Question 1

What is ethical compliance? How can global firms improve the ethical compliance of their employees?

Accepted Answer

The answer of What is ethical compliance? How can global...

Question 2

R.J. Reynolds' decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations is an example of which approach to social responsibility?

Accepted Answer

A)  the obstructionist stance 
B)  the defensive stance 
C)  the accommodative stance 
D)  the proactive stance

Question 3

Accepting gifts in a business relationship is unethical behavior in any country.

Accepted Answer

A) True 
 B)False

Question 4

Fruit juice suppliers in South America rely heavily on ________.

Accepted Answer

A)  elderly employees 
B)  child labor 
C)  female workers 
D)  illegal immigrant workers

Question 5

Jack always likes to place orders with Sam's Supply Company because the company sends him a gift certificate for $100 each holiday season. Which ethical issue is this an example of?

Accepted Answer

A)  conflict of interest 
B)  honesty 
C)  confidentiality 
D)  secrecy

Question 6

Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture.

Accepted Answer

A)  high-context 
B)  collectivist 
C)  low-context 
D)  power-respecting

Question 7

Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________.

Accepted Answer

A)  conflict of interest 
B)  strategic breakdown 
C)  breach of contract 
D)  trade violation

Question 8

The Anglo-Saxon approach focuses on cooperation between the state, the market, and civil society.

Accepted Answer

A) True 
 B)False

Question 9

According to the model developed by Rob van Tulder and Alex van der Zwart, which of the following best exhibits the cultural values of a nation's citizens?

Accepted Answer

A)  the state 
B)  the market 
C)  civil society 
D)  competitors

Question 10

Under the Foreign Corrupt Practices Act, American firms are permitted to pay bribes only in those countries where bribery is considered a normal part of business.

Accepted Answer

A) True 
 B)False

Question 11

How do organizations that are socially responsible treat their workers? What international organizations monitor the treatment of workers?

Accepted Answer

The answer of How do organizations that are socially responsible...

Question 12

An MNE with a factory in Cambodia is being inspected by the International Labor Organization. What is the most likely focus of the inspection?

Accepted Answer

A)  excessive corruption 
B)  customs procedures 
C)  environmental violations 
D)  safe working conditions

Question 13

Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions. Which ethical generalization does this most likely illustrate?

Accepted Answer

A)  Individuals have their personal belief systems. 
B)  Culture has the strongest influence on personal ethics. 
C)  Personal values rarely overlap with global business dealings. 
D)  Society requires individuals to rationalize ethical inconsistencies.

Question 14

Logix Manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sports organization. Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have?

Accepted Answer

A)  proactive 
B)  obstructionist 
C)  accommodative 
D)  defensive

Question 15

A company with an defensive stance to social responsibility will do everything that is required of it legally but nothing more.

Accepted Answer

A) True 
 B)False

Question 16

Jason completes company work at home on the weekends. He justifies taking office supplies home because of the company work he completes at home. Which ethical issue does this scenario relate to?

Accepted Answer

A)  conflict of interest 
B)  honesty 
C)  confidentiality 
D)  secrecy

Question 17

Companies can manage social responsibility using formal and informal tools.

Accepted Answer

A) True 
 B)False

Question 18

What constitutes ethical behavior varies from person to person.

Accepted Answer

A) True 
 B)False

Question 19

Gift exchanges in a business situation in Japan are best described as ________.

Accepted Answer

A)  common 
B)  trendy 
C)  rare 
D)  illegal

Question 20

Under the Anti-Bribery Convention of the Organization for Economic Cooperation and Development, those convicted of paying bribes do not face jail time, only fines.

Accepted Answer

A) True 
 B)False

Exam 5: Ethics and Social Responsibility in International Business

What is ethical compliance? How can global firms improve the ethical compliance of their employees?

R.J. Reynolds' decision to follow laws regarding the marketing of its products in the United States but market its tobacco aggressively in countries without such regulations is an example of which approach to social responsibility?

Accepting gifts in a business relationship is unethical behavior in any country.

Fruit juice suppliers in South America rely heavily on ________.

Jack always likes to place orders with Sam's Supply Company because the company sends him a gift certificate for $100 each holiday season. Which ethical issue is this an example of?

Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture.

Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________.

The Anglo-Saxon approach focuses on cooperation between the state, the market, and civil society.

According to the model developed by Rob van Tulder and Alex van der Zwart, which of the following best exhibits the cultural values of a nation's citizens?

Under the Foreign Corrupt Practices Act, American firms are permitted to pay bribes only in those countries where bribery is considered a normal part of business.

How do organizations that are socially responsible treat their workers? What international organizations monitor the treatment of workers?

An MNE with a factory in Cambodia is being inspected by the International Labor Organization. What is the most likely focus of the inspection?

Logix Manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sports organization. Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have?

A company with an defensive stance to social responsibility will do everything that is required of it legally but nothing more.

Jason completes company work at home on the weekends. He justifies taking office supplies home because of the company work he completes at home. Which ethical issue does this scenario relate to?

Companies can manage social responsibility using formal and informal tools.

What constitutes ethical behavior varies from person to person.

Gift exchanges in a business situation in Japan are best described as ________.

Under the Anti-Bribery Convention of the Organization for Economic Cooperation and Development, those convicted of paying bribes do not face jail time, only fines.