Unit 14: Globalization and Society - Practice Quiz

DEMGN578 — International Business Environment 60 Questions
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1 What does social responsibility mean for a global business?

Globalization with social responsibility Easy
A. Considering its impact on society
B. Avoiding all foreign investment
C. Focusing only on export growth
D. Allowing each overseas branch to operate without ethical standards

2 Which group is a stakeholder of a multinational company?

Globalization with social responsibility Easy
A. Government officials who personally own shares in every international company
B. Only its senior managers
C. Its employees and customers
D. Only its foreign competitors

3 What is the main purpose of corporate social responsibility (CSR)?

Globalization with social responsibility Easy
A. To balance business and social goals
B. To replace national governments
C. To guarantee identical profits in every international market
D. To eliminate all business risks

4 Which action best demonstrates responsible globalization?

Globalization with social responsibility Easy
A. Ignoring local community concerns
B. Reducing every employee benefit
C. Hiding information from consumers
D. Supporting communities where the company operates

5 A company publishes a report on its social and environmental performance. What is this practice called?

Globalization with social responsibility Easy
A. Sustainability reporting
B. Currency forecasting
C. Reporting only confidential financial details to selected foreign investors
D. Market segmentation

6 Which labor practice is generally considered unethical?

Ethical dimensions of labor conditions Easy
A. Offering workers regular rest periods and clearly written employment contracts
B. Providing safety training
C. Paying agreed wages
D. Using forced labor

7 What is a basic purpose of workplace safety standards?

Ethical dimensions of labor conditions Easy
A. To limit consumer choices
B. To permit longer working hours whenever international demand increases
C. To increase import duties
D. To prevent employee injuries

8 What is child labor?

Ethical dimensions of labor conditions Easy
A. Volunteering performed by retired workers
B. Any household task completed by a young person with parental guidance
C. Work that harms or exploits children
D. Training provided to adult employees

9 Which principle supports fair treatment in international workplaces?

Ethical dimensions of labor conditions Easy
A. Different safety protections based only on an employee's nationality
B. Equal opportunity
C. Compulsory overtime
D. Secret recruitment

10 A supplier code of conduct commonly sets standards for which area?

Ethical dimensions of labor conditions Easy
A. The detailed design of every product sold by all competing businesses
B. Exchange-rate movements
C. Labor conditions
D. Customer advertising

11 What is environmental sustainability?

Ethics and the environment Easy
A. Moving pollution to another country
B. Using resources without harming future needs
C. Stopping every form of industrial and agricultural production permanently
D. Maximizing resource use in the current year

12 Which action can directly reduce a company's carbon emissions?

Ethics and the environment Easy
A. Expanding product packaging
B. Moving all production records into a larger paper-based filing system
C. Using renewable energy
D. Increasing fossil-fuel use

13 What does the principle "polluter pays" mean?

Ethics and the environment Easy
A. Governments ignore minor pollution
B. Foreign businesses pay for all environmental damage regardless of responsibility
C. Consumers pay every cleanup cost
D. Polluters bear pollution-related costs

14 Which practice supports responsible waste management?

Ethics and the environment Easy
A. Shipping unsorted waste abroad without checking local disposal standards
B. Burning all industrial waste
C. Recycling reusable materials
D. Hiding hazardous waste

15 What is greenwashing?

Ethics and the environment Easy
A. Recycling office paper
B. Cleaning factory equipment
C. Following verified environmental standards and publishing independently audited results
D. Creating misleading environmental claims

16 What is the main purpose of competition law?

Legislation for anti-competitive and unfair trade practices Easy
A. To protect market competition
B. To set employee salaries
C. To guarantee that one domestic company becomes the permanent market leader
D. To control weather risks

17 What is price-fixing?

Legislation for anti-competitive and unfair trade practices Easy
A. A retailer correcting an error
B. A government changing tax rates
C. A business independently lowering prices after improving production efficiency
D. Competitors agreeing on prices

18 What is a cartel?

Legislation for anti-competitive and unfair trade practices Easy
A. A group coordinating to restrict competition
B. A consumer protection agency
C. A public labor union
D. A government department that publishes international trade statistics each month

19 In international trade, what is dumping?

Legislation for anti-competitive and unfair trade practices Easy
A. Selling exports at unfairly low prices
B. Recycling goods in foreign markets
C. Selling every exported product at exactly the same price in all countries
D. Increasing domestic production taxes

20 Which legal measure may be imposed in response to proven dumping?

Legislation for anti-competitive and unfair trade practices Easy
A. A workplace safety audit
B. A permanent ban on every product imported from the exporting country
C. An anti-dumping duty
D. A consumer loyalty discount

21 A multinational plans to enter a low-income country where local law permits wages below the amount needed for basic living expenses. Which policy best reflects socially responsible globalization?

Globalization with social responsibility Medium
A. Delay hiring until national wages increase
B. Pay the legal minimum in every location
C. Use expatriate wage rates for all workers
D. Adopt a locally assessed living-wage standard

22 A global retailer wants to support small suppliers in a developing economy without creating permanent dependence. Which initiative is most appropriate?

Globalization with social responsibility Medium
A. Offer training and long-term fair contracts
B. Provide one-time charitable donations
C. Replace local firms with foreign contractors
D. Require suppliers to accept below-market prices

23 A company reports global job creation but does not disclose community displacement caused by a new factory. Which principle is most directly weakened?

Globalization with social responsibility Medium
A. Stakeholder accountability
B. Market segmentation
C. Currency convertibility
D. Product standardization

24 Two possible factory sites offer equal financial returns. Site X has stronger worker protections and lower community disruption, while Site Y offers larger tax concessions. A stakeholder-oriented decision would favor which choice?

Globalization with social responsibility Medium
A. Either site because returns are identical
B. Site Y because concessions remove ethical duties
C. Site X because broader impacts are better
D. Site Y because taxes determine social value

25 A food company adapts its global sourcing policy after consulting farmers, consumers, employees, and local communities. What is the main benefit of this approach?

Globalization with social responsibility Medium
A. It balances affected stakeholder interests
B. It eliminates every commercial risk
C. It transfers accountability to communities
D. It guarantees identical local regulations

26 An audit finds that supplier employees work excessive overtime voluntarily because their base wages are very low. What is the most ethical buyer response?

Ethical dimensions of labor conditions Medium
A. Ban all overtime without changing wages
B. Raise standards for wages and working hours
C. Ignore the issue because overtime is voluntary
D. End the audit program to reduce supplier costs

27 A supplier uses recruitment agencies that charge migrant workers large placement fees, leaving them indebted. Which action best addresses the ethical risk?

Ethical dimensions of labor conditions Medium
A. Limit recruitment to workers with savings
B. Require workers to repay fees more quickly
C. Deduct agency fees directly from monthly wages
D. Prohibit worker-paid fees and reimburse workers

28 A factory passes scheduled inspections but workers privately report unsafe machinery. Which monitoring change is most likely to improve reliability?

Ethical dimensions of labor conditions Medium
A. Schedule inspections further in advance
B. Review production volume instead of safety records
C. Use unannounced audits and confidential interviews
D. Request only the factory's written safety policy

29 A multinational discovers underage workers at a supplier. Which response best protects the children while correcting the violation?

Ethical dimensions of labor conditions Medium
A. Hide their records until they reach legal age
B. Transfer them permanently to unpaid home work
C. Fund remediation and restore access to education
D. Dismiss them immediately without further support

30 Workers at an overseas supplier are legally permitted to organize, but management threatens to reduce shifts if they join a union. Which labor right is being undermined?

Ethical dimensions of labor conditions Medium
A. Freedom of international movement
B. Equal pay for equal work
C. Freedom of association
D. Protection of trade secrets

31 A manufacturer can legally discharge treated wastewater into a river, but scientific evidence suggests possible long-term ecosystem damage. Which principle supports taking additional preventive action?

Ethics and the environment Medium
A. The comparative advantage principle
B. The shareholder primacy principle
C. The national treatment principle
D. The precautionary principle

32 A firm moves a highly polluting process to a country with weaker environmental rules while selling the output worldwide. What ethical concern does this most clearly illustrate?

Ethics and the environment Medium
A. Circular economy adoption
B. Pollution haven behavior
C. Environmental product labeling
D. Green technology diffusion

33 A company claims that its product is carbon neutral because it purchases offsets, but it has made no effort to reduce avoidable emissions. Which improvement would make the claim more ethically credible?

Ethics and the environment Medium
A. Purchase cheaper offsets without third-party review
B. Increase advertising about the offset program
C. Exclude transport emissions from its calculations
D. Reduce direct emissions before using verified offsets

34 A mining project is profitable but may impose water-treatment costs on nearby residents. Under the polluter-pays principle, who should bear those costs?

Ethics and the environment Medium
A. The mining company
B. Future consumers
C. Local charities
D. The affected residents

35 A global electronics producer wants to apply a circular-economy approach. Which policy is most consistent with that goal?

Ethics and the environment Medium
A. Design devices for repair, reuse, and recovery
B. Shorten product life to increase replacement sales
C. Send mixed electronic waste to open landfills
D. Use more packaging to improve shelf visibility

36 Three competing shipping companies secretly agree to charge the same fuel surcharge on international routes. Which practice is most likely involved?

Legislation for anti-competitive and unfair trade practices Medium
A. Transfer pricing
B. Market forecasting
C. Price fixing
D. Product differentiation

37 A foreign producer sells goods in an export market below normal value, causing material injury to domestic producers. Which trade remedy may the importing country investigate?

Legislation for anti-competitive and unfair trade practices Medium
A. A voluntary export subsidy
B. A currency transaction tax
C. A patent renewal fee
D. An anti-dumping duty

38 Two major competitors propose a merger that would leave one firm controlling most of the national market. What is the competition authority's central concern?

Legislation for anti-competitive and unfair trade practices Medium
A. Whether the new brand enters foreign markets
B. Whether the merger reduces competitive pressure
C. Whether employees receive new identification cards
D. Whether the firms use identical accounting software

39 A dominant digital platform requires sellers to buy its advertising service as a condition for accessing the marketplace. Which concern is most relevant?

Legislation for anti-competitive and unfair trade practices Medium
A. Permissible seasonal discounting
B. Abusive tying by a dominant firm
C. Routine customs valuation
D. Lawful independent product innovation

40 An exporter receives a government subsidy tied directly to each unit exported, and the subsidized imports injure producers in the destination country. Which response may be available after investigation?

Legislation for anti-competitive and unfair trade practices Medium
A. A countervailing duty
B. A domestic income-tax credit
C. A private licensing royalty
D. A consumer loyalty rebate

41 A multinational firm relocates production to a country with weaker labor and environmental regulation. The move lowers prices for consumers and creates employment, but the firm also receives tax concessions that reduce public revenue. Which assessment best reflects a socially responsible globalization strategy?

Globalization with social responsibility Hard
A. Reject the relocation because operations should remain in the home country
B. Proceed only after aligning practices with stronger international standards
C. Accept the relocation because employment gains outweigh regulatory concerns
D. Proceed because host governments alone determine acceptable business conduct

42 A company publishes an annual sustainability report showing reduced emissions per unit of output, while total emissions rise because production has doubled. Which conclusion is most defensible?

Globalization with social responsibility Hard
A. The company has shown mixed performance requiring absolute-impact analysis
B. The company has improved sustainability because efficiency increased
C. The company has no responsibility because emissions are legally permitted
D. The company has failed because total emissions increased

43 A global apparel brand discovers that its supplier complied with local law but used recruitment agents who charged migrant workers illegal debt-like fees. What is the most appropriate corporate response?

Globalization with social responsibility Hard
A. Shift responsibility entirely to the recruitment agents involved
B. Terminate the supplier immediately without assisting affected workers
C. Require repayment, remediation, and controls over recruitment intermediaries
D. Take no action because the supplier obeyed local employment law

44 A corporation funds schools in a host community but pressures local authorities to approve a project without meaningful consultation. Which principle is most clearly violated?

Globalization with social responsibility Hard
A. The principle that philanthropy substitutes for stakeholder participation
B. The principle that host governments cannot regulate foreign corporations
C. The principle that community consent cannot be replaced by charitable spending
D. The principle that social investment eliminates all business obligations

45 A firm adopts a global code of conduct that exceeds local legal requirements but permits exceptions where compliance would materially reduce competitiveness. What is the principal weakness of this policy?

Globalization with social responsibility Hard
A. It applies identical standards across culturally different markets
B. It makes core obligations conditional on commercial performance
C. It treats voluntary commitments as binding international treaties
D. It prevents the firm from adapting products to local preferences

46 A supplier classifies workers as independent contractors, although it controls their schedules, tools, methods, and remuneration. Which ethical concern is most significant?

Ethical dimensions of labor conditions Hard
A. The classification is acceptable if workers signed individual contracts
B. The classification is ethical whenever workers receive market wages
C. The classification matters only when the supplier operates internationally
D. The classification may conceal an employment relationship and evade protections

47 A factory meets the statutory minimum wage, but excessive unpaid overtime is necessary for workers to reach a subsistence income. Which judgment is strongest?

Ethical dimensions of labor conditions Hard
A. The arrangement is unethical only if the factory exports its products
B. The arrangement is ethical if overtime is technically voluntary
C. The arrangement is ethical because the statutory wage is satisfied
D. The arrangement raises exploitation concerns despite formal legal compliance

48 A multinational audits a supplier twice a year, but workers are coached to provide approved answers during announced inspections. Which control would most effectively improve ethical assurance?

Ethical dimensions of labor conditions Hard
A. Increase the number of announced inspections
B. Use unannounced visits and confidential worker interviews
C. Require suppliers to submit more written compliance statements
D. Limit audits to payroll and production records

49 A buyer imposes a sudden 20% price reduction on a supplier while maintaining the same delivery schedule, then penalizes the supplier for excessive overtime. What is the buyer's ethical responsibility?

Ethical dimensions of labor conditions Hard
A. Complete responsibility, because buyers control every supplier decision
B. Shared responsibility, because purchasing practices contributed to the risk
C. Limited, because price reductions are normal in global procurement
D. None, because labor management belongs exclusively to the supplier

50 A country legally permits workers under age 16 to perform nonhazardous part-time work, but a global company prohibits all employment below age 16. Why might the stricter rule be ethically justified?

Ethical dimensions of labor conditions Hard
A. It guarantees that no child in the country performs any work
B. It creates a clear global threshold and reduces verification ambiguity
C. It eliminates the need to investigate working conditions
D. It proves that local governments are unable to protect workers

51 A mining project produces essential minerals for renewable technologies but threatens a watershed used by downstream communities. Which decision framework is most ethically appropriate?

Ethics and the environment Hard
A. Compare lifecycle benefits, irreversible risks, alternatives, and affected rights
B. Approve it because renewable-energy benefits automatically outweigh local harms
C. Approve it if the company pays taxes and obtains an operating license
D. Reject it because every environmental risk makes extraction unethical

52 A company purchases carbon offsets for emissions from its supply chain, but the offset project may have occurred without the company's payment. What is the primary ethical problem?

Ethics and the environment Hard
A. The offsets are invalid because supply-chain emissions cannot be measured
B. The offsets are sufficient whenever they are cheaper than direct abatement
C. The offsets may lack additionality and overstate the climate benefit
D. The offsets are unethical because all climate projects reduce employment

53 A manufacturer moves a highly polluting process to a country with weaker enforcement while advertising a reduction in domestic emissions. Which ethical characterization is most accurate?

Ethics and the environment Hard
A. Regulatory arbitrage that shifts harm rather than reducing it
B. Genuine sustainability because domestic emissions are lower
C. Environmental neutrality because the total product output is unchanged
D. Fair globalization because pollution follows comparative advantage

54 A firm evaluates a factory using a discount rate that makes environmental damage occurring decades later appear economically insignificant. Which ethical criticism is strongest?

Ethics and the environment Hard
A. Discounting is always invalid in environmental decision-making
B. The analysis may undervalue future generations and long-term harms
C. A higher discount rate always produces more sustainable investment
D. Future environmental effects should be ignored because they are uncertain

55 A firm markets packaging as "biodegradable" because it decomposes in industrial facilities, although most consumers lack access to those facilities. What is the most appropriate conclusion?

Ethics and the environment Hard
A. The claim is acceptable because the material eventually decomposes somewhere
B. The claim is ethical if competitors use similar environmental language
C. The claim is harmless because packaging has no effect after purchase
D. The claim is misleading unless disposal conditions are clearly disclosed

56 Two competing firms independently adopt identical prices after observing each other's public price announcements. There is no direct communication. Which issue requires the most careful legal analysis?

Legislation for anti-competitive and unfair trade practices Hard
A. Whether competition law applies only to private communications
B. Whether identical prices are always evidence of price fixing
C. Whether public announcements automatically immunize coordination
D. Whether parallel pricing alone proves an unlawful agreement

57 A dominant digital platform requires sellers to use its payment service and ranks its own products above equally relevant rival products. Which legal concern is most plausible?

Legislation for anti-competitive and unfair trade practices Hard
A. Predatory pricing because the platform owns inventory
B. Ordinary vertical integration with no possible competitive effect
C. Export dumping because sellers operate across borders
D. Potential leveraging and self-preferencing by a dominant firm

58 A firm sells a product abroad below its home-market price, but the price reflects lower transport costs and materially different customer demand. Which conclusion is most defensible regarding dumping?

Legislation for anti-competitive and unfair trade practices Hard
A. Dumping exists only when the exporter earns a domestic profit
B. Dumping cannot occur when transport costs differ between markets
C. Any lower export price automatically constitutes illegal dumping
D. Dumping requires comparison using an appropriate normal-value benchmark

59 A company advertises a temporary discount but keeps the product at the discounted price continuously, while suggesting that customers must buy immediately to avoid a higher price. Which unfair-trade concern is strongest?

Legislation for anti-competitive and unfair trade practices Hard
A. The practice is lawful whenever the discounted price is profitable
B. The practice may be deceptive reference pricing and false urgency
C. The practice is anti-competitive only if a rival files a complaint
D. The practice is acceptable because consumers can compare alternatives

60 A large manufacturer temporarily prices below average variable cost in a regional market where a smaller rival is financially vulnerable, then raises prices after the rival exits. Which additional fact would most strengthen a predatory-pricing case?

Legislation for anti-competitive and unfair trade practices Hard
A. The smaller rival previously charged a higher retail price
B. The firm has a credible plan to recoup losses after exit
C. The manufacturer operates factories in several countries
D. The product has many close substitutes in the short term