Question 1

According to the principles of utilitarianism, there is no accountability for individual actions when one focuses on doing the greatest good for the greatest number of people.

Accepted Answer

According to utilitarianism, the rightness or wrongness of an action is determined by its consequences, and the best action is the one that produces the greatest good for the greatest number of people. This means that there is no accountability for individual actions when one focuses on doing the greatest good for the greatest number of people.

Question 2

Multinational corporations are also known as intranational corporations.

Accepted Answer

Multinational corporations are also known as transnational corporations.

Question 3

Ethical relativism refers to a philosophy that dictates that individuals must only make such choices that offer the greatest good for the greatest number of people.

Accepted Answer

Ethical relativism refers to a gray area in which one's ethical principles are defined by the traditions of the society, personal opinions, and the circumstances of the present moment. Utilitarianism is the philosophy that dictates that individuals must only make such choices that offer the greatest good for the greatest number of people.

Question 4

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.

Accepted Answer

This statement accurately describes multinational corporations.

Question 5

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

Accepted Answer

International markets can provide organizations with new customers and potential sales, while also offering access to cheaper materials and labor. This can result in cost savings and increased profitability for the organization.

Question 6

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.

Accepted Answer

Globalization allows corporations to access resources from developing nations which have lower costs of production, thus leading to lower prices for customers and higher income standards for the corporations.

Question 7

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

Accepted Answer

A multinational corporation is defined as a company that has operations in multiple countries and sells products or services globally. These corporations typically have a centralized management system and employ people from different countries to operate their businesses across different borders. Examples of multinational corporations include Coca-Cola, McDonald's, and Procter & Gamble.

Question 8

If there are no clear local ethical standards, companies find themselves tempted to take maximum advantage of the less stringent laws and regulations of local markets.

Accepted Answer

Without clear local ethical standards, companies may view less stringent laws and regulations as an opportunity to maximize profits, potentially leading to unethical or exploitative behavior.

Question 9

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

Accepted Answer

The European Economic Community (EEC) was a regional trade bloc formed in 1957 by six European countries (Belgium, France, Germany, Italy, Luxembourg, and the Netherlands). It was later rebranded as the European Community (EC) and eventually became part of the European Union (EU).

Question 10

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

Accepted Answer

A developed nation is generally characterized by high levels of income per capita, strong social welfare systems, high levels of education and health, advanced infrastructure, and advanced technology. These factors contribute to a high standard of living for its citizens.

Question 11

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

Accepted Answer

Moving the ethical commitment of an organization to a global stage requires a great deal more planning than simply increasing the scale of the policies and procedures.

Question 12

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

Accepted Answer

Globalization has led to the opening up of markets and the increasing mobility of capital, allowing corporations to exploit less restrictive legal environments in developing countries for their own benefit. This has resulted in various negative impacts, such as the exploitation of workers, environmental degradation, and the widening of income inequality.

Question 13

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

Accepted Answer

Globalization is a term that has applications in various fields, including commercial, economic, social, and political environments.

Question 14

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

Accepted Answer

The financial strength of the Western nations is seen as a threat to equal representation of the developing nations, and as a result, those developing nations hold onto their national identities and cultures, thereby precluding any agreement on a general standard of business practice.

Question 15

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

Accepted Answer

When companies do business in countries other than their own, they face an ethical dilemma-do they conduct business as they would in their own country, or do they take advantage of the less restrictive laws of the other countries?

Question 16

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

Accepted Answer

Utilitarianism is a moral theory that promotes actions that maximize overall happiness or well-being for the most people.

Question 17

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

Accepted Answer

Globalization has led to the creation of regional trade blocs such as the European Union and NAFTA, which have increasingly dominated international trade over individual national markets.

Question 18

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

Accepted Answer

The term "globalization" refers to the expansion of international trade to a point where national markets have been overtaken by regional trade blocs, leading eventually to a global marketplace.

Question 19

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

Accepted Answer

A less-developed nation is indeed a country that hasn't attained the same level of development as a more advanced and established country. This could mean a lack of resources, accessibility to technology, basic medical care, transportation systems, and social institutions.

Question 20

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.

Accepted Answer

Ethical relativism arises when policies banned in one country are legally acceptable in another country.

Quiz 9: Ethics and Globalization