• •The CEO of Gulf Italia could probably justify paying a bribe to Italian government officials if he embraced a ____ ethical framework.


  • When a company creates a _____ in a foreign country, it makes a direct investment to establish a business that it solely owns and controls there

wholly owned subsidiary

  • Which of the following is NOT true about Whole Foods?

Workers are encouraged to form unions

  • According to the ______, “the business of business is business.”

Friedman Doctrine

  • According to management Guru Peter Drucker, the main responsibilities of a manager include all of the following EXCEPT:

Disciplining people for bad

  • European multinational firms commonly use a _____ approach because they are operating in multiple countries with different institutional environments.

region-country focused

  • Companies that are firmly committed to the stakeholder perspective are most likely to belong to the _____ category of corporate response to external pressures.


  • One of the problems McDonalds encountered in China, according to class lectures, was that:

Many local customers could not grasp the drive thru concept

  • Visible manifestations of a culture such as its art, clothing, food, architecture, and customs as known as _______.


  • With respect to the Gulf Italia case, the following would be permissible under the Foreign Corrupt Practices Act:

None of the above

  • Nike pledges to partner only with subcontractors that protect worker rights and provide a safe and hazard-free work environment. The fact that some of its overseas sneaker factories appear to have systematically violated this pledge represents a (an) _______.

ethical lapse

  • In addition to the BRICs, a second tier of emerging market economies is attracting investors. They have been labeled the _____.


  • Cigarette ads and smoking have not been completely outlawed in part because which of the following is not 100 percent?

probability of effect

  • One way that companies promote ethical behavior is to have a (an)______.

Code of ethical conduct

  • As noted in “A Manager’s Challenge,” Nestlé has embarked on the Globe project in order to _____ IT operations while maintaining a _____ management structure.

centralize; decentralized

  • A foreign company can enter a new market via _____ agreements which allow a local firm in the new market to manufacture and distribute the foreign company’s product.


  • _____ are cooperative arrangements between two firms in which they agree to share resources to accomplish a mutually desirable goal.

Strategic alliances

  • All of the following EXCEPT _____ are dimensions of a country’s distinct institutional environment.


  • Whole Foods CEO John Mackey believes that _____ should be treated ethically and humanely


  • Unlike ____ countries that value competition, assertiveness, and ambition, _____ countries stress relationships and quality of life.

masculine; feminine

  • According to the Gulf Italia case, Nicolo Pignatelli worries is that if he doesn’t get his refinery up and running quickly, ______.

His joint venture partner might pull out of the deal

  • An executive who justifies paying a bribe because it allows his company to provide the greatest good for the greatest number of people adheres to the _____.

utilitarian approach to ethical decision making

  • Bob Nardelli’s tenure as CEO of Home Depot was a fiasco largely because:

He did not understand the culture of the organization

  • When companies reward employees who report valid claims of corporate unethical conduct, what are they clearly encouraging?

whistle blowing

  • In recent years a prominent consultancy has teamed up with a policy journal to create a globalization index. Which country has been ranked as the most globalized?


  • ______ argued that capitalism was marked by “creative destruction,” whereby innovative firms would periodically emerge and challenge the primacy of industry leaders.

Joseph Schumpeter

  • According to the efficiency perspective, corporate managers should _____.

maximize value for shareholders

  • Globophobes tend to believe all of the following EXCEPT:

Globalization promotes greater

  • Whole Foods empowers its workers by allowing them to ______.

Have a voice in personnel decisions

  • People from _____ cultures tend to value facts, logic and directness.

high power distance

  • _____ alone are unlikely to guarantee managerial success, but a lack of these skills will usually limit managerial advancement, even when other skills exist.

Interpersonal skills

  • In some ____ context cultures, like Japan, visitors need to choose their words carefully, or they may end up offending business associates.


  • In a _____, the firm’s home office makes major strategic decisions.

globally focused organization

  • Which of the following did Chiquita CEO Fernando Aguirre NOT do in dealing with his company’s crisis in Colombia?

pay reparations to the family members murdered by guerrillas and paramilitaries

  • Culture may be defined as a learned set of _______ and _______ that have been accepted as successful enough to be passed on to newcomers.

Values and norms

  • When the laws of a country related to and enforcement of _____ are weak, firms with valuable technologies are reluctant to bring them into the country

intellectual property rights

  • TOMS Shoes founder Blake Mycoskie encountered early resistance to his new venture from:

Argentine shoe makers, who did not want to alter production methods and use higher quality materials to create a more expensive shoe

  • According to our textbook, an ethical dilemma involves ____.

the choice between two competing but arguably valid options

  • According to the Foreign Corrupt Practices Act, _____ can be made to low-level government employees to perform their duties more quickly.

facilitating payments

  • Cultures differ in terms of _____; that is, the extent to which they need things to be clear or ambiguous.

uncertainty avoidance

  • In 2008, a scandal rocked the U.S. Department of the Interior. As it turns out, employees in the Minerals Management Service were _______ individuals from companies that they were supposed to be overseeing

all of these

  • The fact that companies considered to be leaders in implementing environmental, social, and governance policies outperformed the general stock market by 25% between 2005 and 2007 suggests the _______ approach to business ethics has merit.

corporate social responsibility

  • According to the social responsibility perspective, shareholders are _____.

stakeholders rather than sole owners

  • When a manager assesses the progress of a new venture in order to decide whether to continue or abandon it, the manager is playing the _____ role.


  • According to the philosopher, Immanuel (Manny) Kant, _____ form the basis of all rights.

freedom and autonomy

  • Research shows that executives believe _____ are the most effective way of encouraging ethical behavior on the part of their employees.

codes of ethics

  • Culture may be defined as the part of the human repertoire which is ______ as opposed to _______ transmitted.

socially; genetically

  • In most countries, ________ is (are) considered a folkway.

social manners

  • Abstract ideas about what a group believes to be good, right, and desirable are referred to as:


  • Whole Foods CEO John Mackey says the first time he heard the criticism that he had gone too corporate was when _______.

He opened his second store

  • The manager of a textile company is considering whether to lay off 100 workers in a rural town in which the textile mill is the only employer, or in a large city where there are other sources of employment. He can safely assume that the former course of action will have a greater moral intensity than the latter due to the ______.

concentration of effect

  • When confronted by the pressures and constituencies of social responsibility, _____ make changes only when legally compelled to do so.

defenders and accommodators

  • An American oil executive from Texas is bidding for a contract to build a series of oil refineries in Saudi Arabia. His would-be Saudi partners invite him to a celebration dinner to announce that he has won a multimillion dollar contract. Upon hearing the news, the Texan breaks out a bottle of Jack Daniels whiskey and proposes a toast to the Royal Family (Note: Alcohol consumption is a serious offense in Saudi Arabia). He has just violated a (an):


  • According to Durkheim, when _____ are sufficient, ______ are unnecessary

mores; laws

  • An American manager of a US multinational company is invited to a dinner party at the home of an Argentine acquaintance in Buenos Aires. The party is called for 8:00 p.m. He arrives 10 minutes early. He has just violated a (an):


  • What best explains why GM lost over 10% of its market share among Hispanics in the South Florida market during the 1990s?

lack of entrepreneurial mindset

  • According to the video on Chiquita in Colombia, the U.S. banana company admitted to paying protection money to:

right-wing paramilitaries

  • TOMS Shoes founder Blake Mycoskie got his big break when _____.

The Los Angeles Times featured a story about TOMS on the front page of the Style section

  • Nikes initial response to the allegations that it operated foreign sweatshops was to:

Deny responsibility for its overseas subcontractor factories

  • Prof. Wernick is the CEO of the pickle company He assumes that his employees are slackers who lack initiative and drive. He therefore establishes systems for monitoring behavior and punishing the worst offenders. He might be characterized as a _____ manager.

Theory X

  • Culture has been defined as the part of the human repertoire which is _____ as opposed to ______ transmitted.

socially; genetically