Ethics in International Business: A Comprehensive Guide for Business Students

Question 1

The Foreign Corrupt Practices Act (FCPA) primarily prohibits US companies from:

Accepted Answer

Bribing foreign officials

Answer

Making political contributions abroad

Answer

Engaging in false accounting

Answer

Hiring individuals with criminal records

Question 2

Which of the following is NOT a potential consequence of unethical practices in international business?

Accepted Answer

Increased customer loyalty

Answer

Legal penalties

Answer

Reputational damage

Answer

Loss of market share

Question 3

Corporate social responsibility (CSR) refers to the idea that businesses should:

Accepted Answer

Maximize profits while considering social and environmental impact

Answer

Avoid any involvement in political affairs

Answer

Focus solely on shareholder interests

Answer

Comply with all applicable laws

Question 4

Which of the following is a key factor in determining the ethicality of a business decision?

Accepted Answer

The potential impact on stakeholders

Answer

The legal consequences

Answer

The personal beliefs of the decision-maker

Answer

Industry best practices

Question 5

The United Nations Global Compact is a voluntary initiative that encourages businesses to:

Accepted Answer

Adopt sustainable and responsible practices

Answer

Reduce greenhouse gas emissions

Answer

Invest in developing economies

Answer

Comply with all international trade agreements

Question 6

Which of the following is an example of a cultural factor influencing ethical behavior in international business?

Accepted Answer

Differences in values and beliefs

Answer

Variations in legal frameworks

Answer

Economic disparities

Answer

Technological advancements

Question 7

The concept of "stakeholder theory" suggests that businesses have ethical obligations to:

Accepted Answer

All parties affected by their operations

Answer

Shareholders and investors

Answer

Employees and customers

Answer

Government and regulatory agencies

Question 8

How do cultural norms and values influence ethical decision-making for managers in international business?

Accepted Answer

Cultural norms and values shape managers' ethical perspectives, leading to different ethical judgments and behaviors across cultures.

Answer

Cultural values are irrelevant to ethical decision-making in international business.

Answer

Managers should disregard cultural norms and values when making ethical decisions in foreign markets.

Answer

Cultural norms and values always align with universal ethical principles.

Question 9

What is the main purpose of the Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

To prohibit businesses from engaging in bribery or corruption

Answer

To establish guidelines for ethical international business practices

Answer

To regulate the environmental practices of multinational corporations

Answer

To investigate and prosecute ethical violations

Question 10

Which of the following is NOT an effective strategy for businesses to address ethical challenges in international business?

Accepted Answer

Ignoring ethical concerns in favor of financial gain

Answer

Developing a clear code of ethics

Answer

Establishing compliance programs

Answer

Training employees on ethical conduct

Question 11

Which of the following is NOT considered a major ethical challenge faced by multinational corporations operating globally?

Accepted Answer

Currency fluctuations

Answer

Bribery and corruption

Answer

Environmental degradation

Answer

Human rights violations

Question 12

The Foreign Corrupt Practices Act (FCPA) seeks to:

Accepted Answer

Prevent American companies from engaging in bribery abroad

Answer

Encourage American companies to invest in developing countries

Answer

Require American companies to report their financial results in a standardized format

Answer

Penalize American companies for environmental violations overseas

Question 13

The primary objective of the Foreign Corrupt Practices Act (FCPA) is to:

Accepted Answer

Prohibit bribery of foreign government officials

Answer

Regulate accounting practices of multinational corporations

Answer

Prevent human rights abuses in international operations

Answer

Promote fair competition in global markets

Question 14

Corporate social responsibility (CSR) refers to:

Accepted Answer

A company's voluntary commitment to ethical and sustainable business practices

Answer

A legal obligation for businesses to minimize their negative impacts on society

Answer

A set of industry-specific regulations that govern corporate behavior

Answer

The practice of outsourcing business operations to countries with lower labor costs

Question 15

Cultural relativism in ethics suggests that:

Accepted Answer

Ethical standards may vary depending on cultural norms and values

Answer

Ethical standards should be the same for all cultures

Answer

Multinational corporations should always impose their home country's ethical values on their foreign operations

Answer

Businesses should adopt ethical practices that maximize their profits regardless of cultural context

Question 16

The United Nations Global Compact is an example of:

Accepted Answer

A voluntary initiative that promotes responsible business practices

Answer

A legally binding treaty that prohibits corruption

Answer

A government agency that enforces ethical standards in international trade

Answer

A set of ethical guidelines specifically for multinational corporations

Question 17

Assess the ethical considerations and potential biases that arise when incorporating Artificial Intelligence (AI) into international business decision-making processes.

Accepted Answer

Incorporating AI into international business decision-making requires careful evaluation of ethical considerations and potential biases.

Answer

AI removes human biases and enhances the objectivity of decision-making.

Answer

AI should exclusively guide ethical decision-making because it is more accurate than humans.

Answer

AI can fully replace human decision-makers in international business.

Question 18

In international business, which ethical consideration holds the highest priority when assessing intellectual property rights?

Accepted Answer

Protecting Innovation

Answer

Preventing Unfair Competition

Answer

Promoting Economic Growth

Answer

Honoring Cultural Diversity

Question 19

What is a major ethical challenge faced by multinational corporations operating globally?

Accepted Answer

Fighting bribery and corruption

Answer

Following local labor laws

Answer

Focusing on environmental protection

Question 20

Which of the following is a primary ethical challenge for multinational corporations operating globally?

Accepted Answer

Navigating cultural differences and ethical dilemmas

Answer

Language barriers

Answer

Political instability

Answer

Currency fluctuations

Question 21

According to the Foreign Corrupt Practices Act (FCPA), which of the following is strictly prohibited?

Accepted Answer

Bribing foreign officials to gain business advantage

Answer

Hiring local employees

Answer

Complying with local environmental regulations

Answer

Investing in local infrastructure projects

Question 22

Which of the following is a potential negative consequence of engaging in unethical behavior in international business?

Accepted Answer

Damage to company reputation and loss of customer trust

Answer

Increased sales and profits

Answer

Enhanced shareholder value

Answer

Improved employee morale

Question 23

Which of the following is an effective strategy for multinational corporations to address ethical challenges?

Accepted Answer

Developing and implementing a comprehensive code of ethics

Answer

Ignoring local laws and regulations

Answer

Avoiding international business altogether

Answer

Reliance on local partners

Question 24

Which of the following is an example of a cultural difference that can lead to ethical dilemmas in international business?

Accepted Answer

Varying attitudes towards environmental protection and sustainability

Answer

Currency fluctuations

Answer

Language barriers

Answer

Differences in consumer preferences

Question 25

Which of the following is a key responsibility of business leaders in promoting ethical conduct in international business?

Accepted Answer

Setting a clear ethical tone and fostering a culture of integrity

Answer

Delegating ethical decision-making to lower-level employees

Answer

Ignoring ethical concerns in favor of financial gain

Answer

Blaming ethical lapses on external factors

Question 26

Which of the following is a potential benefit of engaging in ethical behavior in international business?

Accepted Answer

Increased customer loyalty and enhanced brand reputation

Answer

Reduced operating costs

Answer

Government subsidies

Answer

Tax breaks

Question 27

Which of the following is a factor that can contribute to corruption in international business?

Accepted Answer

Weak legal frameworks and lack of transparency

Answer

High levels of economic development

Answer

Strong cultural values

Answer

Government accountability

Question 28

Which of the following is a role of international organizations, such as the United Nations, in fostering ethical behavior in international business?

Accepted Answer

Developing global ethical standards and promoting transparency

Answer

Conducting investigations into ethical violations

Answer

Imposing trade sanctions on unethical businesses

Answer

Providing financial assistance to businesses

Question 29

What is the primary objective of the Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

To prohibit US companies from bribing foreign officials

Answer

To promote fair competition in international markets

Answer

To protect the intellectual property rights of US businesses

Question 30

Which of the following is a key strategy that multinational corporations can employ to address ethical challenges?

Accepted Answer

Establishing a comprehensive code of conduct and ethics

Answer

Lobbying governments for favorable laws

Answer

Increasing the number of compliance officers

Answer

Prioritizing profit maximization over ethical considerations

Question 31

What is a primary ethical dilemma that multinational corporations may face when considering expansion into a country with a history of human rights violations?

Accepted Answer

Balancing the potential for profit with the risk of contributing to human rights abuses

Answer

Sourcing goods and services from suppliers that adhere to international labor standards

Answer

Adapting marketing strategies to the local culture

Question 32

In the context of international business, what is a primary role of international organizations?

Accepted Answer

To establish ethical standards, monitor compliance, and provide guidance

Answer

To provide financial assistance to developing countries

Answer

To enforce national laws and regulations

Question 33

What is a primary benefit of adhering to ethical conduct for multinational corporations?

Accepted Answer

Enhanced reputation and increased customer loyalty

Answer

Government subsidies and tax breaks

Answer

Reduced costs and improved efficiency

Question 34

What is the primary distinction between bribery and extortion?

Accepted Answer

Bribery involves voluntary payments, while extortion involves coerced payments.

Answer

Bribery is typically legal, while extortion is illegal.

Answer

Bribery is a form of theft, while extortion is a form of fraud.

Question 35

What is the primary purpose of a whistleblower protection policy in an international business context?

Accepted Answer

To provide legal protection and support to employees who report unethical or illegal activities

Answer

To prevent employees from leaking confidential information

Answer

To encourage employees to comply with company policies and regulations

Question 36

Which of the following is a common ethical dilemma faced by multinational corporations operating in developing countries?

Accepted Answer

Paying bribes to local officials to gain business advantages

Answer

Hiring local workers at a fair wage

Answer

Investing in local communities

Answer

Complying with environmental regulations

Question 37

What is the purpose of the Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

To prohibit US companies and citizens from bribing foreign officials to obtain or retain business

Answer

To regulate corporate social responsibility practices

Answer

To establish a code of conduct for international business

Question 38

Which of the following strategies can multinational corporations employ to manage ethical challenges?

Accepted Answer

Developing and implementing a comprehensive code of ethics

Answer

Exploiting loopholes in international laws

Answer

Bribing government officials to avoid legal consequences

Answer

Ignoring ethical issues to focus on profit maximization

Question 39

What is the concept of corporate social responsibility (CSR)?

Accepted Answer

The idea that businesses have a responsibility to operate in a manner that benefits society and minimizes harm

Answer

The obligation of companies to maximize profits for stakeholders

Answer

The practice of donating to charities to enhance public image

Question 40

Which of the following is a common human rights violation that may be committed by multinational corporations?

Accepted Answer

Using forced or child labor in their operations

Answer

Paying employees a living wage

Answer

Hiring local workers

Answer

Providing safe and healthy working conditions

Question 41

What is the primary role of international organizations in promoting ethical business practices?

Accepted Answer

Developing and disseminating codes of conduct and providing training on ethical issues

Answer

Negotiating trade agreements on behalf of multinational corporations

Answer

Punishing companies that violate ethical standards

Answer

Enforcing laws and regulations governing business conduct

Question 42

Which of the following factors can contribute to ethical challenges in international business?

Accepted Answer

Cultural differences in ethical values and norms

Answer

Strong legal systems

Answer

Transparent business practices

Answer

Government support for ethical business practices

Question 43

What is the term used to describe the practice of paying bribes to government officials to secure business deals?

Accepted Answer

Corruption

Answer

Lobbying

Answer

Extortion

Answer

Fraud

Question 44

What is the primary goal of the United Nations Global Compact?

Accepted Answer

To encourage businesses to adopt sustainable and socially responsible practices

Answer

To provide legal assistance to multinational corporations

Answer

To regulate international trade and investment