Chapter 10: Global Business Ethics Issues
1. Four cultural dimensions that can have a profound impact on the business environment—individualism/collectivism,
power distance, uncertainty avoidance, and masculinity/femininity— were identified by which of the following?
a. Milton Friedman
b. Abraham Maslow
c. Adam Smith
d. Geert Hofstede
e. John Maynard Keynes
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-1 Global Culture, Values, and Practices
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:27 AM
DATE MODIFIED: 8/19/2021 8:28 AM
2. Which type of products encourage consumers to return and buy more, an approach known as planned obsolescence?
a. Laissez-faire
b. Dumping
c. Collectivistic
d. Made-to-
break
e. Multinational
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:28 AM
DATE MODIFIED: 8/19/2021 8:37 AM
3. Also known as the “invisible hand,” which of the following terms is used by Adam Smith to explain the inherent
mechanisms at work in free market systems that keep commerce in equilibrium?
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a. Consumerism
b. Cultural relativism
c. Social democracy
d. Laissez-fair
e. Bimodal wealth distribution
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:37 AM
DATE MODIFIED: 8/19/2021 8:38 AM
4. Which of the following assumes that humans may not act rationally because of genetics, learned behavior, and rules of
thumb?
a. Rational economics
b. Socialism
c. Cultural relativism
d. National culture
e. Behavioral
economics
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:39 AM
DATE MODIFIED: 8/19/2021 8:40 AM
5. Which of the following statements about multinational corporations (MNCs) is ?true
a. MNCs operate on a global scale with strong ties to the nation in which they were
founded.
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b.MNCs are inherently unethical and always do harm in the countries in which they
operate.
c. MNCs are characterized by a global strategy of focusing on opportunities throughout
the world.
d.MNCs generally use licensing or franchising rather than opening up wholly owned
subsidiaries in different countries.
e. MNCs usually increase the standard of living within the countries in which they
operate.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.03 - Assess the role of multinational corporations in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:40 AM
DATE MODIFIED: 8/19/2021 8:41 AM
6. Increasing the wealth gap between nations and misusing and misallocating scarce resources are ethical issue
accusations related to which of the following?
a. Cultural differences
b. Multinational
corporations
c. Consumerism
d. Legal differences
e. International negotiations
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.03 - Assess the role of multinational corporations in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:41 AM
DATE MODIFIED: 8/19/2021 8:42 AM
7. Which of the following are criticisms of or charges against multinational corporations (MNCs)? (Select four)
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a. They transfer jobs overseas, where wage rates are lower.
b. They increase the gap between rich and poor nations.
c. They usually avoid paying any taxes.
d. They exploit the labor markets of host countries.
e. They have an unfair advantage when competing with local
businesses.
ANSWER: a, b, d, e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: Multiple Response
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.03 - Assess the role of multinational corporations in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:43 AM
DATE MODIFIED: 8/19/2021 8:45 AM
8. Which of the following is a measure taken by governments to curtail MNC practices that create ethical issues?
a. Levying import taxes to lower the prices MNCs charge for their products
b. Imposing bribes against MNCs so they have to operate unethically
c. Forcing MNCs to adopt less efficient technology
d. Preventing the formation of labor unions
e. Imposing export taxes to force MNCs to share more of their profits with host
countries
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.03 - Assess the role of multinational corporations in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:45 AM
DATE MODIFIED: 8/19/2021 8:46 AM
9. Which of the following terms describes when the middle class shrinks, resulting in highly concentrated wealth amongst
the rich and a large number of poor people with very few resources?
a. Communism
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b. Socialism
c. Bimodal wealth distribution
d. A two-class social structure
e. Laissez-faire capitalism
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:46 AM
DATE MODIFIED: 8/19/2021 8:48 AM
10. An unconscious reference to one's own cultural values, experiences, and knowledge is referred to as the _______.
a. cultural reference criterion
b. consumerism movement
c. cultural-self criterion
d. self-reference criterion
e. cultural relativism
philosophy
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-1 Global Culture, Values, and Practices
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 8:48 AM
DATE MODIFIED: 8/19/2021 8:49 AM
11. When in Rome, do as the Romans do You must adapt to the cultural practices of the country where you operate and are
rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad, a
practice known as _______.
a. the self-reference
criterion
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b. country cultural values
c. consumerism
d. cultural relativism
e. dumping
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-1 Global Culture, Values, and Practices
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 9:04 AM
DATE MODIFIED: 8/19/2021 9:05 AM
12. Involving transactions across national boundaries, which of the following is a practice that brings together people who
have different cultures, values, laws, and ethical standards?
a. Global business
b. Country cultural values
c. Social democracy
d. Cultural relativism
e. Bimodal wealth distribution
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: Introduction
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 9:21 AM
DATE MODIFIED: 8/19/2021 9:22 AM
13. Which concept refers to economic theories advocating the creation of a society where wealth and power are
distributed evenly, relative to the amount of work expended in production?
a. Rational
economics
b. Socialism
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c. Capitalism
d. Rational capitalism
e.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 9:23 AM
DATE MODIFIED: 8/19/2021 9:24 AM
14. Which of the following describes when risk compartmentalization occurs?
a. Companies place their most problematic employees into separate profit centers so that
they cannot influence one another to act unethically.
b.All profit centers within a corporation are aware of the code of ethics.
c. All profit centers within an organization become aware of the consequences of
competitors' actions.
d.Various profit centers within an organization become unaware of the consequences of
their actions on the firm as a whole.
e. Ethics and compliance programs reduce the risk of misconduct.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-1 Global Culture, Values, and Practices
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 9:43 AM
DATE MODIFIED: 8/19/2021 9:50 AM
15. Which of the following is defined by the United Nations as an inherent dignity with equal and inalienable rights as the
foundation of freedom, justice, and peace in the world?
a. Cultural
relativism
b. Human rights
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c. Consumerism
d. Global Compact
e. AACSB standards
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:08 AM
DATE MODIFIED: 8/19/2021 10:09 AM
16. Power distance dimension refers to the “power inequality” between superiors and subordinates. Which of the
following countries probably ranks high on the power distance scale?
a. Saudi Arabia
b. Austria
c. England
d. Denmark
e. Sweden
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 10-1 Global Culture, Values, and Practices
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:09 AM
DATE MODIFIED: 8/19/2021 10:10 AM
17. Who argued during the 1930s that the state could stimulate economic growth and improve stability in the private
sector?
a. Adam Smith
b. John Maynard Keynes
c. Milton Friedman
d. Herbert Hoover
Copyright Cengage Learning. Powered by Cognero. Page 8
e. Geert Hofstede
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:10 AM
DATE MODIFIED: 8/19/2021 10:12 AM
18. Which of the following assume(s) that the market, through its own inherent mechanisms, will keep commerce in
equilibrium?
a. Social democracy
b. Laissez-faire economics
c. Economics
d. Multinational
corporations
e. Rational economics
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:12 AM
DATE MODIFIED: 8/19/2021 10:13 AM
19. Which of the following is of those who ascribe to consumerism?true
a. They believe consumers should purchase everything they can afford.
b. They do not believe in taxes on locally made products.
c. They believe consumers should own the means of production.
d. They believe consumers, not producers, should dictate the economic structure of a
society.
e. They believe corporations should have the freedom to do whatever they want.
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ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:13 AM
DATE MODIFIED: 8/19/2021 10:15 AM
20. Which of the following is based upon the assumption that people are predictable and will maximize the utility of their
choices relative to their needs and wants?
a. Rational economics
b. Socialism
c. Capitalism
d. Behavioral
economics
e. Consumerism
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:16 AM
DATE MODIFIED: 8/19/2021 10:17 AM
21. Which of the following allows for private ownership of property and features a large government equipped to offer
such services as education and health care to its citizens?
a. Democracy
b. Communism
c. Socialism
d. Capitalism
e. Social
democracy
Copyright Cengage Learning. Powered by Cognero. Page 10
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:32 AM
DATE MODIFIED: 8/19/2021 10:36 AM
22. Which of the following assumes that economic decisions are influenced by human behavior?
a. Rational economics
b. Socialism
c. Capitalism
d. Rational capitalism
e. Behavioral
economics
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:36 AM
DATE MODIFIED: 8/19/2021 10:37 AM
23. How members of a society respond to uncertainty or ambiguity is referred to as _______.
a. rational economics
b. cultural relativism
c. collectivism
d. power distance
e. uncertainty
avoidance
ANSWER: e
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 11
DIFFICULTY: Easy
REFERENCES: 10-1 Global Culture, Values, and Practices
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:38 AM
DATE MODIFIED: 8/19/2021 10:39 AM
24. What is the purpose of the United Nations Global Compact?
a. To promote free trade around the world
b. To support international banking institutions
c. To uphold the principle of consumerism
d. To provide legal representation to international corporations facing lawsuits
e. To promote human rights, sustainability, and eradicate corruption
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-4 Global Organizations to Support Responsible Business
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJE
CTIVES:
BE.FERR.13.ChO.10.04 - Assess the roles of different global organizations in
support of business responsibility
NATIONAL STAN
DARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:43 AM
DATE MODIFIED
:
8/19/2021 10:44 AM
25. What is the Association to Advance Collegiate Schools of Business (AACSB)?
a. A major international institution that regulates universities around the world
b. An accredited institution that teaches organizational ethics
c. A non-political international governing body focused on academics
d. An international organization that promotes principles that teach responsible
management in business schools
e. A group that promotes sustainability and environmental awareness among business
schools
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
Copyright Cengage Learning. Powered by Cognero. Page 12
REFERENCES: 10-4 Global Organizations to Support Responsible Business
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJE
CTIVES:
BE.FERR.13.ChO.10.04 - Assess the roles of different global organizations in
support of business responsibility
NATIONAL STAN
DARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:44 AM
DATE MODIFIED
:
8/19/2021 10:45 AM
26. Which of the following has only recently become a significant part of business ethics?
a. Antitrust activities
b. Bribery
c. Employee
compensation
d. Consumerism
e. Internet security
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:45 AM
DATE MODIFIED: 8/19/2021 10:47 AM
27. Which of the following are specific articles in the U.N. Human Rights Declaration? (Select four)
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
ANSWER: a, c, d, e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 10-5 Global Ethics Issues
Copyright Cengage Learning. Powered by Cognero. Page 13
QUESTION TYPE: Multiple Response
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:47 AM
DATE MODIFIED: 8/19/2021 10:52 AM
28. The nature of the internet has led to an increase in concern for which of the following?
a. Religion
b. Job security
c. Health care
d. Privacy
e. Biotechnolog
y
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:52 AM
DATE MODIFIED: 8/19/2021 10:53 AM
29. Which of the following statements about the U.K. Bribery Act is ?true
a. It allows for small facilitation payments.
b. It only applies to companies headquartered in the United Kingdom.
c. It is not as stringent as the Foreign Corrupt Practices Act.
d. It classifies bribes among businesspeople to be illegal.
e. It mandates that companies must have explicit knowledge of the bribe to be
considered liable.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 14
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:53 AM
DATE MODIFIED: 8/19/2021 10:54 AM
30. How is a living wage defined?
a. The minimum wage a worker requires in order to meet their basic
needs
b. The wage at which the average worker can live really well
c. As a synonym for the minimum wage
d. The wage received by child workers in order to stay alive
e. A wage given to workers entirely in the form of food
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 10:54 AM
DATE MODIFIED: 8/19/2021 10:56 AM
31. Explain why many international business ethics issues are different from domestic ethical issues.
ANSWER: A global firm cannot succeed simply by applying its domestic ethical programs to
other global environments. Although ethical issues such as honesty and integrity
are common to most countries, differences in laws, political systems, and cultures
require a more targeted approach to ethical decision making. Global ethics is not
a “one size fits all” concept.
POINTS: 1
DIFFICULTY: Easy
REFERENCES
:
10-6 The Importance of Ethical Decision Making in Global Business
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
Copyright Cengage Learning. Powered by Cognero. Page 15
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business issues
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/19/2021 10:56 AM
DATE MODIFI
ED:
8/19/2021 11:01 AM
32. Explain how differences in two countries' cultures can create ethical issues in business.
ANSWER: National culture is a much broader concept than organizational culture and
includes everything in our surroundings made by people—both tangible items,
such as artifacts, and intangible entities, such as concepts and values. Language,
law, politics, technology, education, social organizations, general values, and
ethical standards are all included within this definition. Each nation contains
unique cultures and distinctive beliefs about what business activities are
acceptable or unethical. Subcultures also exist within many nations, ethnic
groups, and religious groups. Therefore, when transacting international business,
individuals encounter values, beliefs, and ideas that may diverge from their own.
When someone from another culture mentions “integrity” or “democracy,” many
Americans might feel confident that these are familiar concepts. However, these
concepts mean different things to different people, depending on their culture.
Organizational culture is also different from national culture, though often
organizational cultures are derived from—and influenced by—national cultures.
POINTS: 1
DIFFICULTY: Moderate
REFERENCES
:
10-1 Global Culture, Values, and Practices
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business practices
within ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/19/2021 11:02 AM
DATE MODIFI
ED:
8/19/2021 11:03 AM
33. Discuss the ethical issues and criticisms associated with multinational corporations.
ANSWER: MNCs are the subject of much ethical debate, and their impact on countries
where they do business is controversial. Both American and European labor
Copyright Cengage Learning. Powered by Cognero. Page 16
unions argue it is unfair for MNCs to transfer jobs overseas where wage rates are
lower. Other critics charge that multinationals use labor-saving devices that
increase unemployment in countries where they manufacture. Their size and
financial clout enable them to control money, supplies, employment, and even the
economic well-being of less-developed countries. Critics believe the size and
power of MNCs create ethical issues involving the exploitation of both natural
and human resources. Critics also accuse MNCs of exploiting the labor markets
of host countries. The activities of MNCs also raise issues of unfair competition.
However, differences in culture, protectionism, and political and economic
stability are challenging MNCs growth. Although MNCs are not inherently
unethical, their size and power often seems threatening to people and businesses
in less-developed countries. The ethical problems MNCs face arise from the
opposing viewpoints intrinsic to multicultural situations.
POINTS: 1
DIFFICULTY: Easy
REFERENCES
:
10-3 Multinational Corporations
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.10.03 - Assess the role of multinational corporations in
business ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/19/2021 11:03 AM
DATE MODIFI
ED:
8/19/2021 11:04 AM
34. Describe what a national culture is and what it includes.
ANSWER: National culture is a much broader concept than organizational culture and
includes everything in our surroundings made by people—both tangible items,
such as artifacts, and intangible entities, such as concepts and values. Language,
law, politics, technology, education, social organizations, and general values are
all included within this definition. Each nation contains unique cultures and
distinctive beliefs about which business activities are legal, acceptable, unethical,
or illegal.
POINTS: 1
DIFFICULTY: Easy
REFERENCES
:
10-1 Global Culture, Values, and Practices
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
Copyright Cengage Learning. Powered by Cognero. Page 17
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business practices
within ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/19/2021 11:04 AM
DATE MODIFI
ED:
8/19/2021 11:05 AM
35. 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?
a. Global Sullivan Principles
b. UN Global Compact
c. World Trade Organization
d. Business for Social
Responsibility
e. Bretton Woods agreement
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.03 - Assess the role of multinational corporations in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:05 AM
DATE MODIFIED: 8/19/2021 11:07 AM
36. Why do certain countries view bribery as ethical?
a. They see these bribes as "favors" of minimal value.
b. They want to place limitations on company expansion.
c. They do not accept bribes that are more than $100 in
value.
d. They wish to protect domestic businesses.
e. They use these payments to help the more disadvantaged.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
Copyright Cengage Learning. Powered by Cognero. Page 18
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:07 AM
DATE MODIFIED: 8/19/2021 11:08 AM
37. Why might vertical systems be a business ethics issue?
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.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:08 AM
DATE MODIFIED: 8/19/2021 11:10 AM
38. Facilitation payments—or “grease” payments—are not allowed under the Foreign Corrupt Practices Act.
a. True
b. Fals
e
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD United States - BUSPROG: Ethics - Ethics
Copyright Cengage Learning. Powered by Cognero. Page 19
S:
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:30 AM
DATE MODIFIED: 8/19/2021 11:33 AM
39. Business for Social Responsibility (BSR) 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.
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.03 - Assess the role of multinational corporations in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:33 AM
DATE MODIFIED: 8/19/2021 11:34 AM
40. Above all, the United Nations hopes the Global Compact creates a collaborative arrangement among businesses,
governments, nongovernmental organizations, and societies to overcome challenges and advocate positive economic,
social, and political change.
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-4 Global Organizations to Support Responsible Business
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJE
CTIVES:
BE.FERR.13.ChO.10.04 - Assess the roles of different global organizations in
support of business responsibility
NATIONAL STAN
DARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:34 AM
DATE MODIFIED 8/19/2021 11:35 AM
Copyright Cengage Learning. Powered by Cognero. Page 20
:
41. Europe has stricter internet privacy controls than the United States does.
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-5 Global Ethics Issues
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVE
S:
BE.FERR.13.ChO.10.05 - Gain awareness of global ethical business
issues
NATIONAL STANDARD
S:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:35 AM
DATE MODIFIED: 8/19/2021 11:37 AM
42. Behavioral economics assumes that humans act independently on the basis of full and relevant information.
a. True
b. Fals
e
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 10-2 Economic Foundations of Business Ethics
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:37 AM
DATE MODIFIED: 8/19/2021 11:38 AM
43. U.S. Generally Accepted Accounting Principles (US GAAP) and the American Institute of Certified Public
Accountants (AICPA) are often considered a champion for standards.principles-based
a. True
b. Fals
e
ANSWER: False
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 21
DIFFICULTY: Easy
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJE
CTIVES:
BE.FERR.13.ChO.10.04 - Assess the roles of different global organizations in
support of business responsibility
NATIONAL STAN
DARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:38 AM
DATE MODIFIED
:
8/19/2021 11:39 AM
44. The fundamental financial governing body for finance is the Chartered Financial Institute/Analyst Association
(CFAI/CFA).
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJE
CTIVES:
BE.FERR.13.ChO.10.04 - Assess the roles of different global organizations in
support of business responsibility
NATIONAL STAN
DARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:39 AM
DATE MODIFIED
:
8/19/2021 11:41 AM
45. The Association of National Advertisers (ANA) code of ethics is an example of a(n) _______.
a. artificial
intelligence
b. management code
c. finance code
d. marketing code
e. accounting code
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 10-3 Multinational Corporations
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 22
HAS VARIABLES: False
LEARNING OBJE
CTIVES:
BE.FERR.13.ChO.10.04 - Assess the roles of different global organizations in
support of business responsibility
NATIONAL STAN
DARDS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARD
S:
United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:41 AM
DATE MODIFIED
:
8/19/2021 11:42 AM
46. Global common values are defined as certain values that are broadly accepted worldwide.
a. True
b. Fals
e
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 10-1 Global Culture, Values, and Practices
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTI
VES:
BE.FERR.13.ChO.10.01 - Discuss global values, goals, and business
practices within ethics
NATIONAL STANDAR
DS:
United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
DATE CREATED: 8/19/2021 11:43 AM
DATE MODIFIED: 8/19/2021 11:44 AM
47. Describe risk compartmentalization and its results.
ANSWER: Risk compartmentalization occurs when profit centers within corporations are
unaware of the overall consequences of their actions on the firm as a whole. As a
result, no one person, company, or agency should be blamed—the problems were
systemic.
POINTS: 1
DIFFICULTY: Easy
REFERENCES
:
10-2 Economic Foundations of Business Ethics
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL ST United States - BUSPROG: Ethics - Ethics
Copyright Cengage Learning. Powered by Cognero. Page 23
ANDARDS:
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/19/2021 11:44 AM
DATE MODIFI
ED:
8/19/2021 11:45 AM
48. Compare and contrast John Maynard Keynes’ and Milton Friedman’s forms of capitalism.
ANSWER: John Maynard Keynes argued that the state could stimulate economic growth and
improve stability in the private sector through, for example, controlling interest
rates, taxation, and public projects. He argued that government policies could be
used to increase aggregate demand, thus increasing economic activity and
reducing unemployment and deflation. Keynes believed the solution was to
stimulate the economy through some combination of a reduction in interest rates
and government investment in infrastructure. Milton Friedman rejected the
Keynesian conclusion that markets sometimes need intervention to function
efficiently. He believed deregulation could reach equilibrium without government
intervention. Both Keynes and Friedman agreed that “(1) People have rational
preferences among outcomes that can be identified and associated with a value;
(2) Individuals maximize utility and firms maximize profits; and (3) People act
independently on the basis of full and relevant information.”
POINTS: 1
DIFFICULTY: Easy
REFERENCES
:
10-1 Global Culture, Values, and Practices
QUESTION TY
PE:
Essay
HAS VARIABL
ES:
False
STUDENT EN
TRY MODE:
Basic
LEARNING O
BJECTIVES:
BE.FERR.13.ChO.10.02 - Understand the role of economics as a factor in
business ethics
NATIONAL ST
ANDARDS:
United States - BUSPROG: Ethics - Ethics
STATE STAND
ARDS:
United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
DATE CREAT
ED:
8/19/2021 11:45 AM
DATE MODIFI
ED:
8/19/2021 11:46 AM
Copyright Cengage Learning. Powered by Cognero. Page 24
