Question 1

The type of firm that conforms to local customs and ethics, assuming that the ethical standards of the host country are adequate and appropriate refers to which global type?

Accepted Answer

A)   empire type
B)   foreign county type
C)   interconnection type
D)   global typeE) A) and D)
F) B) and D)

Question 2

In Ethical Imperialism, an MNC:

Accepted Answer

A)   mixes home and host country ethical standards.
B)   follows its home country's ethical standards even while operating in another country.
C)   follows its host country's ethical standards.
D)   None of the above.E) A) and D)
F) A) and B)

Question 3

The Union Carbide accident in Bhopal has led many MNCs to analyze not only how they operate abroad, but also whether to operate abroad at all.

Accepted Answer

A) True 
 B)False

Question 4

Concerning the infant-formula controversy, the main reason for INFACT and ICCR's leading a boycott against Nestlé was that

Accepted Answer

A)   increased bottle-feeding led to decreased breast-feeding.
B)   Nestlé employed questionable marketing practices in promoting the formula.
C)   the LDC's companies were losing money on their own infant formulas.
D)   most of the LDCs did not have refrigeration.E) A) and C)
F) B) and C)

Question 5

According to some experts, the most recent (1980-Present) eras in the trend toward the internationalization of business is called the new international order.

Accepted Answer

A) True 
 B)False

Question 6

According to the distinction in the text between bribes and grease payments, which of the following would best illustrate a grease payment?

Accepted Answer

A)   An advertising agency gives money to a car manufacturer so that the latter brings in business.
B)   A chemical company gives money to a potential buyer to convince the latter to buy this company's chemicals.
C)   The manager in charge of an emergency shipment of medical supplies gives money to a dock official to expedite the unloading and delivery of the supplies.
D)   Company A gives money to Company B as a "bonus" if the latter signs a contract with the former.E) B) and D)
F) C) and D)

Question 7

Ethical impact statements for MNCs

Accepted Answer

A)   guide a corporation in how to treat its host-country employees.
B)   analyze the effect of an organization's operations on the public well being.
C)   are prepared by residents of a MNC's host country.
D)   attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions.E) A) and D)
F) All of the above

Question 8

The Ethical Trading Action Group (ETAG) is a Canadian anti-sweatshop coalition.

Accepted Answer

A) True 
 B)False

Question 9

During the infant formula controversy, Nestlé had been giving gifts to health professionals to encourage them to promote infant formula.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following was not true of the Union Carbide accident in Bhopal?

Accepted Answer

A)   Thousands of people lived very near the plant.
B)   There were no evacuation procedures for residents.
C)   The Union Carbide Bhopal plant had not been inspected in over two years.
D)   The Bhopal plant adequately met U.S. standards for plant safety.E) A) and B)
F) A) and C)

Question 11

Which of the following statements is not true of the Nestlé infant formula controversy?

Accepted Answer

A)   Water supplies in the LDCs were not pure.
B)   Some LDCs did not have refrigeration.
C)   Mothers in LDCs often substituted less expensive products for the infant formula.
D)   As soon as the newspaper articles concerning its practices singled out Nestlé, it ceased its questionable marketing practices.E) B) and C)
F) A) and D)

Question 12

Which of the following is a Canadian Multinational corporation?

Accepted Answer

A)   Nortel
B)   Bombardier
C)   Bata
D)   All of the aboveE) None of the above
F) A) and B)

Question 13

A multinational corporation must bear pressures to meet the standards and practices of its home country as well as the often differing standards and practices of its host country.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following was cited as an argument against bribery?

Accepted Answer

A)   Everybody does it--it will happen anyway.
B)   Such demands, once started, never stop.
C)   Bribes are forms of commissions, taxes, or compensation for conducting business between cultures.
D)   It is necessary in order to do business.E) None of the above
F) A) and D)

Question 15

A multinational corporation has one or more subsidiaries in countries other than its home country.

Accepted Answer

A) True 
 B)False

Question 16

Global business ethics can be considered as a simple extension of North American business practices.

Accepted Answer

A) True 
 B)False

Question 17

North American firms operating in less developed countries have not attracted much attention since these operations are usually fairly small in scale.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not included in Richard DeGeorge's seven moral guidelines for MNC international operations?

Accepted Answer

A)   MNCs should do no intentional direct harm.
B)   MNCs should pay extra taxes since they generate more money than most of the local companies in the host country.
C)   MNCs should produce more good than bad for the host country.
D)   MNCs should cooperate with the local government in the development and enforcement of just background institutions (e.g., tax system, health and safety standards, etc.) .E) A) and B)
F) None of the above

Question 19

A number of MNCs, such as Johnson's Wax, Allis Chalmers, Rexnord, and Caterpillar Tractor Co. have developed and employed their own

Accepted Answer

A)   global whistle-blowing mechanisms.
B)   versions of the Sullivan Principles.
C)   stakeholder assessment methodologies (SAM) .
D)   global codes of conduct.E) A) and D)
F) A) and C)

Question 20

Which of the following is least likely to pose a problem in terms of MNCs achieving legitimacy?

Accepted Answer

A)   differences in lifestyles of the managers of the two countries
B)   different monetary currencies of the two countries
C)   differences in interests of the MNC and the host country
D)   majority ownership of MNCs by localsE) C) and D)
F) None of the above

Exam 9: Ethical Issues in the Global Arena

Which of the following was not true of the Union Carbide accident in Bhopal?

Correct AnswerverifiedShow Answer

Which of the following is least likely to pose a problem in terms of MNCs achieving legitimacy?

Correct AnswerverifiedShow Answer

A multinational corporation has one or more subsidiaries in countries other than its home country.

Correct AnswerverifiedShow Answer

During the infant formula controversy, Nestlé had been giving gifts to health professionals to encourage them to promote infant formula.

Correct AnswerverifiedShow Answer

In Ethical Imperialism, an MNC:

Correct AnswerverifiedShow Answer

Which of the following is not included in Richard DeGeorge's seven moral guidelines for MNC international operations?

Correct AnswerverifiedShow Answer

Which of the following was cited as an argument against bribery?

Correct AnswerverifiedShow Answer

Ethical impact statements for MNCs

Correct AnswerverifiedShow Answer

A number of MNCs, such as Johnson's Wax, Allis Chalmers, Rexnord, and Caterpillar Tractor Co. have developed and employed their own

Correct AnswerverifiedShow Answer

The Ethical Trading Action Group (ETAG) is a Canadian anti-sweatshop coalition.

Correct AnswerverifiedShow Answer

North American firms operating in less developed countries have not attracted much attention since these operations are usually fairly small in scale.

Correct AnswerverifiedShow Answer

The Union Carbide accident in Bhopal has led many MNCs to analyze not only how they operate abroad, but also whether to operate abroad at all.

Correct AnswerverifiedShow Answer

The type of firm that conforms to local customs and ethics, assuming that the ethical standards of the host country are adequate and appropriate refers to which global type?

Correct AnswerverifiedShow Answer

Which of the following statements is not true of the Nestlé infant formula controversy?

Correct AnswerverifiedShow Answer

Which of the following is a Canadian Multinational corporation?

Correct AnswerverifiedShow Answer

A multinational corporation must bear pressures to meet the standards and practices of its home country as well as the often differing standards and practices of its host country.

Correct AnswerverifiedShow Answer

Concerning the infant-formula controversy, the main reason for INFACT and ICCR's leading a boycott against Nestlé was that

Correct AnswerverifiedShow Answer

According to the distinction in the text between bribes and grease payments, which of the following would best illustrate a grease payment?

Correct AnswerverifiedShow Answer

Global business ethics can be considered as a simple extension of North American business practices.

Correct AnswerverifiedShow Answer

According to some experts, the most recent (1980-Present) eras in the trend toward the internationalization of business is called the new international order.

Correct AnswerverifiedShow Answer

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