question

International markets must be pursued if firms want to remain

answer

competitive

question

Peter Drucker has labeled the expanded global marketplace the

answer

transnational economy

question

Which of the following is not a feature of the global economy?

answer

international laws governing fair trade

question

The process by which firms increase their awareness of the influence of international activities on their future and establish and conduct transactions with firms from other countries is known as

answer

internationalization

question

Economic integration of many formerly national economies into one worldwide economy is called

answer

globalization

question

The center of the controversy that aligns rich nations against poor nations is

answer

what the trade rules will be, and who will write the rules

question

Moving jobs that have historically resided in the home country to a lower-cost host country is called

answer

offshoring

question

Which of the following countries was not an original participant in the NAFTA agreement?

answer

Puerto Rico

question

The most challenging situation for an MNC to face is

answer

operating is less-developed countries.

question

To be viewed as legitimate in their host countries, MNCs must fulfill their social responsibilities, including all of the following except

answer

Technological functions

question

Which of the following is not a factor in a host country's perception of the legitimacy of an MNC?

answer

profitability of the firm

question

The requirement for an MNC to take on local partners is referred to as

answer

creeping expropriation.

question

Which of the following is not one the broad issues facing MNCs in their relationships with host countries?

answer

religious and other traditional holidays

question

The main two factors of concern in management and control of global operations are

answer

organizational structure/design and human resource management.

question

Richard Robinson suggests three levels of sensitivity that MNCs should exhibit for the long-run national interests of less-developed countries. All of the following are levels of sensitivity except

answer

the need to modify marketing efforts to conform to local custom.

question

To resolve the infant formula controversy, Nestlè agreed to do all of the following except

answer

providing purified water with the formula

question

Which of the following is not a characteristic of sweatshops?

answer

forced prostitution

question

All of the following groups have criticized MNC labor practices except

answer

church groups.

question

Which of the following is not an SA8000 standard proposed to improve sweatshop conditions?

answer

provision of educational opportunities for workers

question

All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except

answer

providing retirement benefits.

question

The Alien Tort Claims Act allows

answer

foreign individuals to sue U.S. firms in American courts for their actions abroad.

question

U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because

answer

they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.

question

Which of the following is not an example of corruption?

answer

negotiating for the lowest price on a contract

question

All of the following are arguments in support of bribery except

answer

it is a way of providing needy foreigners with money they need.

question

Which of the following is not an argument commonly used against bribery?

answer

Bribes are unfair because foreigners can get them, while U.S. citizens cannot

question

The Foreign Corrupt Practices Act

answer

makes it illegal for the representative of an American corporation to offer or pay officials of foreign governments for the purpose of getting or maintaining business.

question

The Foreign Corrupt Practices Act allows

answer

grease payments.

question

Payment of a bribe implies some type of

answer

quid pro quo.

question

Which of the following is not part of the anticorruption movement?

answer

World Trade Organization

question

The United States' rank in the Corruption Perception Index is

answer

somewhere in the middle.

question

Recent instability and violence in certain foreign markets will result in all of the following effects except

answer

abandonment of existing operations

question

The position that advocates that an MNC should continue to follow its home country's ethical standards even while operating in another country is known as

answer

ethical imperialism.

question

The position that advocates that an MNC follow the host country's ethical standards is called

answer

ethical relativism.

question

Which of the following is not one of George Enderle's types of global firms with respect to their use of home versus host country ethical standards?

answer

imperial

question

Values that are acceptable to all cultures and organizations are called

answer

hypernorms

question

A country's ethical norms that are inconsistent with at least some other countries' legitimate norms are called

answer

moral free space.

question

Which of the following is not a strategy for improving global business ethics?

answer

imposing the home country's ethical standards on the host country

question

The ethics and global strategy plan for improving global business ethics has as its central idea

answer

utilizing ethical standards as significant inputs into top-level strategy formulation and implementation

question

An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in

answer

ethical impact statements

question

Richard DeGeorge's seven moral guidelines for global business are similar to

answer

hypernorms

question

Which of the following is not a driver of the quest to improve product and service quality?

answer

legislation and regulation

question

The two central issues of goods and services are

answer

quality and safety.

question

All of the following are reasons given for the current obsession with quality except

answer

employee satisfaction

question

Which of the following is not a dimension of quality listed in the textbook?

answer

status

question

All of the following are dimensions of quality except

answer

objectivity

question

The ethical theory based on the concept of duty that states that firms have a responsibility to comply with the terms of the sale, inform the customer about the product, not misrepresent anything, and not coerce the customer is

answer

contractual theory.

question

The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is

answer

due care theory.

question

The ethical theory based on the concept of duty that suggests that if a product causes harm, the firm should pay the costs of any injury is

answer

social costs view.

question

The legal view of "let the buyer beware" that prevailed in the 1800s was

answer

caveat emptor.

question

The current legal view of "let the seller take care" is

answer

caveat vendor.

question

Which of the following is not one of the top ten list of safety principles?

answer

Allow a margin of error for the consumer.

question

All of the following are in the top ten principles of safety except

answer

encourage customers to try out the product before purchasing it.

question

Which of the following is not an allegation commonly made in product liability suits?

answer

The product was produced under inhumane conditions.

question

The primary responsibility for product safety lies with the

answer

producer.

question

Which of the following is not one of the top consumer product categories most frequently associated with injuries requiring hospital treatment?

answer

automobiles

question

Reasons to be concerned about product liability include all of the following except

answer

the number of trial attorneys being licensed.

question

The legal principle that anyone in the value chain of a product is liable for harm caused to the user if the product as sold was unreasonably dangerous is

answer

strict liability.

question

Due diligence means that a company

answer

has taken every possible precautionary step possible and followed all industry standards.

question

The fact that a company is responsible for the harm done to customers by its product even if it can show that it did its best according to the state of the art in the industry at that time is called

answer

absolute liability.

question

A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to

answer

market share liability.

question

The Tylenol case in the 1980s, in which capsules were injected with cyanide, is an example of

answer

product tampering.

question

Business claims that current product liability law suffers from all of the following problems except

answer

bias

question

Which of the following is not a way in which the Consumer Product Safety Commission works to reduce the risk of harm from consumer products?

answer

lobbying Congress to pass new consumer protection laws

question

The Consumer Product Safety Commission works to reduce the risk of harm from consumer products in all of the following ways except

answer

passing legislation outlawing products

question

Early research conducted in the organization later known as the Food and Drug Administration fed small doses of poison to

answer

the "Poison Squad."

question

The Food and Drug Administration regulates all of the following except

answer

personal care products.

question

Which of the following is not part of the FDA's mission?

answer

to help identify and develop new foods and drugs

question

The Food and Drug Administration is part of

answer

the Health and Human Services Department

question

Which of the following is not an activity engaged in by the Food and Drug Administration?

answer

promotion

question

Some people are trying to get the Food and Drug Administration involved in the regulation of

answer

dietary supplements

question

Business's response to consumerism over time has been one of

answer

ineffective action, followed by improved responses.

question

Today's consumers exhibit all of the following characteristics in dealing with business except

answer

forgiveness

question

Businesses have responded to consumer activism with all of the following efforts except

answer

rebate and discount programs.

question

Programs that attempt to blend all of the functions of a business into a holistic, integrated philosophy built around teamwork, productivity, and customer satisfaction are called

answer

total quality management programs.

question

The focus of total quality management programs is

answer

the customer.

question

The initial part of the total quality management process is to

answer

define quality in terms of customer expectations.

question

An important criticism of total quality management is that it

answer

never did anything to define quality.

question

The body of methodologies and techniques for achieving quality that focuses on the number of defects is called

answer

Six Sigma.

question

One of the strengths of Six Sigma program's has been its

answer

clarity of process and the steps companies must take to adopt it.

question

Six Sigma practitioners believe in fixing the ____ rather than the ____.

answer

process; product

question

Anything that is internal or external to an entity is its

answer

environment

question

The volume and intensity of use that can be sustained in a particular place and time is called

answer

carrying capacity.

question

A measure of disorder of energy, indicating its unavailability for recycling for the same use, is

answer

entropy.

question

All living and nonliving substances present in a particular place is a(n)

answer

ecosystem

question

The role an organism plays in its natural community is its

answer

niche

question

The continuous looplike movement of water, air, and various nutrients is a(n)

answer

cycle

question

The point at which a particular phenomenon suddenly begins to be activated is the

answer

threshold

question

Material or energy that has gone through a transformation process and is perceived as unwanted or devalued is

answer

pollution

question

The inability of humans and nature to restore environmental conditions to a previous state within a relevant time frame is

answer

irreversibility

question

The characteristic of an entity that is related to its ability to exist and flourish over an extended period of time is

answer

sustainability

question

Which of the following is not commonly viewed as an existing natural environment problem

answer

light pollution

question

All of the following issues are current environmental problems except

answer

volcanic activity.

question

Human denial of responsibility for the misuse of the environment is reflected by:

answer

NIMBY

question

The prevention of solar heat absorbed by our atmosphere from returning to space is known as

answer

the greenhouse effect.

question

The secondary reason for the greenhouse effect is

answer

deforestation

question

In the United States, the average weight of waste produced per person per day is about

answer

4.4 pounds.

question

Which country releases 3.3 billion tons of carbon dioxide each year due to deforestation?

answer

Indonesia

question

Problems made worse by deforestation include

answer

soil erosion. the greenhouse effect. moisture and nutrient ecosystem cycles.

question

Endangered species are threatened with extinction due to all of the following reasons except

answer

drought

question

A large number of children in developing countries suffer from chronic coughing due to

answer

air pollution.

question

Precipitation containing harmful amounts of nitric and sulfuric acids

answer

is called acid rain.

question

Indoor air pollution

answer

is becoming an increasing concern because most people spend the majority of their lives indoors.

question

Energy inefficiency is a major concern

answer

in all countries.

question

Chemicals or mixtures that may present unreasonable risks of injury to health or to the environment are called

answer

toxic substances.

question

The number of oil spills reported worldwide in a typical year is

answer

around 14,000.

question

Companies with strong environmental management are likely to outperform companies that have

answer

environmental liabilities.

question

Reports of studies explaining and estimating the ecological ramifications of questionable practices and irreversible uses of resources and proposing detailed, reasonable alternatives to these practices and uses are

answer

environmental impact statements.

question

One approach to resolving air pollution problems, intended to reduce a particular pollutant over an entire industrial region by treating all emission sources as if they were under one bubble is called

answer

emissions trading

question

The purpose of Superfund legislation was to

answer

clean up hazardous waste dumps and spills.

question

In the Montreal Protocol of 1987, most of the nations that produced or used CFCs agreed to

answer

a quick phase-out of CFCs

question

Environmental interest groups and business have recently

answer

been reasonably cooperative with each other.

question

Groups that employ violent acts that involve real or threatened damage to people or property in pursuit of environmental goals are called

answer

ecoterrorists

question

Businesses are paying close attention to all of the following green groups except

answer

legislators

question

Business that meets the need of the present without compromising the ability of future generations to meet their own needs is following principles of

answer

sustainability

question

Which of the following is not a CERES principle

answer

cooperation with business and government

question

CERES principles include all of the following except

answer

concentrate on industrialized countries

question

Managers can use crisis management in the environmental area by focusing on:

answer

Prevention Contingency plans all of these

question

Which of the following is not a principle of sustainable success?

answer

Your business should never use more than it can replace

question

Paul Dolan formulated all of the following principles of sustainable success except

answer

Your business should never overextend in any area.

question

A systematic approach to incorporating environmental issues into running a business is

answer

strategic environmental management.

question

The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is

answer

customer relationship management.

question

The one question that is the best measure of customer loyalty is

answer

would you recommend this product/service to a friend?

question

Which of the following is not one of the rights in the consumer's Magna Carta?

answer

right to be protected

question

A consumer's right to choose refers to

answer

the assurance that competition is working effectively.

question

The right to be heard was listed as part of the consumer's Magna Carta because

answer

many consumers felt that they could not effectively communicate their desires and grievances to businesses

question

The social movement that seeks to augment the rights and powers of buyers in relation to sellers is

answer

buyer beware. consumerism.

question

Which of the following is not a lesson from the consumer movement?

answer

Consumers can force companies to change their behaviors through boycotts.

question

The father of the consumer movement is

answer

Ralph Nader.

question

Common consumer complaints include all of the following except

answer

lack of consumer credit

question

The power held by consumers comes from

answer

grassroots involvement.

question

The two major classifications of issues in the business/consumer relationship are

answer

product information and the product itself.

question

Issues related to product information include all of the following except

answer

website design

question

Which of the following is not a commonly recognized benefit of advertising?

answer

It lowers the price of goods and services.

question

Information that is direct and straightforward, that is not deceptive or manipulative is

answer

clear.

question

Information that communicates truths, and avoids exaggeration and innuendo is

answer

accurate

question

Information that provides potential purchasers with enough information to make the best choice among the options available is

answer

adequate

question

Advertising abuses include all of the following types except

answer

cynical depictions.

question

Words that are inherently vague, without being misleading are referred to as

answer

weasel words.

question

Use of plot placements involve

answer

placement of products part of the storyline of a television show.

question

Advertising claims that cannot be substantiated by evidence are termed

answer

exaggerated claims.

question

Puffery is another way of saying that a statement is an exaggeration that uses

answer

general superlatives.

question

Which of the following is not a problem associated with exaggerated claims?

answer

They generally cost more to produce.

question

Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies on

answer

psychological appeals

question

The practice of directly contrasting a firm's product with the product of a competitor is called

answer

comparative advertising.

question

The fact that Abercrombie and Fitch terminated its sexually explicit catalogue is evidence that

answer

sex does not necessarily sell.

question

The Children's Television Act was passed to

answer

prohibit the airing of commercials about products or characters during a show about those products or characters

question

Which of the following is not part of CARU's guidelines for advertising directed toward children under the age of twelve

answer

consider the socioeconomic level of the audience

question

CARU would object to tobacco ads directed toward children as a violation of which of its principles?

answer

products that are inappropriate for use by children should not be advertised to them

question

The basic activity of CARU is

answer

to review and evaluate child-directed advertising in all media.

question

The industry under the greatest attack for its marketing and advertising practices is

answer

cigarettes

question

All of the following are significant issues in cigarette advertising except

answer

its aim at less-developed countries

question

The fact that advertising can increasingly be found everywhere is referred to as

answer

ad creep

question

Warranties were originally used by manufacturers to

answer

limit the length of time they were responsible for products.

question

The traditional term that was used for advertising located in novel locations (now called ad creep) was

answer

ambient advertising

question

An implied warranty is

answer

an unspoken promise that there is nothing significantly wrong with the product.

question

A guarantee that is explicitly offered at the time of sale is called a(n)

answer

express warranty.

question

The purpose of the Federal Packaging and Labeling Act of 1967 was to

answer

both prohibit deceptive labeling of certain consumer products and require disclosure of certain important information.

question

The Federal Packaging and Labeling Act of 1967 is administered by the

answer

Federal Trade Commission.

question

Which of the following is not a law that addresses information disclosure issues?

answer

Credit Collection Limitation Act

question

The federal government's major body for ensuring that business lives up to its responsibilities is the

answer

Federal Trade Commission.

question

Community involvement is most commonly manifested through

answer

donating the time and talents of its employees.

question

Educational recipients of giving include each of the following except

answer

Student matching gifts

question

The biggest change in corporate philanthropy since 2001 was its alignment with which of the following

answer

Each of these

question

Companies can benefit from volunteer programs that they sponsor in all of the ways shown below except

answer

increasing productivity at work.

question

Which of the following is not a way in which companies can benefit from volunteer programs?

answer

developing strong ties with local government officials

question

Assessing a firm's competencies and determining where sharing them would accomplish the most good is an example of

answer

resource-based giving.

question

Community involvement focuses on the contribution of

answer

employee time and talent.

question

The central reason for community involvement is

answer

self-interest.

question

Which of the following is not a reason commonly given for community involvement?

answer

a way to help employees build their resumès

question

Being more systematic about the company's relationship with the community often results in developing a

answer

community action program.

question

Steps in developing a community action program include all of the following except

answer

building bridges to the community.

question

Selection of projects for a community action program grows out of

answer

matching community needs with company resources.

question

Guidelines for developing a community involvement strategy include all of the following steps except

answer

decisions about which projects to undertake should take place at the highest levels of management.

question

Which of the following is not a guideline for developing a community involvement strategy?

answer

The company should get involved in projects that will help it make more profit.

question

Standards of excellence in corporate community involvement include all of the following except

answer

efficiency.

question

Which of the following is not a standard of excellence by which corporate community involvement should be judged?

answer

crisis management

question

In terms of community involvement, foreign direct investors have practices and viewpoints

answer

quite similar to those of U. S. firms

question

Philanthropy, as it is used in the textbook, means

answer

business giving of financial resources.

question

Which of the following is not a reason that some people want more transparency in corporate philanthropy

answer

to close tax loopholes

question

The "third sector" is composed of

answer

non-profit organizations.

question

Which of the following is not a category of corporate contributions programs?

answer

firms whose donations usually go to children's programs

question

Of the portion of corporate philanthropy that goes to education, the majority of donations go to

answer

higher education.

question

The primary reason given for support of higher education programs is

answer

to increase the pool of trained personnel.

question

Fund-raising efforts by large non-profit organizations like United Way, who in turn donate funds to specific causes, are called

answer

federated drives

question

Which of the following is not a category of recipient to whom corporations often give money?

answer

athletic teams

question

Which of the following is a reason that corporate giving has slowed?

answer

all of these

question

When a non-profit organization and a for-profit company join forces for their mutual advantages, they form a

answer

public purpose partnership

question

An approach by which corporate giving is designed in a way that best fits with the firm's overall mission and goals is called

answer

strategic philanthropy.

question

One way in which philanthropy can be made strategic is to

answer

bring contribution programs into sharper alignment with business endeavors.

question

The direct linking of a business's product or service to a specified charity is

answer

cause-related marketing

question

Cause branding is similar to cause-related marketing, but

answer

is a longer term commitment.

question

Outsourcing refers to

answer

the use of outside resources to accomplish tasks that were once done in-house

question

Employees might consider their roles in plant closings

answer

an extension of numerous employee rights issues.

question

According to philosopher John Kavanagh, business's moral responsibility with a plant closing is to

answer

minimize negative externalities.

question

Which of the following actions is not usually a viable alternative to closing a plant?

answer

seek tax breaks that will help profits

question

Employee ownership of a business whose former owners were considering shutting it down

answer

is a difficult endeavor, with no assurance of success

question

For employee ownership of a business to work

answer

employees must believe they have role to play in leading the company.

question

After the decision to close a plant has been made, actions that management should take may include all of the following except

answer

announce the decision in the press before telling employees and community leaders.

question

The Worker Adjustment and Retraining Notification Act (WARN) requires firms employing 100 or more workers to notify workers of a large layoff or shutdown at least ____ in advance

answer

sixty days

question

Outplacement services seek to

answer

minimize cost and disruption to the company and maximize benefits to the displaced workers.

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