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Business Ethics Final Exam Review PART 2 Flashcards | StudBud
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Business Ethics Final Exam Review PART 2
Business Ethics Final Exam Review PART 2
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1
Which country banned Nestlé's Maggi instant noodles in 2015 due to concerns about lead levels?
South Africa
China
Brazil
India
2
Which of the following is a potential issue when negotiating with someone from a collectivist culture?
Experiencing too much direct confrontation
Relying on strict rules and regulations during negotiations
Focusing only on the transaction, not the relationship
Misinterpreting indirect communication as dishonesty
3
What has been one result of media attention to sweatshop conditions in overseas factories?
It has led to an increase in sweatshop conditions
It has raised legitimacy questions about the corporations involved
It has led to increased profitability for the companies involved
It has had no impact on the companies involved
4
How many countries were included in the 2019 Corruption Perception Index?
180
200
210
150
5
In which type of culture are employees more likely to question the boss's authority or blow the whistle on an unethical
Collectivist cultures
Individualistic cultures
High power distance cultures
Low power distance cultures
6
What type of payment is generally illegal when dealing with intermediaries to handle bribery-related matters?
Salaries
Facilitating payments
Commissions
Extortion payments
7
In intensely competitive business environments, what factor may lead to increased bribery?
Limited market demand
Abundant resources
High levels of job security
Perceived financial constraints
8
What are some examples of values considered universal across human societies?
Wealth and power
Not killing and not stealing
Individualism and collectivism
Competition and cooperation
9
What is the "normalization of deviance"?
A measurement of the rate of product defects
An organizational culture that encourages rule-breaking
The process of accepting unethical behavior as normal
A statistical measure of deviant behavior
10
How does gift-giving in Japanese culture relate to core human values?
It is irrelevant to core values
It is considered essential to all human values
It does not violate core values as long as there are limits and it remains
It violates core values
11
Which index focuses on the perceived levels of bribery by companies from exporting countries?
Global Corruption Barometer
International Bribery Ranking
Corruption Perception Index (CPI)
Bribe Payers Index (BPI)
12
What are the four consumer "rights" outlined by President John F. Kennedy in his 1962 speech?
Protection, heard, choice, and satisfaction
Safety, privacy, choice, and satisfaction
Safety, heard, choose, and informed
Protection, privacy, choose, and informed
13
How did Nike initially respond to the labor issues in its suppliers' factories in the 1990s?
Immediately cutting ties with all suppliers
Admitting the problem and working to address it
Denying responsibility
Focusing on public relations and not making real changes
14
What was the main reason behind the loosening of mortgage lending rules in the early 2000s?
To expand home ownership to lower-income Americans
To increase mortgage fraud
To benefit banks
To create more investment opportunities for foreign investors
15
In which year was the United Nations Global Compact formally launched?
2001
2003
2000
1999
16
Ethics-related training for international business should cover topics such as:
Adapting one's ethics to fit the local culture
Ignoring ethical issues to focus on business success
Recognizing ethical issues in a specific environment
Avoiding all contact with foreign nationals
17
Which of the following practices is an example of a company respecting human dignity in its international operations?
Paying low wages to workers in developing countries
Creating a safe workplace and treating employees, customers, and suppliers
Ignoring local environmental regulations to save costs
Using aggressive marketing tactics to gain market share
18
Which of the following is an example of a health and safety issue in a non-manufacturing industry?
Carpal tunnel syndrome
Mining disasters
Heavy machinery accidents
Chemical exposure
19
Which of the following is a possible reason for the failure of many overseas assignments?
Expatriate manager's inability to adjust to the foreign work environment
Poor job performance by the expatriate manager
Disagreements with the host government
Inadequate financial compensation
20
In international business negotiations, it is essential to:
Impose one's own cultural norms on the negotiation
Understand and adapt to cultural norms and behaviors
Focus only on one's own culture and expectations
Ignore cultural differences and focus on the transaction
21
What was one reason Europeans were initially skeptical about genetically modified foods from Monsanto?
Strict European food safety regulations
Lack of information from the company
High costs of genetically modified foods
Opposition from major European competitors
22
What lesson can be learned from the case of Monsanto's introduction of genetically modified foods in Europe?
Expansion into new markets is always easy
Understanding the local environment and addressing stakeholders' concerns i
Science always outweighs public opinion
Companies should always follow their home country's practices in foreign ma
23
What is the main purpose of the "honesty cafes" in Indonesia?
To promote transparency in government transactions
To provide low-cost food to the public
To motivate honesty and reduce corruption
To offer a space for anti-corruption workshops
24
What is the primary concern for people in collectivist cultures during a negotiation?
Winning at all costs
Creating a relationship
Maximizing individual benefits
Demonstrating personal expertise
25
What was a common practice by companies marketing infant formula in developing countries that posed ethical concerns?
Discouraging breastfeeding
Employing milk nurses as sales representatives
Offering free formula samples in hospitals
All of the above
26
In the context of international business ethics, which concept argues that no culture has a better ethics than any other
Ethical imperialism
Ethical synergy
Ethical relativism
Ethical pluralism
27
What is a potential downside of paying "first world" wages to employees in developing countries?
It would have no impact on the local economy
It could result in factories shutting down, hurting the local workforce
It could lead to increased profits for the company
It would lead to a decrease in product quality
28
Why is it difficult for companies to decide how to handle labor conditions in foreign facilities, especially those they
Because ethical issues are often complex and require a nuanced approach
Because they have no control over the facilities
Because local governments always support the company's decisions
Because there are no established guidelines for handling labor conditions
29
What is the primary ethical obligation of an organization in relation to product safety?
To produce a quality product or service
To minimize risk for company shareholders
To offer the cheapest product possible
To maximize profits
30
What is one way that Nike is trying to reduce waste and use greener materials in its products?
Challenging shoe designers to find sustainable solutions
Relying on traditional manufacturing methods
Outsourcing production to countries with lower environmental standards
Focusing only on price and profit margins
31
What was one of the factors that laid the groundwork for the 2008 financial disaster in the United States?
Low demand for real estate
High interest rates
Cheap borrowing
Reduced consumer borrowing
32
What challenge do companies face when implementing ethics reporting systems across cultures?
Employees are too eager to report misconduct
Employees abuse the system by reporting false misconduct
Employees do not understand the purpose of reporting systems
Employees are often reluctant to report misconduct due to cultural factors
33
What does the concept of "ethical threshold" suggest?
An approach to ethics that changes based on the local culture
A set of core values that guide a company's behavior in all countries
A minimum level of acceptable ethical behavior in a given culture
A strict set of ethical guidelines that must be followed in every culture
34
What off-the-book products are known as variable-interest entities or VIEs?
Commercial mortgages
Stock options
Mortgage-backed securities
Treasury bonds
35
Why is the assumption of cultural similarity problematic?
It leads to over-preparation for cultural differences
It results in a lack of interest in learning about other cultures
It causes performance failures due to overlooking existing cultural differe
It increases the likelihood of successful international business ventures
36
The successful international businessperson should be:
Unwilling to adapt to new situations
Open, flexible, and tolerant of ambiguity
Rigid and predictable
Completely immersed in the host culture
37
What was one of the primary reasons for the financial collapse of 2008?
Responsible lending practices
Legal but unethical activities in the financial industry
Strong government regulations on banks
A focus on long-term financial planning
38
According to research, what is the effect of being exposed to stress on ethical behavior?
It increases ethical behavior
It has no effect on ethical behavior
It is unclear what effect it has on ethical behavior
It decreases ethical behavior
39
Which principle, according to the transcultural corporate ethic, focuses on ensuring pay equity between genders as well
Social equity
Inviolability of national sovereignty
Market integrity in business transactions
Human rights and fundamental freedoms
40
What happened to real estate values during the early 2000s?
They decreased slowly
They fluctuated wildly
They increased rapidly
They remained stable
41
What was the result of Johnson & Johnson voluntarily notifying the U.S. Department of Justice of payments made to foreig
The company received praise for transparency
The company was fined heavily
A senior executive was forced to step down
The company's stock price increased
42
Which act, passed after the stock market crash of 1929, was repealed by Congress, contributing to the financial crisis?
Sarbanes-Oxley Act
Securities Exchange Act
Dodd-Frank Wall Street Reform and Consumer Protection Act
Glass-Steagall Act
43
What was the main goal of the Environmental Protection Agency (EPA) when it was created in 1970?
To protect the environment from harmful activities
To encourage companies to pollute more
To regulate international trade
To promote business growth
44
In the context of stakeholder management, which of the following is considered a primary stakeholder?
Media
Customers
Non-profit organizations
Competitors
45
What financial instrument has largely replaced CDOs as the investment of choice for big banks?
Exchange-Traded Funds (ETFs)
Mutual Funds
Collateralized Mortgage Obligations (CMOs)
Collateralized Loan Obligations (CLOs)
46
Between 1978 and 2019, by how much did CEO compensation grow in the United States?
940 percent
12 percent
100 percent
500 percent
47
In the context of transcultural corporate ethics, which principle emphasizes respecting a host country's economic, socia
Market integrity in business transactions
Human rights and fundamental freedoms
Inviolability of national sovereignty
Social equity
48
Which of the following is NOT a requirement for companies participating in the United Nations Global Compact?
Sharing their experiences on the Global Compact website
Taking concrete steps within their organization to act on the principles
Implementing all 10 shared principles immediately
Advocating publicly for the Global Compact
49
What was one of the main criticisms of rating agencies during the financial crisis?
They rated mortgage securities too high, considering their actual risk
They were influenced by political factors
They favored certain banks over others
They did not rate enough securities
50
Which car company was involved in a scandal surrounding emissions test cheating?
Volkswagen
Honda
Toyota
Ford
51
In which country did Ericsson, a Swedish telecommunications company, agree to pay over 1 billion dollars to resolve an F
Sweden
Brazil
Germany
United States
52
In the event of a layoff or downsizing, employees have the right to be treated with:
Indifference and coldness
Respect, dignity, and compassion
Preference based on personal relationships
Bias towards seniority
53
In which year was Transparency International (TI) founded?
1990
1993
1985
2000
54
What is a significant challenge for multinational corporations in international business ethics?
The clarity of international law
The absence of cultural differences
The wide variety of ethical environments across different countries
The lack of stakeholders in business decisions
55
What financial product allowed banks to spread the risk of mortgages among investors?
Derivatives
Mortgage-backed securities (MBS)
Collateralized debt obligations (CDOs)
Credit-default swaps (CDS)
56
Which company played a significant role in the credit-default swap market during the financial crisis?
AIG
Lehman Brothers
Freddie Mac
Fannie Mae
57
Which of the following is a recommendation for managers dealing with individuals from other cultures?
Modify stereotypes or discard them based on contradictory evidence
Rely solely on stereotypes to understand cultural behavior
Avoid any interaction with people from different cultures
Assume that all individuals from a culture will behave the same way
58
What was the primary goal of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
To deregulate the financial industry
To promote the merger of commercial and investment banks
To rein in the most egregious practices in the financial industry
To bail out banks in financial distress
59
What did Monsanto change in its approach to help turn its situation around in Europe?
They reduced the cost of their products
They engaged with their critics and published secret research
They targeted a different demographic
They switched to organic farming methods
60
What do researchers suggest can increase unethical behavior in individuals with diverse overseas experiences?
Adherence to strict moral guidelines
Insufficient cultural knowledge
A strong ethical compass
Becoming ethical relativists
61
In advertising, which line is often blurred?
Between consumer needs and wants
Between local and global marketing strategies
Between enthusiasm for a product and high-pressure sales tactics
Between ethical and unethical practices
62
What is the main challenge for managers when dealing with multiple stakeholders in a global business environment?
Maintaining company culture
Navigating the complexity of decision making
Developing a global marketing strategy
Ensuring product quality
63
Why is it important to recognize that people adapt their behavior in cross-cultural interactions?
It eliminates the need for cultural training
It makes it easier to predict the behavior of others
It allows for a more accurate understanding of cultural differences
It helps maintain one's own cultural identity
64
According to the "due care" theory, which of the following elements is NOT a responsibility of manufacturers?
Price control
Production
Materials
Design
65
What is a conflict of interest in the context of an organization?
A disagreement between employees
An organization's judgment biased due to a relationship with another compan
A disagreement between an organization and its stakeholders
A conflict between two departments within an organization
66
What is the primary role of the United Nations in the Global Compact initiative?
Financial sponsor
Convener and facilitator of dialogue and information sharing
Regulator and enforcer
Corporate lobbyist
67
In the most recent Bribe Payers Index (BPI), which country was 10th among those least likely to bribe?
United Kingdom
Japan
United States
Germany
68
What did the International Monetary Fund estimate the cost of the global financial crisis of 2008 to be in August 2009?
$11.9 trillion
$5 trillion
$20 trillion
$15 trillion
69
What is one way that cross-cultural training can be beneficial for an expatriate manager?
Guaranteeing job security in the foreign market
Reducing the need for language training
Increasing their salary and benefits
Improving relationships with host nationals
70
Why is it important for organizations to ensure that their expatriate managers are not punished for upholding ethical st
To reinforce the importance of ethical conduct
To focus only on financial outcomes
To promote unethical behavior
To reduce employee retention
71
What was a popular practice among homeowners during the early 2000s that contributed to the 2008 financial crisis?
Refinancing mortgages and borrowing on home equity
Selling homes for a loss
Avoiding real estate investments
Purchasing homes only with substantial down payments
72
What is Nestlé's current focus as a company?
Nutrition, health, and wellness
Becoming the largest food company in the world
Expanding its range of infant formula products
Focusing on luxury food products
73
What does the term "cultural chameleons" refer to?
Individuals who adapt easily to new cultural environments
Individuals who are proficient in multiple foreign languages
People who have high levels of knowledge about multiple cultures
People who change their cultural values frequently
74
If a company discovers that its employees are at risk for injury, what is the company's obligation?
To hide the information from the public
To blame the employees for their injuries
To inform the public
To ignore the issue
75
What test could companies use to consider the potential impact of their actions on their reputation in the international
The "New York Times" test
The viral video test
The cultural compatibility test
The cost-benefit analysis test
76
What is a "liar loan"?
A loan where the borrower lies about their credit score
A loan that is deliberately designed to fail
A loan given without verifying the borrower's employment or income
A mortgage with a very high interest rate
77
In which type of culture is hiring based on knowing an applicant or their family considered an important qualification?
Individualistic cultures
High power distance cultures
Collectivist cultures
Low power distance cultures
78
What impact does the Fair-Trade movement have on consumer behavior?
It causes consumers to avoid companies with ethical reputations
It influences consumers to pay more for ethically-produced goods
It has no impact on consumer choices
It encourages consumers to buy only locally-made products
79
During the COVID-19 pandemic, which industry faced special threats in terms of employee safety?
High-tech industries
Essential services
Heavy manufacturing
Mining
80
What is a crucial aspect to consider in product safety-related ethical decision-making?
Short-term profits
Public relations campaigns
Long-term consequences of a decision
Market competition
81
In what kind of cultures is nepotism more accepted and expected?
Individualistic cultures
Cultures with low unemployment rates
Collectivistic cultures
Western cultures
82
The COVID-19 pandemic raised ethical and social responsibility issues for which industry, especially regarding medical s
Agriculture
Manufacturing
Technology
Pharmaceutical
83
What is one consequence of adhering to higher standards than competitors in an international business environment?
Increased costs
Reduced transparency
Improved competitiveness
Decreased costs
84
Which two West African countries are major sources of cocoa for the global chocolate industry?
Nigeria and Ghana
Ivory Coast and Nigeria
Ivory Coast and Ghana
Sierra Leone and Liberia
85
How has the Internet influenced companies' attention to ethical issues in their extended supply chains?
It has made it easier for companies to ignore ethical issues
It has led to the creation of new guidelines for handling ethical issues
It has reduced the importance of ethical issues in supply chains
It has enabled the rapid spread of news, increasing pressure on companies t
86
The concept of selective perception helps explain why:
Visitors to another culture may overlook important behaviors, roles, and va
People from different cultures have the same priorities
Cultural differences do not affect business interactions
Individuals from the same culture have identical beliefs
87
In terms of advertising ethics, what is a major concern?
The size of the marketing budget
Truthfulness and responsibility in advertising
The use of celebrities in advertisements
The frequency of advertisements
88
According to Arthur Levitt, former head of the Securities and Exchange Commission (SEC), what has developed in American
A focus on corporate social responsibility
A strong emphasis on ethical decision-making
A long-term culture
An obsession with stock prices and short-term results
89
Which financial institution has paid the highest amount in fines since the 2008 financial debacle?
Bank of America
Citigroup
JPMorgan Chase
Goldman Sachs
90
What is a potential consequence of American businesses not providing adequate support and cross-cultural training to the
Improved relationships with host nationals
Enhanced performance in the foreign market
Increased job satisfaction
Decreased willingness to stay in the assignment
91
Which component of cultural intelligence (CQ) focuses on an individual's confidence and motivation to adapt to a new cul
Linguistic component
Motivational component
Action component
Knowledge component
92
How can learning about national culture help an individual operating in a foreign culture?
By reducing the risk of misinterpretation and misunderstanding
By providing an advantage in negotiations with local businesses
By eliminating the need for cultural adaptation
By ensuring compliance with local laws and regulations
93
How can companies make ethics reporting systems more appealing to employees in different cultures?
Discourage the use of helplines
Avoid involving senior international managers
Centralize all resources in the headquarters
Focus on providing guidance instead of solely reporting misconduct
94
What is one way organizations can fulfill their ethical obligation to shareholders?
By engaging in short-term profit-making activities
By behaving unethically to increase stock prices
By taking care of customers and employees
By ignoring long-term performance goals
95
Which industry is discouraged from participating in the United Nations Global Compact due to its negative health effects
Pharmaceuticals
Fast food
Oil and gas
Tobacco
96
In which type of culture might a more informal ethics management system that helps rule breakers mend their ways be more
Individualistic cultures
Low power distance cultures
High power distance cultures
Collectivist cultures
97
Why is it important for companies to evaluate ethical issues and risks before deciding to do business in a country or wi
To ensure compliance with local regulations
To protect their reputation and avoid potential negative consequences
To save time in the long run
To avoid paying taxes in the new country
98
What is one of the ethical obligations organizations have towards their employees?
Guaranteeing promotions every year
Ensuring a safe workplace
Providing unlimited vacation days
Offering the highest salaries in the industry
99
What does LIBOR stand for?
London International Bank Offered Rate
London International Borrowing Rate
London Interbank Overnight Rate
London Interbank Offered Rate
100
What was one of the reasons why some U.S. firms chose to stay out of South Africa during the apartheid years?
Lack of business opportunities
Encouragement from the Sullivan Principles
Pressure from institutional investors
Pressure from the South African government
