1. The term globalism generally refers to ________.
A) increasing loyalty to your own country
B) global competition characterized by networks of people, institutions and countries
C) competition in a border less world
D) B and C only
2. Which of the following countries is not one of the Four Tigers?
A) South Korea
B) Hong Kong
C) Taiwan
D) Thailand
3. China became a member of WTO in ________.
A) 2000
B) 2001
C) 1998
D) not yet a member
4. The U.S is offshoring white-collar computer
programming jobs to India because ________.
A) Indians are better programmers than Americans
B) Indians speak better English than Americans
C) Indian programmers cost one-fourth the cost of American programmers
D) all of the above
5. Micro political risk events are those that affect ________.
A) numerous industries or companies
B) several other nations in the same region
C) one industry or company or a few companies
D) managers and employees who are nationals
6. To analyze their data on potential risks, some companies allocate a minimum and a maximum score for which of the following criteria?
A) the political and economic environment
B) domestic economic conditions
C) external economic relations
D) all of the answers are correct
7. Which of the following requires that the firm actively involves nationals in the management of the subsidiary?
A) equity sharing
B) participative management
C) localization of the operation
D) development assistance
8. Companies often reduce risk in foreign countries by creating dependency of a subsidiary on the host country. Which of the following is not a means of maintaining dependency?
A) market control
B) equity sharing
C) staged contribution strategies
D) input control
9. Which of the following is not a generally accepted method of assessing the creditworthiness of a country?
A) quantitative approach
B) survey approach
C) qualitative approach
D) checklist approach
10. The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation.
A) quantitative
B) qualitative
C) checklist approach
D) subjective/objective analysis
11. Less developed countries use their investment laws to ________.
A) acquire needed technology
B) increase exports
C) train local people
D) all of the above
12. Some countries rigorously enforce employee secrecy agreements in order to ________.
A) protect a firm's intellectual property
B) restrict labor mobility
C) avoid costly litigation among firms
D) all of the above
13. Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of ________.
A) interest groups
B) legal and governmental concerns
C) media coverage
D) all of the above
14. The concept of international social responsibility is the expectation that MNCs concern themselves about ________ effects of their decisions regarding activities in other countries.
A) philosophical
B) competitive
C) cultural
D) social and economic
15. The difficulty in adopting a stance of moral relativism is deciding ________.
A) what the minimum standard should be
B) what the maximum standard should be
C) what the local standard should be
D) what the universal standard should be
16. All of the following are proposed global labor standards that would be monitored by outside organizations except ________.
A) provide a safe working environment
B) do not regularly require more than 30-hour work weeks
C) respect workers' rights to unionize
D) pay wages sufficient to meet workers' basic needs
17. International business ethics refers to the business conduct or morals of MNCs in their relationship with ________.
A) business partners
B) political partners
C) social systems
D) all entities they come into contact with
18. According to many U.S. executives, there is little difference in ethical practices among each of the following countries except ________.
A) the United States
B) Canada
C) Mexico
D) Northern Europe
19. The biggest single problem for MNCs, in their attempt to define a corporate-wide ethical posture, is ________.
A) the conflicting nature of international laws
B) the great variation of standards of ethical behavior around the world
C) the absence of international legal agencies
D) differences in worldwide religions
20. Payments to expedite routine transactions are often referred to as ________.
A) slotting fees
B) grease money
C) gray funds
D) expropriation
21. A bribe differs from a gift or other reciprocation as ________.
A) a bribe is covert in nature
B) a bribe is given after the contract is awarded
C) a bribe is large, a gift is small
D) all of the above
22. Typical policies by MNCs to confront concerns about ethical behavior include all of the following except ________.
A) develop a worldwide code of ethics
B) consider ethical issues in strategy development
C) develop ethical impact statements
D) lobby host governments for ethical reform
23. At the very least, MNCs operating in developing countries should ensure that their activities ________.
A) do no intentional harm
B) change the economic system of the host country
C) blend with the existing culture of the host country
D) all of the above
24. MNC managers must deal with the increasing scarcity of natural resources in the next few decades by ________.
A) looking for alternate raw materials
B) developing new methods of recycling
C) expanding the use of byproducts
D) all of the above
25. The Body Shop's industrial hemp products were banned in France because ________.
A) the advertisements for the products were misleading
B) the quality of the products was not up to French cosmetics standards
C) the government claimed that the point of sale material glamorized marijuana
D) all of the above
A) increasing loyalty to your own country
B) global competition characterized by networks of people, institutions and countries
C) competition in a border less world
D) B and C only
2. Which of the following countries is not one of the Four Tigers?
A) South Korea
B) Hong Kong
C) Taiwan
D) Thailand
3. China became a member of WTO in ________.
A) 2000
B) 2001
C) 1998
D) not yet a member
4. The U.S is offshoring white-collar computer
programming jobs to India because ________.
A) Indians are better programmers than Americans
B) Indians speak better English than Americans
C) Indian programmers cost one-fourth the cost of American programmers
D) all of the above
5. Micro political risk events are those that affect ________.
A) numerous industries or companies
B) several other nations in the same region
C) one industry or company or a few companies
D) managers and employees who are nationals
6. To analyze their data on potential risks, some companies allocate a minimum and a maximum score for which of the following criteria?
A) the political and economic environment
B) domestic economic conditions
C) external economic relations
D) all of the answers are correct
7. Which of the following requires that the firm actively involves nationals in the management of the subsidiary?
A) equity sharing
B) participative management
C) localization of the operation
D) development assistance
8. Companies often reduce risk in foreign countries by creating dependency of a subsidiary on the host country. Which of the following is not a means of maintaining dependency?
A) market control
B) equity sharing
C) staged contribution strategies
D) input control
9. Which of the following is not a generally accepted method of assessing the creditworthiness of a country?
A) quantitative approach
B) survey approach
C) qualitative approach
D) checklist approach
10. The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation.
A) quantitative
B) qualitative
C) checklist approach
D) subjective/objective analysis
11. Less developed countries use their investment laws to ________.
A) acquire needed technology
B) increase exports
C) train local people
D) all of the above
12. Some countries rigorously enforce employee secrecy agreements in order to ________.
A) protect a firm's intellectual property
B) restrict labor mobility
C) avoid costly litigation among firms
D) all of the above
13. Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of ________.
A) interest groups
B) legal and governmental concerns
C) media coverage
D) all of the above
14. The concept of international social responsibility is the expectation that MNCs concern themselves about ________ effects of their decisions regarding activities in other countries.
A) philosophical
B) competitive
C) cultural
D) social and economic
15. The difficulty in adopting a stance of moral relativism is deciding ________.
A) what the minimum standard should be
B) what the maximum standard should be
C) what the local standard should be
D) what the universal standard should be
16. All of the following are proposed global labor standards that would be monitored by outside organizations except ________.
A) provide a safe working environment
B) do not regularly require more than 30-hour work weeks
C) respect workers' rights to unionize
D) pay wages sufficient to meet workers' basic needs
17. International business ethics refers to the business conduct or morals of MNCs in their relationship with ________.
A) business partners
B) political partners
C) social systems
D) all entities they come into contact with
18. According to many U.S. executives, there is little difference in ethical practices among each of the following countries except ________.
A) the United States
B) Canada
C) Mexico
D) Northern Europe
19. The biggest single problem for MNCs, in their attempt to define a corporate-wide ethical posture, is ________.
A) the conflicting nature of international laws
B) the great variation of standards of ethical behavior around the world
C) the absence of international legal agencies
D) differences in worldwide religions
20. Payments to expedite routine transactions are often referred to as ________.
A) slotting fees
B) grease money
C) gray funds
D) expropriation
21. A bribe differs from a gift or other reciprocation as ________.
A) a bribe is covert in nature
B) a bribe is given after the contract is awarded
C) a bribe is large, a gift is small
D) all of the above
22. Typical policies by MNCs to confront concerns about ethical behavior include all of the following except ________.
A) develop a worldwide code of ethics
B) consider ethical issues in strategy development
C) develop ethical impact statements
D) lobby host governments for ethical reform
23. At the very least, MNCs operating in developing countries should ensure that their activities ________.
A) do no intentional harm
B) change the economic system of the host country
C) blend with the existing culture of the host country
D) all of the above
24. MNC managers must deal with the increasing scarcity of natural resources in the next few decades by ________.
A) looking for alternate raw materials
B) developing new methods of recycling
C) expanding the use of byproducts
D) all of the above
25. The Body Shop's industrial hemp products were banned in France because ________.
A) the advertisements for the products were misleading
B) the quality of the products was not up to French cosmetics standards
C) the government claimed that the point of sale material glamorized marijuana
D) all of the above
