Question 1

The tragedy of commons phenomenon was first named by Garrett Hardin.

Accepted Answer

The tragedy of the commons was first named by Garrett Hardin when describing a particular problem in sixteenth century England,where overgrazing in large open areas-or commons-were free for all to use as pasture,which led to its degradation and the loss of a much-needed supplemental income for the poor.

Question 2

Evidence clearly indicates that,in the context of pervasive and cumbersome regulations in developing countries,corruption substantially improves efficiency and helps economic growth.

Accepted Answer

Several economists argue that in the context of pervasive and cumbersome regulations in developing countries,corruption may improve efficiency and help growth.However,other economists have argued that corruption reduces the returns on business investment and leads to low economic growth.One study of the connection between corruption and economic growth in 70 countries found that corruption had a significant negative impact on a country's growth rate.

Question 3

Evidence indicates that the Foreign Corrupt Practices Act of the United States put U.S.firms at a substantial competitive disadvantage.

Accepted Answer

The Foreign Corrupt Practices Act in the United States 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.However,there is no evidence that subsequently occurred.

Question 4

Carbon dioxide emission regulations for industries have been standardized across the globe.

Accepted Answer

The accumulated scientific evidence supporting the existence of human-induced global warming has resulted in societies around the world starting to restrict the amount of carbon dioxide that can be emitted into the atmosphere as a by-product of industrial and commercial activity.However,regulations differ from nation to nation.

Question 5

Investment in China is frequently justified on the grounds that although China's human rights record is often questioned by human rights groups,and although the country is not a democracy,continuing inward investment will help boost economic growth,raise living standards,and usher in political change.

Accepted Answer

Investment in China is frequently justified on the grounds that although China's human rights record is often questioned by human rights groups,and although the country is not a democracy,continuing inward investment will help boost economic growth and raise living standards.These developments will ultimately create pressures from the Chinese people for a more participative government,political pluralism,and freedom of expression and speech.

Question 6

No one owns the atmosphere or the oceans,so no one is harmed if these are polluted.

Accepted Answer

Some parts of the environment are a public good that no one owns,but anyone can despoil.No one owns the atmosphere or the oceans,but polluting both,no matter where the pollution originates,harms all.

Question 7

One of the conditions necessary for General Motors to abide by,as indicated within the Sullivan principles,was that the company should not obey the apartheid laws in its own South African operations.

Accepted Answer

According to Sullivan's principles adopted by GM,it was ethically justified for GM to operate in South Africa so long as two conditions were fulfilled.First,the company should not obey the apartheid laws in its own South African operations.Second,the company should do everything within its power to promote the abolition of apartheid laws.

Question 8

The Lockheed case-where the company made payments to Japanese officials and agents to secure a large contract from Nippon Air-was the impetus for the 1977 passage of the Foreign Corrupt Practices Act in the United States.

Accepted Answer

The Lockheed case was the impetus for the 1977 passage of the Foreign Corrupt Practices Act in the United States.

Question 9

Royal Dutch Shell has been repeatedly criticized for contributing to human rights violations in Nigeria.

Accepted Answer

The largest foreign oil producer in Nigeria,Royal Dutch Shell,has been repeatedly criticized for its role in contributing to human rights violations in the country.

Question 10

Environmental pollution regulations are usually much more stringent in developing countries than in rich industrialized nations.

Accepted Answer

Many developed nations have substantial regulations governing the emission of pollutants,the dumping of toxic chemicals,the use of toxic materials in the workplace,and so on.Those regulations are often lacking in developing nations,posing an ethical challenge to international businesses.

Question 11

The tragedy of commons occurs when a resource owned by a developing country is overused by multinational corporations,resulting in its degradation.

Accepted Answer

The atmosphere and oceans can be viewed as a global commons from which everyone benefits but for which no one is specifically responsible.In such cases,a phenomenon known as the tragedy of the commons becomes applicable.The tragedy of the commons occurs when a resource held in common by all,but owned by no one,is overused by individuals,resulting in its degradation.

Question 12

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

The concept of social responsibility refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions,and that there should be a presumption in favor of decisions that have both good economic and social consequences.

Question 13

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

Accepted Answer

Corruption has been a problem in almost every society in history,and it continues to be one today.

Question 14

Both Foreign Corrupt Practices Act of the United States and OECD's Convention on Combating Bribery of Foreign Public Officials in International Business Transactions,allow for facilitating payments.

Accepted Answer

The Foreign Corrupt Practices Act of the United States was amended to allow for "facilitating payments." Similarly,the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions excludes facilitating payments from the ambit of the convention.

Question 15

Myanmar and Nigeria are examples of countries where inward investment by a multinational proved to be a force for economic,political,and social progress that ultimately improved the rights of people in repressive regimes and ushered in democracy.

Accepted Answer

Myanmar and Nigeria are examples of regimes that are so repressive that investment cannot be justified on ethical grounds.

Question 16

Ten years after he proposed the Sullivan principles,Leon Sullivan concluded that simply following the principles was sufficient to break down the apartheid regime and that any American company,adhering to his principles,could ethically justify a continued presence in South Africa.

Accepted Answer

Ten years after he proposed what came to be known as the Sullivan principles,Leon Sullivan concluded that simply following the principles was not sufficient to break down the apartheid regime and that any American company,even those adhering to his principles,could not ethically justify their continued presence in South Africa.

Question 17

In international business,a course of action that is legal is invariably also ethical.

Accepted Answer

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.What is considered normal practice in one nation may be considered unethical in another.Thus,legality cannot be equated with ethicality.

Question 18

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

Accepted Answer

Business ethics are the accepted principles of right or wrong governing the conduct of businesspeople,and an ethical strategy is a strategy,or course of action,that does not violate these accepted principles.

Question 19

Rights that are taken for granted in developed countries,such as freedom of speech,find universal acceptance.

Accepted Answer

Basic human rights still are not respected in many nations.Rights that we take for granted in developed nations,such as freedom of association,freedom of speech,freedom of assembly,freedom of movement,freedom from political repression,and so on,are by no means universally accepted.

Question 20

"Noblesse oblige" is a Latin term that refers to the social convention that,persons of high and noble birth must be obliged through preferential treatment and gift-giving.

Accepted Answer

Noblesse oblige is a French term that refers to honorable and benevolent behavior considered the responsibility of people of high (noble)birth.In a business setting,it is taken to mean benevolent behavior that is the responsibility of successful enterprises.

Quiz 4: Ethics in International Business