MIB International Business Law & Ethics 3

Question 1

Which ethical framework holds that actions are morally right if they produce the greatest good for the greatest number of people?

Accepted Answer

Utilitarianism

Answer

Deontological ethics (Kantian ethics)

Answer

Virtue ethics

Answer

Ethical relativism

Question 2

Corporate Social Responsibility (CSR) in an international business context primarily refers to:

Accepted Answer

A company's voluntary commitment to operate ethically and contribute positively to society and the environment

Answer

A company's legally mandated financial obligations to shareholders and regulators

Answer

Government-imposed regulations that multinational corporations must follow in host countries

Answer

International standards for auditing and financial reporting transparency

Question 3

The UN Global Compact, the world's largest corporate sustainability initiative, asks companies to align with principles related to:

Accepted Answer

Human rights, labor standards, environmental responsibility, and anti-corruption

Answer

Free trade, tariff elimination, and market access liberalization

Answer

Intellectual property protection and international technology transfer

Answer

Foreign direct investment liberalization and capital account convertibility

Question 4

'Cultural relativism' in international business ethics argues that:

Accepted Answer

Moral standards differ across cultures and practices should be judged within their own cultural context

Answer

All cultures share identical fundamental ethical principles despite surface differences

Answer

Ethical standards are universal and absolute, applying equally in all societies

Answer

Western ethical norms represent the benchmark that all global firms should adopt

Question 5

The OECD Guidelines for Multinational Enterprises provide:

Accepted Answer

Voluntary recommendations on responsible business conduct covering human rights, labor, environment, and corruption

Answer

Legally binding obligations enforced by international courts

Answer

Tax minimization strategies legally available to multinational corporations

Answer

Binding tariff schedules negotiated among OECD member countries

Question 6

The 'race to the bottom' phenomenon in international business ethics refers to:

Accepted Answer

Countries lowering labor, environmental, or tax standards to attract foreign direct investment

Answer

Multinational corporations competing aggressively on price to win major international contracts

Answer

Firms reducing product quality in price-sensitive foreign markets to increase margins

Answer

Governments removing import tariffs sequentially to boost bilateral trade volumes

Question 7

The UN Guiding Principles on Business and Human Rights (UNGPs), adopted in 2011, are structured around three pillars: Protect, Respect, and Remedy—which actor is responsible for each pillar respectively?

Accepted Answer

States, business enterprises, states and businesses jointly

Answer

Corporations, governments, international organizations

Answer

International courts, corporations, civil society

Answer

Governments, international organizations, corporations