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Managing Interdependence, Social Responsibility, and Ethics

International Management

Managing Interdependence, Social Responsibility, and Ethics

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

A) increasing economic differences among countries

B) greater emphasis on social responsibility by MNCs

C) limited emphasis on social responsibility and ethical behavior

D) dissolution of MNCs in developing countries


2) Which of the following concepts includes the expectation that MNCs should be concerned

with the social and economic effects of their decisions?

A) macropolitical interdependence

B) international social responsibility

C) corporate technoglobalism

D) moral idealism


3) Which of the following significantly increases the complexity of social responsibility and

ethical behavior of MNCs?

A) distance between the headquarters and the subsidiaries

B) difficulties posed in training managers from different cultures

C) additional stakeholders associated with the firm's activities

D) international laws, regulations, and moral principles


4) Sundew, an American soda company, opened a number of manufacturing units in a developing

country. It employed people from the host country to work in the new units. This move radically

lowered the poverty rate in the developing country. In this scenario, Sundew is ________.

A) making questionable payments

B) following moral guidelines

C) making a foreign investment

D) adopting local customs


AACSB: Analytic skills

5) Which of the following is a business benefit from corporate social responsibility?

A) revenue decreases

B) cost increases

C) increase in brand value

D) risk assessment


6) Which of the following terms refers to an integration of the business environments in which




firms currently operate, resulting from a dissolution of traditional boundaries and from

increasing links among MNCs?

A) operative culture

B) global corporate culture

C) corporate integration

D) moral universalism




7) Moral universalism is the need for a moral standard that is accepted by all ________.

A) corporations

B) governments

C) cultures

D) employees


8) With an ethnocentric approach, a company applies the morality used in its ________.

A) host nation

B) industry

C) general society

D) home country


9) 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 ________.

A) moral universalism

B) ethical relativism

C) ethnocentrism

D) geocentrism


AACSB: Analytic skills



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