Question 1

In our society as well as many others,ethical principles never factor into the making of formal laws.

Accepted Answer

Ethical principles often do factor into the making of formal laws, as laws are often created to reflect and enforce ethical values and principles within a society.

Question 2

Basic human rights are still not respected in many other nations.

Accepted Answer

Although progress has been made in promoting and protecting human rights globally, violations still occur in many nations. Examples include restrictions on freedom of speech, discrimination against minority groups, and lack of access to healthcare and education.

Question 3

Investment in China is often justified on the grounds that continuing inward investment will help boost economic growth and raise living standards.

Accepted Answer

This is a common argument used by proponents of foreign investment in China. They argue that by attracting foreign capital and technology, China can increase its productivity and create new jobs, which will ultimately lead to higher living standards for the Chinese people. However, some critics argue that foreign investment can also lead to negative consequences such as environmental degradation, social inequality, and a loss of control over key industries.

Question 4

Ivanhoe Mines Ltd was pressured by the Canadian government to limit any new investment in Myanmar.

Accepted Answer

According to a Reuters' article from 2018, the Canadian government had advised Ivanhoe Mines Ltd to limit new investments in Myanmar due to concerns about human rights abuses and violence against the Rohingya minority.

Question 5

Some economists have argued that corruption reduces the returns on business investment and leads to low economic growth.

Accepted Answer

Corruption can lead to inefficiencies, higher costs, and reduced productivity, which in turn can discourage business investment and limit economic growth. It also creates an uneven playing field that favors those who are willing to engage in corrupt behavior over those who are not, further distorting economic outcomes. As a result, many economists believe that reducing corruption is critical to promoting sustainable economic development.

Question 6

Many of the ethical issues that arise when companies do business in different nations manifest themselves because of differences,such as is found in the economic environment,political systems and laws of those nations.

Accepted Answer

Differences in economic environment, political systems, and laws of different nations can create ethical issues for companies doing business internationally.

Question 7

In international business settings,one of the most common ethical problems encountered involves employment practices.

Accepted Answer

Employment practices such as discrimination, unfair wages, and unsafe working conditions are common ethical problems encountered in international business settings.

Question 8

Corruption has been a problem in almost every society in history with the exception of Western nations.

Accepted Answer

Corruption has been present in Western nations as well, but they have stronger institutions and systems in place to detect and address it. However, there have been numerous cases of corruption and scandals in Western nations as well.

Question 9

The course of action that a business opts to take and which does not violate accepted principles is known as an ethical strategy.

Accepted Answer

The statement is true. An ethical strategy refers to a course of action that aligns with generally accepted moral principles and values. It involves making decisions that prioritize social responsibility, sustainability, integrity, and fairness while pursuing business goals.

Question 10

According to the textbook,an example of an obstructionist stance was taken by what company?

Accepted Answer

The answer of According to the textbook,an example of an...

Question 11

In a country where corruption is common,businesses have a reduced incentive to invest.

Accepted Answer

In a country where corruption is common, businesses may face obstacles such as bribery, extortion, and lack of transparency which can reduce their incentive to invest. They may perceive investing as risky due to uncertainty about the laws, regulations, and potential government interference. This can ultimately harm the economy and limit opportunities for growth.

Question 12

In the modern world global corporations can contribute to the tragedy of commons by moving manufacturing to jurisdictions that are more environmentally sensitive.

Accepted Answer

Global corporations may still contribute to the tragedy of commons by engaging in practices that exploit natural resources or cause environmental harm, regardless of where they manufacture their products. By moving manufacturing to more environmentally sensitive jurisdictions, they may actually reduce their negative impact on the environment. However, this does not absolve them of responsibility for their overall impact, and they should still aim to minimize environmental harm in all aspects of their operations.

Question 13

Expatriate managers must interpret a local cultural practice in the way such behaviour would be understood in their own home culture.

Accepted Answer

Expatriate managers must interpret a local cultural practice in the way it is understood in the local culture, not their own home culture. This is essential for effective communication and building relationships with local employees and stakeholders.

Question 14

There is insignificant variation found in the political systems,laws,and cultures of differing nations.Hence,ethical dilemmas are rare to appear in international business dealings.

Accepted Answer

There is significant variation found in the political systems, laws, and cultures of differing nations, and this can give rise to ethical dilemmas in international business dealings. For example, what may be acceptable business practices in one country can be considered unethical in another. Therefore, it is important for companies engaged in international business to be aware of and navigate these cultural differences and potential ethical challenges.

Question 15

Companies may take a defensive stance when they obey the law,but don't take _____ and ___ into account.

Accepted Answer

When companies take a defensive stance, they focus on legal compliance but may neglect ethical considerations such as fairness and compassion.

Question 16

The trade and finance ministers of the OECD followed the lead of the U.S.in 1997 and adopted a convention on bribery in international business.

Accepted Answer

The OECD trade and finance ministers did follow the lead of the U.S. in 1997 and adopt a convention on bribery in international business, known as the OECD Anti-Bribery Convention.

Question 17

Ethical issues arise when environmental regulations in host countries are inferior to those in the home nation.

Accepted Answer

When a multinational corporation operates in a host country with inferior environmental regulations than those in its home nation, ethical issues may arise. This could potentially result in the corporation violating ethical principles, such as putting the environment and the health of local communities at risk in pursuit of profit. Additionally, the corporation may face criticisms and backlash for operating in a way that is not aligned with ethical principles.

Question 18

An ethical dilemma is a situation where there is no ethically acceptable solution.

Accepted Answer

An ethical dilemma is a situation where there is no clear or easy solution that is ethically acceptable.

Question 19

The tragedy of commons occurs when a resource,owned by the host country and not the home country,is overused by all individuals.

Accepted Answer

The tragedy of the commons occurs when a resource, which is accessible to all, is overused and depleted because individuals act in their own self-interest rather than considering the common good. It does not specifically relate to resources owned by the host or home country.

Question 20

The atmosphere and oceans are not viewed as global commons by industrialized nations of the world.

Accepted Answer

The atmosphere and oceans are generally recognized as global commons by industrialized nations, although there are still debates and disagreements over how to manage and regulate these resources in a sustainable and equitable manner.

Quiz 4: Ethics in International Business