Ch7 Test Bank Answers Ethics In A Global Society And Economy - Exam Pack | Ethics & Business Approach 1e by Paul C. Godfrey. DOCX document preview.
Package Title: Godfrey Test Bank
Course Title: Ethics and Business WileyPLUS
Chapter Number 7
Question type: Multiple Choice
1) Select the best choice to complete the following sentence: ______ are tied to the idea that all humans hope to live in a moral society based on a common set of ethical practices.
a) virtues
b) norms
c) religious beliefs
d) cultural beliefs
Title: Chapter 7 Test Bank, Question 1
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Religions, backgrounds, and cultures can differ widely around the globe, but we all share the same values in what we feel is important and moral. However, we may not agree on how to get there or what is right or wrong when it comes to other aspects of life.
2) Abstract concepts such as justice, freedom, happiness, and obligation are known as which one of the following choices?
a) expectations
b) thin values
c) thick values
d) human rights
Title: Chapter 7 Test Bank, Question 2
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Thin values are defined as being abstract concepts such as justice, freedom, happiness, and obligation.
3) Concepts such as justice, freedom, happiness, and obligation and their implementation to a group of people are known as which one of the following choices?
a) expectations
b) thin values
c) thick values
d) human rights
Title: Chapter 7 Test Bank, Question 3
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: A group’s shared ideals in values are known as think values.
4) Moral principles that are viewed as legitimate and binding across cultures are known as which one of the following choices?
a) think values
b) thick values
c) hypernorms
d) cultural norms
Title: Chapter 7 Test Bank, Question 4
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Hypernorms are similar beliefs of moral principles across cultures and are viewed as legitimate and binding.
5) What one group believes as right based on a shared type of background is known as which one of the following choices?
a) expectations
b) thin values
c) thick values
d) human rights
Title: Chapter 7 Test Bank, Question 5
Difficulty: Easy
Bloomcode: Comprehension
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: When a group has a similar background, they tend to share moral views of right and wrong.
6) In some cultures, it is viewed poorly, and can even be illegal, for women to work outside the home. This is an example of which one of the following choices?
a) expectations
b) thin values
c) thick value
d) human rights
Title: Chapter 7 Test Bank, Question 6
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: What is acceptable for women to do other than working in the home can vary from one culture to the other, making the thick value of not allowing work outside the home isolated to a group.
7) Select the best choice to complete the following sentences: We all agree that there is a difference between what is right and what is wrong. However, when it comes to a specific situation, some might view it as right, while other might view it as wrong. This is an example of _________.
a) thick values
b) thin values
c) norms
d) morals
Title: Chapter 7 Test Bank, Question 7
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Thin values are shared by all, but each person’s or group’s interpretation of the actual values are known as thick values.
8) In the United States, having access to clean water is viewed as a human right that is shared by all, even those outside the United States. There are groups that visit places around the globe to help drill wells to provide entire communities access to clean water. Clean water is also a necessity for an individual to live a healthy life. Those who believe it is important that clean water be provided for all view clean water as which kind of value?
a) thin
b) thick
c) moral
d) life
Title: Chapter 7 Test Bank, Question 8
Difficulty: Medium
Bloomcode: Analysis
Min: 2
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Clean water is needed by all, but it might not be viewed as a moral obligation to all. Because clean water access might be viewed differently by different groups, it would be considered a thick value.
9) In today’s global society, ethics and norms can greatly impact a business interaction. For example, in one culture, it may be normal for an individual to be thirty minutes late for a business meeting. If two companies have formed a working relationship, it is important that cultural differences are discussed up front. To be successful, which of the following should be completed?
a) Discuss and set expectations so that each individual understands how to best interact.
b) Study one another’s cultural norms to avoid being offended by something that is outside one’s own norms.
c) Only work with companies in countries that share the same cultural norms as your own.
d) Find common ground regarding how to conduct business together so that it is mutually beneficial for all involved.
Title: Chapter 7 Test Bank, Question 9
Difficulty: Medium
Bloomcode: Application
Min: 3
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: If a company only worked with those who share the same culture, there would be lost opportunity. Finding common ground and discussing expectations up front is the best way to work toward success.
10) Nonverbal communication and body movements can send different messages across cultures. Common examples of differences include
a) physical space between those interacting
b) hand shaking
c) looking someone in the eye when speaking
d) languages
Title: Chapter 7 Test Bank, Question 10
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Languages are not a form of nonverbal communication or body movements.
11) If a group of people come together with a shared common belief, such as living in a community where all the residents have the same religious faith, they have shared norms known as which one of the following choices?
a) hypernorms
b) macro-social contract
c) micro-social contract
d) meso-social contract
Title: Chapter 7 Test Bank, Question 11
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: The residents are of a specific community within a larger group of society. This creates a micro-social contract.
12) Different states have different laws when it comes to what they deem is legal and moral. While some laws may be outdated, these states can enforce the laws even though the citizens may not be breaking the law if they were in another state. These state laws can be viewed as expectations for how citizens in that state, living or visiting, are expected to act and what is viewed as acceptable. This is an example of which one of the following choices?
a) hypernorms
b) macro-social contract
c) micro-social contract
d) meso-social contract
Title: Chapter 7 Test Bank, Question 12
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: While laws are enforceable, there are also laws within states that determine how individuals should act and what is allowable. Because these are specific to that state, they are meso-social contracts.
13) In one state, the legal age for an individual to get married is fourteen. In another state, the age is sixteen. Both of these states are essentially setting a specific age as to when one is mature enough to marry and saying it is morally and ethically right at the allowed age. Each of these states has the right to have different legal ages for marriage. This norm is an example of which one of the following choices?
a) hypernorms
b) macro-social contract
c) micro-social contract
d) meso-social contract
Title: Chapter 7 Test Bank, Question 13
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Norms that are at specific state levels are viewed as meso-social contracts.
14) General hypernorms that are shared by most cultures, countries, and societal groups are macro-social contracts—how society views right and wrong. These macro-norms can be broken into more specific, localized beliefs. The right to create one’s own beliefs based on shared norms is due to which one of the following choices?
a) moral free space
b) macro-social contract
c) micro-social contract
d) meso-social contract
Title: Chapter 7 Test Bank, Question 14
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Moral free space provides the opportunity for societies, groups, and individuals to create more specific norms based on religion, culture, ethnicity, and the like.
15) Moral relativism is the idea that society has a shared set of beliefs, and that shared set of beliefs is best described as which one of the following choices?
a) the same across all of society
b) different for all groups of society
c) based on what is ethical
d) rooted in religion
Title: Chapter 7 Test Bank, Question 15
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Moral relativism asserts that there are groups in society that have the same set of shared beliefs, but there is not a set of hypernorms or shared beliefs that stretch across all groups of society.
16) Select the best choice to complete the following sentence: The idea of moral relativism holds that there are different ideas of what is moral in different groups of society based on culture, religion, background, and upbringing. These moral views are not _____ across all groups.
a) absolute
b) legal
c) varying
d) different
Title: Chapter 7 Test Bank, Question 16
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: The idea of relativism is that morals are framed based on one’s own understanding of what is moral, so they are not absolute and do not apply across all groups of society.
17) Sally visited another country for a work assignment. While there, she witnessed a coworker accepting a bribe from a potential business partner to promise a business relationship between the two organizations. In this country, bribing is legal and seen as a legitimate way to conduct business. Sally’s coworker knows this is illegal in their own country and against company policy. However, the coworker states that they just want to follow the norms in the country and show consideration for their way of doing things. The coworker is citing what as their reason for accepting the bribe?
a) moral relativism
b) cultural relativism
c) extreme relativism
d) moral imperialism
Title: Chapter 7 Test Bank, Question 17
Difficulty: Medium
Bloomcode: Analysis
Min: 3
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: The coworker is doing as they do in the country they are visiting so as to not offend, but it is also illegal in the home country for which the business operates and is viewed as unethical.
18) The act of forcing one’s own thoughts, beliefs, and norms onto someone else or a group of people is known as moral imperialism. Moral imperialists view all other values and norms as which one of the following choices?
a) inferior
b) convenient
c) productive
d) practical
Title: Chapter 7 Test Bank, Question 18
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Moral imperialists view their own values and norms as the only way and above all others.
19) The CAGE Model addresses which of the following cultural differences?
a) administrative
b) geographic
c) economic
d) country
Title: Chapter 7 Test Bank, Question 19
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: While cultural norms vary across countries, the C in CAGE represents cultural differences.
20) Select the best choice to complete the following sentence: Administrative differences are usually tied to government and _____ practices.
a) authoritative
b) religious
c) political
d) social
Title: Chapter 7 Test Bank, Question 20
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: Political functions and government processes represent administrative differences within the CAGE Model.
21) Select the best choice to complete the following sentence: Geographical influences can be impacted based on how ______ a country is relative to its borders.
a) isolated
b) protective
c) territorial
d) diverse
Title: Chapter 7 Test Bank, Question 21
Difficulty: Easy
Bloomcode:
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: A country that is isolated will be less likely to have a variety of visitors and people who are not like-minded in their country to shake up norms.
22) A country that values hard work, initiative, and motivation to do well is likely viewed as what type of economy?
a) non-market
b) market
c) free
d) command
Title: Chapter 7 Test Bank, Question 22
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: An economy that allows for more individual gain is a market economy.
23) Cultures that value teamwork and feel that the group instead of the individual enjoys success have a high degree of what cultural dimension?
a) power distance
b) individualism
c) short-term orientation
d) collectivism
Title: Chapter 7 Test Bank, Question 23
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: Collectivism focuses on the larger group and less on an individual.
24) In a business transaction, the president of a company wants to be sure that all possible scenarios are considered and that contingency plans are in place. It is likely that this culture views which dimension as important?
a) power
b) restraint
c) long-term orientation
d) uncertainty avoidance
Title: Chapter 7 Test Bank, Question 24
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: When trying to be sure all possible scenarios have been considered in order to prepare for each possible outcome, one is trying to avoid any uncertainty.
25) Other countries view the United States as a country that spends money on entertainment and other nonessential items. This can be viewed as wasteful and demonstrates which dimension?
a) indulgence
b) power distance
c) masculinity
d) short-term orientation
Title: Chapter 7 Test Bank, Question 25
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: The United States is known for being indulgent with spending. Not many Americans are known for having restraint; if they do have restraint, they are viewed in America as cheap or frugal.
26) Businesses that operate in different countries may operate differently based on the cultural dimensions and what is considered normal for that country. Select the cultural issues that each business needs to consider before building a business relationship.
a) how woman are viewed in the workplace
b) how managers interact with employees
c) how relationships are formed between businesses
d) what the sick policy is for employees
Title: Chapter 7 Test Bank, Question 26
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: While the sick policy is important, the other cultural issues can greatly impact interaction. For example, if women are not viewed as knowledgeable and men are viewed as powerful, it is unlikely that women will be able to work alongside those from the more masculine country.
27) The cultural dimensions provide insight into decision making from one country to the next. What one country views as an acceptable decision, another may view as unethical. For example, using child laborers may be viewed as perfectly ethical and seen as contributing to society. In another country, using child laborers is viewed as unethical. These dimensions can cause outsiders to face which one of the following choices when they do not share the same cultural views?
a) scrutiny
b) behavioral issues
c) moral dilemmas
d) legal ramifications
Title: Chapter 7 Test Bank, Question 27
Difficulty: Medium
Bloomcode: Analysis
Min: 2
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: One can face a moral dilemma when witnessing something that is unethical in their own framework but that is normal for another framework.
28) A country that has a well-formed, formal educational system likely has a larger degree of which one of the following choices for its citizens compared to countries that do not?
a) economic mobility
b) socialism
c) governmental support
d) transportation
Title: Chapter 7 Test Bank, Question 28
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: Economic mobility and an increase in success among citizens are likely when there is a more formal educational system.
29) If a group of people is isolated from a governing body to enforce laws, they will likely form their own types of norms to determine what they believe is right and wrong. This is an example of what type of cultural difference from the CAGE Model?
a) cultural
b) economic
c) geographic
d) administrative
Title: Chapter 7 Test Bank, Question 29
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: A lack of formal government that established and enforces laws is an example of an administrative difference.
30) Indigenous people may have a set of ethical norms that has been carried down from one generation to the next. They may have a group of norms that outsiders may not understand and may disagree with; however, their norms are rooted in history and tradition. These norms also might be rooted in the land in which they have lived for centuries. This is an example of what type of influence on cultural norms?
a) administrative
b) cultural
c) geographic
d) economic
Title: Chapter 7 Test Bank, Question 30
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: Indigenous people may have formed norms that are based strictly on their geographical location, and their group norms and beliefs have formed based on their specific location.
31) Countries that have easy access to other countries by crossing borders tend to have a wider variety of norms and ethical views. This is due to an increase in
a) population
b) business ownership
c) transportation
d) diversity
Title: Chapter 7 Test Bank, Question 31
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: Diversity in population tends to occur when one can easily enter another country and bring their own views and norms.
32) If a government dictates the type of employment its citizens are allowed to obtain, this is an example of what type of economy?
a) market
b) non-market
c) command
d) mixed
Title: Chapter 7 Test Bank, Question 32
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: In a non-market economy, the government can determine how its citizens will contribute to society and what career path should be followed.
33) Countries that are viewed as corrupt tend to also follow this type of economic system.
a) non-market
b) market
c) command
d) mixed
Title: Chapter 7 Test Bank, Question 33
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: When viewing the information in Figures 7.5 and 7.7 in this section, there is an alignment between corruption and non-market economies.
34) A business can form and function as it sees fit. It can produce and sell what it prefers and can profit as much as possible. The business also wishes to promote what it views as ethical and have a positive impact on the society in which it operates. This business is likely operating in what type of economy?
a) socialist
b) non-market
c) command
d) market
Title: Chapter 7 Test Bank, Question 34
Difficulty: Medium
Bloomcode: Synthesis
Min: 2
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: This is likely a market economy due to the freedom the business has to make decisions and operate as it sees fit.
35) Ethical differences between countries are most often caused by differing cultures. International businesses should work to overcome these differences because they can impact a business’s interaction and success in which of the following areas?
a) value chain
b) operations
c) output
d) process
Title: Chapter 7 Test Bank, Question 35
Difficulty: Easy
Bloomcode: Comprehension
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Ethical differences caused by cultural differences can cause businesses to need to pivot along the value chain when working with businesses operating in other countries that have different cultures and processes.
36) The principle of caveat emptor is viewed by many as unethical because it can protect the seller of products and put buyers more at risk. Which one of the following choices is the best translation of the phrase caveat emptor from Latin to English?
a) Buyers are always right.
b) Sellers are always right.
c) Let the buyer beware.
d) The product is not guaranteed.
Title: Chapter 7 Test Bank, Question 36
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Caveat emptor translates from Latin to mean let the buyer beware.
37) In marketing, which one of the following choices may be allowed in some countries, which means buyers must be more aware of what is truthful regarding what is advertised about products?
a) dishonesty
b) hyperbole
c) white lies
d) deceptive claims
Title: Chapter 7 Test Bank, Question 37
Difficulty: Easy
Bloomcode: Comprehension
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Deceptive claims tend to be viewed as unethical, but they may not be enforced or have laws in place to prevent them from occurring in many countries.
38) When products are shipped from one country to another, there is often a process for checking items that arrive to the destination country. Some sellers may try to misrepresent product quality and which one of the following choices?
a) size
b) ingredients
c) color
d) quantity
Title: Chapter 7 Test Bank, Question 38
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Quality and quantity always must be verified by the buyer when importing products from a seller.
39) Select the best choice to complete the following sentence: When a business is importing and exporting goods along the value chain, some countries may use government checks. Officials who do these checks may be inclined to accept _____ in order to allow products into or out of the country.
a) gifts
b) free samples
c) bribes
d) incentives
Title: Chapter 7 Test Bank, Question 39
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Bribes can be used as a way to control what products and products from what businesses are allowed in and out of a country. Government officials can control the flow of goods using bribery.
40) A business that has a manufacturing plant in a different country learns that the building is structurally unsound. In that country, no laws or safety protocols protect workers, and the business has an ethical choice to make. Which one of the following choices best describes what the business should do if they wish to make an ethical decision?
a) Keep operating normally because no local laws are being broken.
b) Do the bare minimum to be sure that there is no negative press.
c) Move the operations to a safe facility even though it means shutting down operations for a few weeks.
d) Speak with a lawyer in each country to see what they are legally required to do.
Title: Chapter 7 Test Bank, Question 40
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: If the business wishes to be ethical, they should stop operations and move facilities for the workers’ safety. There may be a dip in output and profits for the short term, but that is better than a larger issue that could impact the business for the long term.
41) When considering the ethical challenges along the value chain, reducing production waste to, in turn, reduce amounts being sent to landfills would fall into which segment for organizations?
a) logistics
b) manufacturing and operations
c) human resources
d) research and development
Title: Chapter 7 Test Bank, Question 41
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Reducing the amount of waste during production would be considered part of the manufacturing and operations sector of the value chain because of its environmental aspect.
42) When it comes to selling, a salesperson often has certain sales goals to reach. To reach these goals, they may be less than truthful with information they provide the buyer to get the buyer to agree on a purchase. Some of these deceptions include which of the following choices?
a) pricing
b) product features
c) delivery dates
d) customer satisfaction
Title: Chapter 7 Test Bank, Question 42
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Salespeople can mislead customers or be deceptive about most aspects of a product, including the quality, price, and availability, in order to get the sale. This means buyers must be proactive in ensuring accuracy.
43) Adding fees to a base price, such as insurance or additional taxes, is known as which one of the following choices?
a) fee surcharge
b) drip pricing
c) bundle pricing
d) add-on pricing
Title: Chapter 7 Test Bank, Question 43
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Drip pricing is often viewed as unethical because the price of a product or service ends up costing more than advertised.
44) As a consumer, when one sees an advertised price for a product or service, one expects to pay that price plus any additional sales taxes. However, often there are “hidden” costs that are not included, and the consumer ends up paying more due to additional fees. This is viewed as unethical by many and is illegal in some countries. This practice is known as which one of the following choices?
a) bundle pricing surcharge
b) add-on pricing
c) fee surcharge
d) drip pricing
Title: Chapter 7 Test Bank, Question 44
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Drip pricing is often viewed as unethical because the price of a product or service ends up being higher than advertised.
45) Select the best choice to complete the following sentence: An organization that likely has a positive work ______ is built upon having a diverse workforce and has strict policies against poor treatment of employees based on discrimination and harassment.
a) culture
b) group
c) outlook
d) operations
Title: Chapter 7 Test Bank, Question 45
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: When policies are in place as to how to interact in a positive manner and when there is a diverse workforce, businesses tend to have a more positive culture.
46) An employee has informed the manager that another coworker is harassing them. The company is likely an ethical company if which of the following is the case?
a) Protocols are in place for reporting, investigating, and reducing harassment.
b) The manager tells the employee to get the harassment on video.
c) A manager goes to the employee accused of harassment and tells that employee to stop.
d) Managers do nothing to deal with the situation.
Title: Chapter 7 Test Bank, Question 46
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Companies that have protocols in place and follow those protocols tend to be viewed as ethical and care about the culture of the workplace.
47) Human resource departments are charged with determining how much employees should be paid once they are hired. Some of the factors that should be considered are paying a living wage, education, and experience. In the United States, there are laws against discriminatory practices. Factors that should NOT be considered in how much one should be paid include which of the following choices?
a) age
b) gender
c) race
d) religion
Title: Chapter 7 Test Bank, Question 47
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: In the United States, there are employment laws against basing one’s pay on discriminatory factors. We often think of these in terms of hiring and promoting, but they also affect how individuals are paid.
48) Select the best choice to complete the following sentence: How a business is organized as far as hierarchy and levels of management can create or help reduce the level of unethical behavior. Firm ______ is the term for how a business is organized.
a) strategy
b) operations
c) infrastructure
d) culture
Title: Chapter 7 Test Bank, Question 48
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: How a business is organized with levels of “power” and management hierarchies is what forms the infrastructure of that business.
49) An important part of sales that is often overlooked is the follow-up after a sale has been made. An example of ethical follow-up practices is best described by which one of the following choices?
a) promising a software upgrade with the purchase of computers that never happens
b) offering a warranty that limits the application of use for the buyer of the product or service
c) checking on the satisfaction of a buyer’s purchase and providing a replacement if something breaks
d) having a product guarantee that is untruthful
Title: Chapter 7 Test Bank, Question 49
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Follow-up services can be promised to entice purchases, but if buyers purchase products or services and those follow-up services are untrue or never occur, that is unethical and may even be illegal.
50) Select the best choice to complete the following sentence: As consumers, we often visit websites and use applications that gain data from us. How that data is used is often up to the businesses that obtain it, and they can sell users’ information without their direct knowledge. It becomes a _______ issue when that data includes personal information and is stolen.
a) technology
b) cyber security
c) employer
d) privacy
Title: Chapter 7 Test Bank, Question 50
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: Cyber security deals with personal information and how it is used. If that data is obtained in an illegal manner, such as a security breach, that is a cyber security issue the company must address.
51) In an effort to ensure accounting information is properly and truthfully reported, standards and guidelines are in place. Which one of the following choices best describes a governing body that has global accounting standards to help provide better transparency in multinational organizations?
a) Global Accounting Practices Board
b) Transparency in Accounting Standards Board
c) International Accounting Standards Board
d) Office of Global Accounting Reports
Title: Chapter 7 Test Bank, Question 51
Difficulty: Easy
Bloomcode: Knowledge
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: the International Accounting Standards Board has global accounting standards in place. There is still some room for interpretation, so one must read the footnotes to gain a more accurate understanding of what is reported.
52) Select the best choice to complete the following sentence: As business interactions increase on a global scale, it is likely that there will be an instance when a business professional must travel or work abroad at some point in his or her career. It is important to remember that there may be different cultures and norms that can impact _______, which can cause dilemmas with decision making.
a) ethical decisions
b) languages
c) prices
d) the cost of living
Title: Chapter 7 Test Bank, Question 52
Difficulty: Easy
Bloomcode: Comprehension
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Ethical decisions can be impacted when visiting other countries due to the differing cultures and that can put business travelers in awkward situations.
53) Which one of the following choices describes why it is important to be grounded in one’s own ethical values?
a) Know the difference between right and wrong.
b) Know what one views as ethical and unethical in different situations.
c) Share one’s values with others so they can agree with them.
d) Represent one’s views as the best way to make decisions.
Title: Chapter 7 Test Bank, Question 53
Difficulty: Easy
Bloomcode: Comprehension
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: To have a strong understanding of how to deal with a variety of situations in an ethical manner, one must be firmly grounded in their ethical values.
54) Select the best choice to complete the following sentence: When working abroad, it can help one avoid the issues of ________ by understanding why one believes something is right versus believing something is wrong.
a) culture
b) ethical differences
c) negotiating
d) moral relativism
Title: Chapter 7 Test Bank, Question 54
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: By being grounded in one’s own reasons for why they have certain ethical beliefs, moral relativism cane be avoided by adding weight to one’s values by being aware of one’s views on what is right and wrong.
55) Even if one is very clear on what they view as right and wrong, company policies may also determine how ethical situations should be handled in other countries. If policies are ever unclear, what should an employee working abroad do?
a) Do what they feel is appropriate.
b) Ask an acquaintance in the host country what they would do.
c) Contact the appropriate personnel to ask for clarification.
d) Reach out to a local religious leader to see what is appropriate.
Title: Chapter 7 Test Bank, Question 55
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: If policies are ever unclear, an employee working abroad should reach out to a manager, HR, or other relevant person or area for clarification to ensure the matter is handled appropriately.
56) Select the best choice to complete the following sentence: One way to stick with one’s own personal values is to have shared ______ and an attitude that relates strongly with others.
a) hypernorms
b) religion
c) policies
d) ethical values
Title: Chapter 7 Test Bank, Question 56
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Having a shared set of hypernorms helps one stay on track with their own ethical values in situations where there may be differing views of what is right and what is wrong due to being in a different country.
57) No matter what situation or what country one is in, grounding your ethical approach in a manner of kindness to all helps avoid what view of ethical confusion?
a) hypernorms
b) moral imperialism
c) thick norms
d) thin norms
Title: Chapter 7 Test Bank, Question 57
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Showing kindness and respect is always ethical, even in places where there is a different stance on what is right and wrong. One should be able to feel they are acting in a moral and ethical manner if they handle all situations by showing kindness and respect to all involved.
58) When having a conversation with a coworker about how to handle a difficult situation with a client, Sally began to think about how she would respond and was not actively listening to what was being said. Which of the following choices describe what Sally did during this conversation?
a) passive listening
b) being a friend
c) listening to be heard
d) listening to understand
Title: Chapter 7 Test Bank, Question 58
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: One should first listen to understand to have a strong understanding of the situation. If one is not actively listening, important information might be missed that would help understand another person’s perspective.
59) To help understand another person’s perspective that is different from your own, it is best to do which one of the following choices?
a) Use passive listening.
b) Be a friend.
c) Listen to be understood.
d) Speak to be heard.
Title: Chapter 7 Test Bank, Question 59
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Listening to understand allows for a conversation that provides insight into why a person has a perspective that may be different from your own. One does not have to agree with the perspective, but it provides an understanding.
60) What is one way that a person can demonstrate active listening to understand when having a conversation?
a) Summarize what you heard and ask the speaker if you understand correctly.
b) Take notes while the person is speaking.
c) Interrupt them regularly to input your own thoughts.
d) Think about how you will respond to what they are saying while they are speaking.
Title: Chapter 7 Test Bank, Question 60
Difficulty: Medium
Bloomcode: Analysis
Min: 2
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Summarizing what one heard and asking the speaker if that was a correct understanding of what was said is a great way to make sure everyone is being clear. It also allows for a deeper understanding of different perspectives.
61) In some countries, it might be quite normal to mislead others. Instead of taking information at face value, it is best practice to do which one of the following choices?
a) Mistrust everyone.
b) Verify information.
c) Share untruthful information.
d) Ask if the person is being honest.
Title: Chapter 7 Test Bank, Question 61
Difficulty: Medium
Bloomcode: Analysis
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Instead of assuming someone is not truthful, one can believe what they are saying, but one should always verify to make sure the information is fully accurate.
62) When working abroad, best practice for ethical leadership includes which of the following choices?
a) Understand policies and rules at your own organization.
b) Be firm in your beliefs and argue why you feel the way you do.
c) Treat others with respect and kindness.
d) Respect what others are saying, but check to ensure accuracy.
Title: Chapter 7 Test Bank, Question 62
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: While it is important to be well grounded in your beliefs, it is sometimes not in your best interest to argue why you feel that way. Such arguments could hurt a working relationship.
63) Traveling for work or for pleasure is something that everyone should strive to do. It can help open one’s mind to different views and to which one of the following choices?
a) languages
b) religions
c) cuisine
d) perspectives
Title: Chapter 7 Test Bank, Question 63
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Being able to experience different perspectives allows people to be more open to other ideas and more accepting of different views.
64) When one travels, it not only opens one up to new experiences, but it also helps to do which one of the following choices?
a) strengthen our own ethical values and norms
b) reduce your understanding of the world
c) increase fears surrounding other perspectives
d) focus on being close-minded about others
Title: Chapter 7 Test Bank, Question 64
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: When traveling, it can help one understand why they believe what they do and allow for more understanding as to what they view as right and wrong.
65) As an employee, Mark is having a hard time adjusting to his new role as a plant manager in India. Mark has always managed by recognizing the hard work of individual employees. He feels it is the right thing to do and has always helped motivate employees in the United States. In India, however, he is noticing that the employees seem uncomfortable when he does this, and that the other employees seem to take great offense to such recognition of others. What should Mark do?
a) Keep recognizing the hard work of the employees and assume the other employees are jealous.
b) Tell the employees that they need to understand why he is recognizing individuals, and they should work to receive the same recognition.
c) Mark should speak with his supervisor about the issue and see if company policy allows for gifts to be given to those who are strong employees.
d) Have a conversation with some of the employees to better understand why the response to individual recognition seems to be negative.
Title: Chapter 7 Test Bank, Question 65
Difficulty: Medium
Bloomcode: Analysis
Min: 3
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: In India, the culture is less individualistic and less indulgent than the United States. Mark doesn’t realize that the recognition is not looking at a collectivist view of India and how successes by one person are shared success of the group. By speaking with employees, he might be able to better understand this and find a way to better recognize the hard work of employees in a way that they more easily understand.
66) When an employee is working overseas, they encounter an ethical situation regarding whether to accept a gift from an outside client. In that country, gifts are a normal part of business interactions. However, the employee doesn’t want to send a message that the gift is the reason for the business relationship. It is a small gift valued at less than $100. What should the employee do?
a) Give the gift back to the client and risk offending them.
b) Keep the gift because the company policy allows for gifts, even though the maximum value must not exceed $75.
c) Return the gift to the client and let them know how appreciative they are for the gift, but that they cannot keep the gift due to company policy.
d) Do what they feel is right ethically and morally.
Title: Chapter 7 Test Bank, Question 66
Difficulty: Medium
Bloomcode: Application
Min: 3
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: It sounds like the employee’s own ethical values are questioning whether or not the gift should be kept. Company policy is to not accept the gift, so the gift should be returned. However, the reasons for the return should be explained. The client might then decide to give a gift of lesser value that the client might feel is more ethical to keep.
67) When an employee uses a company computer to make purchases online for personal use, such as shoes, furniture, and other items, they are not acting appropriately. If the company uses a surveillance system to monitor each employee’s Internet usage without their knowledge, this can be viewed as unethical and impact the company in what area of the value chain?
a) manufacturing
b) sales
c) logistics
d) information technology
Title: Chapter 7 Test Bank, Question 67
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: A company’s use of surveillance to monitor employees falls in the information technology area of the value chain.
68) A business looking to operate in a country that falls low on the transparency scale should likely worry about which one of the following choices?
a) being misled
b) corruption
c) false financial information
d) employee safety
Title: Chapter 7 Test Bank, Question 68
Difficulty: Medium
Bloomcode: Application
Min: 1
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: If a company operates in a country that has a low transparency score, they are viewed as being corrupt in one way or another.
Question Type: Short Answer
69) Explain the difference between a culture that falls on the individualism side of the cultural distance spectrum and one that falls on the collectivism side of the spectrum.
Title: Chapter 7 Test Bank, Question 69
Difficulty: Medium
Bloomcode: Analysis
Min: 3
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: A culture that falls more on the individualist side of the spectrum values individual accomplishments and works to benefit themselves. Their success belongs to them alone. A collectivist society values group success and working to support the well-being of others. One person’s success is a success for all.
70) What does it mean for a company to “cook the books”? Why is this viewed as unethical by many?
Title: Chapter 7 Test Bank, Question 70
Difficulty: Medium
Bloomcode: Application
Min: 5
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: When a company “cooks the books,” they are not being truthful in what they are reporting. The financial information is being misrepresented so the company can appear in a better situation than it actually is financially. This is viewed as unethical because many investors use financial information to determine in which companies they choose to invest. If the information they are using to make these decisions is false, it can be detrimental.
71) Explain how administrative differences can impact a country’s ethical norms and how that can impact businesses from choosing to operate within that country.
Title: Chapter 7 Test Bank, Question 71
Difficulty: Medium
Bloomcode: Analysis
Min: 5
AACSB: Ethics
Learning Objective: LO 7.2 Identify cultural, administrative, governmental, and economic sources of global ethical differences.
Section Reference: Sec: 7.2 Understanding Global Ethics: The CAGE Framework
Solution: Administrative differences impact the type of government, policies, and economic mobility with a country. This is also related to education and healthcare. Depending on how formally these areas are structured and to what degree of stringency, some ethical norms may be viewed with more leniency or less enforcement than an outside business would prefer. A business will be less inclined to operate in a country that is viewed as more corrupt and treats its citizens less than satisfactorily as viewed by ethical norms of the business’s home country. They will continue to reduce the amount of investment and likelihood of more formal administrative structures from occurring.
72) Discuss at least three ways in which one can remain ethical when in a leadership position in a global setting.
Title: Chapter 7 Test Bank, Question 72
Difficulty: Medium
Bloomcode: Application
Min: 5
AACSB: Ethics
Learning Objective: LO 7.4 Differentiate between effective and ineffective behaviors of ethical leaders in a global setting.
Section Reference: Sec: 7.4 Ethical Leadership in a Global Setting
Solution: Students answers will vary, but should discuss at least three of the following: Be deeply grounded in the ethical values of your home country in order to know why you have certain ethical values, articulate which ethical values are most important to you and how you rank them in order of importance, understand the policies of your own organization so that one follows expectations and applies those no matter where one is working, show kindness and respect to others in every situation, listen to understand before you speak to be understood so that you gain knowledge about someone else’s values, and trust but verify information is accurate.
73) What is the value chain? Why is it important to understand the ethical challenges along the value chain when businesses perform processes outside their own country?
Title: Chapter 7 Test Bank, Question 73
Difficulty: Medium
Bloomcode: Application
Min: 5
AACSB: Ethics
Learning Objective: LO 7.3 Describe common ethical challenges global businesses face in different parts of their value chains.
Section Reference: Sec: 7.3 Ethical Challenges Along the Value Chain
Solution: The value chain focuses on the functional activities a business uses to create strategy and profit. If a business and its managers do not understand the ethical challenges that can arise when operating in another country, eight areas could be affected. It is important to understand these challenges to have plans in place to deal with problems if they arise. A company might even choose to function in a different country if the challenges pose a large threat to the business.
74) What is the difference between thin ethical values and thick ethical values? How do they relate to hypernorms?
Title: Chapter 7 Test Bank, Question 74
Difficulty: Medium
Bloomcode: Analysis
Min: 5
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Thin ethical values are abstract concepts that most people believe in. Thick ethical values are those same concepts but are more specific in how those values are viewed and applied based on culture. Hypernorms are those values that are shared across all cultures as to what is ethical and represent a macro-social contract.
75) Describe two differences between moral relativism and moral imperialism.
Title: Chapter 7 Test Bank, Question 75
Difficulty: Medium
Bloomcode: Analysis
Min: 5
AACSB: Ethics
Learning Objective: LO 7.1 Explain why ethical values and principles differ across countries and regions.
Section Reference: Sec: 7.1 Differences in Global Ethical Norms
Solution: Moral relativism recognizes that thick, localized moral norms exist and denies thin universal values. Moral relativism has two variations: cultural and extreme. Cultural relativism holds each culture’s norms as correct and on the same level as all others. One can adjust their norms based on what culture surrounds them. Extreme relativism views one’s own ethical norms as relevant because they are grounded in their own perspectives. Moral imperialism holds a sense of superiority and thought process that only one set of ethical values exists, and those are usually based on one’s own culture and home country.