Question 1
Which of the following is an advantage of e-business?
A. Lower cost of production
B. Easy availability of technology
C. Convenience in conducting business worldwide
D. Increased availability of information
Question 2
Which of the following shows that employees have understood, and signed off on, the legal obligations regarding bribery and corruption in the countries where they do business?
A. Having global interdependence
B. Having a global compliance system
C. Adhering to globalization
D. Adhering to commercialization
Question 3
__________ lies at the intersection of financial, social, and environmental health--sometimes described as the "triple bottom line."
A. Sustainability
B. Technoglobalism
C. Protectionism
D. Privatization
Question 4
According to Robertson and Crittenden, which of the following has made integrating an ethical component into international strategic decisions, challenging?
A. Corporate ethics
B. Cultural constraints
C. Natural resources
D. Political stability
Question 5
In which of the following groups of trade blocs does most of today's world trade take place?
A. Middle East, China, and India
B. North America, Africa, and Canada
C. Saudi Arabia, Western Europe, and the Gulf
D. Western Europe, Asia, and the Americas Question 6 Primo is a multinational enterprise based in California thatmanufactures and sells affordably-priced athletic shoes in retail stores around the world. A Primo manufacturing subsidiary in China employs over
20,000 locals. Primo executives recently learned of human rights violations at the firm's China subsidiary. Workers had been forced to
work more than 60 hours each week, and minimum wage laws were regularly ignored. As a result, Primo executives need to decide whether to continue operations in China.
Which of the following is MOST relevant to the decision by Primo to remain in China?
A. The extent of effect that bribery has on decisions made by Primo's global managers in China
B. The methods of dealing with the hazardous waste created by Primo's China manufacturing facility
C. The benefits that the local Chinese community might have
D. The changes that need to be made by Primo managers to show more respect for the Chinese culture
Question 7
Social responsibility, ethical behavior, and interdependence are important concerns to be built into:
A. economic control.
B. management control.
C. corporate sustainability.
D. moral idealism.
Question 8
Experts suggest that firms wanting to globalize through e-commerce must first localize, which means firms need to:
A. use local suppliers, vendors, and distributors to manufacture products for the local market.
B. modify their products and services to meet the needs and interests of local cultures.
C. sell their products in a brick-and-mortar store before selling them through an e-market.
D. test their products and services in local markets before selling them over the Internet.
Question 9
In recent years, which of the following has lessened the criticisms of MNCs?
A. Increasing economic differences among countries
B. Greater emphasis on social responsibility by MNCs
C. Limited emphasis on social responsibility and ethical behavior
D. Dissolution of MNCs in developing countries
Question 10
To which of the following free-trade agreements do Costa Rica, Guatemala, Honduras, El Salvador, and Nicaragua all belong?
A. NAFTA
B. ASEAN
C. CAFTA
D. MERCOSUR
Question 11
Which of the following was the primary purpose of the Organization for Economic Cooperation and Development Convention on Bribery?
A. To establish bribery laws
B. To quantify global corruption
C. To combat corporate corruption
D. To protect corporate bribery whistleblowers
Question 12
Which two factors are primarily assessed when using the qualitative approach to measure a country's economic risk?
A. The country's natural resources and its long-term national debt
B. The competence of the country's leader and the economic policy direction
C. The probability of terrorism and the likelihood that the country's debts will be repaid
D. The country's purchasing power overseas and the consistency of the country's leadership
Question 13
Past court decisions serve as precedents to the interpretation of the law under __________ law.
A. civil
B. common
C. theocratic
D. contract
Question 14
Which type of country is most likely to use its investment laws to acquire appropriate technology?
A. Post-industrial country
B. Newly industrializing country
C. Less-developed country
D. Highly developed country
Question 15
Which of the following is the main reason why companies dispose hazardous waste in less developed countries?
A. International agreements
B. Weak regulations and low costs
C. Advanced waste disposal plants
D. Large amounts of available land
Question 16
Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy?
A. Communism
B. Nationalization
C. Socialism
D. Globalization
Question 17
Which of the following best describes nationalization?
A. Outsourcing of governmental functions to private entities
B. Hiring preferences given to locals rather than expatriates
C. Government's gradual and subtle actions against a firm
D. Forced sale of an MNC's assets to local buyers
Question 18
According to the international codes of conduct, MNEs should:
A. resolve disputes according to the domestic law of the home country.
B. dominate the capital markets in which their operations are based.
C. use inexpensive, imported sources for components and raw materials.
D. conduct research and development activities in developing countries.
Question 19
Emerson is a global manufacturing company headquartered in St. Louis,Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents. Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the U.S.
Which of the following, if true, supports the argument to build a new Emerson facility in China?
A. The Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit.
B. The Chinese Commonwealth network is investing large amounts of capital in China.
C. China has increased Internet controls and blocked most internationalsearch sites.
D. China is revoking its membership from the World Trade Organization.
Question 20
If MNCs want to take the lead in dealing with ecological interdependence, then they most likely need to:
A. comply with international environmental regulations.
B. incorporate sustainability goals into strategic planning.
C. invest all profits into recycling and renewing resources around the world.
D. work with foreign governments to draft global environmental protection legislation.