ADMS 3530 Lecture Notes - Foreign Corrupt Practices Act, Pearson Education, Kyoto Protocol

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Published on 12 Apr 2013
School
York University
Department
Administrative Studies
Course
ADMS 3530
International Business, 13e (Daniels/Radebaugh/Sullivan)
Chapter 5 Globalization and Society
1) Which of the following is NOT a key stakeholder group that a company must work to satisfy
in order to survive in a global environment?
A) employees
B) competitors
C) shareholders
D) customers
Answer: B
Diff: 2 Page Ref: 183
Skill: Concept
Objective: STUDY QUESTION 5.1: Which stakeholders must companies satisfy? Why is this
process more difficult for companies operating internationally?
2) Which of the following stakeholders groups wants additional sales and increased productivity,
which result in higher profits and larger returns going to them?
A) customers
B) shareholders
C) society at large
D) government
Answer: B
Diff: 2 Page Ref: 183
Skill: Concept
Objective: STUDY QUESTION 5.1: Which stakeholders must companies satisfy? Why is this
process more difficult for companies operating internationally?
3) Which of the following stakeholders are more interested in an MNE providing increased
corporate taxes and more trustworthy behavior on the part of corporate executives?
A) shareholders
B) society
C) employees
D) customers
Answer: B
Diff: 2 Page Ref: 183
Skill: Concept
Objective: STUDY QUESTION 5.1: Which stakeholders must companies satisfy? Why is this
process more difficult for companies operating internationally?
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4) Which of the following statements is true regarding MNEs' relationships with their
stakeholders?
A) No individual stakeholder group is powerful enough to cause the demise of an MNE.
B) An MNE may serve all stakeholder groups equally at any given time.
C) All stakeholders of an MNE have the same goals and interests.
D) Inadequate familiarity with stakeholders in a foreign operating environment complicates
choosing which groups need the most attention.
Answer: D
Diff: 2 Page Ref: 183-184
Skill: Application
Objective: STUDY QUESTION 5.1: Which stakeholders must companies satisfy? Why is this
process more difficult for companies operating internationally?
AACSB: Analytic Skills
5) Which of the following statements about foreign direct investment is true?
A) Home country governments can enhance but not restrict the activities of MNEs in making
FDI.
B) Host country governments can restrict but not enhance the activities of MNEs who want to
make investments in their countries.
C) Home and host governments are often under pressure from various groups to adopt policies to
regulate the activities of MNEs as FDI grows worldwide.
D) MNEs look at FDI as an objective of their existence rather than as a means of entering foreign
markets.
Answer: C
Diff: 2 Page Ref: 182
Skill: Concept
Objective: STUDY QUESTION 5.2: Why is it difficult to make generalizations about the
overall effect of FDI?
6) Findings from investigations of cause-and-effect relationships between FDI and situations in a
host country imply which of the following?
A) If employment rises when an MNE invests in a foreign country, it is safe to say that the cause
of the rise in employment must be due to the foreign direct investment.
B) The effects of an MNE's activities must be positive to both home and host country to warrant
a host country permission for an FDI to occur.
C) FDI usually results in a win-lose situation, although it is possible to have a win-win situation
for both countries.
D) It is hard to determine if the actions of an MNE are responsible for effects in host countries,
such as economic growth or unemployment.
Answer: D
Diff: 2 Page Ref: 184
Skill: Application
Objective: STUDY QUESTION 5.2: Why is it difficult to make generalizations about the
overall effect of FDI?
AACSB: Analytic Skills
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7) In general, governments should not make general assumptions about the effects of FDI
because ________.
A) many critics link individual companies to general situations while proponents don't
B) it is too time-consuming and costly
C) MNEs are very different in their functions and behaviors, and each has an individual impact
on the host country
D) governments have a successful history of predicting future impacts of MNEs on host
countries
Answer: C
Diff: 2 Page Ref: 184
Skill: Concept
Objective: STUDY QUESTION 5.2: Why is it difficult to make generalizations about the
overall effect of FDI?
8) When proponents of MNE activities claim that an increase in the collection in tax revenues in
a host country is a result of FDI, they are using which type of generalization about the impact of
FDI?
A) cause and effect relationships
B) individual and aggregate effects
C) stakeholder tradeoffs
D) micro consequences of macro decisions
Answer: A
Diff: 2 Page Ref: 184
Skill: Application
Objective: STUDY QUESTION 5.2: Why is it difficult to make generalizations about the
overall effect of FDI?
AACSB: Reflective Thinking
9) The investment by a U.S. company in an industry in Mexico is an example of ________.
A) a capital inflow into Mexico
B) an import stimulus into the U.S.
C) a net balance of payments effect
D) an export reduction
Answer: A
Diff: 2 Page Ref: 186
Skill: Application
Objective: STUDY QUESTION 5.3: Describe the potential economic effects of MNEs.
AACSB: Reflective Thinking
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Document Summary

Chapter 5 globalization and society: which of the following is not a key stakeholder group that a company must work to satisfy in order to survive in a global environment, employees, competitors, shareholders, customers. Aacsb: analytic skills: which of the following statements about foreign direct investment is true, home country governments can enhance but not restrict the activities of mnes in making. Fdi: cause and effect relationships, individual and aggregate effects, stakeholder tradeoffs, micro consequences of macro decisions. 5: avoid being perceived as being responsible, develop competitive advantages, create better advertisements, discourage commitment to the firm for the wrong reason. Aacsb: ethical reasoning: which of the following is a business objective for pursuing ethical behavior, replace home-country technology with host-country technology, reduce profit margins, avoid being perceived as socially irresponsible, impose home-country behavior in the host country. 6: ethical dilemmas tend to be ________ for mne managers than for domestic managers, more complicated, less controversial, easier to decide, less common.

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