Question 1

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 2

_____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.

Accepted Answer

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

Question 3

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 4

Facilitation payments are not allowed under the Foreign Corrupt Practices Act. ​

Accepted Answer

A) True 
 B)False

Question 5

These values were developed by a reverend and the UN Secretary General. They express support for universal human rights.

Accepted Answer

A)  The Global Sullivan Principles
B)  Sarbanes-Oxley Act
C)  FSGO
D)  Global common values
E)  UN Global Compact A

Question 6

_____ 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 A

Question 7

How members of a society respond to uncertainty or ambiguity is referred to as

Accepted Answer

A)  rational economics
B)  cultural relativism.
C)  collectivism.
D)  power distance.
E)  uncertainty avoidance.

Question 8

What is the AACSB?

Accepted Answer

A)  A major international institution regulating banks around the world
B)  An accrediting institution for organizational ethics
C)  A non-political international governing body
D)  An international organization that promotes a set of principles promoting the teaching of responsible management in business schools
E)  A group that promotes sustainability and environmental awareness

Question 9

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

Accepted Answer

National culture is a much broader conce...

Question 10

_____ assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb.

Accepted Answer

A)  Rational economics
B)  Socialism
C)  Cultural relativism
D)  National culture
E)  Behavioral economics

Question 11

What activity has become a major global business ethics issue only recently?

Accepted Answer

A)  Antitrust activities
B)  Bribery
C)  Employee compensation
D)  Consumerism
E)  Hacking

Question 12

_____ 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

Question 13

The United Nations views business as a way to increase the economic outlook of countries. ​

Accepted Answer

A) True 
 B)False

Question 14

What is dumping and why is it considered anticompetitive? Does the United States allow dumping?

Accepted Answer

Dumping is the practice of charging high...

Question 15

Which two developing countries are expected to generate some of the largest increases in consumption in the future?

Accepted Answer

A)  The United States and Russia
B)  Russia and China
C)  China and United States
D)  Brazil and Russia
E)  China and India

Question 16

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.

Accepted Answer

A)  Milton Friedman
B)  Abraham Maslow
C)  Adam Smith
D)  Geert Hofstede
E)  John Maynard Keynes

Question 17

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

Accepted Answer

A) True 
 B)False

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

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.

Question 20

Which of the following tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools?

Accepted Answer

A)  ​Global Sullivan Principles
B)  ​UN Global Compact
C)  ​World Trade Organization
D)  ​Business for Social Responsibility
E)  ​Bretton Woods agreement D

Exam 10: Globalization of Ethical Decision Making

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

_____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Facilitation payments are not allowed under the Foreign Corrupt Practices Act. ​

Correct AnswerverifiedShow Answer

These values were developed by a reverend and the UN Secretary General. They express support for universal human rights.

Correct AnswerverifiedA

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

Correct AnswerverifiedA

How members of a society respond to uncertainty or ambiguity is referred to as

Correct AnswerverifiedShow Answer

What is the AACSB?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedNational culture is a much broader conce...View AnswerShow Answer

_____ assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb.

Correct AnswerverifiedShow Answer

What activity has become a major global business ethics issue only recently?

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 AnswerverifiedShow Answer

The United Nations views business as a way to increase the economic outlook of countries. ​

Correct AnswerverifiedShow Answer

What is dumping and why is it considered anticompetitive? Does the United States allow dumping?

Correct AnswerverifiedDumping is the practice of charging high...View AnswerShow Answer

Which two developing countries are expected to generate some of the largest increases in consumption in the future?

Correct AnswerverifiedShow Answer

_____ identified four cultural dimensions that can have a profound impact on the business environment: individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Why might vertical systems be a business ethics issue? ​

Correct AnswerverifiedShow Answer

Which of the following tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools?

Correct AnswerverifiedD

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Facilitation payments are not allowed under the Foreign Corrupt Practices Act.

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A

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National culture is a much broader conce...
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The United Nations views business as a way to increase the economic outlook of countries.

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Dumping is the practice of charging high...
View Answer

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Why might vertical systems be a business ethics issue?

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D