Question 1

A major ethical challenge ofMNCs is that their fmns' cultures and philosophies may differ from that of their host
countries.

Accepted Answer

MNCs often operate in countries with different cultural values and beliefs, and there may be conflicts between the MNC's corporate values and those of the host country. This can create ethical challenges, such as issues related to human rights, environmental practices, and labor standards.

Question 2

Corruption,at its core,is essentially an abuse of power.

Accepted Answer

Corruption is often the result of individuals or institutions abusing their power or authority in order to gain personal or political gain. This can occur in a variety of contexts, including government, business, education, and healthcare. Ultimately, corruption undermines the rule of law and weakens public trust in institutions, which can have serious social and economic consequences.

Question 3

Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country.

Accepted Answer

Cultural relativism, which suggests that moral or ethical systems vary from culture to culture and that no universal standard exists, can lead to ethical dilemmas for MNCs (Multinational Corporations) when the host country's practices conflict with the corporation's or home country's ethical standards. It may not always provide a clear or ethically sound guide for action, especially in cases involving human rights abuses or environmental harm.

Question 4

The Nestle infant formula case is one in which a normal business practice in the frrm's horne country proved to be problematic in the host countries.

Accepted Answer

The Nestle infant formula case involved the promotion of infant formula in developing countries, which led to health problems and sparked global outrage. The business practice of promoting infant formula was seen as normal in the firm's home country, but it proved to be problematic in the host countries where there were cultural and economic differences.

Question 5

For an MNC to be perceived as legitimate in the eyes of a host country,it must fulfill its social responsibilities.

Accepted Answer

Corporate social responsibility has become increasingly important for multinational corporations in gaining acceptance and legitimacy in host countries. By addressing social, environmental and ethical issues, MNCs can build trust and goodwill with local communities and stakeholders. This can ultimately improve the company's reputation and bottom line.

Question 6

One way to resolve ethical conflicts between an MNC's horne country and host country is to simply stop doing business in the host country.

Accepted Answer

This is a valid option for resolving ethical conflicts, as it removes the MNC from the situation that is causing the conflict.

Question 7

Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place to help protect their citizenry.

Accepted Answer

Countries in the early stages of economic development may lack the resources, incentives, or political will to establish and enforce legal and ethical standards that protect individuals and promote social responsibility. This can lead to issues such as human rights abuses, environmental degradation, and corruption. It often takes time and effort for these countries to develop the necessary institutions, practices, and norms to ensure a fair and just society.

Question 8

The Alien Tort Claims Act has recently been interpreted by the U.S.Supreme Court to apply not only within the
U.S. ,but outside it as well.

Accepted Answer

The U.S. Supreme Court has generally interpreted the Alien Tort Claims Act (ATCA) narrowly, limiting its application to cases with a strong connection to the United States and often ruling against its extraterritorial application.

Question 9

Most of the ethical problems that arise in international markets are very different than the moral issues encountered in their horne countries.

Accepted Answer

Ethical problems in international markets often mirror those in domestic markets, though they may be complicated by cultural differences and varying legal standards.

Question 10

MNCs often pay their employees in underdeveloped countries less than the average local wage.

Accepted Answer

MNCs (Multinational Corporations) often pay their employees in underdeveloped countries more than the average local wage to attract skilled labor, maintain a competitive edge, and sometimes due to international pressure and corporate policies on fair wages.

Question 11

One of the fortunate things about ethical issues in the global market is that they do not affect domestic operations.

Accepted Answer

Ethical issues in the global market can often have an impact on domestic operations, including reputational risks, legal violations, and supply chain problems.

Question 12

MNCs based in the United States and in the European Union have played a key leadership role in world affairs.

Accepted Answer

MNCs based in the United States and in the European Union have significant influence in global economic and political decision-making, making them key players in world affairs.

Question 13

Involving two or more cultures in ethical issues makes their resolution much more difficult.

Accepted Answer

Different cultures have different beliefs and values, which can lead to conflicting opinions on what is considered ethical. When two or more cultures are involved in an ethical issue, it can be challenging to find a solution that satisfies everyone. Cultural differences can also impact how ethical principles are applied in different contexts, adding further complexity to the situation.

Question 14

One of the things that makes it difficult for U.S.MNCs to deal with sweatshops is that they only occur in foreign
countries.

Accepted Answer

Sweatshops can also exist within the United States, not just in foreign countries, making it a broader issue for U.S. MNCs.

Question 15

One of the ethical issues that is exacerbated by operating in an developing countries is that the host nation's citizeus ofteu do not understand the technology being used,nor do they recognize its poteutial dangers.

Accepted Answer

This is true, as many developing countries may not have access to the same level of education or information on technology and its potential risks. This can lead to misunderstandings and dangers for the local population.

Question 16

Despite the poor economy,there is a backlash against globalization.

Accepted Answer

Many people believe that globalization has led to outsourcing of jobs to other countries and has had negative impacts on local economies, leading to the backlash against it despite the poor overall economy.

Question 17

Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow while doing business around the world.

Accepted Answer

Global codes of conduct aim to establish international principles or guidelines that businesses can follow while operating across different countries, not just domestically.

Question 18

Cultural differences between an MNC's horne country and its host country sometimes make it difficult to distinguish between cultural issues and ethical issues.

Accepted Answer

Cultural differences can often impact what is considered ethical behavior in different countries. Therefore, it can be difficult to distinguish between actions that are culturally acceptable but potentially unethical, and actions that are ethical but go against cultural norms.

Question 19

The ethical issues eucountered in underdeveloped countries are ofteu more difficult than those found in industrialized
nations.

Accepted Answer

Underdeveloped countries often face challenges such as poverty, lack of resources and infrastructure, political instability, and cultural differences. These factors can make ethical dilemmas more complex and challenging to address, as solutions may need to take into account local customs, traditions, and social structures. Additionally, issues such as exploitation, corruption, and human rights violations may be more widespread in underdeveloped countries compared to industrialized nations, further complicating ethical decision-making.

Question 20

According to Transparency International's Corruption Perception Index (CPI),underdeveloped countries typically rank low in corruption.

Accepted Answer

The statement is incorrect. Typically, underdeveloped countries rank high in corruption on the CPI.

Quiz 10: Ethical Issues in the Global Arena

A major ethical challenge ofMNCs is that their fmns' cultures and philosophies may differ from that of their host countries.