Which of the following best describes nationalization?
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
Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy?
Experts suggest that firms wanting to globalize through e-commerce must first localize, which means firms need to:
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.
In recent years, which of the following has lessened the criticisms of MNCs?
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
__________ lies at the intersection of financial, social, and environmental health––sometimes described as the “triple bottom line.”
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:
Which of the following creates shared value?
Creating economic value by creating social value
Creating social value by creating economic value
Disabling local cluster development
Which of the following was the primary purpose of the Organization for Economic Cooperation and Development Convention on Bribery?
To protect corporate bribery whistleblowers
To combat corporate corruption
To establish bribery laws
To quantify global corruption
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?
Having global interdependence
Adhering to globalization
Having a global compliance system
Adhering to commercialization
To which of the following free-trade agreements do Costa Rica, Guatemala, Honduras, El Salvador, and Nicaragua all belong?
Which of the following significantly increases the complexity of social responsibility and ethical behavior of MNCs?
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
Which of the following is the main reason why companies dispose hazardous waste in less developed countries?
Large amounts of available land
Advanced waste disposal plants
Weak regulations and low costs
According to Robertson and Crittenden, which of the following has made integrating an ethical component into international strategic decisions, challenging?
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?
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.
Which of the following concepts requires that an industrial system be viewed not in isolation from its surrounding systems, but in concert with them?
Past court decisions serve as precedents to the interpretation of the law under __________ law.
Which of the following best explains why many foreign companies find operating in China a difficult experience from a business perspective?
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.
In which of the following groups of trade blocs does most of today’s world trade take place?
North America, Africa, and Canada
Saudi Arabia, Western Europe, and the Gulf
Western Europe, Asia, and the Americas
Middle East, China, and India
Under __________ law, it is assumed a contract reflects promises that will be enforced without specifying the details in the contract.
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
Which of the following, if true, supports the argument to build a
new Emerson facility in China?
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
The Chinese Commonwealth network is investing large amounts of capital