Question 1

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly,relative to the amount of work expended in production?

Accepted Answer

A)  Rational economics
B)  Socialism
C)  Capitalism
D)  Rational capitalism
E)  Fascism

Question 2

Who argued during the 193s that the state could stimulate economic growth and improve stability in the private sector?

Accepted Answer

A)  Adam Smith
B)  John Maynard Keynes
C)  Milton Friedman
D)  Herbert Hoover
E)  Geert Hofstede

Question 3

Which of the following is not a criticism of or charge against multinational corporations (MNCs) ?

Accepted Answer

A)  They transfer jobs overseas, where wage rates are lower
B)  They increase the gap between rich and poor nations
C)  They usually avoid paying any taxes
D)  They exploit the labor markets of host countries
E)  They have an unfair advantage when competing with local businesses

Question 4

How can differences in two countries' cultures create ethical issues in business?

Accepted Answer

National culture is a much broader concept than organizational culture and includes everything in our surroundings made by people-both tangible items,such as artifacts,and intangible entities,such as concepts and values.Language,law,politics,technology,education,social organizations,general values,and ethical standards are all included within this definition.Each nation contains unique cultures and distinctive beliefs about what business activities are acceptable or unethical.Subcultures also exist within many nations,ethnic groups,and religious groups.Therefore,when transacting international business,individuals encounter values,beliefs,and ideas that may diverge from their own.When someone from another culture mentions "integrity" or "democracy," many Americans might feel confident that these are familiar concepts.However,these concepts mean different things to different people,depending on their culture.Moreover,you must keep in mind that organizational culture is different from national culture,though often organizational cultures are derived from-and influenced by-national cultures.

Question 5

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices,which do not cover the costs of exporting,is known as

Accepted Answer

A)  price discrimination.
B)  price gouging.
C)  dumping.
D)  skimming.
E)  loading.

Question 6

What is the purpose of the UN Global Compact?

Accepted Answer

A)  To promote free trade around the world
B)  To support international banking institutions
C)  To uphold the principle of consumerism
D)  To provide legal representation to international corporations facing lawsuits
E)  To promote human rights, sustainability, and eradicate corruption

Question 7

The benefit of healthcare is being debated as to whether it is a right or privilege.Which of the following countries does not consider health care to be a right?

Accepted Answer

A)  The United States
B)  France
C)  Sweden
D)  Germany
E)  Canada

Question 8

_____ involves transactions across national boundaries.It is a practice that brings together people who have different cultures,values,laws,and ethical standards.

Accepted Answer

A)  Global business
B)  Country cultural values
C)  Social democracy
D)  Cultural relativism
E)  Bimodal wealth distribution

Question 9

The _____ was a result of a meeting in which international leaders decided that primary responsibility for the regulation of monetary relationships among nations should rest in an external body.

Accepted Answer

A)  United Nations
B)  North American Free Trade Agreement
C)  World Trade Agreement
D)  World Bank
E)  International Monetary Fund

Question 10

What is a major role of the International Monetary Fund (IMF) ?

Accepted Answer

A)  It determines the credit ratings of countries.
B)  It is the lender of last resort for individuals who cannot secure other types of loans.
C)  It functions as a collection agent for global banks.
D)  It makes short-term loans to member countries that have deficits and provides foreign currencies for its members.
E)  It provides mortgage loans to international home buyers.

Question 11

When in Rome,do as the Romans do,or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad.This practice is called

Accepted Answer

A)  the self-reference criterion.
B)  country cultural values.
C)  consumerism.
D)  cultural relativism.
E)  dumping.

Question 12

The _____ formed in 1995 and administers its own trade agreements,facilitates future trade negotiations,settles trade disputes,and monitors the trade policies of member nations

Accepted Answer

A)  International Monetary Fund
B)  United Nations
C)  World Trade Organization
D)  North American Free Trade Act
E)  European Union

Question 13

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

Accepted Answer

A)  Levying import taxes to lower the prices MNCs charge for their products
B)  Imposing bribes against MNCs so they have to operate unethically
C)  Forcing MNCs to adopt less efficient technology
D)  Preventing the formation of labor unions
E)  Imposing export taxes to force MNCs to share more of their profits E

Question 14

_____ assumes that economic decisions are influenced by human behavior.

Accepted Answer

A)  Rational economics
B)  Socialism
C)  Capitalism
D)  Rational capitalism
E)  Behavioral economics

Question 15

Behavioral economics assumes that humans act independently on the basis of full and relevant information.?

Accepted Answer

A) True 
 B)False

Question 16

Power distance dimension refers to the "power inequality" between superiors and subordinates.Which of the following countries probably ranks high on the power distance scale?

Accepted Answer

A)  Saudi Arabia
B)  Austria
C)  England
D)  Denmark
E)  Sweden

Question 17

_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium.It is also known as the "invisible hand."

Accepted Answer

A)  Consumerism
B)  Cultural relativism
C)  Social democracy
D)  Laissez-fair
E)  Bimodal wealth distribution D

Question 18

Which of the following is not an article in the UN Human Rights Declaration?

Accepted Answer

A)  Freedom of religion
B)  The right to work in favorable conditions
C)  The right to electricity and running water
D)  The right to a home adequate for health and well-being
E)  Mothers and children being entitled to a special level of care

Question 19

It is not uncommon for the revenues of multinational companies to surpass the GDP of entire countries.

Accepted Answer

A) True 
 B)False

Question 20

Why might vertical systems be a business ethics issue? ?

Accepted Answer

A)  They can result in lower wages for factory workers.
B)  They can increase consumerism and planned obsolescence.
C)  They can result in a channel member having too much control.
D)  They cut out the need for retailers and wholesalers.
E)  They threaten the existence of large multinational corporations.

Exam 1: Globalization of Ethical Decision Making

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly,relative to the amount of work expended in production?

Correct Answer
verified

Who argued during the 193s that the state could stimulate economic growth and improve stability in the private sector?

Correct Answer
verified

Which of the following is not a criticism of or charge against multinational corporations (MNCs) ?

Correct Answer
verified

How can differences in two countries' cultures create ethical issues in business?

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices,which do not cover the costs of exporting,is known as

Correct Answer
verified

What is the purpose of the UN Global Compact?

Correct Answer
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The benefit of healthcare is being debated as to whether it is a right or privilege.Which of the following countries does not consider health care to be a right?

Correct Answer
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_____ involves transactions across national boundaries.It is a practice that brings together people who have different cultures,values,laws,and ethical standards.

Correct Answer
verified

The _____ was a result of a meeting in which international leaders decided that primary responsibility for the regulation of monetary relationships among nations should rest in an external body.

Correct Answer
verified

What is a major role of the International Monetary Fund (IMF) ?

Correct Answer
verified

When in Rome,do as the Romans do,or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad.This practice is called

Correct Answer
verified

The _____ formed in 1995 and administers its own trade agreements,facilitates future trade negotiations,settles trade disputes,and monitors the trade policies of member nations

Correct Answer
verified

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

Correct Answer
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E

_____ assumes that economic decisions are influenced by human behavior.

Correct Answer
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Behavioral economics assumes that humans act independently on the basis of full and relevant information.?

Correct Answer
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Power distance dimension refers to the "power inequality" between superiors and subordinates.Which of the following countries probably ranks high on the power distance scale?

Correct Answer
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_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium.It is also known as the "invisible hand."

Correct Answer
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D

Which of the following is not an article in the UN Human Rights Declaration?

Correct Answer
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It is not uncommon for the revenues of multinational companies to surpass the GDP of entire countries.

Correct Answer
verified

Why might vertical systems be a business ethics issue? ?

Correct Answer
verified

Exam 1: Globalization of Ethical Decision Making

What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly,relative to the amount of work expended in production?

Correct AnswerverifiedShow Answer

Who argued during the 193s that the state could stimulate economic growth and improve stability in the private sector?

Correct AnswerverifiedShow Answer

Which of the following is not a criticism of or charge against multinational corporations (MNCs) ?

Correct AnswerverifiedShow Answer

How can differences in two countries' cultures create ethical issues in business?

The practice of charging high prices for products sold in home markets while selling the same products in foreign markets at low prices,which do not cover the costs of exporting,is known as

Correct AnswerverifiedShow Answer

What is the purpose of the UN Global Compact?

Correct AnswerverifiedShow Answer

The benefit of healthcare is being debated as to whether it is a right or privilege.Which of the following countries does not consider health care to be a right?

Correct AnswerverifiedShow Answer

_____ involves transactions across national boundaries.It is a practice that brings together people who have different cultures,values,laws,and ethical standards.

Correct AnswerverifiedShow Answer

The _____ was a result of a meeting in which international leaders decided that primary responsibility for the regulation of monetary relationships among nations should rest in an external body.

Correct AnswerverifiedShow Answer

What is a major role of the International Monetary Fund (IMF) ?

Correct AnswerverifiedShow Answer

When in Rome,do as the Romans do,or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad.This practice is called

Correct AnswerverifiedShow Answer

The _____ formed in 1995 and administers its own trade agreements,facilitates future trade negotiations,settles trade disputes,and monitors the trade policies of member nations

Correct AnswerverifiedShow Answer

Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?

Correct AnswerverifiedE

_____ assumes that economic decisions are influenced by human behavior.

Correct AnswerverifiedShow Answer

Behavioral economics assumes that humans act independently on the basis of full and relevant information.?

Correct AnswerverifiedShow Answer

Power distance dimension refers to the "power inequality" between superiors and subordinates.Which of the following countries probably ranks high on the power distance scale?

Correct AnswerverifiedShow Answer

_____ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium.It is also known as the "invisible hand."

Correct AnswerverifiedD

Which of the following is not an article in the UN Human Rights Declaration?

Correct AnswerverifiedShow Answer

It is not uncommon for the revenues of multinational companies to surpass the GDP of entire countries.

Correct AnswerverifiedShow Answer

Why might vertical systems be a business ethics issue? ?

Correct AnswerverifiedShow Answer

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E

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D

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