QUESTION Which of the following best exemplifies the global tragedy of the commons? A. A firm exploiting the weak employment standards in a host nation B. A firm dumping its chemical wastes directly into an ocean C. A firm exploiting the weak intellectual property rights in a developing nation D. A neighboring country opposing the […]
QUESTION Which of the following occurs when a resource held jointly by all, but owned by no one, is overused by individuals, resulting in its degradation? A. Social loafing B. Cultural relativism C. The tragedy of the commons D. A deadweight loss E. Capital deepening ANSWER C
QUESTION The term global commons refers to: A. social norms and values that are common across the globe. B. a group of nations that share similar ideologies on globalization. C. natural resources from which everyone benefits but for which no one is specifically responsible. D. common laws to be obeyed by companies involved in international […]
QUESTION The Convention on Combating Bribery of Foreign Public Officials in International Business Transactions: A. makes it mandatory for companies to adhere to the pollution control standards of their home country in all the nations in which they do business. B. does not consider facilitating payments a criminal offense. C. makes grease payments mandatory in […]
QUESTION In the modern world, corporations can worsen the global tragedy of the commons by: A. moving production to locations where they are free to pump pollutants into the environment. B. imposing stringent environmental standards on developing countries. C. creating common environmental and employment standards for all nations. D. adopting costly pollution controls and in […]
QUESTION Brain Wing Inc. has won the bid to build airplanes for a host country government. However, the execution of the contract has been delayed due to certain unproductive, bureaucratic procedures in the less developed nation. In order to legally overcome this problem, Brain Wing Inc. could resort to the payment of: A. customs duties. […]
QUESTION The Foreign Corrupt Practices Act was subsequently amended to allow for speed money or grease payments, which are payments made to: A. secure contracts that would not otherwise be secured. B. obtain exclusive preferential treatment in a foreign market. C. influence foreign bureaucrats in the company’s favor. D. ensure a business receives the standard […]
QUESTION In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made legal payments to the government officials of a host nation. Such payments are typically referred to as: A. bribes. B. speed money. C. customs duties. D. excise taxes. E. preferred dividends. ANSWER B
QUESTION An organizational culture that requires all decisions to be purely economic allows unethical behavior to flourish and persist. Indicate whether the statement is true or false. ANSWER TRUE A cause of unethical behavior in businesses is an organizational culture that deemphasizes business ethics, reducing all decisions to the purely economic.
QUESTION The internal stakeholders of a company do not have an exchange relationship with the company. Indicate whether the statement is true or false. ANSWER FALSE All stakeholders are in an exchange relationship with the company. Each stakeholder group supplies the organization with important resources (or contributions), and in exchange each expects its interests […]
