Question 1

The power of a multinational corporation is constrained not only by laws and regulations,but also by the discipline of the market and the competitive process.

Accepted Answer

Multinational corporations are subject to market forces and competition in addition to laws and regulations, which can limit their power and influence. These factors can prevent a corporation from monopolizing a market or exploiting consumers.

Question 2

The Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to gain business.

Accepted Answer

The Foreign Corrupt Practices Act (FCPA) was enacted in 1977 to prohibit the paying of bribes to foreign officials in order to obtain or retain business.

Question 3

According to Milton Friedman,businesses should undertake social expenditures beyond those mandated by the law and required for the efficient running of a business.

Accepted Answer

Milton Friedman believed that businesses should focus solely on maximizing profits for their shareholders and that any social expenditures beyond those required by law or necessary for the efficient running of a business would harm the long-term interests of the company and its shareholders.

Question 4

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions obliges member-states and other signatories to make the bribery of foreign public officials a criminal offense.

Accepted Answer

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, also known as the Anti-Bribery Convention, does indeed require member-states and other signatories to criminalize the bribery of foreign public officials in international business transactions.

Question 5

Enterprises headquartered in a country which scores high on masculinity and power distance measures are more likely to behave ethically than enterprises headquartered in a culture where individualism and uncertainty avoidance are strong.

Accepted Answer

There is no clear relationship between cultural dimensions and ethical behavior. Ethical behavior depends on a variety of factors, including organizational culture and leadership, rather than just cultural dimensions. Additionally, different cultural dimensions may lead to different ethical challenges and considerations. Therefore, it is not possible to make a simple comparison between cultural dimensions and ethical behavior.

Question 6

The concept of social responsibility refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions.

Accepted Answer

Social responsibility means consideration of social or environmental consequences of business actions, in addition to economic benefits, which suggests that businesses should not only focus on profits but should also be responsible and accountable for their social and environmental impacts.

Question 7

A righteous moralist claims that a while operating in a host country,a multinational company should follow the ethical standards of that host country.

Accepted Answer

A righteous moralist believes that a multinational company should adhere to its home country's ethical standards, not necessarily those of the host country.

Question 8

Societal business ethics are not divorced from personal ethics.

Accepted Answer

Societal business ethics refer to ethical principles and values that guide actions and decisions within the context of business operations that impact society as a whole. These principles are not separate from personal ethics. Personal ethics influence one's behavior and decision-making in all contexts, including business settings. Therefore, societal business ethics are not divorced from personal ethics.

Question 9

Noblesse oblige is a French term referring to those multinationals that have unethically used their power for private gain.

Accepted Answer

Noblesse oblige actually refers to the idea that those in positions of power or privilege have a moral obligation to act with integrity and generosity towards others. It is not specifically about multinationals or unethical behavior.

Question 10

The Foreign Corrupt Practices Act does not allow for "facilitating payments."

Accepted Answer

Foreign Corrupt Practices Act outlawed the paying of bribes to foreign government officials to gain business. Some U.S. businesses immediately objected that the act would put U.S. firms at a competitive disadvantage. The act was subsequently amended to allow for "facilitating payments."

Question 11

According to the concept of cultural relativism,a firm,while operating in any host country,should adopt the ethics of the culture that is predominant in its home country.

Accepted Answer

According to the concept of cultural relativism, a firm should adopt the ethics and cultural norms of the host country where it operates, not the ones from its home country.

Question 12

Our personal ethical code exerts a profound influence on the way we behave as businesspeople.

Accepted Answer

Our personal ethical code shapes our values and beliefs, which in turn guide our actions as businesspeople. It affects the way we make decisions, treat others, and conduct ourselves in the business world. Therefore, it exerts a significant impact on our behavior as business professionals.

Question 13

Facilitating payments are payments to secure contracts that would not otherwise be secured.

Accepted Answer

The answer of Facilitating payments are payments to secure contracts...

Question 14

Many of the ethical issues in international business are rooted in the fact that political systems,law,economic development,and culture vary significantly from nation to nation.

Accepted Answer

This statement is true. The differences in political systems, law, economic development, and culture create a diverse set of ethical challenges that businesses must navigate when operating internationally.

Question 15

Leon Sullivan argued that it was ethically justified for Western businesses to operate in South Africa so long as the companies obeyed the apartheid laws.

Accepted Answer

Leon Sullivan was actually known for his Sullivan Principles, which encouraged companies to disinvest in South Africa and instead focus on creating jobs and economic opportunities for black South Africans. He believed that operating under apartheid laws was not ethical and would perpetuate discrimination and inequality.

Question 16

An organizational culture that requires all decisions to be purely economic allows unethical behavior to flourish and persist.

Accepted Answer

An organizational culture that is solely focused on economic decisions may prioritize short-term gains at the expense of ethical considerations. This can create an environment where unethical behavior is tolerated or even rewarded as long as it is profitable. Without a broader set of values to guide decision-making, individuals within the organization may be more likely to engage in unethical behavior in pursuit of economic goals.

Question 17

The term organization culture refers to the values and norms that are shared among employees of an organization.

Accepted Answer

Organization culture refers to the shared values, beliefs, behavior patterns, and attitudes that characterize members of an organization and define its nature.

Question 18

Ethical dilemmas are situations in which only one of the available alternatives seems ethically acceptable.

Accepted Answer

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

Question 19

According to Friedman doctrine,the only social responsibility of business is to increase profits,so long as the company stays within the rules of law.

Accepted Answer

The Friedman doctrine states that the only social responsibility of business is to increase profits, as long as it stays within the legal boundaries. This means that businesses do not have any other obligations towards society, such as environmental or social objectives. The Friedman doctrine has been widely criticized for its narrow focus on profits and disregard for broader societal concerns.

Question 20

The term ethics refers to accepted principles of right or wrong that govern the conduct of a person,the members of a profession,or the actions of an organization.

Accepted Answer

The statement accurately defines the term ethics.

Quiz 5: Ethics in International Business