Question-1
Which of the following creates shared value?
A. Creating social value by creating economic value
B. Reconceiving products and markets
C. Disabling local cluster development
D. Creating economic value by creating social value
Question-2
Social responsibility, ethical behavior, and interdependence are important concerns to be built into:
A. economic control.
B. management control.
C. corporate sustainability.
D. moral idealism.
Question-3
In recent years, which of the following has lessened the criticisms of MNCs?
A. Increasing economic differences among countries
B. Greater emphasis on social responsibility by MNCs
C. Limited emphasis on social responsibility and ethical behavior
D. Dissolution of MNCs in developing countries
Question-4
Which two factors are primarily assessed when using the qualitative approach to measure a country's economic risk?
A. The country's natural resources and its long-term national debt
B. The competence of the country's leader and the economic policy direction
C. The probability of terrorism and the likelihood that the country's debts will be repaid
D. The country's purchasing power overseas and the consistency of the country's leadership
Question-5
The checklist approach relies on a few easily measurable and timely criteria believed to reflect or indicate changes in the __________ of the country.
A. creditworthiness
B. dynamics
C. quality
D. trust
Question-6
Which of the following best explains why many foreign companies find operating in China a difficult experience from a business perspective?
A. China lacks the financial and legal systems needed to support the country's foreign trade.
B. China's local market is not large enough to support its extensive exporting to the U.S.
C. China's government mandates that workers receive high wages and benefits.
D. China's exchange rate changes too frequently for U.S. businesses to compete.
Question-7
According to the international codes of conduct, MNEs should:
A. resolve disputes according to the domestic law of the home country.
B. dominate the capital markets in which their operations are based.
C. use inexpensive, imported sources for components and raw materials.
D. conduct research and development activities in developing countries.
Question-8
If MNCs want to take the lead in dealing with ecological interdependence, then they most likely need to:
A. comply with international environmental regulations.
B. incorporate sustainability goals into strategic planning.
C. invest all profits into recycling and renewing resources around the world.
D. work with foreign governments to draft global environmental protection legislation.
Question-9
To which of the following free-trade agreements do Costa Rica, Guatemala, Honduras, El Salvador, and Nicaragua all belong?
A. NAFTA
B. ASEAN
C. CAFTA
D. MERCOSUR
Question-10
Which of the following is dedicated to monitoring issues of data privacy in Europe?
A. The Telecommunications Data Protection directive
B. The EU Data Retention Directive
C. The EU Directive of Data Protection
D. The Privacy and Electronic Communications EC Directive
Question-11
Experts suggest that firms wanting to globalize through e-commerce must first localize, which means firms need to:
A. use local suppliers, vendors, and distributors to manufacture products for the local market.
B. modify their products and services to meet the needs and interests of local cultures.
C. sell their products in a brick-and-mortar store before selling them through an e-market.
D. test their products and services in local markets before selling them over the Internet.
Question-12
Which of the following concepts requires that an industrial system be viewed not in isolation from its surrounding systems, but in concert with them?
A. Industrial ecology
B. Industrial engineering
C. Ecological succession
D. Ecological shadow
Question-13
Which type of country is most likely to use its investment laws to acquire appropriate technology?
A. Post-industrial country
B. Newly industrializing country
C. Less-developed country
D. Highly developed country
Question-14
Which of the following is the main reason why companies dispose hazardous waste in less developed countries?
A. International agreements
B. Weak regulations and low costs
C. Advanced waste disposal plants
D. Large amounts of available land
Question-15
According to Robertson and Crittenden, which of the following has made integrating an ethical component into international strategic decisions, challenging?
A. Corporate ethics
B. Cultural constraints
C. Natural resources
D. Political stability
Question-16
Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy?
A. Communism
B. Nationalization
C. Socialism
D. Globalization
Question-17
Which of the following was the primary purpose of the Organization for Economic Cooperation and Development Convention on Bribery?
A. To establish bribery laws
B. To quantify global corruption
C. To combat corporate corruption
D. To protect corporate bribery whistleblowers
Question-18
Political risks are best described as any governmental actions or politically motivated events that:
A. suggest the firm is legally responsible for specific wrongdoings.
B. negatively affect the firm's long-run profitability or value.
C. interfere with the personal safety of the firm's employees.
D. harm the firm's capacity to meet consumer demands.
Question-19
Primo is a multinational enterprise based in California that manufactures and sells affordably-priced athletic shoes in retail stores around the world. A Primo manufacturing subsidiary in China employs over 20,000 locals. Primo executives recently learned of human rights violations at the firm's China subsidiary. Workers had been forced to work more than 60 hours each week, and minimum wage laws were regularly ignored. As a result, Primo executives need to decide whether to continue operations in China.
Which of the following is MOST relevant to
the decision by Primo to remain in China?
A. The extent of effect that bribery has on decisions made by Primo's
global managers in China
B. The methods of dealing with the hazardous waste created by Primo's China
manufacturing facility
C. The benefits that the local Chinese community might have
D. The changes that need to be made by Primo managers to show more respect
for the Chinese culture
Question-20
McDonald's, a fast food chain headquartered in the United States, applies the morality it practices in the United States to all foreign countries in which it operates. McDonald's is adhering to:
A. moral universalism.
B. ethical relativism.
C. geocentrism.
D. ethnocentrism.
