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International Business and Ethics Concepts
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1
Question
Which mechanism do labor unions use to negotiate better conditions with management?
Answer
Collective bargaining.
2
Question
What is the most important advantage of a geocentric staffing policy?
Answer
Builds international executives comfortable in multiple cultures.
3
Question
Which policy is an example of a subsidy that benefits farmers according to international trade practices?
Answer
Agricultural subsidies.
4
Question
According to the law of one price, what should be true about identical goods in different countries?
Answer
They should sell for the same price when expressed in the same currency.
5
Question
What does a localization strategy emphasize in international markets?
Answer
Adapting products to local preferences.
6
Question
What term describes a hybrid of a quota and a tariff?
Answer
Tariff rate quota.
7
Question
What is a primary advantage of ethnocentric staffing?
Answer
Efficient use of human resources.
8
Question
Values are abstract ideas about what a group believes to be:
Answer
Right, good, and desirable.
9
Question
What is the primary goal of social democracy?
Answer
Balancing individual freedoms with social justice.
10
Question
What is arbitrage in international trade?
Answer
Buying low in one country and reselling high in another.
11
Question
What document specifies conditions and rights for an exchange?
Answer
A contract.
12
Question
What activity involves utilizing human resources effectively?
Answer
Human resource management.
13
Question
What would be a reason for firms to avoid following strict ethical norms in some regimes?
Answer
Human rights violations.
14
Question
What does vertical differentiation specify in organizational structure?
Answer
The distribution of decision-making authority across organizational levels.
15
Question
What type of property includes patents, copyrights, trademarks, and formulas?
Answer
Intangible property rights.
16
Question
What is a key advantage of a geocentric staffing policy?
Answer
Develops international managers proficient in multiple cultures.
17
Question
What does the 'tragedy of the commons' exemplify?
Answer
Overexploitation of shared resources leading to depletion.
18
Question
What principle does cultural relativism promote in multinational business ethics?
Answer
Adopting local cultural ethics.
19
Question
What are agricultural subsidies in international trade?
Answer
Government payments that support farmers' income and production.
20
Question
What is the focus of ethnocentrism?
Answer
Belief in the superiority of one's own culture.
21
Question
According to the law of one price, how should identical goods be priced across countries?
Answer
They should cost the same when prices are expressed in a common currency.
22
Question
What does a localization strategy prioritize in international markets?
Answer
Tailoring products to meet local preferences and needs.
23
Question
Which 1944 agreement aimed to promote global economic stability among many nations?
Answer
The Bretton Woods Agreement.
24
Question
What does human resource management involve?
Answer
Effectively utilizing an organization's human resources for strategic goals.
25
Question
What term describes a tariff quota hybrid?
Answer
Tariff rate quota.
26
Question
What is a voluntary export restraint?
Answer
An export quota imposed at the exporting country's request by the importing country.
27
Question
What is the Friedman doctrine's view on corporate social responsibility?
Answer
Maximize profits lawfully, without additional social obligations.
28
Question
How does a class system differ from a caste system?
Answer
Class systems permit social mobility through achievements.
29
Question
Who oversees EU legislation compliance among member states?
Answer
The European Commission.
30
Question
What is an advantage of ethnocentric staffing?
Answer
Efficient deployment of headquarters' personnel.