MGMT 1: Chapter 3 – Flashcards
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True
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T/F: A joint venture is a partnership in which 2 or more companies join to undertake a major project. All parties commit financing and risk to the project.
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True
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T/F: Technological differences can prevent some companies from doing business abroad.
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True
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T/F: In order to be successful, efforts to improve the ethical behavior of businesses must begin with top management's support of a corporate code of conduct.
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Dumping
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__________ is the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country.
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Balance of payments
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The __________ is the difference between money flowing into a country from exports, and money leaving the country for imports, plus money flows coming from other factors such as tourism, foreign aid, military expenditures, and foreign investment.
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True
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T/F: Often it is the threat of negative publicity that pressures businesses to enforce their corporate code of ethics.
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True
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T/F: One responsibility of business is to satisfy customers by offering them goods and services with real value.
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True Critics, including the late Milton Friedman, believe that a firm is first and foremost responsible to its owners (investors) who provided the funds for growth and financial gain. Some go so far as to say that the act is essentially 'stealing from investors.'
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T/F: Opponents of corporate social responsibility argue that firms which use their profits to promote social causes are not being fair to investors who provided the funds for the purpose of financial gain.
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False
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T/F: Corporate social responsibility covers all those social issues outside our businesses that affect customers and the environment, but not internal issues such as employee considerations and work safety. Internal issues are covered by business laws.
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Not easily resolved
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Business relationships often present ethical dilemmas that are:
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False
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T/F: Ethical behavior involves the clear and easy choice of right and wrong actions toward others.
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True
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T/F: China's one-party political system, its past human rights abuses, and issues related to counterfeiting of products continue to concern some U.S. firms about doing business there.
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Reports illegal or unethical behavior in the corporation.
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A whistleblower is a person who:
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False
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T/F: Since patent and copyright laws are the same in all nations, they are not of much impact to firms that compete globally.
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Trade defecit
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Since 1975, the U.S. has had a(n) __________.
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True
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T/F: Contract manufacturing is a form of outsourcing.
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True
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T/F: Employees observe behavior and adopt standards of right and wrong.
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False
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T/F: The question "Is it legal?" establishes ethical behavior.
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Compliance-based
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While speaking with his sales force, the director of sales explains, "Anyone caught violating a sales law will be fired." After studying business ethics, you recognize this remark as a reference to the firm's __________ ethics.
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An increase in imported goods and services
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A free-trade agreement is likely to result in:
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False
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T/F: In order to enjoy the highest standard of living possible, comparative advantage theory states that all nations should strive to become self-sufficient.
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Often force us to choose between equally unsatisfactory alternatives
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Ethical dilemmas in business:
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True
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T/F: Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.
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Embargo
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U.S. firms that produce sophisticated military hardware are prohibited from exporting that equipment to "unfriendly" governments, such as Iran. This complete ban on exporting sensitive technology to specific countries is an example of a(n):
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True
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T/F: The green movement has resulted in a positive impact on U.S. jobs.
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True
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T/F: A devaluation of the U.S. dollar would make American goods cheaper to foreign buyers.
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Sovereign wealth funds
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A fast-growing form of foreign direct investment is ____________, which are government-controlled investments in foreign companies.
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True
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T/F: Free trade is the movement of goods and services between nations without political or economic barriers.
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Joint Venture
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McGowan Corporation of Ireland and Enomoto Enterprises based in Japan recently produced a new electric car with rechargeable batteries that can be driven at high speeds for long distances. They have shared the investment, each contributing important technological expertise to the effort. These firms entered into a(n) ____ to build this car.
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Compliance
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A(n) _______-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.
