CH9&12&13&11&14 – Flashcards
200 test answers
Unlock all answers in this set
Unlock answers 200question
Economic integration of many formerly national economies into one worldwide economy is called
answer
globalization
Unlock the answer
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
Unlock the answer
question
Moving jobs that have historically resided in the home country to a lower-cost host country is called
answer
offshoring
Unlock the answer
question
Which of the following countries was not an original participant in the NAFTA agreement?
answer
Puerto Rico
Unlock the answer
question
The most challenging situation for an MNC to face is
answer
operating is less-developed countries.
Unlock the answer
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
Unlock the answer
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
Unlock the answer
question
The requirement for an MNC to take on local partners is referred to as
answer
creeping expropriation.
Unlock the answer
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
Unlock the answer
question
The main two factors of concern in management and control of global operations are
answer
organizational structure/design and human resource management.
Unlock the answer
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.
Unlock the answer
question
To resolve the infant formula controversy, Nestlè agreed to do all of the following except
answer
providing purified water with the formula
Unlock the answer
question
Which of the following is not a characteristic of sweatshops?
answer
forced prostitution
Unlock the answer
question
All of the following groups have criticized MNC labor practices except
answer
church groups.
Unlock the answer
question
Which of the following is not an SA8000 standard proposed to improve sweatshop conditions?
answer
provision of educational opportunities for workers
Unlock the answer
question
All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except
answer
providing retirement benefits.
Unlock the answer
question
The Alien Tort Claims Act allows
answer
foreign individuals to sue U.S. firms in American courts for their actions abroad.
Unlock the answer
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.
Unlock the answer
question
Which of the following is not an example of corruption?
answer
negotiating for the lowest price on a contract
Unlock the answer
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.
Unlock the answer
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
Unlock the answer
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.
Unlock the answer
question
The Foreign Corrupt Practices Act allows
answer
grease payments.
Unlock the answer
question
Payment of a bribe implies some type of
answer
quid pro quo.
Unlock the answer
question
Which of the following is not part of the anticorruption movement?
answer
World Trade Organization
Unlock the answer
question
The United States' rank in the Corruption Perception Index is
answer
somewhere in the middle.
Unlock the answer
question
Recent instability and violence in certain foreign markets will result in all of the following effects except
answer
abandonment of existing operations
Unlock the answer
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.
Unlock the answer
question
The position that advocates that an MNC follow the host country's ethical standards is called
answer
ethical relativism.
Unlock the answer
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
Unlock the answer
question
Values that are acceptable to all cultures and organizations are called
answer
hypernorms
Unlock the answer
question
A country's ethical norms that are inconsistent with at least some other countries' legitimate norms are called
answer
moral free space.
Unlock the answer
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
Unlock the answer
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
Unlock the answer
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
Unlock the answer
question
Richard DeGeorge's seven moral guidelines for global business are similar to
answer
hypernorms
Unlock the answer
question
Which of the following is not a driver of the quest to improve product and service quality?
answer
legislation and regulation
Unlock the answer
question
The two central issues of goods and services are
answer
quality and safety.
Unlock the answer
question
All of the following are reasons given for the current obsession with quality except
answer
employee satisfaction
Unlock the answer
question
Which of the following is not a dimension of quality listed in the textbook?
answer
status
Unlock the answer
question
All of the following are dimensions of quality except
answer
objectivity
Unlock the answer
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.
Unlock the answer
question
The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is
answer
due care theory.
Unlock the answer
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.
Unlock the answer
question
The legal view of "let the buyer beware" that prevailed in the 1800s was
answer
caveat emptor.
Unlock the answer
question
The current legal view of "let the seller take care" is
answer
caveat vendor.
Unlock the answer
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.
Unlock the answer
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.
Unlock the answer
question
Which of the following is not an allegation commonly made in product liability suits?
answer
The product was produced under inhumane conditions.
Unlock the answer
question
The primary responsibility for product safety lies with the
answer
producer.
Unlock the answer
question
Which of the following is not one of the top consumer product categories most frequently associated with injuries requiring hospital treatment?
answer
automobiles
Unlock the answer
question
Reasons to be concerned about product liability include all of the following except
answer
the number of trial attorneys being licensed.
Unlock the answer
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.
Unlock the answer
question
Due diligence means that a company
answer
has taken every possible precautionary step possible and followed all industry standards.
Unlock the answer
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.
Unlock the answer
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.
Unlock the answer
question
The Tylenol case in the 1980s, in which capsules were injected with cyanide, is an example of
answer
product tampering.
Unlock the answer
question
Business claims that current product liability law suffers from all of the following problems except
answer
bias
Unlock the answer
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
Unlock the answer
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
Unlock the answer
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."
Unlock the answer
question
The Food and Drug Administration regulates all of the following except
answer
personal care products.
Unlock the answer
question
Which of the following is not part of the FDA's mission?
answer
to help identify and develop new foods and drugs
Unlock the answer
question
The Food and Drug Administration is part of
answer
the Health and Human Services Department
Unlock the answer
question
Which of the following is not an activity engaged in by the Food and Drug Administration?
answer
promotion
Unlock the answer
question
Some people are trying to get the Food and Drug Administration involved in the regulation of
answer
dietary supplements
Unlock the answer
question
Business's response to consumerism over time has been one of
answer
ineffective action, followed by improved responses.
Unlock the answer
question
Today's consumers exhibit all of the following characteristics in dealing with business except
answer
forgiveness
Unlock the answer
question
Businesses have responded to consumer activism with all of the following efforts except
answer
rebate and discount programs.
Unlock the answer
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.
Unlock the answer
question
The focus of total quality management programs is
answer
the customer.
Unlock the answer
question
The initial part of the total quality management process is to
answer
define quality in terms of customer expectations.
Unlock the answer
question
An important criticism of total quality management is that it
answer
never did anything to define quality.
Unlock the answer
question
The body of methodologies and techniques for achieving quality that focuses on the number of defects is called
answer
Six Sigma.
Unlock the answer
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.
Unlock the answer
question
Six Sigma practitioners believe in fixing the ____ rather than the ____.
answer
process; product
Unlock the answer
question
Anything that is internal or external to an entity is its
answer
environment
Unlock the answer
question
The volume and intensity of use that can be sustained in a particular place and time is called
answer
carrying capacity.
Unlock the answer
question
A measure of disorder of energy, indicating its unavailability for recycling for the same use, is
answer
entropy.
Unlock the answer
question
All living and nonliving substances present in a particular place is a(n)
answer
ecosystem
Unlock the answer
question
The role an organism plays in its natural community is its
answer
niche
Unlock the answer
question
The continuous looplike movement of water, air, and various nutrients is a(n)
answer
cycle
Unlock the answer
question
The point at which a particular phenomenon suddenly begins to be activated is the
answer
threshold
Unlock the answer
question
Material or energy that has gone through a transformation process and is perceived as unwanted or devalued is
answer
pollution
Unlock the answer
question
The inability of humans and nature to restore environmental conditions to a previous state within a relevant time frame is
answer
irreversibility
Unlock the answer
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
Unlock the answer
question
Which of the following is not commonly viewed as an existing natural environment problem
answer
light pollution
Unlock the answer
question
All of the following issues are current environmental problems except
answer
volcanic activity.
Unlock the answer
question
Human denial of responsibility for the misuse of the environment is reflected by:
answer
NIMBY
Unlock the answer
question
The prevention of solar heat absorbed by our atmosphere from returning to space is known as
answer
the greenhouse effect.
Unlock the answer
question
The secondary reason for the greenhouse effect is
answer
deforestation
Unlock the answer
question
In the United States, the average weight of waste produced per person per day is about
answer
4.4 pounds.
Unlock the answer
question
Which country releases 3.3 billion tons of carbon dioxide each year due to deforestation?
answer
Indonesia
Unlock the answer
question
Problems made worse by deforestation include
answer
soil erosion. the greenhouse effect. moisture and nutrient ecosystem cycles.
Unlock the answer
question
Endangered species are threatened with extinction due to all of the following reasons except
answer
drought
Unlock the answer
question
A large number of children in developing countries suffer from chronic coughing due to
answer
air pollution.
Unlock the answer
question
Precipitation containing harmful amounts of nitric and sulfuric acids
answer
is called acid rain.
Unlock the answer
question
Indoor air pollution
answer
is becoming an increasing concern because most people spend the majority of their lives indoors.
Unlock the answer
question
Energy inefficiency is a major concern
answer
in all countries.
Unlock the answer
question
Chemicals or mixtures that may present unreasonable risks of injury to health or to the environment are called
answer
toxic substances.
Unlock the answer
question
The number of oil spills reported worldwide in a typical year is
answer
around 14,000.
Unlock the answer
question
Companies with strong environmental management are likely to outperform companies that have
answer
environmental liabilities.
Unlock the answer
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.
Unlock the answer
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
Unlock the answer
question
The purpose of Superfund legislation was to
answer
clean up hazardous waste dumps and spills.
Unlock the answer
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
Unlock the answer
question
Environmental interest groups and business have recently
answer
been reasonably cooperative with each other.
Unlock the answer
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
Unlock the answer
question
Businesses are paying close attention to all of the following green groups except
answer
legislators
Unlock the answer
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
Unlock the answer
question
Which of the following is not a CERES principle
answer
cooperation with business and government
Unlock the answer
question
CERES principles include all of the following except
answer
concentrate on industrialized countries
Unlock the answer
question
Managers can use crisis management in the environmental area by focusing on:
answer
Prevention Contingency plans all of these
Unlock the answer
question
Which of the following is not a principle of sustainable success?
answer
Your business should never use more than it can replace
Unlock the answer
question
Paul Dolan formulated all of the following principles of sustainable success except
answer
Your business should never overextend in any area.
Unlock the answer
question
A systematic approach to incorporating environmental issues into running a business is
answer
strategic environmental management.
Unlock the answer
question
The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is
answer
customer relationship management.
Unlock the answer
question
The one question that is the best measure of customer loyalty is
answer
would you recommend this product/service to a friend?
Unlock the answer
question
Which of the following is not one of the rights in the consumer's Magna Carta?
answer
right to be protected
Unlock the answer
question
A consumer's right to choose refers to
answer
the assurance that competition is working effectively.
Unlock the answer
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
Unlock the answer
question
The social movement that seeks to augment the rights and powers of buyers in relation to sellers is
answer
buyer beware. consumerism.
Unlock the answer
question
Which of the following is not a lesson from the consumer movement?
answer
Consumers can force companies to change their behaviors through boycotts.
Unlock the answer
question
The father of the consumer movement is
answer
Ralph Nader.
Unlock the answer
question
Common consumer complaints include all of the following except
answer
lack of consumer credit
Unlock the answer
question
The power held by consumers comes from
answer
grassroots involvement.
Unlock the answer
question
The two major classifications of issues in the business/consumer relationship are
answer
product information and the product itself.
Unlock the answer
question
Issues related to product information include all of the following except
answer
website design
Unlock the answer
question
Which of the following is not a commonly recognized benefit of advertising?
answer
It lowers the price of goods and services.
Unlock the answer
question
Information that is direct and straightforward, that is not deceptive or manipulative is
answer
clear.
Unlock the answer
question
Information that communicates truths, and avoids exaggeration and innuendo is
answer
accurate
Unlock the answer
question
Information that provides potential purchasers with enough information to make the best choice among the options available is
answer
adequate
Unlock the answer
question
Advertising abuses include all of the following types except
answer
cynical depictions.
Unlock the answer
question
Words that are inherently vague, without being misleading are referred to as
answer
weasel words.
Unlock the answer
question
Use of plot placements involve
answer
placement of products part of the storyline of a television show.
Unlock the answer
question
Advertising claims that cannot be substantiated by evidence are termed
answer
exaggerated claims.
Unlock the answer
question
Puffery is another way of saying that a statement is an exaggeration that uses
answer
general superlatives.
Unlock the answer
question
Which of the following is not a problem associated with exaggerated claims?
answer
They generally cost more to produce.
Unlock the answer
question
Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies on
answer
psychological appeals
Unlock the answer
question
The practice of directly contrasting a firm's product with the product of a competitor is called
answer
comparative advertising.
Unlock the answer
question
The fact that Abercrombie and Fitch terminated its sexually explicit catalogue is evidence that
answer
sex does not necessarily sell.
Unlock the answer
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
Unlock the answer
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
Unlock the answer
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
Unlock the answer
question
The basic activity of CARU is
answer
to review and evaluate child-directed advertising in all media.
Unlock the answer
question
The industry under the greatest attack for its marketing and advertising practices is
answer
cigarettes
Unlock the answer
question
All of the following are significant issues in cigarette advertising except
answer
its aim at less-developed countries
Unlock the answer
question
The fact that advertising can increasingly be found everywhere is referred to as
answer
ad creep
Unlock the answer
question
Warranties were originally used by manufacturers to
answer
limit the length of time they were responsible for products.
Unlock the answer
question
The traditional term that was used for advertising located in novel locations (now called ad creep) was
answer
ambient advertising
Unlock the answer
question
An implied warranty is
answer
an unspoken promise that there is nothing significantly wrong with the product.
Unlock the answer
question
A guarantee that is explicitly offered at the time of sale is called a(n)
answer
express warranty.
Unlock the answer
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.
Unlock the answer
question
The Federal Packaging and Labeling Act of 1967 is administered by the
answer
Federal Trade Commission.
Unlock the answer
question
Which of the following is not a law that addresses information disclosure issues?
answer
Credit Collection Limitation Act
Unlock the answer
question
The federal government's major body for ensuring that business lives up to its responsibilities is the
answer
Federal Trade Commission.
Unlock the answer
question
Community involvement is most commonly manifested through
answer
donating the time and talents of its employees.
Unlock the answer
question
Educational recipients of giving include each of the following except
answer
Student matching gifts
Unlock the answer
question
The biggest change in corporate philanthropy since 2001 was its alignment with which of the following
answer
Each of these
Unlock the answer
question
Companies can benefit from volunteer programs that they sponsor in all of the ways shown below except
answer
increasing productivity at work.
Unlock the answer
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
Unlock the answer
question
Assessing a firm's competencies and determining where sharing them would accomplish the most good is an example of
answer
resource-based giving.
Unlock the answer
question
Community involvement focuses on the contribution of
answer
employee time and talent.
Unlock the answer
question
The central reason for community involvement is
answer
self-interest.
Unlock the answer
question
Which of the following is not a reason commonly given for community involvement?
answer
a way to help employees build their resumès
Unlock the answer
question
Being more systematic about the company's relationship with the community often results in developing a
answer
community action program.
Unlock the answer
question
Steps in developing a community action program include all of the following except
answer
building bridges to the community.
Unlock the answer
question
Selection of projects for a community action program grows out of
answer
matching community needs with company resources.
Unlock the answer
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.
Unlock the answer
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.
Unlock the answer
question
Standards of excellence in corporate community involvement include all of the following except
answer
efficiency.
Unlock the answer
question
Which of the following is not a standard of excellence by which corporate community involvement should be judged?
answer
crisis management
Unlock the answer
question
In terms of community involvement, foreign direct investors have practices and viewpoints
answer
quite similar to those of U. S. firms
Unlock the answer
question
Philanthropy, as it is used in the textbook, means
answer
business giving of financial resources.
Unlock the answer
question
Which of the following is not a reason that some people want more transparency in corporate philanthropy
answer
to close tax loopholes
Unlock the answer
question
The "third sector" is composed of
answer
non-profit organizations.
Unlock the answer
question
Which of the following is not a category of corporate contributions programs?
answer
firms whose donations usually go to children's programs
Unlock the answer
question
Of the portion of corporate philanthropy that goes to education, the majority of donations go to
answer
higher education.
Unlock the answer
question
The primary reason given for support of higher education programs is
answer
to increase the pool of trained personnel.
Unlock the answer
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
Unlock the answer
question
Which of the following is not a category of recipient to whom corporations often give money?
answer
athletic teams
Unlock the answer
question
Which of the following is a reason that corporate giving has slowed?
answer
all of these
Unlock the answer
question
When a non-profit organization and a for-profit company join forces for their mutual advantages, they form a
answer
public purpose partnership
Unlock the answer
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.
Unlock the answer
question
One way in which philanthropy can be made strategic is to
answer
bring contribution programs into sharper alignment with business endeavors.
Unlock the answer
question
The direct linking of a business's product or service to a specified charity is
answer
cause-related marketing
Unlock the answer
question
Cause branding is similar to cause-related marketing, but
answer
is a longer term commitment.
Unlock the answer
question
Outsourcing refers to
answer
the use of outside resources to accomplish tasks that were once done in-house
Unlock the answer
question
Employees might consider their roles in plant closings
answer
an extension of numerous employee rights issues.
Unlock the answer
question
According to philosopher John Kavanagh, business's moral responsibility with a plant closing is to
answer
minimize negative externalities.
Unlock the answer
question
Which of the following actions is not usually a viable alternative to closing a plant?
answer
seek tax breaks that will help profits
Unlock the answer
question
Employee ownership of a business whose former owners were considering shutting it down
answer
is a difficult endeavor, with no assurance of success
Unlock the answer
question
For employee ownership of a business to work
answer
employees must believe they have role to play in leading the company.
Unlock the answer
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.
Unlock the answer
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
Unlock the answer
question
Outplacement services seek to
answer
minimize cost and disruption to the company and maximize benefits to the displaced workers.
Unlock the answer
