Global Business final ( ch 8, 9, 10) – Flashcards
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True or False: Government and business together establish the regulatory rules under which business operates in society.
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false
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True or False: In Europe, unions are prohibited by law to be on businesses' administrative boards.
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false
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True or False: A cooperative government-business relationship on one issue does not guarantee cooperation on another issue
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true
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True or False: Public policy is a plan of action undertaken by business to influence the government.
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false
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True or False: In non-democratic countries, the power of government may derive from a monarchy, military dictatorship, or religious authority.
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true
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True or False: Public policy effects are always unintended consequences of an action
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false
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True or False: Monetary policies refer to policies that affect the supply, demand and value of the nation's currency.
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true
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True or False: A national health care policy is an example of an economic policy.
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false
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True or False: Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand.
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true
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True or False: Predatory pricing is a violation of antitrust laws.
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true
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True or False: Cost-benefit analysis is often used to determine the costs of regulation.
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true
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True or False: . Regulatory activity often is cyclical.
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true
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True or False: Regulation cannot be applied to international business behavior.
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false
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True or False: Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries.
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true
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True or False: The United Nations oversees all international agreements concerning regulations between nations.
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false
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Managers' understanding of government regulations is: A. Both a domestic and international issue. B. Primarily a domestic issue. C. Primarily an international issue. D. An international issue only for large firms
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A
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European Union regulators accused Uber of engaging in: A. Price-fixing. B. False advertising. C. Unfair competition. D. Unhealthy working conditions.
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C
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Government's role is to create and enforce laws that: A. Control businesses' actions in society. B. Protect businesses' interest in society. C. Protect society from business. D. Balance the relationship between business and society.
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D
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Governments hold the power to: A. Grant permission for only specific business activity. B. Grant or refuse permission for many types of business activity. C. Refuse permission for only government funded activity. D. None of the above.
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B
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Around the world, government: A. Tends to cooperate with business. B. Tends to be in conflict with business. C. Sometimes cooperates and sometimes is in conflict with business. D. Tends to be controlled by business
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C
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Cooperation between business and government often occurs when: A. They encounter a common problem or enemy. B. Business can afford it. C. Business operates at arm's length from the government. D. Government has the support of the people.
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A
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When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called: A. Government bailouts. B. Political sanctions. C. Economic sanctions. D. Government stop-orders.
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C
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Past decisions of the courts, the original basis for the U.S. legal system, are called: A. Torts. B. Amendments. C. Legitimate actions. D. Common laws.
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D
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The Mullahs in Iran is an example of the power of government derived from: A. A monarchy. B. A military dictatorship. C. A religious authority. D. A democracy
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A
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Governments being asked to regulate driving distractions are examples of a public policy: A. Input. B. Goal. C. Effect. D. Tool.
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A
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Public policy tools involve a combination of: A. Incentives and political favors. B. Penalties and prison terms. C. Incentives and penalties. D. Political favors and prison terms.
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C
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Patterns of government taxing and spending that are intended to stimulate or support the economy are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies.
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C
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Policies that affect the supply, demand, and value of a nation's currency are: A. International standards policies. B. Social assistance policies. C. Fiscal policies. D. Monetary policies.
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D
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By raising and lowering the interest rates at which private banks borrow money from the government, the Federal Reserve Bank: A. Influences the size of the nation's money supply. B. Influences the value of the dollar. C. Minimizes investor confidence about the nation's future. D. Both A and B, but not C
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D
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The primary way of accomplishing public policy is through: A. Waiting for businesses to act. B. Lobbying Congress. C. Regulation. D. Writing your politician.
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C
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When the market fails to adjust for the full costs of a firm's behavior, this is called: A. Negative externalities. B. Deregulation. C. Market failure. D. Re-regulation.
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C
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Which of the following are examples of natural monopolies? A. Electric utilities and railroads. B. Cable television and the media. C. Internet services and trucking. D. None of the above
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A
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Regulation can be argued as justified based on: A. Collective market theory. B. Utilitarian and justice grounds. C. The life cycle of regulation. D. Tradition.
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B
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Economic regulations: A. Can only exist for 37 years unless renewed. B. Apply only to older industries. C. Always conflict with social regulation. D. Cut across industry lines.
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D
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Which of the following is not an example of a social regulatory agency? A. Consumer Product Safety Commission. B. Equal Employment Opportunity Commission. C. National Highway Traffic Safety Administration. D. National Labor Relations Board.
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D
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An example of a regulatory agency charged with enforcing social regulation is: A. Federal Aviation Administration. B. Federal Trade Commission. C. Federal Communications Commission. D. Internal Revenue Service.
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B
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Total social regulation costs are: A. Slightly higher than total economic regulation costs. B. Slightly less than total economic regulation costs. C. Significantly higher than total economic regulation costs. D. Equal to total economic regulation costs.
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C
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Deregulation is often: A. A politically popular idea. B. A politically unpopular idea. C. Seen during a Democratic federal administration. D. Found in European countries but not in the United States
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A
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Deregulation has occurred in the following industries: A. Commercial airlines, sheet metal, and interstate trucking. B. Commercial airlines, railroads, and financial institutions. C. Commercial airlines, interstate trucking, and silicon chip manufacturing. D. Financial institutions, railroads, and silicon chip manufacturing.
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B
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Reregulation is: A. The adoption of regulation in another country to promote trade. B. Necessary since all regulation has a time limit. C. The increase or expansion of government regulation. D. The shifting of regulation to the state level from the national level.
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C
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Antitrust laws protect consumers from: A. Anticompetitive practices by business. B. Selling products above cost to drive away rivals. C. Conspiring with business partners to increase competition. D. Firms using market dominance to expand commerce.
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C
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Which of the following represents a structural remedy for an antitrust violation? A. Paying a large fine. B. Breaking up a monopoly. C. Disclosure of company information to rivals. D. Agreeing to change a firm's conduct.
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A
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Economists reported that the costs of regulatory compliance were highest for: A. Vehicle safety. B. Antitrust issues. C. Worker safety. D. Consumer protection.
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C
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Which of these cost-savings measures saved U.S. regulatory agencies nearly $2 billion since 2011? A. Promotion of telemedicine in rural areas. B. Coordination of hazards warning with other nations. C. Removal of redundant reporting requirements. D. All of the above.
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B
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In 2012 the European Union imposed a carbon emissions fee on all airlines flying in and out of EU airspace that: A. Successfully raised funds through fees to limit greenhouse gas emissions. B. Garnered great support from the Chinese and U.S. governments. C. Generated great opposition from more than two dozen countries. D. Effectively eliminated greenhouse gas emissions in its airspace.
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C
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True or False: Businesses should stick to pursuing profits and have no legal right to be engaged in political activities.
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false
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True or False: The emergence of public issues often encourages companies to monitor public concerns, respond to government proposals, and participate in the political process.
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true
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True or False: In many countries, the political environment has a select few participants.
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false
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True or False: . Various stakeholder groups often use far different tactics than businesses to influence government officials, elections, and regulation.
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false
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True or False: Labor unions have been an active participant in United States politics for decades.
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true
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True or False: Most scholars agree that business must participate in politics
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true
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True or False: Businesses must wait for a public issue to arise before forming a political strategy.
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false
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True or False: A Super PAC is a financial-incentive political strategy tool.
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false
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True or False: Businesses and trade associations spend very little on lobbying
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false
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True or False: Under U.S. law, lobbying activities must be disclosed publicly
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true
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True or False: Sometimes business people leave the private sector to take employment in government before returning to the corporate world.
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true
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True or False: Expert witnesses provide information to legislators for businesses or business groups.
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true
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True or False: Firms are more likely to have a sophisticated political strategy when the company is a frequent target of public scrutiny.
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false
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True or False: When a manager directly employs a lobbyist to represent the company's political strategy in Washington this is called aggressive organizational involvement in politics.
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false
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True or False: According to the textbook, the heads of most public affairs departments are senior vice president or vice president positions
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true
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What method(s) did the businesses opposed to Arkansas' "religious freedom" laws use to influence lawmakers? A. Filed a lawsuit. B. Made public announcements. C. Hired private lobbyists. D. Both B and C, but not A.
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C
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Public policies and government regulations are shaped by: A. Business. B. Special interest groups. C. Government. D. All of the above.
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D
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Proponents of business as a political participant argue: A. A pluralistic system invites many participants. B. It is business's constitutional right to be involved. C. Business is a vital stakeholder of government. D. Both A and C, but not B.
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D
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In recent annual Harris polls, which entity did Americans believe had the greatest amount of political power? A. Small businesses. B. Large businesses. C. Political action committees. D. Lobbyists.
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B
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A corporate political strategy does not: A. Hinder a competitor's ability to compete economically. B. Seek to continue the firm's economic survival or growth. C. Determine the legal limits allowed for campaign financing. D. Exercise a firm's right to a voice in government affairs.
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C
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Firms in the chemical industry, which must contend with frequently changing environmental regulations and the risk of dangerous accidents, usually have: A. No defined political strategy. B. A sophisticated political strategy. C. A political strategy focused on intellectual property rights. D. A political strategy focused on licensing rights.
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B
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To influence government policymakers' actions, an information strategy involves: A. Business leaders speaking before government policymakers. B. Government policymakers hiring special interest groups for fact-finding projects. C. Businesses listening to government policymakers in order to develop a corporate strategy. D. Gaining support from other affected organizations
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A
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Which political action strategy seeks to gain support from other affected organizations to better influence policymakers? A. Information strategy. B. Constituency-building strategy. C. Financial-incentive strategy. D. Lobbying strategy.
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B
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A common tactic in a financial-incentive political strategy is: A. Lobbying. B. Legal challenges. C. Expert witness testimony. D. Political contributions.
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D
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Which of the following is not a constituency-building strategy tool? A. Expert witness testimony. B. Advocacy advertising. C. Public relations. D. Legal challenges.
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A
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A company that builds stakeholder coalitions to influence government is using which strategy? A. Informational. B. Financial-incentives. C. Constituency-building. D. Friendly forces.
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C
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The information strategy tool most used by business is: A. Political contributions. B. Lobbying. C. Legal challenges. D. Direct communication.
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B
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Lobbyists, under U.S. law, must disclose their: A. Political affiliation and expenses. B. Earnings. C. Expenses. D. Earnings and expenses.
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D
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Since 2011, the total amount spent on lobbying activity has: A. Remained exactly the same. B. Doubled. C. Decreased slightly. D. Increased slightly.
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C
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Hiring former government officials for positions in the corporate world is: A. Normally legal. B. Always unethical. C. Considered unethical by over 50% of Americans. D. A and C, but not B.
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D
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Businesses promote an information strategy by inviting government leaders to: A. Visit local plant facilities. B. Attend company award ceremonies. C. Give speeches to employees. D. All of the above.
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D
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Expert witness testimony is often collected: A. Through company newsletters. B. On the steps of the White House. C. In Congressional hearings. D. From The Wall Street Journal
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C
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One of the oldest financial-incentive strategy tools is: A. Political action committee contributions. B. Political consulting aid. C. Advocacy advertising. D. Lobbying.
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A
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Which of these statements accurately describes a Super PAC? A. Allows limited contributions from unions. B. Allows limited contributions from individuals. C. Is also called the dependent expenditure-only committee. D. Does not allow direct contributions to candidates or political parties.
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D
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Dark money refers to: A. Anonymous contributions to for-profit organizations. B. Money collected illegally by PACs. C. Soft money. D. Undisclosed contributions to tax-exempt organizations.
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D
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Economic leverage occurs when a business uses it economic power to: A. Hire lobbyists to gain a desired political action. B. Pay for the costs of regulation to acquire a desired political action. C. Threaten to leave a location unless a desired political action is taken. D. Buyout another firm to acquire a desired political action.
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C
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Advocacy ads are also called: A. Issue advertisements. B. Research and development plans. C. Constituent advertisements. D. Price control advertisements.
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A
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Supporters of advocacy advertisements believe that they: A. Identify a company as an interested and active stakeholder. B. Can help mold public opinion on a particular policy issue. C. Increase union activity and long-term expenses for an organization. D. Both A and B, but not C.
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D
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When a business seeks to overturn a law after it has been passed or threatens to challenge the legal legitimacy of the new regulation in the courts, this is called: A. Accumulating. B. Overturn lobbying. C. Legal challenges. D. Funneling.
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C
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When a firm solicits its stockholders for political contributions for a particular candidate by letter and then sends those contributions to the candidate on behalf of its stockholders, it is called: A. Lobbying. B. Bundling. C. Collating. D. Constituency building.
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B
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When managers become personally involved in developing public policy, the firm is at what level of business political involvement? A. Limited organizational involvement. B. Moderate organizational involvement. C. Aggressive organizational involvement. D. Holistic organizational involvement.
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C
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In a survey of 110 companies in 2014, the most frequent public affairs tactic was related to: A. Grassroots issues. B. Political action committees. C. Issues management. D. Federal government regulations
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D
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The typical public affairs executive spends most of the day: A. Coalition building. B. Direct lobbying. C. Fund raising. D. All of the above.
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D
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To help control political favoritism, there have been global efforts to: A. Promote fairness in the electoral process. B. Control the rapid decrease in campaign costs. C. Diminish the role of political parties. D. Discourage grassroots participation.
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A
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In 2011, the Global Electoral Organization (GEO) discussed which critical election administration issues? A. How to disengage electoral stakeholders. B. The role of the media in elections. C. How to increase election disputes. D. How to hide dark money contributions.
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B
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True or False: Plants and animals living as a natural unified system are called an ecosystem
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false
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True or False: Offshore wind turbines, genetic engineering and energy-efficient homes are examples of smart consumption
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true
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True or False: About 20 percent of the world's people have incomes below the international poverty line
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false
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True or False: The world's income is distributed equally among nations
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false
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True or False: The world's natural resource base—the air, water, soil, minerals, and so forth—is essentially finite, or bounded.
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true
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True or False: A commons is a shared resource, such as land, air or water that a group of people uses collectively.
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true
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True or False: The paradox of the commons is that if all individuals attempt to maximize their own private advantage in the short term, the commons will still remain productive in the long run.
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false
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True or False: The leading contributor to global warming is the burning of fossil fuels, which releases carbon dioxide into the atmosphere
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true
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True or False: Black carbon is the second largest contributor to climate change, responsible for as much as 18 percent of global warming.
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true
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True or False: Deforestation—cutting down and not replacing trees—contributes to global warming.
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true
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True or False: Land, even when properly cared for, is not a renewable resource.
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false
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True or False: Biodiversity refers to the number and variety of species that have become extinct
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false
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True or False: Rain forest destruction is controversial because these environments are more valuable cut down than standing
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false
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True or False: Life-cycle analysis involves collecting information on the lifelong environmental impact of a product, all the way from extraction of raw material, to manufacturing, to its distribution, use and ultimate disposal.
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true
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True or False: Sustainable development will require technology cooperation through long-term partnerships between companies in developed and developing countries to transfer environmental technologies.
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true
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Both large and small businesses have adopted sustainable practices to what advantage: A. Cost savings from operational efficiency. B. Opportunity to serve emerging economies. C. Reduction of regulatory risk. D. All of the above.
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D
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Natural capital refers to the world's: A. Supply of geology, soil, air, water and all living things. B. Combined stock ownership. C. Combined capital investments. D. Supply of sustainable developers
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A
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Sustainable development: A. Meets the needs of the present while compromising the ability of future generations to meet their own needs. B. Gives precedence to environmental over economic considerations. C. Balances economic and environmental considerations. D. Gives precedence to present needs over future needs
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C
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The core idea(s) of sustainable development is(are): A. Economic development must be accomplished sustainably. B. Poverty is an underlying cause of environmental degradation. C. Affluence is an underlying cause of environmental degradation. D. Both A and B, but not C.
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C
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Which of these factors has accelerated the current ecological crisis? A. Population reduction. B. World income equality. C. Rapid industrialization. D. All of the above.
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B
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Which of the following statements is not true about the population? A. Over the next century, population growth is expected to be greatest in developed nations. B. For many thousands of years, population growth was gradual. C. Industrial production would have to quintuple over the next 40 years in order to maintain the same living standard that people have now, given expected population growth. D. Just 10,000 years ago, the earth was home to no more than 10 million humans, scattered in small settlements.
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A
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Why is income inequality an environmental problem? A. People in the richest countries consume many natural resources. B. People in the poorest countries often misuse natural resources. C. People in the richest countries have strong environmental values. D. Both A and B, but not C.
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D
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Rapid economic development is often accompanied by: A. Increasing population growth. B. Greatly decreased crop yields. C. Rising incomes, bringing higher rates of both consumption and waste. D. Decreasing incomes, bringing rates of both consumption and waste.
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C
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The amount of land and water a human population needs to produce the resources it consumes and to absorb its wastes given prevailing technology is called: A. Ecological footprint. B. Technological innovation. C. Sustainable development. D. Consumption footprint.
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A
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Which pattern of consumption is recommended to reduce humanity's global footprint? A. Buying goods from firms that always seek to maximize their profits. B. Choosing less harmful products. C. Building more transit stops on the outskirts of town. D. Eating more beef
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B
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A shared resource, such as land, air, or water, that a group of people uses collectively is a(n): A. Economic village. B. Collective resource. C. Global unification. D. Commons.
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D
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Which of the following statements is(are) true about global warming? A. The earth has already warmed by between 0.7 and 1.1 degrees Celsius over the past century. B. Burning fossil fuels is the leading contributor of global warming. C. The amount of greenhouse gases in the atmosphere has increased by as much as 40 percent since the Industrial Revolution. D. All of the above.
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D
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By promoting the use of clean cookstoves in developing nations, a global alliance hopes to reduce: A. Deforestation. B. The burning of fossil fuels. C. Black carbon. D. Methane.
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C
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A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is: A. Ozone. B. Carbon dioxide. C. Methane. D. Oxygen.
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A
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Scientists believe that if the Montreal Protocol is honored the ozone layer will recover by: A. 2015. B. 2035. C. 2050. D. Never
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C
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The beverage industry's partnership Refrigerants Naturally! is attempting to: A. Reduce water usage. B. Increase the amount of arable land in use. C. Reduce the use of ozone-depleting chemicals. D. Increase the consumption of natural beverages.
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C
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With respect to fresh water, according to one estimate, if it were possible to eliminate pollution, capture all available fresh water, and distribute fresh water equitably: A. Demand would exceed supply within a hundred years. B. There would be a balance between demand and supply within a hundred years. C. Supply would exceed demand within a hundred years. D. None of the above.
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A
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Which of the following statements is not true about arable land? A. It is a nonrenewable resource. B. Over 20 percent of the irrigated lands in developing countries have been salinized. C. Poor farming practices have caused arable lands to turn into deserts. D. Soil erosion has threatened many of the arable lands.
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A
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Which of the following is not true about rain forests? A. They are the planet's richest areas in terms of biological diversity. B. They will be severely depleted within the next eight years. C. They account for about seven percent of the earth's surface. D. They account for somewhere between 40 to 75 percent of the earth's species.
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B
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Reasons for the destruction of rain forests include: A. Commercial logging. B. Cattle ranching. C. Conversion of forests to plantations. D. All of the above.
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D
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The commitments of the Convention on Biological Diversity include: A. Developing national conservation strategies. B. Eliminating CFC production. C. Population control education. D. Massive irrigation projects in developing countries.
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A
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Which of these activities is not considered to be a marine ecosystem threat? A. Overfishing. B. Ocean pollution. C. Coastal development. D. Ocean alkalinity
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D
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Life-cycle analysis involves: A. Accurately recording the production costs at each stage of a product's life cycle. B. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal. C. Reducing recycling costs for disposable products. D. Increasing productivity while improving the environment.
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B
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The Sustainability Consortium organized to advance life-cycle analysis for thousands of products includes all of the following companies except: A. Walmart. B. SAP. C. Alcoa. D. Google.
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D
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Which of the following is an example of industrial ecology in practice? A. Developing a paper recycling program in business offices. B. Using wastes from one process as raw materials for another process. C. Manufacturing recyclable containers for products. D. All of the above.
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B
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The idea that companies have a continuing responsibility for the environmental impact of their products or services, even after they are sold is called: A. Life-cycle analysis. B. Product life responsibility. C. Extended product responsibility. D. Extended product commitment.
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C
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An organization that produces net zero emissions of greenhouse gases is achieving: A. Carbon offsets. B. Carbon credits. C. Carbon neutrality. D. Black carbon.
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C
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. Which of the following illustrates the idea of sustainable development through technology cooperation? A. Worldwide conferences to encourage developing countries to invest in technological joint ventures with other developing countries. B. The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies. C. Advanced countries developing and selling at a profit environment technologies to developing countries. D. All countries developing their own environmental technology in order to solve their own problems.
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B
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An example of codes of environmental conduct that have been developed by and for specific industries include: A. The Equator Principles. B. The Forest Stewardship Principles. C. The Greenhouse Gas Protocol. D. A and B but not C.
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D
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The most successful global businesses in coming years will be those companies that: A. Develop short-term partnerships between companies in developing countries to transfer environmental technologies. B. Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action. C. Avoid fully accounting for environmental costs in calculating measures of production such as the gross domestic product (GDP). D. Produce products with a limited useful life
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B
