Test Bank For International Business Law A Transactional Approach 2nd Edition By Larry A

Test Bank For International Business Law A Transactional Approach 2nd Edition By Larry A

CHAPTER TWO

THE ETHICS OF INTERNATIONAL BUSINESS

TRUE/FALSE

1. Domestic, but not multinational, businesses must confront ethical issues.

ANS: False

2. The theory of cultural relativism holds that it is possible to determine cross-cultural standards of right and wrong.

ANS: False

3. A ‘rights and duties’ approach to ethics bases the morality of an action on its net benefit to society.

ANS: False

4. In its simplest formulation, utilitarianism holds that the rightness of an action can be determined by whether it produces more good than bad.

ANS: True

5. Stakeholders are all parties either directly or indirectly affected by the decision of a business firm.

ANS: True

6. The open discrimination against blacks sanctioned under South African law was known as Apartheid.

ANSWER. True

7. The Union Carbide Bhopal disaster occurred in Pakistan.

ANS: False

8. In Kantian ethics, absolute moral duties are know as categorical imperatives.

ANS: True

9. In the ethics of care, a business is considered to have a special obligation to its workers and community.

ANS: True

10. The school of thought known as the myth of the amoral businessperson argues that ethical business practices are inconsistent with long-term profitability.

ANS: False