Question 1

Transparency International's Corruption Perception Index (CPI)has historically been highest in underdeveloped countries.

Accepted Answer

Transparency International's Corruption Perception Index (CPI) measures the perceived level of corruption in the public sector of countries worldwide. The index is based on expert assessments and surveys of businesspeople, and its scores range from 0 (highly corrupt) to 100 (very clean). As such, it is not necessarily true that the CPI has historically been highest in underdeveloped countries, as corruption can be found in both developed and developing countries.

Question 2

The most visible issue in the United States related to globalization is moving jobs overseas.

Accepted Answer

The relocation of jobs overseas, particularly to countries with lower labor costs, is a widely debated issue in the United States and has been a prominent feature of globalization.

Question 3

Most of the ethical problems that arise in international markets are very different than the moral issues encountered in their home countries.

Accepted Answer

Many ethical problems in international markets are similar to those encountered in home countries, such as corruption, labor practices, and environmental concerns. The difference often lies in the context or scale of these issues, not their nature.

Question 4

One way to resolve ethical conflicts between an MNC's home country and host country is to simply stop doing business in the host country.

Accepted Answer

While ceasing operations in the host country is a drastic measure, it is indeed one way to resolve ethical conflicts when an MNC (Multinational Corporation) faces irreconcilable differences between its home country's ethics and those of the host country.

Question 5

Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow while doing business around the world.

Accepted Answer

Global codes of conduct aim to establish international principles or guidelines that businesses can follow while operating across different countries, not just domestically.

Question 6

The Nestlé infant formula case is one in which a normal business practice in the firm's home country proved to be problematic in the host countries.

Accepted Answer

Nestlé's aggressive promotion of infant formula through free samples and advertising created issues in developing countries where clean water and proper sanitation were not always available, leading to improperly prepared formula and health problems for infants. This practice was not problematic in Nestlé's home country, but became a contentious issue in the host countries.

Question 7

Over one-half of the world's largest economies are not nation-states,but are MNCs.

Accepted Answer

According to the Fortune Global 500 list, which ranks the world's largest companies by revenue, 135 out of 500 are multinational corporations (MNCs) and not nation-states. This means that over one-quarter (27%) of the world's largest economies are MNCs.

Question 8

The ethical issues encountered in underdeveloped countries are often more difficult than those found in industrialized nations.

Accepted Answer

Underdeveloped countries often have limited resources and infrastructure, which can make it more challenging to address ethical concerns such as poverty, education, healthcare, and human rights violations. Additionally, cultural differences and historical factors may further complicate ethical dilemmas in these contexts.

Question 9

Cultural differences between an MNC's home country and its host country sometimes make it difficult to distinguish between cultural issues and ethical issues.

Accepted Answer

Cultural differences can impact what is considered ethical behavior, making it difficult to distinguish between cultural differences and ethical issues in some cases.

Question 10

One of the ethical issues that is exacerbated by operating in an developing countries is that the host nation's citizens often do not understand the technology being used,nor do they recognize its potential dangers.

Accepted Answer

This statement is true. It is common for developing countries to lack access to information and education about new technologies, making it challenging for citizens to recognize and assess potential risks and ethical issues that may arise from their use.

Question 11

For an MNC to be perceived as legitimate in the eyes of a host country,it must be properly incorporated and pay its fair share of taxes.

Accepted Answer

The answer of For an MNC to be perceived as...

Question 12

Two major issues involved in exploring global markets are the strategic alternatives used by MNCs and pursuit of developing Third World markets.

Accepted Answer

MNCs often use different strategic alternatives to enter global markets, and developing Third World markets presents an opportunity for growth and expansion. Therefore, the statement is true.

Question 13

MNCs often pay their employees in underdeveloped countries less than the average local wage.

Accepted Answer

MNCs (Multinational Corporations) often pay their employees in underdeveloped countries more than the average local wage to attract skilled labor, maintain a competitive edge, and sometimes due to international pressure and corporate policies on fair wages.

Question 14

Involving two or more cultures in ethical issues make their resolution much more difficult.

Accepted Answer

Involving multiple cultures in ethical issues increases the complexity and diversity of opinions, values, and beliefs, making it harder to reach a consensus or compromise. Cultural differences can affect the way people perceive and approach ethics, as well as the acceptable standards of conduct and morality. Moreover, some aspects of ethics may clash with cultural practices, norms, or traditions, creating conflicts and tensions that require sensitive handling and negotiation. Therefore, considering multiple cultures in ethical decision-making requires more effort, time, sensitivity, and cultural competence than dealing with a single culture, which can lead to more challenges and dilemmas.

Question 15

The Alien Tort Claims Act has had the effect of transforming human-rights ethical issues into financial issues.

Accepted Answer

The answer of The Alien Tort Claims Act has had...

Question 16

Corruption,at its core,is essentially an abuse of power.

Accepted Answer

Corruption involves using one's authority or position of power for personal gain or to benefit a select few, often at the expense of the larger community or organization. It is a form of abuse of power that can have significant negative consequences on society and the economy.

Question 17

The United States' global economic leadership is demonstrated by the fact that more than half of the world's largest MNCs are based in America.

Accepted Answer

While the United States is home to many large multinational corporations, it does not account for more than half of the world's largest MNCs. The distribution of MNCs is more global, with significant numbers also based in Europe and Asia.

Question 18

Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country.

Accepted Answer

Cultural relativism, which suggests that moral or ethical systems vary from culture to culture and that no universal standard exists, can lead to ethical dilemmas for MNCs (Multinational Corporations) when the host country's practices conflict with the corporation's or home country's ethical standards. It may not always provide a clear or ethically sound guide for action, especially in cases involving human rights abuses or environmental harm.

Question 19

One of the things that makes it difficult for U.S.MNCs to deal with sweatshops is that they only occur in foreign countries.

Accepted Answer

The answer of One of the things that makes it...

Question 20

One of the fortunate things about ethical issues in the global market is that they do not affect domestic operations.

Accepted Answer

Ethical issues in the global market can have a significant impact on domestic operations, especially in cases where companies engage in unethical practices such as exploiting workers or violating human rights. The interconnectedness of the global economy means that what happens in one part of the world can have ripple effects across the entire supply chain. Consumers, investors, and governments are increasingly demanding that companies uphold ethical standards in their operations, regardless of where they are located.

Quiz 10: Ethical Issues in the Global Arena