Question 1

Due to certain strict environmental and employment standards in its home nation,Taurus Inc.has shifted its operations to developing nations.Hence,the firm has now been able to gain competitive advantage by avoiding costly pollution controls.This strategic move of Taurus Inc.will be considered as:

Accepted Answer

A)   illegal.
B)   ethical.
C)   immoral.
D)   uneconomical.
E)   totalitarian.F) B) and E)
G) A) and E)

Question 2

Leon Sullivan argued that it was ethically justified for Western businesses to operate in South Africa so long as the companies obeyed the apartheid laws.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the environmental issues related to businesses operating in developing nations.

Accepted Answer

Ethical issues arise when environmental ...

Question 4

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions:

Accepted Answer

A)   makes it mandatory for the companies to adhere to the pollution control standards of their home country in all the nations in which they do business.
B)   does not consider facilitating payments a criminal offense.
C)   makes grease payments mandatory in order to obtain exclusive preferential treatment in a host nation.
D)   considers payment of speed money to be moral, but illegal.
E)   makes it obligatory for companies to adopt a zero-tolerance approach toward grease payments.F) C) and E)
G) None of the above

Question 5

Brain Wing Inc.has won the bid to build airplanes for one of its host countries government.However,the execution of the contract has been delayed due to certain unproductive,bureaucratic procedures in the less developed nation.In order to legally overcome this problem,Brain Wing Inc.should resort to the payment of:

Accepted Answer

A)   customs duties.
B)   excise taxes.
C)   expatriation taxes.
D)   speed money.
E)   repatriation fee.F) B) and C)
G) B) and E)

Question 6

Multinational corporations do not qualify to act as moral agents within the framework of rights theories.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following approaches to ethics helps to provide a moral compass to managers?

Accepted Answer

A)   John Rawls's theory of justice
B)   The Friedman doctrine
C)   Cultural relativism
D)   Naive immoralism
E)   The tragedy of the global commonsF) A) and B)
G) A) and C)

Question 8

Which of the following straw men approaches to business ethics is best summarized by the maxim "When in Rome,do as the Romans?"

Accepted Answer

A)   Cultural relativism
B)   Just distribution
C)   Kantian ethics
D)   Righteous moralist
E)   Sullivan principleF) A) and D)
G) A) and C)

Question 9

In the modern world,corporations can contribute to the global tragedy of the commons by:

Accepted Answer

A)   moving production to locations where they are free to pump pollutants into the environment.
B)   imposing stringent environmental standards on developing countries, thus further crippling their economies.
C)   creating common environmental and employment standards for all nations.
D)   adopting costly pollution controls and in turn losing out on economic advantages.
E)   adhering to civil laws rather than common laws in case of any environmental violations.F) A) and E)
G) A) and B)

Question 10

Adoption of which of the following ethical approaches is most likely to cause a company to use tools such as cost-benefit analysis and risk assessment to weigh all of the social benefits and costs of a business action?

Accepted Answer

A)   Naive immoralism
B)   Friedman doctrine
C)   Ethnocentrism
D)   Utilitarianism
E)   Righteous moralismF) None of the above
G) B) and C)

Question 11

Which of the following statements best brings out the nature of ethical dilemmas?

Accepted Answer

A)   Knowing what the right thing might be and doing it correctly is always easy in a business environment.
B)   There is a universal agreement about accepted ethical principles.
C)   What is ethical is independent of one's cultural perspective.
D)   Ethical dilemmas exist because real-world decisions are simple.
E)   In ethical dilemmas the appropriate course of action is not clear.F) A) and E)
G) C) and D)

Question 12

In a business setting,the term "noblesse oblige" refers to:

Accepted Answer

A)   a benevolent behavior that is considered the responsibility of successful enterprises.
B)   obliging a government official with the expectation of a reciprocal favor.
C)   rich corporations abusing their power for private gain.
D)   preferential treatment received by successful companies from governments.
E)   tax exemptions that are given only to local companies but not to foreign companies.F) C) and D)
G) B) and E)

Question 13

While making a business decision,a manager who believes in rights theories is most likely to focus on:

Accepted Answer

A)   respecting fundamental human privileges.
B)   achieving collective goals even if that involves violating fundamental rights.
C)   propagating home-country standards of ethics.
D)   weighing the associated social benefits, costs, and risks.
E)   maximizing stockholders' wealth and profits.F) C) and D)
G) B) and D)

Question 14

According to the concept of cultural relativism,a firm,while operating in any host country,should adopt the ethics of the culture that is predominant in its home country.

Accepted Answer

A) True 
 B)False

Question 15

_____ are the payments that are made to expedite routine government actions,and hence are also known as speed money or grease payments.

Accepted Answer

A)   Amortized payments
B)   Subvention payments
C)   Facilitating payments
D)   Deferred payments
E)   Custom paymentsF) C) and D)
G) A) and B)

Question 16

Which of the following statements is true of facilitating payments?

Accepted Answer

A)   According to the Foreign Corrupt Practices Act "facilitating payments" are as illegal as bribes.
B)   Facilitating payments are payments to secure contracts that otherwise would not be secured.
C)   Having a zero-tolerance approach toward facilitating payments is ethical.
D)   Companies are allowed to make facilitating payments only in developing countries.
E)   The concept of facilitating payments was introduced by the UN to put U.S. firms at a competitive disadvantage.F) C) and D)
G) B) and C)

Question 17

The term ethics refers to accepted principles of right or wrong that govern the conduct of a person,the members of a profession,or the actions of an organization.

Accepted Answer

A) True 
 B)False

Question 18

Three Torque Inc.,a U.S.based multinational company,allows its managers to make facilitating payments in its home country to expedite government formalities.However,in countries where such payments are considered as unethical,the company restricts its managers from indulging in such activities.This behavior of the company illustrates the straw man approach of:

Accepted Answer

A)   righteous moralist.
B)   cultural relativism.
C)   ethnocentrism.
D)   just distribution.
E)   cultural convergence.F) C) and D)
G) A) and E)

Question 19

The concept of _____ refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions,and that there should be a presumption in favor of decisions that have both good economic and social consequences.

Accepted Answer

A)   corporate dissonance
B)   class consciousness
C)   corporate dynamism
D)   social responsibility
E)   economies of scaleF) A) and D)
G) A) and B)

Question 20

Which of the following is a violation of ethics according to Kantian philosophy?

Accepted Answer

A)   Employing people to work at sweatshops
B)   Treating people as ends rather than as means
C)   Practicing superior standards of employment in the host country
D)   Empowering people with fundamental rights and privileges
E)   Treating employees as conscious moral beingsF) C) and E)
G) None of the above

Exam 5: Ethics in International Business

Discuss the environmental issues related to businesses operating in developing nations.

Correct Answer
verified
Ethical issues arise when environmental ...
View Answer

In a business setting,the term "noblesse oblige" refers to:

Correct Answer
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Which of the following statements is true of facilitating payments?

Correct Answer
verified

Correct Answer
verified

Leon Sullivan argued that it was ethically justified for Western businesses to operate in South Africa so long as the companies obeyed the apartheid laws.

Correct Answer
verified

_____ are the payments that are made to expedite routine government actions,and hence are also known as speed money or grease payments.

Correct Answer
verified

According to the concept of cultural relativism,a firm,while operating in any host country,should adopt the ethics of the culture that is predominant in its home country.

Correct Answer
verified

Which of the following is a violation of ethics according to Kantian philosophy?

Correct Answer
verified

Which of the following approaches to ethics helps to provide a moral compass to managers?

Correct Answer
verified

The term ethics refers to accepted principles of right or wrong that govern the conduct of a person,the members of a profession,or the actions of an organization.

Correct Answer
verified

Which of the following straw men approaches to business ethics is best summarized by the maxim "When in Rome,do as the Romans?"

Correct Answer
verified

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions:

Correct Answer
verified

Which of the following statements best brings out the nature of ethical dilemmas?

Correct Answer
verified

The concept of _____ refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions,and that there should be a presumption in favor of decisions that have both good economic and social consequences.

Correct Answer
verified

While making a business decision,a manager who believes in rights theories is most likely to focus on:

Correct Answer
verified

Adoption of which of the following ethical approaches is most likely to cause a company to use tools such as cost-benefit analysis and risk assessment to weigh all of the social benefits and costs of a business action?

Correct Answer
verified

Correct Answer
verified

Multinational corporations do not qualify to act as moral agents within the framework of rights theories.

Correct Answer
verified

Due to certain strict environmental and employment standards in its home nation,Taurus Inc.has shifted its operations to developing nations.Hence,the firm has now been able to gain competitive advantage by avoiding costly pollution controls.This strategic move of Taurus Inc.will be considered as:

Correct Answer
verified

In the modern world,corporations can contribute to the global tragedy of the commons by:

Correct Answer
verified

Exam 5: Ethics in International Business

Discuss the environmental issues related to businesses operating in developing nations.

Correct AnswerverifiedEthical issues arise when environmental ...View AnswerShow Answer

In a business setting,the term "noblesse oblige" refers to:

Correct AnswerverifiedShow Answer

Which of the following statements is true of facilitating payments?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Leon Sullivan argued that it was ethically justified for Western businesses to operate in South Africa so long as the companies obeyed the apartheid laws.

Correct AnswerverifiedShow Answer

_____ are the payments that are made to expedite routine government actions,and hence are also known as speed money or grease payments.

Correct AnswerverifiedShow Answer

According to the concept of cultural relativism,a firm,while operating in any host country,should adopt the ethics of the culture that is predominant in its home country.

Correct AnswerverifiedShow Answer

Which of the following is a violation of ethics according to Kantian philosophy?

Correct AnswerverifiedShow Answer

Which of the following approaches to ethics helps to provide a moral compass to managers?

Correct AnswerverifiedShow Answer

The term ethics refers to accepted principles of right or wrong that govern the conduct of a person,the members of a profession,or the actions of an organization.

Correct AnswerverifiedShow Answer

Which of the following straw men approaches to business ethics is best summarized by the maxim "When in Rome,do as the Romans?"

Correct AnswerverifiedShow Answer

The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions:

Correct AnswerverifiedShow Answer

Which of the following statements best brings out the nature of ethical dilemmas?

Correct AnswerverifiedShow Answer

The concept of _____ refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions,and that there should be a presumption in favor of decisions that have both good economic and social consequences.

Correct AnswerverifiedShow Answer

While making a business decision,a manager who believes in rights theories is most likely to focus on:

Correct AnswerverifiedShow Answer

Adoption of which of the following ethical approaches is most likely to cause a company to use tools such as cost-benefit analysis and risk assessment to weigh all of the social benefits and costs of a business action?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Multinational corporations do not qualify to act as moral agents within the framework of rights theories.

Correct AnswerverifiedShow Answer

Due to certain strict environmental and employment standards in its home nation,Taurus Inc.has shifted its operations to developing nations.Hence,the firm has now been able to gain competitive advantage by avoiding costly pollution controls.This strategic move of Taurus Inc.will be considered as:

Correct AnswerverifiedShow Answer

In the modern world,corporations can contribute to the global tragedy of the commons by:

Correct AnswerverifiedShow Answer

Correct Answer
verified
Ethical issues arise when environmental ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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