International Business Management test bank Chapter 5 PDF

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International Business, 7e (Griffin/Pustay) Chapter 5 Ethics and Social Responsibility in International Business 1) Which term refers to an individual's personal beliefs about whether a decision, behavior, or action is right or wrong? A) values B) culture C) ethics D) norms Answer: C Diff: 1 Skill: Concept Objective: 1 2) Fruit juice suppliers in South America rely heavily on ________. A) elderly employees B) child labor C) female workers D) illegal immigrant workers Answer: B Diff: 2 Skill: Concept Objective: 2 3) According to the text, the primary ethics concerns surrounding BP related to ________. A) corruption B) child labor C) worker safety D) market price control Answer: C Diff: 2 Skill: Concept Objective: 1 4) Ethical beliefs are primarily ________ in nature. A) societal B) familial C) individual D) cultural Answer: C Diff: 2 AACSB: Ethical understanding and reasoning abilities Skill: Concept Objective: 1

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5) Which of the following is LEAST influential on an individual's ethics? A) family B) peers C) social trends D) religious beliefs Answer: C Diff: 1 AACSB: Ethical understanding and reasoning abilities Skill: Concept Objective: 1 6) Behavior that fails to conform to generally accepted social norms is considered ________. A) ethical B) unethical C) illegal D) unregulated Answer: B Diff: 1 AACSB: Ethical understanding and reasoning abilities Skill: Concept Objective: 1 7) When behavior conforms to generally accepted norms, it is referred to as ________ behavior. A) ethical B) societal C) normal D) unethical Answer: A Diff: 1 Skill: Concept Objective: 1 8) According to the text, which of the following is NOT an ethical generalization? A) Individuals have their own belief system about what is ethical and unethical. B) People from the same cultural backgrounds usually have similar ethics. C) National values have little influence on an individual's personal ethics. D) Circumstances cause individuals to deviate from their ethical beliefs. Answer: C Diff: 3 AACSB: Ethical understanding and reasoning abilities Skill: Concept Objective: 1

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9) ________ are the things a person feels to be important. A) Values B) Ethics C) Norms D) Expectations Answer: A Diff: 1 Skill: Concept Objective: 1 10) Which of the following best explains why looting was uncommon in Japan after the country's 2011 earthquake and tsunami? A) personal religious beliefs B) individual desires for survival C) pressures from law enforcement D) importance of group membership Answer: D Diff: 3 Skill: Concept Objective: 1 11) Mick has been padding his expense account on business trips. However, it seems fair to him because the company refuses to provide him with comp time despite long hours he works on these business trips. Which ethical generalization does this most likely illustrate? A) Individuals have their own personal belief system. B) Individuals are typically consistent with their beliefs. C) Individuals can rationalize behavior in various circumstances. D) Individuals from the same cultural contexts have similar beliefs. Answer: C Diff: 3 AACSB: Ethical understanding and reasoning abilities Skill: Application Objective: 1 12) Three employees of Martin Enterprises have flown to China to meet a potential business partner. The three employees cannot agree about giving a gift to the potential partner. James, an American manager, believes that gift-giving is an ethical violation. Eun Hee, a South Korean manager, and Evan Lee, a Japanese manager, assert that gift-giving would be appropriate. This situation most likely illustrates which of the following statements? A) Personal and business ethics are often rationalized. B) Cultural similarities lead to common ethical beliefs. C) Belonging to a group is important to the Asian culture. D) Individuals may not always be consistent with their beliefs. Answer: B Diff: 3 AACSB: Ethical understanding and reasoning abilities Skill: Application Objective: 1 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 3 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

13) Sonya and Amber work together in the Hong Kong corporate office. Despite having similar backgrounds and education, they cannot agree on whether it is appropriate to offer bribes to Chinese officials for the purpose of expediting business transactions. Which ethical generalization does this most likely illustrate? A) Individuals have their personal belief systems. B) Culture has the strongest influence on personal ethics. C) Personal values rarely overlap with global business dealings. D) Society requires individuals to rationalize ethical inconsistencies. Answer: A Diff: 3 AACSB: Ethical understanding and reasoning abilities Skill: Application Objective: 1 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 14) BP's program to prepare managers at headquarters for assignments in Russia is an example of ________. A) ethics training B) selection procedures C) corporate socialization D) employee orientation Answer: A Diff: 1 Skill: Concept Objective: 2 15) Which of the following is LEAST susceptible to ethical variations in international business? A) hiring practices B) working conditions C) insurance benefits D) employee privacy Answer: C Diff: 2 AACSB: Ethical understanding and reasoning abilities Skill: Concept Objective: 2 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 16) Which term refers to a decision that benefits an individual to the possible detriment of the organization? A) conflict of interest B) confidentiality C) ethical behavior D) breach of privacy Answer: A Diff: 1 Skill: Concept Objective: 2

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17) Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________. A) conflict of interest B) strategic breakdown C) breach of contract D) trade violation Answer: A Diff: 2 AACSB: Ethical understanding and reasoning abilities Skill: Application Objective: 2 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 18) In Japan, ________ gifts represent a token of gratitude for favors and loyalty shown throughout the year. A) wa B) ochugen C) oseibo D) keiretsu Answer: C Diff: 2 AACSB: Multicultural and diversity understanding Skill: Concept Objective: 2 Learning Outcome: Explain how differences in culture affect the international business environment 19) The type of gift exchanged by business people in Japan is primarily determined by all of the following factors EXCEPT the ________. A) nature of the business relationship B) length of the business relationship C) amount of business being transacted D) location of the business in the community Answer: D Diff: 2 AACSB: Multicultural and diversity understanding Skill: Concept Objective: 2 Learning Outcome: Explain how differences in culture affect the international business environment 20) Gift exchanges in a business situation in Japan are best described as ________. A) common B) trendy C) rare D) illegal Answer: A Diff: 1 AACSB: Multicultural and diversity understanding Skill: Concept Objective: 2 Learning Outcome: Explain how differences in culture affect the international business environment 5 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall

21) Gift exchanges are likely to be considered a conflict of interest in a(n) ________ culture. A) high-context B) collectivist C) low-context D) power-respecting Answer: C Diff: 2 AACSB: Multicultural and diversity understanding Skill: Concept Objective: 2 Learning Outcome: Explain how differences in culture affect the international business environment 22) HR at APEX Designs, an international architectural firm, have noticed the following behaviors among employees lately. Which of the following would NOT be considered a problematic ethical situation at APEX? A) taking office supplies home for personal use B) making personal calls during work time C) padding company expense accounts D) working excessive overtime Answer: D Diff: 2 AACSB: Ethical understanding and reasoning abilities Skill: Application Objective: 2 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 23) Sally uses her telephone at work to call her sister long distance. Which of the following best describes Sally's ethical issue? A) conflict of interest B) dishonesty C) poor confidentiality D) lack of secrecy Answer: B Diff: 2 Skill: Application Objective: 2 24) Jason completes company work at home on the weekends. He justifies taking office supplies home because of the company work he completes at home. Which ethical issue does this scenario relate to? A) conflict of interest B) honesty C) confidentiality D) secrecy Answer: B Diff: 1 Skill: Application Objective: 2

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25) Jack always likes to place orders with Sam's Supply Company because the company sends him a gift certificate for $100 each holiday season. Which ethical issue is this an example of? A) conflict of interest B) honesty C) confidentiality D) secrecy Answer: A Diff: 1 Skill: Application Objective: 2 26) In an international setting, which of the following behaviors is LEAST likely to be subject to ethical ambiguity? A) recruiting B) advertising C) bargaining D) purchasing Answer: A Diff: 2 Skill: Concept Objective: 2 27) Which of the following is not a common method for encouraging ethical behavior among employees? A) codes of ethics B) ethics training C) public admonishment D) organizational practices Answer: C Diff: 1 Skill: Concept Objective: 3 28) Which of the following most likely improves the effectiveness of a code of ethics for an MNE? A) relevancy to local religions B) application by new recruits C) explanation through online training D) support from organizational practices Answer: D Diff: 2 Skill: Concept Objective: 3 Learning Outcome: Discuss the role of ethics and social responsibility in international business.

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29) Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following questions is most relevant to the current discussion about the firm's code of ethics? A) Should the code of ethics be globally consistent or tailored to local contexts? B) What should be addressed by the firm's code of ethics in order to comply with U.S. laws? C) Should home-country or host-country managers provide training on the firm's code of ethics? D) What punishment is used by the firm's competitors when employees violate the code of ethics? Answer: A Diff: 3 AACSB: Reflective thinking skills Skill: Critical Thinking Objective: 3 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 30) Morton Enterprises manufactures electronic components used in automobiles. The firm is currently based in the U.S. but is planning to expand operations overseas. Morton's new manufacturing facilities in China and Bangladesh are scheduled to open in six months. HR and top executives are working together to revise the firm's code of ethics. Ten of Morton's American managers will be relocated overseas for at least three years to manage international operations alongside locally hired managers. Which of the following training topics would most likely prepare expatriate managers for handling ethics issues in China and Bangladesh? A) multilingual contexts B) local religious customs C) local business practices D) global marketing methods Answer: C Diff: 3 AACSB: Reflective thinking skills Skill: Critical Thinking Objective: 3 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 31) In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery acceptable. A) Russia B) Austria C) Taiwan D) South Korea Answer: B Diff: 2 Skill: Concept Objective: 3 Learning Outcome: Explain how differences in culture affect the international business environment

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32) In a survey on the acceptability of bribing officials when doing business in foreign countries, all of the following countries except ________ found bribery unacceptable. A) Sweden B) Australia C) Switzerland D) South Korea Answer: D Diff: 2 Skill: Concept Objective: 3 Learning Outcome: Explain how differences in culture affect the international business environment 33) The term ________ refers to the set of obligations an organization undertakes to protect and enhance the society in which it functions. A) organizational ethics B) social responsibility C) corporate ethics D) social values Answer: B Diff: 2 Skill: Concept Objective: 4 34) A company that is socially responsible will most likely ________. A) do as little as possible to address social or environmental problems B) undertake efforts to protect the society in which it functions C) conform to regional, national, and international laws D) follow basic ethical standards of behavior Answer: B Diff: 2 Skill: Concept Objective: 4 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 35) What was the first action taken by Siemens after the firm was fined for numerous ethics violations? A) implemented new hiring policies B) changed the hierarchical structure C) revised the code of ethics D) replaced top executives Answer: D Diff: 2 Skill: Concept Objective: 4 Learning Outcome: Discuss the role of ethics and social responsibility in international business.

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36) The term ________ refers to those people and organizations that are directly affected by the practices and performance of an organization. A) corporate customers B) permanent employees C) community stockholders D) organizational stakeholders Answer: D Diff: 1 Skill: Concept Objective: 5 37) Which of the following is not one of the main groups of stakeholders that firms usually focus on? A) competitors B) customers C) employees D) investors Answer: A Diff: 2 Skill: Concept Objective: 5 38) Which of the following actions LEAST likely shows a firm's social responsibility toward its customers? A) giving fair treatment B) charging fair prices C) providing warranties D) meeting delivery commitments Answer: C Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 39) Companies that are socially responsible to their investors do all of the following except ________. A) provide appropriate information to shareholders and investors B) manage the organization to protect shareholder rights C) adhere to appropriate accounting procedures D) manipulate stock prices Answer: D Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business.

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40) Firms such as Procter & Gamble that use recycled materials whenever possible are most likely demonstrating their ________. A) commitment to environmental protection B) concern for general social welfare C) implementation of a code of ethics D) responsibility to stakeholders Answer: A Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 41) Which of the following statements is most likely true about firms with formal codes of ethics? A) Virtually all ethical issues are eliminated from the firm. B) Ethical training is unnecessary, redundant, and too costly to be effective. C) Organizational practices and a strong ethical corporate culture are essential. D) Individual codes must be developed and implemented for each subunit in the firm. Answer: C Diff: 3 AACSB: Ethical understanding and reasoning abilities Skill: Concept Objective: 3 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 42) Examples of promoting the general welfare of society include all of the following except ________. A) making charitable contributions B) supporting public radio stations C) becoming involved in local schools D) using appropriate accounting procedures Answer: D Diff: 2 AACSB: Ethical understanding and reasoning abilities Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 43) Which of the following is the LEAST responsible approach to social responsibility? A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance Answer: A Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business.

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44) Which of the following is the most responsible approach to social responsibility? A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance Answer: D Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 45) When an organization does as little as possible to address social or environmental issues, it has adopted the ________ to social responsibility. A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance Answer: A Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 46) When an organization does everything it must do from a legal standpoint but nothing more, it has adopted the ________ to social responsibility. A) obstructionist stance B) defensive stance C) accommodative stance D) proactive stance Answer: B Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 47) Alcoa's gift of $112,000 to a small town in Brazil to build a sewage treatment plant is an example of ________. A) guanxi B) philanthropic giving C) ethical compliance D) legal compliance Answer: B Diff: 2 Skill: Concept Objective: 5

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48) Which of the following is not an informal dimension of social responsibility? A) acts of philanthropic giving B) corporate leadership C) responses to whistle blowing D) organizational culture Answer: A Diff: 2 Skill: Concept Objective: 5 49) Logix Manufacturing is a U.S. firm with a factory in Mexico City. Local leaders in Mexico City ask Logix managers to make contributions to a youth sports organization. Logix provides the league with new equipment and uniforms. Which stance towards social responsibility does Logix most likely have? A) proactive B) obstructionist C) accommodative D) defensive Answer: C Diff: 2 Skill: Application Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international business. 50) McDonald's Ronald McDonald House program is an example of a(n) ________ to social responsibility. A) accommodative stance B) proactive stance C) obstructionist stance D) defensive stance Answer: B Diff: 2 Skill: Concept Objective: 5 Learning Outcome: Discuss the role of ethics and social responsibility in international...