Social Ethics and Interdependence Chapter.2 Test Bank - International Management 10e | Test Bank with Answer Key by Helen Deresky by Helen Deresky. DOCX document preview.
International Management, 10e, (Deresky/Miller)
Chapter 2 Managing Interdependence, Social Responsibility, and Ethics
1) In recent years, which of the following has lessened the criticisms of MNCs?
A) increasing economic differences among countries
B) greater emphasis on social responsibility by MNCs
C) limited emphasis on social responsibility and ethical behavior
D) dissolution of MNCs in developing countries
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
2) Corporate social responsibility is defined as ________.
A) actions that further some social good, and that are in compliance with the law
B) actions that appear to further some social good, beyond the interests of the firm and that which is required by law
C) actions outside the firm's home country that appear to further some social good, that are in compliance with home country law
D) actions that appear to further some economic good, beyond the interests of the firm and that which is required by law
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Application of knowledge
3) Which of the following concepts includes the expectation that MNCs should be concerned with the social and economic effects of their decisions?
A) macropolitical interdependence
B) international social responsibility
C) ethical behavior
D) shared value
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
4) Which of the following significantly increases the complexity of social responsibility and ethical behavior of MNCs?
A) distance between the headquarters and the subsidiaries
B) difficulties posed in training managers from different cultures
C) additional stakeholders associated with the firm's activities
D) international laws, regulations, and moral principles
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
5) Manuela Weber suggested which of the following is considered a benefit of corporate social responsibility?
A) Increased coordination
B) International diversification
C) Enhanced configuration
D) Improved employee recruitment, motivation, and retention
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Application of knowledge
6) In a world ever sensitive to social and environmental issues, more and more firms are embracing CSR and sustainability. Such firms are more likely than not to ________.
A) develop closer relations with foreign stakeholders to better understand their needs and work jointly toward solutions
B) minimize their contribution to the local community in order to maximize profits
C) be reluctant to hire managers from around the world
D) favor region-specific CSR standards to global CSR standards for foreign operations
Difficulty: 2: Moderate
Chapter: 2
Skill: Application
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Application of knowledge
7) Acme Medical, an American medical device company, opened a number of manufacturing units in a developing country. It employed people from the host country to work in the new units. This move radically lowered the poverty rate in the developing country. In this scenario, Acme is ________.
A) making questionable payments
B) following moral guidelines
C) making a foreign investment
D) adopting local customs
Difficulty: 3: Challenging
Chapter: 2
Skill: Application
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Analytical thinking
8) The Anti-Sweatshop Code of Conduct requires companies to provide a healthy and safe work environment and ________.
A) to differentiate on the basis of gender
B) to pay the prevailing local minimum wage
C) to reduce environmental footprints
D) to employ forced labor when the situation demands it
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
9) Which of the following behaviors of a firm can be called unethical?
A) setting up operations abroad
B) manufacturing luxury consumer goods
C) tolerating sweatshop conditions
D) failing to meet shareholders' expectations with regard to annual profit
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
10) Social responsibility, ethical behavior, and interdependence are important concerns to be built into ________.
A) economic control
B) management control
C) corporate sustainability
D) moral idealism
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
11) Which of the following is a business benefit from corporate social responsibility?
A) revenue decreases
B) cost increases
C) increase in brand value
D) risk assessment
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
12) Which of the following terms refers to an integration of the business environments in which firms currently operate, resulting from a dissolution of traditional boundaries and from increasing links among MNCs?
A) social responsibility
B) global corporate culture
C) corporate philanthropy
D) moral universalism
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Application of knowledge
13) Moral universalism is the need for a moral standard that is accepted by all ________.
A) corporations
B) governments
C) cultures
D) employees
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
14) ________ are moral principles and values that govern the behavior of people, firms, and governments, regarding right and wrong.
A) Attitudes
B) Ethics
C) Laws
D) Biases
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Application of knowledge
15) Firms with a strong social interest ________.
A) openly support the use of sweatshops
B) aim to optimize work conditions and diversity in hiring
C) are reluctant to provide health insurance to employees
D) engage in deceptive marketing
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
16) With an ethnocentric approach, a company applies the morality used in its ________.
A) host nation
B) industry
C) general society
D) home country
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
17) Which of the following organizations must comply with the Foreign Corrupt Practices Act (FCPA) of 1977?
A) U.S. multinational corporations
B) Foreign subsidiaries of U.S. multinational corporations
C) Foreign firms that are cross-listed in the USA
D) All of these
Difficulty: 2: Moderate
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Application of knowledge
18) McDonald's, a fast-food chain headquartered in the United States, applies the morality it practices in the United States to all foreign countries in which it operates. McDonald's is adhering to ________.
A) moral universalism
B) ethical relativism
C) ethnocentrism
D) global corporate culture
Difficulty: 2: Moderate
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Analytical thinking
19) A company subscribing to ethical relativism would implement the morality of the ________.
A) host country
B) shareholders
C) legal system
D) home country
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
20) Which of the following often forces the MNC to act in accordance with ethnocentric value systems?
A) moral universalism
B) environmental policies in the home country
C) public pressure in the home country
D) media pressure
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Application of knowledge
21) Creating Shared Value (CSV) creates ________.
A) economic value by creating shared value
B) social value by increasing shared value
C) economic value by creating social value
D) social value by increasing market value
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Application of knowledge
22) Which of the following creates shared value?
A) creating social value by creating economic value
B) disabling local cluster development
C) reconceiving products and markets
D) creating economic value by creating social value
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Application of knowledge
23) Which of the following is a policy of the Electronic Industry Code of Conduct (EICC)?
A) Excessive overtime can be propagated if it benefits the company.
B) Child labor can be allowed when there is a shortage of employees.
C) Contract manufacturers should follow some basic environmental requirements.
D) Factory inspection should be limited to the headquarters.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
24) Primo is a multinational enterprise based in California that manufactures and sells affordably priced athletic shoes in retail stores around the world. A Primo manufacturing subsidiary in China employs over 20,000 locals. Primo executives recently learned of human rights violations at the firm's China subsidiary. Workers had been forced to work more than 60 hours each week and minimum wage laws were regularly ignored. As a result, Primo executives need to decide if operations in China should be discontinued. Which of the following, if true, would best support a decision by Primo to remain in China?
A) Primo becomes SA8000 certified.
B) Sales of Primo's competitors drop sharply.
C) U.S. manufacturing jobs decrease in number.
D) More service sector jobs become available in China.
Difficulty: 3: Challenging
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Analytical thinking
25) Which of the following is one of the standards of SA8000?
A) reducing environmental footprints
B) providing a safe work environment
C) not allowing workers to unionize
D) regularly require more than 48-hour workweeks
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
26) Transparency International is best described as a(n) ________.
A) international committee that monitors electronic data privacy laws
B) nongovernmental organization that fights corruption
C) nonprofit organization that argues for workplace equality
D) nonprofit group that raises awareness about human rights violations
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
27) Which of the following is a primary focus of the research that is carried out by Transparency International?
A) relative prevalence of bribery in various spheres of people's lives
B) existence of child labor in various developing countries
C) relative prevalence of dictatorship in various countries
D) existence of bonded labor in various countries
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
28) Which of the following is considered the primary problem for MNCs attempting to define their corporate-wide ethics?
A) inconsistencies among international laws
B) variations in ethical standards around the world
C) corruption within legal organizations
D) differences in worldwide religions
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
29) Which of the following is dedicated to monitoring issues of data privacy in Europe?
A) the Telecommunications Data Protection directive
B) the EU Data Retention Directive
C) the EU Directive on Data Protection
D) the Privacy and Electronic Communications EC Directive
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
30) Payments to expedite routine transactions are often referred to as ________.
A) slotting fees
B) grease money
C) gray funds
D) expropriation
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
31) Tokens of appreciation and grease money are considered ________.
A) cultural reward systems
B) questionable payments
C) sales commissions
D) business expenses
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
32) The Foreign Corrupt Practices Act of 1977 was primarily established to ________.
A) distinguish between harmless customs and actual bribery
B) combat corruption initiated by electronics firms and their subsidiaries
C) provide managers with anonymous methods for reporting bribery
D) prosecute international extortionists under the U.S. legal system
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
33) Which of the following prohibits U.S. companies from making illegal payments or other gifts or political contributions to foreign government officials for the purposes of influencing them in business transactions?
A) Sherman Antitrust Act
B) Robinson-Patman Act
C) Wagner Corruption Act
D) Foreign Corrupt Practices Act
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
34) Which of the following was the primary purpose of the Organization for Economic Cooperation and Development Convention on Bribery?
A) to establish bribery laws
B) to quantify global corruption
C) to combat corporate corruption
D) to protect corporate bribery whistleblowers
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
35) One of the primary complaints about the Foreign Corrupt Practices Act is that the legislation ________.
A) puts U.S. firms at a competitive disadvantage
B) fails to enforce equal punishments on U.S. firms
C) encourages U.S. managers to hire local agents
D) requires U.S. firms to adhere to host country laws
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
36) Which of the following shows that employees have understood, and signed off on, the legal obligations regarding bribery and corruption in the countries where they do business?
A) having global interdependence
B) having a global compliance system
C) adhering to globalization
D) adhering to commercialization
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
37) The FCPA allows "grease" payments to facilitate business in a foreign country, if ________.
A) the purpose of payment is beneficial to the home country
B) the purpose of payment is beneficial to the company
C) those payments are lawful in that country
D) those payments are a small amount compared to the revenue generated
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
38) Which of the following is true of a code of ethics?
A) It guides decision making by all employees in the firm.
B) It does not define the values and principles that are intended to guide organizational decision making.
C) It emphasizes profit over righteousness.
D) It is a cure for all ethical dilemmas.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
39) The company guidelines for the actions and decisions a company employee makes is ________.
A) business white paper
B) code of ethics
C) project plan
D) political treatise
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
40) Which of the following is the first step of making an ethical decision?
A) consulting the International Codes of Conduct for MNEs
B) consulting the superiors if clarification is sought
C) consulting the company's code of ethics and established norms
D) consulting the laws of both the host and the home countries
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
41) Which of the following is the last step of making an ethical decision?
A) consulting your superiors if you still need clarification
B) following your own conscience and moral code
C) consulting the company's code of ethics and established norms
D) weighing stakeholders' rights
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
42) John, an American national, works as a manager at his firm's subsidiary in Indonesia. A local government official tells John that materials could be delivered to the firm's facility more quickly if John pays an extra fee to the port supervisor. What should be John's first action?
A) consult his supervisor in the United States
B) discuss the issue with his local agent
C) refer to the company's code of ethics
D) consult both American and Indonesian laws
Difficulty: 2: Moderate
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Analytical thinking
43) ________ means meeting humanity's needs without harming the ability of future generations to meet their needs.
A) Sustainability
B) Corporate social responsibility
C) Ethical behavior
D) Casuistry
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
44) According to the international codes of conduct, the MNE behavior toward the host government is related to ________.
A) economic and developmental policies, laws and regulations, and political involvement
B) political involvement, technology transfer, and environmental protection
C) political involvement, communication practices, and laws and regulations
D) laws and regulations, technology transfer, and communication practices
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
45) According to the international codes of conduct, MNEs should ________.
A) resolve disputes according to the domestic law of the home country
B) dominate the capital markets in which their operations are based
C) use inexpensive, imported sources for components and raw materials
D) conduct research and development activities in developing countries
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
46) According to the international codes of conduct, the MNE behavior toward the public is related to ________.
A) technology transfer and environmental protection
B) development policies
C) economic and developmental policies
D) laws and regulations
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
47) Firms with strong environmental interests are most likely to ________.
A) provide employees educational opportunities
B) encourage the use of sweatshops
C) optimize diversity in hiring
D) respect a country's laws and regulations
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
48) According to international codes of conduct, which of the following is related to the MNE behavior toward persons?
A) human rights
B) laws and regulations
C) development policies
D) political involvement
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
49) According to international codes of conduct, which of the following is related to the MNE behavior toward persons?
A) political involvement
B) employment practices
C) environmental protection
D) laws and regulations
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
50) According to international codes of conduct, which of the following is related to the MNE behavior toward persons?
A) consumer protection
B) environmental protection
C) political involvement
D) technology transfer
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
51) ________ refers to the business conduct or morals of MNCs in their relationships with individuals and entities.
A) Global corporate culture
B) Ethical relativism
C) Moral universalism
D) International business ethics
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
52) According to Robertson and Crittenden, which of the following has made integrating an ethical component into international strategic decisions, challenging?
A) corporate ethics
B) cultural constraints
C) natural resources
D) political stability
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Diverse and multicultural work environments
53) Sustainable practices could result in ________.
A) cost savings from more efficient production
B) the abolition of labor unions
C) higher employee turnover
D) reduced operational flexibility
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
54) The profitability of individual companies depends on a cooperative and constructive attitude toward ________.
A) moral idealism
B) macropolitical interdependence
C) global interdependence
D) corporate technoglobalism
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
55) Which of the following MNC subsidiary activities is blamed for rising interest rates in host countries?
A) transferring in inappropriate technology
B) dissolving local labor unions
C) raising capital from local sources
D) filling key jobs with expatriates
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
56) Which of the following best defines the concept of managing interdependence?
A) the effective management of a long-term, MNC subsidiary–host-country relationship through cooperation and consideration for host concerns
B) the process by which international managers accept and enact their role in the preservation of ecological balance on the earth
C) the process by which a firm grants the rights to a firm in the host country to produce or sell a product
D) the effective development of strategies that involve designing and operating systems, and working with people around the world to ensure sustained competitive advantage
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
57) Which of the following terms refers to the practice by a country of rallying public opinion in favor of national goals and against foreign influences?
A) nationalism
B) privatization
C) protectionism
D) governmentalism
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
58) Under governmentalism, the government uses its policy-setting role to favor the interests of ________.
A) a national company
B) the nation
C) a foreign company
D) foreign investors
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
59) Under governmentalism, the government uses its policy-setting role to favor national interests, rather than relying on ________.
A) market forces
B) stockholder interests
C) competitive analysis
D) environmental standards
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
60) In recent years, the export of hazardous wastes from developed countries to less developed ones has ________.
A) decreased considerably
B) remained about the same
C) increased significantly
D) been banned by the EU
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
61) Which of the following is the main reason why companies dispose hazardous wastes in less developed countries?
A) international agreements
B) weak regulations and low costs
C) advanced waste disposal plants
D) large amounts of available land
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
62) Global interdependence creates demands on international managers to take a positive stance on issues of social responsibility and ethical behavior.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
63) Ethnocentric firms typically use the same business practices in all cultures and markets.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
64) International social responsibility includes the expectation that multinational corporations concern themselves with both social and economic effects of their decisions.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
65) A company subscribing to ethical relativism adopts the local moral code used in its home country.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
66) Social responsibility deals with decisions and interactions mostly on an individual level.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
67) Decisions about ethics tend to be made at a local level, affect more people, and reflect a general stance taken by a company or a number of decision makers.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
68) The sales, debts, and resources of some of the largest multinational firms exceed the gross national product, the public and private debt, and the resources, respectively, of some nations.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Application of knowledge
69) The increased complexity regarding the social responsibility and ethical behavior of firms across borders is brought about by the distance between the headquarters and its subsidiaries.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
70) Standards of ethical behavior are uniform worldwide.
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
71) Ethics and appropriate behavior transcend all international business activities and figure prominently in management decisions about financial performance and competitive advantage.
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
72) Ethics and appropriate behavior transcend all international business activities and figure prominently in management decisions about financial performance and competitive advantage.
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
73) Questionable payments intended to expedite transactions are both accepted and legal in many countries.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Diverse and multicultural work environments
74) Most managers perceive bribery as "endemic in business and government in parts of Africa and south and east Asia. Corruption and bribery are considered to be part of the culture and environment of certain markets, and will not simply go away."
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Diverse and multicultural work environments
75) Improved customer attraction and retention is a business benefit of corporate social responsibility.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
76) Ethnocentric culture is an integration of the business environments in which firms currently operate.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Diverse and multicultural work environments
77) The term "international business ethics" is used to address the need for a moral standard that is accepted by all cultures.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
78) Ethical relativism adopts the local moral code of the country in which it is operating.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
79) In a globalized market economy, CSR does not have to be part of modern business.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
80) Creating Shared Value (CSV) leverages the unique resources and expertise of the company to create social value by creating economic value.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
81) Globalization has increased the ethical problems facing organizations.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
82) Global corporate culture refers to the business conduct or morals of MNCs in their relationships with individuals and entities.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
83) The biggest single problem for MNCs in their attempt to define a corporate-wide ethical posture is the great variation of ethical standards around the world.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
84) The Foreign Corrupt Practices Act (FCPA) allows U.S. companies to make illegal payments, other gifts, or political contributions to foreign government officials for the purpose of influencing them in business transactions.
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
85) International codes of conduct provide some consistent guidelines for multinational enterprises (MNEs).
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
86) When managing interdependence, international managers must go beyond general issues of social responsibility and deal with the specific concerns of the MNC subsidiary-host country relationship.
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
87) A corporate culture that advocates profit over sustainability and human welfare cannot lead to employee abuse.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
88) The most prominent companies monitor suppliers to ensure that they use sustainable practices.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
89) Often, companies choose to dispose of hazardous waste in developed countries to take advantage of weaker regulations and lower costs.
Difficulty: 1: Easy
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
90) Under nationalism, public opinion is rallied in favor of national goals and against foreign influences.
Difficulty: 1: Easy
Chapter: 2
Skill: Application
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Application of knowledge
91) Under protectionism, public opinion is rallied in favor of national goals and against foreign influences.
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
92) What is the difference between ethics and social responsibility? What are some of the social responsibility issues that MNCs must consider?
Difficulty: 3: Challenging
Chapter: 2
Skill: Synthesis
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Analytical thinking
93) What level of social responsibility is expected from domestic firms? What level is expected from international firms?
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Ethical understanding and reasoning
94) What can be the impact of CSR on business profits, which can increase the firm's competitiveness and ultimately its economic success?
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-1: To understand the social responsibility of corporations toward their various constituencies around the world in particular their responsibilities toward human rights
AACSB: Application of knowledge
95) What is a code of ethics? What function does it serve for businesses?
Difficulty: 2: Moderate
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
96) Describe the three types of interests simultaneously pursued by a sustainable business.
Difficulty: 2: Moderate
Chapter: 2
Skill: Application
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Application of knowledge
97) What is the relationship between global corporate culture and moral universalism?
Difficulty: 3: Challenging
Chapter: 2
Skill: Synthesis
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Analytical thinking
98) Explain the differences between moral universalism, ethnocentrism, and ethical relativism. Which approach is best?
Difficulty: 3: Challenging
Chapter: 2
Skill: Critical Thinking
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Analytical thinking
99) What are the proposed global labor standards of SA8000?
Difficulty: 2: Moderate
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Application of knowledge
100) According to the international codes of conduct, how should MNEs handle technology transfer overseas?
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
101) What employment practices should MNEs follow abroad according to the international codes of conduct?
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
102) What is the primary problem for MNCs that try to define organizational ethics?
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
103) What are questionable payments? Why are they problematic for international managers?
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-2: To acknowledge the strategic role that ethics must play in global management and provide guidance to managers to maintain ethical behavior amid the varying standards and practices around the world
AACSB: Ethical understanding and reasoning
104) What is sustainable development? Why is sustainability a dilemma for MNCs?
Difficulty: 3: Challenging
Chapter: 2
Skill: Concept
LO: 2-3: To recognize the importance of managing interdependence and include sustainability and shared value in their long-term plans
AACSB: Ethical understanding and reasoning
Document Information
Connected Book
International Management 10e | Test Bank with Answer Key by Helen Deresky
By Helen Deresky