Question 1

When in Rome,do as the Romans do,or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad.This practice is called
A)the self-reference criterion.
B)country cultural values.
C)consumerism.
D)cultural relativism.
E)dumping.

Accepted Answer

The practice of adapting to the cultural practices of the country in which one is doing business, even if it means straying from one's own ethical values, is known as cultural relativism. This is because it views ethical values as relative to the culture in which they are practiced. The self-reference criterion refers to the tendency to view things from one's own cultural perspective, while country cultural values and consumerism are not directly related to this specific practice. Dumping refers to the practice of selling goods in a foreign market at a lower price than in the domestic market, often considered unethical.

Question 2

_____ occurs when the middle class shrinks,resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources.
A)Communism
B)Socialism
C)Bimodal wealth distribution
D)A two-class social structure
E)Laissez-faire capitalism

Accepted Answer

Bimodal wealth distribution is a phenomenon that occurs when there is a significant gap between the rich and poor populations in terms of wealth and access to resources. As the middle class shrinks, the population becomes increasingly polarized between the wealthy and the poor, resulting in a bimodal distribution of wealth. This can lead to a number of socioeconomic problems, such as decreased social mobility, increased poverty rates, and decreased economic growth. None of the other choices accurately describe this phenomenon.

Question 3

Power distance dimension refers to the "power inequality" between superiors and subordinates.Which of the following countries probably ranks high on the power distance scale?
A)Saudi Arabia
B)Austria
C)England
D)Denmark
E)Sweden

Accepted Answer

Saudi Arabia is known for its hierarchical society with strong emphasis on authority, thus having a high power distance.

Question 4

Risk compartmentalization occurs when
A)companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically.
B)all profit centers within a corporation are aware of the code of ethics.
C)all profit centers within an organization become aware of the consequences of competitors' actions.
D)various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole.
E)ethics and compliance programs reduce the risk of misconduct.

Accepted Answer

Risk compartmentalization occurs when various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole. This can happen when each center operates independently and does not consider how their actions may affect other parts of the organization. This can lead to unethical behavior or increased risk for the overall company.

Question 5

_____ assume(s)that a the market,through its own inherent mechanisms,will keep commerce in equilibrium.
A)Social democracy
B)Laissez-faire economics
C)Economics
D)Multinational corporations
E)Rational economics

Accepted Answer

Laissez-faire economics assumes that the market will self-regulate and maintain equilibrium without government intervention.

Question 6

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism,power distance,uncertainty avoidance,and masculinity/femininity.
A)Milton Friedman
B)Abraham Maslow
C)Adam Smith
D)Geert Hofstede
E)John Maynard Keynes

Accepted Answer

Geert Hofstede identified the four cultural dimensions mentioned.

Question 7

_____ assumes that humans may not act rationally because of genetics,learned behavior,and rules of thumb.
A)Rational economics
B)Socialism
C)Cultural relativism
D)National culture
E)Behavioral economics

Accepted Answer

Behavioral economics assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb. This field combines insights from psychology, neuroscience, and economics to better understand how people make decisions and how biases can impact their choices. Unlike traditional economic theory, which assumes that people always act in their best interest, behavioral economics acknowledges that individuals are often irrational and influenced by factors beyond rational self-interest.

Question 8

An unconscious reference to one's own cultural values,experiences,and knowledge is referred to as the
A)cultural reference criterion.
B)consumerism movement.
C)cultural-self criterion.
D)self-reference criterion.
E)cultural relativism philosophy.

Accepted Answer

The term that best fits the description of unconscious reference to one's own cultural values, experiences, and knowledge is the self-reference criterion (SRC), which refers to an individual's tendency to view everything through the lens of their own culture. The SRC can affect business decisions and marketing strategies, and it is important for marketers to be aware of their own SRC and to understand the cultural perspective of their target market. The other options are either unrelated or incorrect.

Question 9

_____ products encourage consumers to return and buy more.This approach is also known as planned obsolescence.
A)Laissez-faire
B)Dumping
C)Collectivistic
D)Made-to-break
E)Multinational

Accepted Answer

Made-to-break products are designed with a limited lifespan to encourage consumers to return and purchase more. This approach is sometimes known as planned obsolescence.

Question 10

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices,which do not cover the costs of exporting,is known as
A)price discrimination.
B)price gouging.
C)dumping.
D)skimming.
E)loading.

Accepted Answer

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices, which do not cover the costs of exporting, is known as dumping. This practice can harm domestic producers in the foreign market and is illegal in many countries.

Question 11

Which of the following is not a criticism of or charge against multinational corporations (MNCs)?
A)They transfer jobs overseas, where wage rates are lower
B)They increase the gap between rich and poor nations
C)They usually avoid paying any taxes
D)They exploit the labor markets of host countries
E)They have an unfair advantage when competing with local businesses

Accepted Answer

The statement "They usually avoid paying any taxes" is a common criticism of MNCs, but it is not a charge or criticism against them as a whole. Some MNCs do avoid taxes, but others follow tax laws and pay their fair share. Therefore, option C is the correct answer as it is not a universal criticism of or charge against MNCs.

Question 12

_____ has been codified in a United Nations document and is defined as an inherent dignity with equal and inalienable rights as the foundation of freedom,justice,and peace in the world.
A)Cultural relativism
B)Human rights
C)Consumerism
D)Global Compact
E)AACSB standards

Accepted Answer

The definition provided in the question refers to the concept of human rights. These rights have been codified and recognized by the United Nations and are considered fundamental to achieving a just and peaceful world. Cultural relativism, consumerism, global compact, and AACSB standards are not relevant to the definition provided.

Question 13

Which of the following statements about multinational corporations (MNCs)is true?
A)MNCs operate on a global scale with strong ties to the nation in which they were founded.
B)MNCs are inherently unethical and always do harm in the countries in which they operate.
C)MNCs are characterized by a global strategy of focusing on opportunities throughout the world.
D)Most MNCs use licensing or franchising rather than opening up wholly owned subsidiaries in different countries.
E)Because of their power, MNCs usually increase the standard of living within the countires in which they operate.

Accepted Answer

MNCs are characterized by a global strategy of focusing on opportunities throughout the world. This means that they seek out profitable opportunities in various countries outside of their home base and operate on a global scale. While MNCs may have ties to their home country, their focus is on expanding globally. Additionally, it is important to note that not all MNCs are inherently unethical and their impact on the countries in which they operate can vary depending on various factors such as the industry they are in, the regulations in place, etc.

Question 14

Those who ascribe to consumerism
A)believe that consumers should purchase everything they can afford.
B)do not believe in taxes on locally made products.
C)believe that consumers should own the means of production.
D)believe that consumers, not producers, should dictate the economic structure of a society.
E)believe that corporations should have the freedom to do whatever they want.

Accepted Answer

The answer of Those who ascribe to consumerism
A)believe that consumers...

Question 15

_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium.It is also known as the "invisible hand."
A)Consumerism
B)Cultural relativism
C)Social democracy
D)Laissez-fair
E)Bimodal wealth distribution

Accepted Answer

Adam Smith used the term "Laissez-faire" to refer to the idea that the free market operates through the self-regulating nature of supply and demand, without interference from the government or other external forces. He also referred to this self-regulating system as the "invisible hand."

Question 16

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to
A)cultural differences.
B)multinational corporations.
C)consumerism.
D)legal differences.
E)international negotiations.

Accepted Answer

Multinational corporations are often accused of contributing to the widening wealth gap between nations by extracting resources and labor from developing countries while keeping profits in developed countries. They are also criticized for misusing and misallocating scarce resources, such as water and land, in pursuit of profits. Cultural, legal, and negotiating differences may contribute to these issues, but they are not the primary drivers. Consumerism may exacerbate these issues by driving demand for cheap products that are produced at the expense of workers and the environment, but it is not a root cause.

Question 17

Who argued during the 193s that the state could stimulate economic growth and improve stability in the private sector?
A)Adam Smith
B)John Maynard Keynes
C)Milton Friedman
D)Herbert Hoover
E)Geert Hofstede

Accepted Answer

John Maynard Keynes argued in his book "The General Theory of Employment, Interest, and Money" published in 1936 that state intervention was necessary to stimulate economic growth and stability in the private sector. This idea became known as Keynesian economics and had a significant impact on economic policy in the decades following its publication, particularly during the post-World War II era.

Question 18

_____ involves transactions across national boundaries.It is a practice that brings together people who have different cultures,values,laws,and ethical standards.
A)Global business
B)Country cultural values
C)Social democracy
D)Cultural relativism
E)Bimodal wealth distribution

Accepted Answer

Only option A, global business, encompasses the idea of transactions across national borders and the integration of different cultures, values, laws, and ethical standards. Option B refers only to cultural values within a country, while options C, D, and E are not directly related to international business.

Question 19

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly,relative to the amount of work expended in production?
A)Rational economics
B)Socialism
C)Capitalism
D)Rational capitalism
E)Fascism

Accepted Answer

Socialism is the economic theory that advocates for the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production. Under socialism, the means of production are owned by the community as a whole, rather than by individuals or private companies. This is in contrast to capitalism, where individuals and companies own and control the means of production, and where wealth and power tend to be concentrated among a small group of people.

Question 20

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?
A)Levying import taxes to lower the prices MNCs charge for their products
B)Imposing bribes against MNCs so they have to operate unethically
C)Forcing MNCs to adopt less efficient technology
D)Preventing the formation of labor unions
E)Imposing export taxes to force MNCs to share more of their profits

Accepted Answer

The answer of Which of the following is a measure...

Quiz 1: Globalization of Ethical Decision Making

When in Rome,do as the Romans do,or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad.This practice is called

_____ occurs when the middle class shrinks,resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources.

Power distance dimension refers to the "power inequality" between superiors and subordinates.Which of the following countries probably ranks high on the power distance scale?

Risk compartmentalization occurs when

_____ assume(s) that a the market,through its own inherent mechanisms,will keep commerce in equilibrium.

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism,power distance,uncertainty avoidance,and masculinity/femininity.

_____ assumes that humans may not act rationally because of genetics,learned behavior,and rules of thumb.

An unconscious reference to one's own cultural values,experiences,and knowledge is referred to as the

_____ products encourage consumers to return and buy more.This approach is also known as planned obsolescence.

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices,which do not cover the costs of exporting,is known as

Which of the following is not a criticism of or charge against multinational corporations (MNCs) ?

_____ has been codified in a United Nations document and is defined as an inherent dignity with equal and inalienable rights as the foundation of freedom,justice,and peace in the world.

Which of the following statements about multinational corporations (MNCs) is true?

Those who ascribe to consumerism

_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium.It is also known as the "invisible hand."

Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue accusations related to

Who argued during the 193s that the state could stimulate economic growth and improve stability in the private sector?

_____ involves transactions across national boundaries.It is a practice that brings together people who have different cultures,values,laws,and ethical standards.

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly,relative to the amount of work expended in production?

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?