Deck 9: Ethics and Globalization

Question 1

If there are no clear local ethical standards,companies should revert to their own domestic ethical policies rather than work in the absence of any standards.

Answer 1

True

Question 2

Ethical Relativism arises when a multinational company comes up against a policy that is banned both in its own country and in the country with which it's doing business.

Answer 2

False

Question 3

Multinational corporations include those corporations that generate products and/or services in multiple countries and implement operational policies (marketing,staffing,and production)that go beyond national boundaries.

Answer 3

True

Question 4

The term "globalization" refers to the phenomenon that divided the world into two opposing factions during the Cold War.

Question 5

Moving the ethical commitment of an organization to a global stage requires nothing more than increasing the scale of the policies and procedures.

Question 6

Multinational corporations are also known as intranational corporations.

Question 7

Focusing on doing the greatest good for the greatest number of people often means that there is no accountability for individual actions.

Question 8

A multinational corporation is a company that provides and sells products and services across multiple national borders.

Question 9

Ethical Relativism refers to the gray area in which ethical principles are defined by the traditions of society,personal opinions,and the circumstances of the present moment.

Question 10

The European Economic Community is an example of a regional trade bloc.

Question 11

Utilitarianism is a theory in ethics that advocates making choices that offer the greatest good for the greatest number of people.

Question 12

The growth of multinational corporations,as a global phenomenon,has raised no ethical issues.

Question 13

A developed nation is a country that enjoys a high standard of living as measured by economic,social,and technological criteria.

Question 14

The term "globalization" has applications in commercial,economic,social,and political environments.

Question 15

Globalization benefits corporations from economically advanced nations because access to resources in developing nations enables lower production costs that equate to lower prices and higher income standards for their customers.

Question 16

The downside of globalization is that corporations are free to take full advantage of less restrictive legal environments in developing countries.

Question 17

A less-developed nation is a country that lacks the economic,social,and technological infrastructure of a developed nation.

Question 18

Globalization refers to the expansion of international trade to a point where,across the globe,regional trade blocs have overtaken national markets.

Question 19

For organizations,international markets represent new customers as well as sources of cheaper materials and cheap labor.

Question 20

The financial strength of the Western nations has made developing nations more amenable to accepting general standards of business practice.

Question 21

The UN Global Compact is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four key areas of concern: the environment,anticorruption,the welfare of workers around the world,and global human rights.

Question 22

The OECD Guidelines for Multinational Enterprises were criticized because they failed to address consumer interests.

Question 23

The UN Global Compact relies on public accountability,transparency,and the enlightened self-interest of companies,labor,and civil society to initiate and share substantive action in pursuing the principles on which the Global Compact is based.

Question 24

As per the labor standards of the UN Global Compact,businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining.

Question 25

According to Richard DeGeorge's guidelines for organizations doing business in other countries,multinationals are responsible for redesigning the transfer of hazardous technologies so that such technologies can be safely administered in host countries.

Question 26

The principles and standards of organizational behavior set down by the UN Global Compact cover more issues than the OECD Guidelines for Multinational Enterprises.

Question 27

The guidelines set down by the Organization for Economic Cooperation and Development are legally binding.

Question 28

As per the UN Global Compact,businesses should support a precautionary approach to environmental challenges.

Question 29

The UN Global Compact is a set of mandatory rules to which multinational corporations are expected to adhere.Companies that fail to comply with these rules are blacklisted by the US Government.

Question 30

The UN Global Compact actively polices the behavior of multinational corporations.

Question 31

The UN Global Compact deals exclusively with two key areas of concern: fair pricing and customer satisfaction.

Question 32

The OECD Guidelines for Multinational Enterprises do not address the issue of taxation.

Question 33

The OECD Guidelines for Multinational Enterprises represents a less governmental approach to the same issues featured in the UN's nongovernmental Global Compact.

Question 34

In the guidelines he set down for organizations doing business in other countries,Richard DeGeorge failed to emphasize the importance of working with the local culture.

Question 35

The UN Global Compact,which encourages organizations to make a voluntary commitment to corporate citizenship,is widely recognized as the world's largest initiative of its kind.

Question 36

Enforcing a global ethical standard would require all parties involved to agree on acceptable standards of behavior and appropriate consequences for failing to abide by those standards.

Question 37

The guidelines set down by Richard DeGeorge for organizations doing business in other countries was criticized because it only dealt with the issues of bribery,false advertising,and the use of sweatshops in the production process.

Question 38

The Global Code of Conduct is a general standard of business practice that can be applied only to undeveloped countries in accordance with their local customs and social norms.

Question 39

In the guidelines he set down for organizations doing business in other countries,Richard DeGeorge stated that it was acceptable for a company to harm the host country only if it served the greatest good for the greatest number of people.

Question 40

The UN Global Compact represents a commitment on the part of its members to promote good corporate citizenship.

Question 41

Which of the following concepts is illustrated by a company which,when doing business abroad,takes advantage of the local customs to justify an action that is illegal in its home country?

A) Ethical relativism
B) Experientialism
C) Moral universalism
D) Existentialism

Question 42

Which of the following is true of globalization?

A) It makes countries and markets more independent of each other.
B) It leads to the replacement of regional trade blocs with national markets.
C) It impacts the commercial,economic,social,and political environment.
D) It offers multinational companies fewer ways to reduce their expenses.

Question 43

Which of the following is true of utilitarianism?

A) It believes that the ends do not justify the means under any circumstances.
B) It leads to situations in which there is no accountability for individual actions.
C) It is an ethical philosophy that judges morality based on individual character.
D) It is an ethical philosophy that judges morality based on individual motives.

Question 44

Which of the following,as a result globalization,is true of less-developed countries and multinational corporations?

A) Multinational corporations tend not to see less-developed countries as potential consumer markets.
B) The labor power of less-developed countries does not attract the attention of multinational corporations.
C) The long-term economic viability of less-developed countries is threatened by the activities of multinational corporations.
D) Multinational corporations prefer not to invest their time and effort in less-developed countries.

Question 45

Because of globalization,multinational corporations:

A) often take advantage of the unrestrictive legal environments of less-developed countries.
B) have fewer ways in which they can reduce their production costs or increase their sales.
C) have limited access to the labor force or natural resources of less-developed countries.
D) often exploit the natural resources of developed countries,facing no consequences.

Question 46

How can an organization move its ethical commitment to a global scale successfully?

A) By creating an ethical standard that respects the local customs of the other countries.
B) By increasing the scale of their policies and procedures to a corresponding degree.
C) By translating all their existing policies into the local language.
D) By working in the absence of standard ethical policies wherever possible.

Question 47

Which of the following is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries?

A) His guidelines represented an ethical ideal that,at best,provided a conceptual foundation.
B) His guidelines were lauded for covering all the severe types of business transgressions.
C) His guidelines only addressed multinational corporations working in developed countries.
D) His guidelines endorsed the principles of utilitarianism: the ends justify the means.

Question 48

Which of the following is true of trading blocs?

A) Regional trading blocs are slowly being replaced by independent national markets.
B) The individual countries that comprise trading blocs have disappeared completely.
C) Trading blocs are created by countries that prefer not to participate in the global market.
D) The customs and norms of individual countries that comprise trading blocs still prevail.

Question 49

Utilitarianism refers to:

A) ethical choices that consider the greatest good for the greatest number of people.
B) general standards of business practice to which all countries are obliged to adhere.
C) general standards of business practice to which all corporations are obliged to adhere.
D) ethical choices that distinguish "right" from "wrong" on the basis of policies set by law.

Question 50

Why were the guidelines offered by Richard DeGeorge for organizations doing business in other countries criticized?

A) He overlooked issues related to the quality of goods produced.
B) He did not advocate working with or respecting local customs.
C) He believed that the ends justified the means in all circumstances.
D) He advocated doing the greatest good for the greatest number of people.

Question 51

Which of the following is a disadvantage of globalization?

A) The prices of consumer goods have increased as a result of higher production costs.
B) Multinational corporations no longer see developing countries as potential consumers.
C) Foreign investors focus on developed countries and not the less-developed countries.
D) Multinational corporations are depleting the natural resources of less-developed countries.

Question 52

In what way has globalization affected the economy?

A) Transnational markets have given way to national markets.
B) Regional trade blocs have been replaced by domestic markets.
C) National markets are becoming less dependent on each other.
D) National markets are being overtaken by regional trade blocs.

Question 53

Which of the following is an advantage of globalization?

A) National markets have successfully taken over regional trade blocs on a global scale.
B) Children are no longer offered employment in "sweatshop" production facilities.
C) Multinational corporations are unable to exploit the people of less-developed countries.
D) Developing nations can leverage their natural resources to attract foreign investment.

Question 54

Which of the following bodies has approached the issue of standardizing global ethical conduct by promoting behavior guidelines that multinational corporations can publicly support?

A) The Organization for Economic Cooperation and Development
B) The Pan American Health Organization
C) The International Federation of the Red Cross
D) The International Peace Bureau

Question 55

_____ is a philosophical position in which ethical principles are defined by the traditions of society,personal opinions,and the circumstances of the present moment.

A) Deontological ethics
B) Ethical consequentialism
C) Ethical relativism
D) Experientialism

Question 56

Globalization raises concerns about the:

A) restricted access multinational companies have to less-developed countries.
B) ethical behavior of economically advanced nations toward developing ones.
C) inability of multinational companies to reduce their production costs.
D) spread of socialism by multinational corporations in the Americas and Europe.

Question 57

Multinational companies are also known as _____.

A) transnational corporations
B) intranational trade blocs
C) regional trade blocs
D) transcontinental bureaus

Question 58

Less-developed nations are countries which:

A) have poor economic,social,and technological infrastructure.
B) are characterized by social stability and high standards of living.
C) are immune to the effects of economic phenomenon like inflation.
D) have strong bureaucracies and are characterized by political stability.

Question 59

In which of the following situations would a multinational company,when doing business in a less-developed nation,be faced with ethical relativism when making a decision?

A) When local customs come into conflict with the company's policies.
B) When the less-developed nation is characterized by social stability.
C) When local customs accommodate the company's code of ethics.
D) When the less-developed nation possesses a strong bureaucracy.

Question 60

Which of the following laws holds American companies accountable for their ethical performance in the United States?

A) The Comstock Act
B) The National Emergencies Act
C) The Foreign Corrupt Practices Act
D) The Rehabilitation Act

Question 61

_____ refers to ethical choices that offer the greatest good for the greatest number of people.

Question 62

The OECD recommends:

A) actions that consider the greatest good for developed countries.
B) disclosure on all material matters regarding the corporation.
C) not investing money and effort in developed countries.
D) not investing money and effort in less-developed countries.

Question 63

Which of the following is true of the concept of global ethics?

A) It is no longer relevant today.
B) It has little backing from the United Nations.
C) It is a highly complex subject.
D) It does not involve less-developed nations.

Question 64

_____ is one of the four key areas of concern upon which the UN Global Compact focuses.

A) Domestic-abuse
B) Foreign Exchange
C) Anticorruption
D) Over-population

Question 65

Which of the following is true of the UN Global Compact?

A) It encourages actions that cause the greatest good for the greatest number of people.
B) It ignores the exploitation of less-developed countries by multinational corporations.
C) It comprises laws that are legally enforced by the United Nations.
D) It serves as a guideline for transparency and public accountability.

Question 66

The UN Global Compact focuses on:

A) the welfare of workers around the world.
B) the profitability of small businesses.
C) the inheritance rights of women.
D) the fluctuation of currency standards.

Question 67

The UN Global Compact states that businesses should:

A) support a precautionary approach to environmental challenges.
B) avoid involvement in the environmental concerns of other nations.
C) avoid selling their products to the people of less-developed nations.
D) support the employment of children in sweatshop production facilities.

Question 68

The OECD Guidelines believes that less-developed countries should:

A) not be considered a lucrative market.
B) allow their natural resources to be tapped into,freely.
C) benefit from a corporation's advanced technology.
D) avoid trading with developed nations.

Question 69

Which of the following is advocated by both the OECD and the UN Global Compact?

A) Businesses should observe only the customs of their own country at all times.
B) Businesses should not involve themselves in the environmental issues of other countries.
C) Businesses should utilize the natural resources of their host country to its fullest.
D) Businesses should abolish child labor,combat bribery,and fight corruption.

Question 70

Fred,a manager in a multinational corporation,is a supporter of Milton Friedman's instrumental contract.Fred believes that corporations:

A) should actively work to protect the environment of the countries in which they operate.
B) must run welfare programs for the people of the countries in which they operate.
C) need to cease working in less-developed countries.
D) carry no moral obligation to the countries in which they operate.

Question 71

Which of the following is recommended by the OECD?

A) Companies should contribute to the innovative capacities of host countries.
B) Companies should encourage developing nations to adopt the principles of socialism.
C) Companies should uphold the effective recognition of the right to collective bargaining.
D) Companies should not involve themselves in the environmental issues of other countries.

Question 72

What is the UN Global Compact?

A) It is a standard of business practice that all countries are expected to follow,by law.
B) It is a set of mandatory rules by which multinational corporations are expected to operate.
C) It is a body of rules that deals exclusively with fair pricing and customer satisfaction.
D) It is a voluntary corporate initiative that addresses the main concerns of globalization.

Question 73

The OECD guidelines for multinational enterprises were initially a part of the _____.

A) Public Company Accounting Oversight Board
B) The International Federation of the Red Cross
C) Dodd-Frank Wall Street Reform and Consumer Protection Act
D) Declaration on International Investments and Multinational Enterprises

Question 74

A(n)_____ corporation is one that sells products and services across multiple national borders.

Question 75

Which of the following is true of the OECD guidelines for multinational enterprises?

A) The guidelines act in opposition to the UN Global Compact.
B) The guidelines apply solely to local and regional trade blocs.
C) The guidelines carry no criminal or civil enforcement.
D) The guidelines are legally binding for American companies.

Question 76

A _____ nation is one that lacks the economic,social,and technological infrastructure of a developed nation.

Question 77

In what way does the UN Global Compact differ from the OECD guidelines for multinational enterprises?

A) Unlike the UN Global Compact,the OECD guidelines uses a more governmental approach for the same issues.
B) Unlike the OECD guidelines,the UN Global Compact ignores most areas of environmental concern.
C) Unlike the UN Global Compact,the OECD guidelines believes that businesses should eliminate forced labor.
D) Unlike the OECD guidelines,the UN Global Compact applies only to companies operating in their own country.

Question 78

The UN Global Compact:

A) ignores issues of environmental concern.
B) is the largest initiative of its kind in the world.
C) applies only to organizations from developed nations.
D) is a regulatory instrument that polices organizations.

Question 79

_____ refers to the expansion of international trade to a point where national markets are overtaken by regional trade blocs,leading eventually to a global marketplace.

Question 80

A _____ nation is one that enjoys a high standard of living as measured by economic,social,and technological criteria.