Which of the following best describes nationalization?

Question options:

  

Government’s gradual and subtle   actions against a firm

 

Forced sale of an MNC’s assets to   local buyers

 

Outsourcing of governmental   functions to private entities

 

Hiring preferences given to locals   rather than expatriates

 

Question 2

Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy?

Question options:
  

Nationalization

 

Socialism

 

Communism

 

Globalization

 

Question 3

Experts suggest that firms wanting to globalize through e-commerce must first localize, which means firms need to:

Question options:
  

modify their products and services   to meet the needs and interests of local cultures.

 

test their products and services   in local markets before selling them over the Internet.

 

sell their products in a   brick-and-mortar store before selling them through an e-market.

 

use local suppliers, vendors, and   distributors to manufacture products for the local market.

 

Question 4

In recent years, which of the following has lessened the criticisms of MNCs?

Question options:
  

Increasing economic differences   among countries

 

Dissolution of MNCs in developing   countries

 

Limited emphasis on social   responsibility and ethical behavior

 

Greater emphasis on social   responsibility by MNCs

 

Question 5

__________ lies at the intersection of financial, social, and environmental health––sometimes described as the “triple bottom line.”

Question options:
  

Privatization

 

Technoglobalism

 

Protectionism

 

Sustainability

 

Question 6

McDonald’s, a fast food chain headquartered in the United States, applies the morality it practices in the United States to all foreign countries in which it operates. McDonald’s is adhering to:

Question options:
  

ethnocentrism.

 

geocentrism.

 

moral universalism.

 

ethical relativism.

 

Question 7

Which of the following creates shared value?

Question options:
  

Creating   economic value by creating social value

 

Creating   social value by creating economic value

 

Disabling   local cluster development

 

Question 8

Which of the following was the primary purpose of the Organization for Economic Cooperation and Development Convention on Bribery?

Question options:
  

To protect corporate bribery   whistleblowers

 

To combat corporate corruption

 

To establish bribery laws

 

To quantify global corruption

 

Question 9

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?

Question options:
  

Having global interdependence

 

Adhering to globalization

 

Having a global compliance system

 

Adhering to commercialization

 

Question 10

To which of the following free-trade agreements do Costa Rica, Guatemala, Honduras, El Salvador, and Nicaragua all belong?

Question options:
  

NAFTA

 

CAFTA

 

ASEAN

 

MERCOSUR

 

Question 11

Which of the following significantly increases the complexity of social responsibility and ethical behavior of MNCs?

Question options:
  

Difficulties posed in training   managers from different cultures

 

International laws, regulations,   and moral principles

 

Additional stakeholders associated   with the firm’s activities

 

Distance between the headquarters   and the subsidiaries

 

Question 12

Which of the following is the main reason why companies dispose hazardous waste in less developed countries?

Question options:
  

Large amounts of available land

 

Advanced waste disposal plants

 

International agreements

 

Weak regulations and low costs

 

Question 13

According to Robertson and Crittenden, which of the following has made integrating an ethical component into international strategic decisions, challenging?

Question options:
  

Cultural constraints

 

Political stability

 

Natural resources

 

Corporate ethics

 

Question 14

Robert is a technology officer in an Umerian firm and he manages the firm’s operations at its facility in Elador. Robert is considering the idea of installing new technology in the facility that would significantly improve productivity and reduce labor costs. Which of the following undermines the argument that Robert should install the new technology?

Question options:
  

Elador is currently experiencing a   very high rate of unemployment.

 

The high school graduation rate in   Elador is higher than in neighboring countries.

 

Elador’s government leaders   encourage firms to install the most modern machinery available.

 

The firm’s competitors recently   installed the same technology.

 

Question 15

Which of the following concepts requires that an industrial system be viewed not in isolation from its surrounding systems, but in concert with them?

Question options:
  

Industrial engineering

 

Ecological succession

 

Ecological shadow

 

Industrial ecology

 

Question 16

Past court decisions serve as precedents to the interpretation of the law under __________ law.

Question options:
  

common

 

civil

 

theocratic

 

contract

 

Question 17

Which of the following best explains why many foreign companies find operating in China a difficult experience from a business perspective?

Question options:
  

China lacks the financial and   legal systems needed to support the country’s foreign trade.

 

China’s government mandates that   workers receive high wages and benefits.

 

China’s exchange rate changes too   frequently for U.S. businesses to compete.

 

China’s local market is not large   enough to support its extensive exporting to the U.S.

 

Question 18

In which of the following groups of trade blocs does most of today’s world trade take place?

Question options:
  

North America, Africa, and Canada

 

Saudi Arabia, Western Europe, and   the Gulf

 

Western Europe, Asia, and the   Americas

 

Middle East, China, and India

 

Question 19

Under __________ law, it is assumed a contract reflects promises that will be enforced without specifying the details in the contract.

Question options:
  
contract
 

state

 

federal

 
civil
 

Question 20

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?

Question options:
  

The Chinese courts recently ruled   in favor of an MNC in an intellectual
  property rights lawsuit.

 

China is revoking its membership   from the World Trade Organization.

 

China has increased Internet   controls and blocked most international
  search sites.

 

The Chinese Commonwealth network   is investing large amounts of capital
  in China.