Unit 14: Globalization and Society - Practice Quiz

1 What does social responsibility require a global business to consider?

2 Which action best demonstrates corporate social responsibility in a foreign market?

3 Who is considered a stakeholder of a multinational company?

4 What is a common goal of responsible globalization?

5 Which document commonly communicates a company's ethical expectations to employees and suppliers?

6 Which labor practice is generally considered unethical?

7 What is the main purpose of workplace safety standards?

8 What does equal opportunity in employment mean?

9 Which issue is directly related to ethical working conditions?

10 Why might a multinational company audit its suppliers' factories?

11 What is environmental sustainability?

12 Which business action can reduce greenhouse gas emissions?

13 What is pollution prevention primarily intended to do?

14 Which practice supports responsible waste management?

15 What does the principle that a polluter should bear the cost of environmental damage describe?

16 What is the main purpose of competition law?

17 What is price-fixing?

18 What is a cartel?

19 In international trade, what is dumping?

20 What measure may a country impose after establishing that dumped imports cause injury?

21 A multinational discovers that a major supplier legally pays the local minimum wage, but employees still cannot meet basic living costs. Which response best reflects socially responsible globalization?

22 A company plans to enter a country with weak consumer-protection rules. What is the most responsible approach?

23 Which initiative most clearly creates shared value for a multinational and its host community?

24 Stakeholders doubt a company's claims that its overseas operations benefit local communities. Which action would provide the most credible evidence?

25 A buyer pressures suppliers to reduce prices while also demanding improved social standards. Which purchasing practice best aligns these goals?

26 Workers sign forms agreeing to frequent overtime, but supervisors threaten dismissal if anyone refuses. What is the primary ethical problem?

27 An approved supplier secretly subcontracts production to an unaudited factory. What should the purchasing company do first?

28 An audit finds underage workers using false documents at a supplier. Which response is most ethically appropriate?

29 Why might payment of the statutory minimum wage still raise an ethical concern?

30 Factory managers create an employee committee but prohibit workers from joining independent unions. Which labor right is most directly restricted?

31 A firm relocates a highly polluting process to a country with weak environmental enforcement while maintaining cleaner methods elsewhere. Which ethical concern is most relevant?

32 A beverage company wants to compare glass and plastic packaging fairly. Which assessment is most appropriate?

33 A carbon-intensive producer moves production abroad after its home country introduces strict emission limits. This outcome is best described as:

34 Scientific evidence suggests that a new chemical may cause severe irreversible harm, although the probability is uncertain. Which principle supports temporary restrictions?

35 A company labels a product as environmentally friendly based only on recyclable packaging, although manufacturing generates unusually high emissions. What is the main ethical issue?

36 A dominant firm sells below cost in a foreign market to force smaller rivals to exit, planning to raise prices afterward. Which practice is most directly implicated?

37 An exporter sells a product abroad below its normal home-market value, materially injuring producers in the importing country. Which trade remedy may apply?

38 Competing shipping companies secretly agree to charge identical freight rates on international routes. Which violation is most likely?

39 A sudden, unforeseen increase in fairly traded imports causes serious injury to a domestic industry. Which temporary measure is designed for this situation?

40 A foreign government subsidizes its exporters, and the subsidized imports materially injure producers in the importing country. Which response is most appropriate after investigation?

41 A multinational discovers that its low-cost agricultural sourcing has increased exports but displaced local food production and intensified regional food insecurity. Which response best integrates globalization with social responsibility?

42 A company complies with every host-country tax rule but routes intellectual-property income through low-tax jurisdictions lacking substantial operations. Which assessment is most defensible from a social-responsibility perspective?

43 A multinational plans to enter a fragile state where its investment could create jobs but might also strengthen a government implicated in human-rights abuses. What is the most appropriate decision framework?

44 A firm reports that overseas investment created 10,000 jobs, while critics note involuntary displacement of several communities. Which metric design best prevents the employment figure from masking social harm?

45 After criticism of its global supply chain, a company donates heavily to schools but does not alter purchasing practices that force suppliers into excessive overtime. Which concept best explains the weakness of its response?

46 Workers at a foreign supplier voluntarily request long overtime hours because base wages are insufficient for basic needs. Why is relying solely on their consent ethically inadequate?

47 An audit finds 14-year-old workers performing prohibited factory work. Immediate dismissal would likely push them into more dangerous informal employment. What is the most ethical response?

48 A supplier passes announced social audits, but confidential interviews reveal coached workers and hidden night shifts. Which change would most improve the reliability of labor oversight?

49 Migrant workers pay large recruitment fees to labor brokers and must surrender passports until debts are repaid. The supplier argues that workers signed written contracts. Which evaluation is strongest?

50 A buyer requires suppliers to raise wages by 20% immediately but refuses to adjust prices or delivery schedules. Several suppliers respond by using undeclared subcontractors. What is the buyer's central ethical failure?

51 A manufacturer relocates a highly polluting process to a country with weaker emission limits, although cleaner technology is economically viable. Which principle most directly challenges the decision?

52 A product reduces emissions during consumer use but requires mineral extraction that damages biodiversity and consumes substantial water. Which assessment method best supports an ethical comparison with alternatives?

53 Scientific evidence suggests that a chemical may cause irreversible ecosystem damage, but estimated probabilities remain uncertain. Under the precautionary principle, which response is most appropriate?

54 A company sells a carbon-intensive division and then reports a sharp reduction in its own operational emissions, although the facilities continue operating under new ownership. What is the main ethical reporting concern?

55 Two emission-reduction projects have equal expected climate benefits. Project X has a small probability of catastrophic harm to an Indigenous community; Project Y has modest, reversible costs distributed broadly. Which ethical consideration most strongly rejects choosing solely by expected net benefit?

56 Two dominant competitors use the same algorithm vendor, which configures both pricing systems to avoid undercutting one another. No direct communication occurs between the competitors. What is the key competition-law issue?

57 A foreign producer sells a product abroad below its home-market price, but the lower price reflects temporary clearance of obsolete inventory and causes no material injury. Which statement best distinguishes dumping from actionable anti-dumping liability?

58 A dominant platform prices one service below incremental cost for six months, expecting network effects to prevent displaced rivals from re-entering after prices rise. Which fact most strengthens a predatory-pricing claim?

59 A country imposes an emergency safeguard on a rapidly increasing import even though exporters engaged in neither dumping nor subsidization. Which legal rationale most accurately distinguishes a safeguard from an anti-dumping measure?

60 Two firms propose a merger in a concentrated market. They claim substantial cost savings, but the savings could be achieved through a nonexclusive production agreement that would preserve independent pricing. How should an authority treat the efficiency defense?