Question 1

Discuss the United Nation's efforts to promote MNC social responsibility and to harness FDI for economic development.

Accepted Answer

The single most conspicuous effort to promote MNC social responsibility and to harness FDI for economic development is the Global Compact.It started in 2000 when UN Secretary-General Kofi Annan challenged leaders of global corporations to collaborate with UN agencies,labor unions,NGOs,and governments in embracing a set of "universal values." The Global Compact is administered by an office housed in the United Nations Secretariat.Participation by all parties is voluntary.Its central purposes are to (1)promote responsible corporate behavior that (2)advances central UN goals such as world peace,protection of human rights,poverty reduction,and sustainable markets.

Question 2

All of the following are a part of global production EXCEPT:

Accepted Answer

A)  research. 
B)  distribution. 
C)  logistics. 
D)  portfolio investment. 
A)  research. 
B)  distribution. 
C)  logistics. 
D)  portfolio investment. D

Question 3

Explain what is meant by foreign direct investment.

Accepted Answer

The single measure that best captures the activity and power of MNCs is the amount of capital they inject into foreign economies.This capital is called foreign direct investment.It is measured as the dollar value of funds invested by a parent corporation for starting,acquiring,or expanding an enterprise in a foreign nation.

Question 4

Which of the following is a negative economic effect of FDI?

Accepted Answer

A)  Governments protect politically powerful industries with characteristic control. 
B)  MNCs in manufacturing are accused of exploiting factory workers. 
C)  Although competition from a new foreign affiliate can stimulate local firms,the new entry can also overwhelm them. 
D)  Multinational corporations are criticized for repatriating profits to host countries,so that local residents get limited benefit from their presence. 
A)  Governments protect politically powerful industries with characteristic control. 
B)  MNCs in manufacturing are accused of exploiting factory workers. 
C)  Although competition from a new foreign affiliate can stimulate local firms,the new entry can also overwhelm them. 
D)  Multinational corporations are criticized for repatriating profits to host countries,so that local residents get limited benefit from their presence.

Question 5

Business groups say that the Alien Tort Claims Act:

Accepted Answer

A)  brings justice for the oppressed. 
B)  victimizes the world's poor "by imposing an enormous tax on investment in developing countries at a time the world desperately needs such investment." 
C)  will restrict U.S.officials from going to different corners of the globe and exploiting the local populations. 
D)  gives "people in foreign countries comfort that U.S.corporations will abide by international standards." 
A)  brings justice for the oppressed. 
B)  victimizes the world's poor "by imposing an enormous tax on investment in developing countries at a time the world desperately needs such investment." 
C)  will restrict U.S.officials from going to different corners of the globe and exploiting the local populations. 
D)  gives "people in foreign countries comfort that U.S.corporations will abide by international standards."

Question 6

Which of the following statements about portfolio investments is true?

Accepted Answer

A)  It is measured as the dollar value of funds invested by a parent corporation. 
B)  It is limited and speculative. 
C)  It confers a degree of control over the company. 
D)  It is a long-term investment that cannot be sold anytime. 
A)  It is measured as the dollar value of funds invested by a parent corporation. 
B)  It is limited and speculative. 
C)  It confers a degree of control over the company. 
D)  It is a long-term investment that cannot be sold anytime.

Question 7

Which of the following is NOT one of the three most common reasons for corporations to make foreign direct investments?

Accepted Answer

A)  They seek access to new markets. 
B)  They seek to introduce new management skills and technologies to foreign markets. 
C)  Companies in nations with small domestic markets enter foreign markets to grow. 
D)  Some companies create efficiencies and lower their costs by moving production across borders. 
A)  They seek access to new markets. 
B)  They seek to introduce new management skills and technologies to foreign markets. 
C)  Companies in nations with small domestic markets enter foreign markets to grow. 
D)  Some companies create efficiencies and lower their costs by moving production across borders.

Question 8

These are aspirational statements of principles,policies,and rules for foreign operations that a multinational corporation voluntarily agrees to follow.

Accepted Answer

A)  Industrial codes of conduct 
B)  Professional codes of conduct 
C)  International codes of conduct 
D)  Corporate codes of conduct 
A)  Industrial codes of conduct 
B)  Professional codes of conduct 
C)  International codes of conduct 
D)  Corporate codes of conduct

Question 9

Principle 9 of the Global Compact Principles urges a precautionary approach to environmental risks,a philosophy rising from the _____ and accepted by regulators in Europe,but less so in the United States.

Accepted Answer

A)  Earth Summit 
B)  Convention on Biological Diversity 
C)  Earth Charter 
D)  Rio Declaration 
A)  Earth Summit 
B)  Convention on Biological Diversity 
C)  Earth Charter 
D)  Rio Declaration

Question 10

What is the Rio Declaration?

Accepted Answer

The Rio Declaration is a set o

Question 11

Sometimes those using the name multinational mean to imply that these companies have erased national allegiances,becoming itinerant firms that move investment and activity from nation to nation in search of profits.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the OECD Guidelines for Multinational Enterprises.

Accepted Answer

The OECD Guidelines for Multinational En

Question 13

As MNCs moved into the fifth tier of internationalization,their strategic thinking was more influenced by national boundaries.

Accepted Answer

A) True 
 B)False

Question 14

Each of the five tiers of internationalization is seen as all of the following EXCEPT:

Accepted Answer

A)  a theory. 
B)  an ideal. 
C)  a model. 
D)  a policy. 
A)  a theory. 
B)  an ideal. 
C)  a model. 
D)  a policy.

Question 15

This is a part of the tiers of internationalization.

Accepted Answer

A)  Indirect investments 
B)  Establishment of foreign sales offices 
C)  Portfolio investment 
D)  Importing essential goods 
A)  Indirect investments 
B)  Establishment of foreign sales offices 
C)  Portfolio investment 
D)  Importing essential goods

Question 16

The primary motive of companies investing in LDCs is getting an adequate return on capital invested.

Accepted Answer

A) True 
 B)False

Question 17

Most multinational corporations (MNCs)are:

Accepted Answer

A)  public enterprises. 
B)  state-owned. 
C)  cooperatives. 
D)  private enterprises. 
A)  public enterprises. 
B)  state-owned. 
C)  cooperatives. 
D)  private enterprises.

Question 18

This is the financial process by which a corporation takes partial or total control of foreign assets with the intention of having a long-term presence.

Accepted Answer

A)  TPI 
B)  Indirect investment 
C)  Portfolio investment 
D)  FDI 
A)  TPI 
B)  Indirect investment 
C)  Portfolio investment 
D)  FDI

Question 19

Which of the following is a less preferred name,compared to the others,for a multinational corporation?

Accepted Answer

A)  Global 
B)  Multidomestic 
C)  Transnational 
D)  International 
A)  Global 
B)  Multidomestic 
C)  Transnational 
D)  International

Question 20

What was the original intent of the 1789 Alien Tort Claims Act?

Accepted Answer

A)  To make it illegal for U.S.citizens anywhere in the world to bribe foreign officials. 
B)  To set criminal penalties in abetting the overthrow of the U.S.government. 
C)  To protect the United States from enemy aliens. 
D)  To protect the rights of ambassadors and to try pirates. 
A)  To make it illegal for U.S.citizens anywhere in the world to bribe foreign officials. 
B)  To set criminal penalties in abetting the overthrow of the U.S.government. 
C)  To protect the United States from enemy aliens. 
D)  To protect the rights of ambassadors and to try pirates.

Discuss the United Nation's efforts to promote MNC social responsibility and to harness FDI for economic development.

All of the following are a part of global production EXCEPT:

Explain what is meant by foreign direct investment.

Which of the following is a negative economic effect of FDI?

Business groups say that the Alien Tort Claims Act:

Which of the following statements about portfolio investments is true?

Which of the following is NOT one of the three most common reasons for corporations to make foreign direct investments?

These are aspirational statements of principles,policies,and rules for foreign operations that a multinational corporation voluntarily agrees to follow.

Principle 9 of the Global Compact Principles urges a precautionary approach to environmental risks,a philosophy rising from the _____ and accepted by regulators in Europe,but less so in the United States.

What is the Rio Declaration?

Sometimes those using the name multinational mean to imply that these companies have erased national allegiances,becoming itinerant firms that move investment and activity from nation to nation in search of profits.

Discuss the OECD Guidelines for Multinational Enterprises.

As MNCs moved into the fifth tier of internationalization,their strategic thinking was more influenced by national boundaries.

Each of the five tiers of internationalization is seen as all of the following EXCEPT:

This is a part of the tiers of internationalization.

The primary motive of companies investing in LDCs is getting an adequate return on capital invested.

Most multinational corporations (MNCs)are:

This is the financial process by which a corporation takes partial or total control of foreign assets with the intention of having a long-term presence.

Which of the following is a less preferred name,compared to the others,for a multinational corporation?

What was the original intent of the 1789 Alien Tort Claims Act?

The Study of Business, Government, and Society

The Dynamic Environment

Business Power

Critics of Business

Corporate Social Responsibility

Implementing Corporate Social Responsibility

Business Ethics

Making Ethical Decisions in Business

Business in Politics

Regulating Business

Globalization, Trade, and Corruption

Industrial Pollution and Environmental Regulation

Managing Environmental Quality

Consumerism

The Changing Workplace

Civil Rights, Women, and Diversity

Corporate Governance

Filters

Exam 11: Multinational Corporations

Discuss the United Nation's efforts to promote MNC social responsibility and to harness FDI for economic development.

All of the following are a part of global production EXCEPT:

Explain what is meant by foreign direct investment.

Which of the following is a negative economic effect of FDI?

Business groups say that the Alien Tort Claims Act:

Which of the following statements about portfolio investments is true?

Which of the following is NOT one of the three most common reasons for corporations to make foreign direct investments?

These are aspirational statements of principles,policies,and rules for foreign operations that a multinational corporation voluntarily agrees to follow.

Principle 9 of the Global Compact Principles urges a precautionary approach to environmental risks,a philosophy rising from the _____ and accepted by regulators in Europe,but less so in the United States.

What is the Rio Declaration?

Sometimes those using the name multinational mean to imply that these companies have erased national allegiances,becoming itinerant firms that move investment and activity from nation to nation in search of profits.

Discuss the OECD Guidelines for Multinational Enterprises.

As MNCs moved into the fifth tier of internationalization,their strategic thinking was more influenced by national boundaries.

Each of the five tiers of internationalization is seen as all of the following EXCEPT:

This is a part of the tiers of internationalization.

The primary motive of companies investing in LDCs is getting an adequate return on capital invested.

Most multinational corporations (MNCs)are:

This is the financial process by which a corporation takes partial or total control of foreign assets with the intention of having a long-term presence.

Which of the following is a less preferred name,compared to the others,for a multinational corporation?

What was the original intent of the 1789 Alien Tort Claims Act?

The Study of Business, Government, and Society

The Dynamic Environment

Business Power

Critics of Business

Corporate Social Responsibility

Implementing Corporate Social Responsibility

Business Ethics

Making Ethical Decisions in Business

Business in Politics

Regulating Business

Globalization, Trade, and Corruption

Industrial Pollution and Environmental Regulation

Managing Environmental Quality

Consumerism

The Changing Workplace

Civil Rights, Women, and Diversity

Corporate Governance

Filters