International Business, 14e (Daniels, et al) - Chapter 05

7/24/2019 International Business, 14e (Daniels, et al) - Chapter 05

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International Business, 14e (Daniels et al.)

Chapter 5 Globalization and Society

1) According to the text, which of the following has resulted from GE's Ecomagination initiative?A) rising profitability for many GE products) increasing doubt among GE's foreign partners

!) reducing investments by GE due to poor returns") improving pollution levels near GE plants in !hinaAnswer# A"iff# $%earning &utcome# "iscuss the role of ethics and social responsibility in international business(ill# !oncept&bective# *

$) General Electric has focused on being more +green+ in recent years most li(ely because -A) the industry has always loo(ed to GE as a trend setter in green technology) GE executives believe the firm can strategically align investor and environmental interests

!) GE executives reali.e that the firm can save significant money through the use of solar technology") the /-- government has decided to use GE as a test case to see if the adoption of the 0yoto rotocolcan actually wor( for a /-- firmAnswer# "iff# 2%earning &utcome# "iscuss the role of ethics and social responsibility in international business(ill# !oncept&bective# 2

2) 3hich of the following statements about GE and its +Green is Green+ movement is true?A) GE is responding in part to the fact that it is operating in many countries which re4uire compliance

with higher environmental standards than exist in the /nited tates-) GE has decided to develop new products that are environmentally friendly rather than adopt internalpolicies to reduce greenhouse gas emissions-!) GE has moved aggressively to reduce greenhouse gas usage internally but has not been able todevelop commercially viable +clean+ technologies-") GE considered oining the /-- !limate Action artnership but decided the group was too radical inits approach to reducing greenhouse gas emissions-Answer# A"iff# 2%earning &utcome# "iscuss the role of ethics and social responsibility in international business(ill# !oncept

&bective# 2AA!# "ynamics of the global economy

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*) 3hich of the following is 5&6 a (ey sta(eholder group that a company must wor( to satisfy in orderto survive in a global environment?A) employees) competitors!) shareholders") customersAnswer#

"iff# $(ill# !oncept&bective# 1

7) 3hich sta(eholder group primarily wants additional sales and increased productivity?A) customers) shareholders!) society at large") governmentAnswer# "iff# $

(ill# !oncept&bective# 1

8) 3hich sta(eholder group is most interested in trustworthy behavior by corporate executives andincreased corporate taxes?A) shareholders) society!) employees") customersAnswer# "iff# $


9) 3hich of the following statements is most li(ely true regarding relationships between :5Es andsta(eholders?A) An :5E typically serves all sta(eholder groups e4ually at any given time-) 5o individual sta(eholder group is powerful enough to cause the demise of an :5E-!) All sta(eholders of an :5E have the same short;term and long;term goals and interests-") 6he inability to ade4uately meet the long;term needs of all sta(eholders increases the probability ofan :5E failing-Answer# "

"iff# 2%earning &utcome# "efine the fundamental concepts of international business(ill# Application&bective# 1

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1$) According to the teleological approach, individuals base moral decisions on -A) personal and social responsibilities) conse4uences of an action!) cultural value systems") opinions of peersAnswer# "iff# $


12) 3hich of the following most li(ely complicates ethical behavior for firms that expand overseas?A) local laws and values) expatriate management!) unstable financial settings") international codes of conductAnswer# A"iff# $%earning &utcome# Explain how differences in culture affect the international business environment

(ill# !oncept&bective# 1AA!# "ynamics of the global economy

1*) 3hich of the following is a primary business obective for pursuing ethical behavior?A) avoiding industrial sanctions) developing competitive advantages!) developing creative advertisements") discouraging false commitments to the firmAnswer# "iff# $

(ill# !oncept&bective# 1AA!# Ethical understanding and reasoning abilities

17) 3hich of the following is a primary business obective for pursuing ethical behavior?A) replacing home;country technology with host;country technology) minimi.ing federal investigations into corporate finances!) avoiding being perceived as a socially irresponsible firm") imposing home;country behavior on the host countryAnswer# !"iff# $

(ill# !oncept&bective# 1AA!# Ethical understanding and reasoning abilities

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18) Encouraging ethical behavior for the purpose of developing competitive advantages will most li(elyresult in all of the following for a firm E>!E6 -A) strategic accomplishment) consumer commitment!) industry resolutions") financial successAnswer# !

"iff# $%earning &utcome# "iscuss the role of ethics and social responsibility in international business(ill# !oncept&bective# 1AA!# Ethical understanding and reasoning abilities

19) antam Enterprises, a multi;national enterprise, ma(es significant efforts to avoid being perceivedas socially irresponsible- 3hat is the most li(ely reason for this?A) ocial irresponsibility can lead to labor stri(es by international unions-) ocially irresponsible companies usually have fewer exports and more imports-!) !ultural barriers increase for companies that are socially irresponsible, which hinders expansion into

additional countries-") ocial irresponsibility can lead to negative publicity from nongovernmental organi.ations, whichcould hurt a company's reputation-Answer# ""iff# 2%earning &utcome# "iscuss the role of ethics and social responsibility in international business(ill# Application&bective# 1AA!# Ethical understanding and reasoning abilities

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AA!# Ethical understanding and reasoning abilities

$) 6he belief that there are universal standards of behavior that all cultures should follow is called-A) humanism) relativism!) normativism

") naturalismAnswer# !"iff# 1(ill# !oncept&bective# $AA!# Ethical understanding and reasoning abilities

$1) A manager who refuses to bribe customs officials in a foreign country, even though it is morallyacceptable in that country, is most li(ely to believe in which of the following perspectives on ethics?A) relativism) normativism

!) humanism") existentialismAnswer# "iff# $(ill# Application&bective# $AA!# Ethical understanding and reasoning abilities

$$) 3hy is the argument that +anything legal is ethical+ most li(ely insufficient?A) Everything that is unethical is also illegal-) 6he law is an extremely efficient way to solve ethical dilemmas-

!) %aws are fre4uently based on imprecisely defined moral concepts-") %aws can never be changed thus, rules for all possible ethical dilemmas are found in the law-Answer# !"iff# 2(ill# !oncept&bective# $AA!# Ethical understanding and reasoning abilities

$2) 3hich of the following is a reason for an :5E to base its standards for ethical behavior on acountry's laws?A) 6he law embodies many of a country's moral beliefs but is an inade4uate guide for proper conduct-

) 6he law contains unenforceable rules that are impossible for society to follow-!) 6he law represents a consensus derived from significant deliberation-") 6he law is based on precisely defined moral concepts-Answer# !"iff# 2%earning &utcome# "iscuss the role of ethics and social responsibility in international business(ill# !oncept&bective# $AA!# Ethical understanding and reasoning abilities

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$*) An advocate of the legal;ustification standard would most li(ely assert that the law -A) develops slowly in response to evolving societal dilemmas) protects business activities that are unethical but not illegal!) contains enforceable rules that apply to everyone") offers necessary moral flexibility for a societyAnswer# !"iff# 2

(ill# Application&bective# $

$7) 3hich of the following is an example of extraterritoriality?A) a /-- subsidiary operating in !hina that is forced to follow some /-- laws, even though !hina hasno comparable laws) a /-- sweatshop operating in 6hailand that does not follow /-- labor laws but allows children towor( 8 hours a wee(!) an :5E manager who, after wor(ing in the host country, tries to implement foreign practices in thehome;country office") a ritish subsidiary operating in @ndonesia that maintains the same health and safety standards for its

foreign factories that are re4uired in Great ritain, even though the ritish government does not re4uireit to use those standardsAnswer# A"iff# 2(ill# Application&bective# $AA!# Beflective thin(ing s(ills

$8) A government that enforces its own laws on foreign subsidiaries of its domestic companies practices-A) civil law

) relativism!) externality") extraterritorialityAnswer# ""iff# 1(ill# !oncept&bective# $AA!# Ethical understanding and reasoning abilities

$9) 3hat is the primary argument against extraterritoriality?A) increases opportunities for corporate bribery

) contradicts demands for increased globali.ation!) re4uires oversight by nongovernmental organi.ations") prohibits firms from expanding into foreign territoriesAnswer# "iff# 2%earning &utcome# "iscuss the role of ethics and social responsibility in international business(ill# !oncept&bective# $

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International Business, 14e (Daniels, et al) - Chapter 05