely to cooperate closely with the government.

Question 5

According to the model developed by Rob van Tulder and Alex van der Zwart, Anglo-Saxon countries view the state, the market, and civil society as ________.

Accepted Answer

According to the model developed by Rob van Tulder and Alex van der Zwart, Anglo-Saxon countries view the state, the market, and civil society as competitive entities. This perspective emphasizes the distinct roles and often conflicting interests of these sectors, highlighting competition as a driving force for efficiency and innovation.

Question 6

What is the purpose of the Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) specifically prohibits the offering of bribes to any foreign government official in order to obtain or retain business advantage. This law aims to promote greater transparency and ethical business practices in international transactions.

Question 7

An individual's personal beliefs regarding whether a decision, behavior, or action is right or wrong is known as ethics.

Accepted Answer

Ethics refers to an individual's personal belief system regarding what is right or wrong in terms of decision making, behavior, or actions.

Question 8

The primary purpose of the International Labor Organization (ILO)is to ________.

Accepted Answer

The primary purpose of the International Labor Organization (ILO) is to monitor working conditions of factories in developing countries. The ILO is a specialized agency of the United Nations that aims to promote social justice and promote decent working conditions. It works to develop and promote international labor standards, including the elimination of child labor and forced labor, and the protection of workers' rights. While it may address issues related to conflicts of interest and ethics, this is not its primary purpose. Similarly, it does not focus on eliminating extortion in international business transactions.

Question 9

According to the model developed by Rob van Tulder and Alex van der Zwart, what is the key to the Continental European Approach?

Accepted Answer

According to the model developed by Rob van Tulder and Alex van der Zwart, the key to the Continental European Approach is cooperation between labor, business, and government. This approach involves close consultation and collaboration between these three entities to promote economic growth and social welfare. Consumer demands, competition, and oversight by NGOs may also play a role, but they are not the primary focus of this approach.

Question 10

The primary reason for the existence of a business is to create value.

Accepted Answer

The primary objective of a business is to create value for its customers, shareholders, employees and society as a whole. This value can be in the form of products, services or solutions that meet the needs and wants of the target market. By creating value, a business can generate revenue, profit and goodwill, and contribute to economic growth and development. Without creating value, a business cannot sustain itself in the long run and may eventually fail.

Question 11

Which regulation attempts to eliminate bribes in international business transactions?

Accepted Answer

The answer of Which regulation attempts to eliminate bribes in...

Question 12

Browning Enterprises is planning to conduct a corporate social audit. Which of the following would LEAST likely occur during the audit?

Accepted Answer

Gathering social goal data from shareholders is not a typical step in a corporate social audit. The other choices (defining current social responsibility goals, assessing the accomplishment of social goals, and analyzing social responsibility resource distribution) are all common steps in such an audit.

Question 13

Many U.S. firms move production and low-skill jobs to developing countries to reap the benefits of low labor costs, favorable public relations, and clear-cut business practices.

Accepted Answer

Many U.S. firms move production and low-skill jobs to developing countries primarily to benefit from low labor costs, but this often involves navigating complex and sometimes less clear-cut business practices, rather than seeking favorable public relations or clear-cut business practices.

Question 14

Which of the following best explains why international factory owners would most likely want regular ILO inspections?

Accepted Answer

Regular ILO inspections can demonstrate to multinational enterprises (MNEs) that a factory adheres to international labor standards, making it a more attractive investment opportunity.

Question 15

What organization is the major watchdog for monitoring working conditions in factories in developing countries?

Accepted Answer

The International Labor Organization (ILO) is the major watchdog for monitoring working conditions in factories in developing countries. It is a specialized agency of the United Nations that promotes international labor standards and rights at work. The ILO works to ensure that workers are not subjected to exploitative working conditions, including forced labor, child labor, and unsafe working conditions. It also promotes social justice and decent work for all, including women and vulnerable groups. The other choices do not specifically focus on monitoring working conditions in factories.

Question 16

Individuals convicted under the Anti-Bribery Convention of the Organization for Economic Cooperation and Development will most likely be required to ________.

Accepted Answer

The answer of Individuals convicted under the Anti-Bribery Convention of...

Question 17

According to the model developed by Rob van Tulder and Alex van der Zwart, which of the following best exhibits the cultural values of a nation's citizens?

Accepted Answer

According to the model developed by Rob van Tulder and Alex van der Zwart, civil society best exhibits the cultural values of a nation's citizens. Civil society refers to the organizations and institutions that exist outside of the government and private sector, such as non-profits, community groups, and religious organizations. These groups are often rooted in the cultural values of a society and can provide a window into the priorities and beliefs of the citizens. The state and market can also reflect cultural values to some extent, but civil society is considered to be the most direct expression of a society's values. Competitors, on the other hand, are not likely to reflect cultural values as they are driven primarily by market forces and competition.

Question 18

What is the purpose of the Alien Tort Claims Act?

Accepted Answer

The Alien Tort Claims Act allows foreign nationals to bring civil cases before U.S. courts for violations of international law, including human rights abuses such as torture, genocide, and crimes against humanity committed abroad.

Question 19

Which regulation seeks to protect individuals from human rights abuses and holds MNCs accountable for such abuses?

Accepted Answer

The Alien Tort Claims Act allows foreign nationals to sue in U.S. courts for violations of international law, including human rights abuses by multinational corporations operating overseas. This regulation seeks to hold MNCs accountable for such abuses and protect individuals from human rights abuses. The Foreign Corrupt Practices Act prohibits U.S. companies from bribing foreign officials, the Helms-Burton Act imposes sanctions on foreign companies doing business in Cuba, and the Disclosure of Conflict Act requires companies to disclose their use of conflict minerals.

Question 20

Ethics is an organizational concept, not an individual one.

Accepted Answer

Ethics pertains to both individuals and organizations, guiding personal behavior and corporate conduct.

Quiz 5: Ethics and Social Responsibility in International Business