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Q:
New product development time increases when using strategic alliances and cross-functional teams.
Q:
What role do company codes play in ensuring compliance with the FCPA and international conventions and in clarifying when foreign payments can be made and how they are to be accounted for?
Q:
A firm intending to refine an earlier entrants technology should avoid fast-cycle development processes.
Q:
For many managers who venture overseas to do business in the global marketplace, the challenge of facing some questionable practices and different ethical principles can be overwhelming. Discuss.
Q:
Many start-up firms demise because new innovations tend to be adopted very slowly at first.
Q:
What are the sources of guidance for firms and their managers in a situation in which payments are either demanded or likely to obtain a sale? What does the ethics analysis focus on?
Q:
The credibility of a firm can influence the rate of adoption of its technology.
Q:
What are Donaldsons five guidelines to ethical leadership?
Q:
In industries that have increasing returns to adoption, allowing competitors to get a head start in building an installed base is a safe strategy.
Q:
According to Donaldson, what are the three general principles that should guide companies in their global business activity?
Q:
If entry barriers are high, entering a market early becomes necessary.
Q:
Some managers argue that bribes are required because of extortion by government officials or bribes offered by competitors. In such cases, the injustice standard is applicable and requires that the manager ask whether, ________.
a) if the payment were publicly disclosed, the publics in the host and home country would agree that it should have been paid
b) if the payment increased aggregate utility
c) if a fraction of the payment were used in charitable purposes
d) if the payment were made in response to a competitors payment and if it positively impacted the annual revenue
Q:
In 1999, the European Union enacted a ________ that made criminal offenses of active bribery and passive bribery (extortion) that gives any undue advantage of domestic and foreign public officials and of private sector personnel.
a) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
b) Criminal Law Convention on Corruption
c) The Cumminss Act
d) Foreign Corrupt Practices Act
Q:
Not all innovations require complementary goods.
Q:
When a market is characterized by mature enabling technologies, a firm should enter the market late.
Q:
Which of the following is true with regard to the OECD Anti-Bribery Convention?
a) The Convention requires signatories to make the act of bribery and the making of other forms of illicit payments to foreign public officials a criminal offense, whether paid directly or indirectly.
b) Small facilitation payments that are not made to obtain or retain business are viewed as an offense.
c) According to the Convention, the definition of a foreign public official excludes officials of public agencies and public enterprises at least 50 percent owned by the government.
d) The Convention pertains to private-to-private bribery.
Q:
Which of the following is a principal purpose of company codes?
a) increase output
b) discourage self-disclosure and whistle-blowing
c) make it easier for employees to say no to demands for pay
d) maintain status quo
Q:
Other things being equal, less customer uncertainty favors earlier timing of entry.
Q:
All pioneers face customer uncertainty.
Q:
Which of the following is true with regard to the UK Bribery Act?
a) The UK Bribery Act legalizes grease payments.
b) The UK Bribery Act prohibits bribe paid to private companies.
c) Under the law, an employee cannot be held guilty of bribery if the person was unaware of it.
d) The UK Bribery Act does not prohibit bribery of government officials,
Q:
A technology may be underdeveloped and its fit with customer needs unknown in the early market stages.
Q:
Which of the following is true of the Omnibus Trade and Competitiveness Act of 1988 that amended the Foreign Corrupt Practices Act?
a) A payment to a foreign individual became legal under the act even if it was illegal in the foreign country.
b) The language of the act was clarified to indicate that payments that secured performance of routine government actions, such as signing customs documents and unloading or loading cargoes, were illegal.
c) The amendments provided firms with a number of affirmative defenses, including consistency with host country laws and legitimate business expenses.
d) If a payment were legal in the foreign country, the defendant in an action brought under the act could not use that legality as a defense.
Q:
If you are a first mover in the market of a new technology, you may find that your product offerings will have to be revised as consumers reveal their preferences.
Q:
The extent to which a firm encounters demands for payments in a host country depends on its ________.
a) lines of business
b) organizational talent pool
c) potential to acquire smaller companies
d) annual sales forecast
Q:
For a very new product technology, market research will be of great help.
Q:
In addition to prohibiting payments to government officials and private companies, the ________ prohibits grease payments, or facilitating payments, even if they do not affect decision making by government employees such as those that provide routine services.
a) FCPA
b) UK Bribery Act
c) Kyoto Protocol
d) Sherman Act
Q:
Which of the following is true with regard to the Foreign Corrupt Practices Act (FCPA)?
a) The FCPA prohibits payments to private businesses.
b) Under the FCPA, it is lawful to offer gifts to influence a decision of a company.
c) The FCPA does not provide imprisonment for an individual making a payment or offer covered by the act.
d) The FCPA makes bribery of foreign officials, political parties, candidates for office, and public international organizations a criminal offense.
Q:
First movers typically invest more in exploratory research than late entrants.
Q:
Late entrants typically bear the bulk of research and development expenses.
Q:
Which of the following examples illustrates the weakness of act utilitarianism?
a) Firm A refrains from accepting bribes even if that decreases its aggregate utility.
b) Firm A takes Firm Bs practice of offering bribes as a given and offers a matching bribe because that increases its aggregate utility.
c) Firm B believes that offering a bribe is ethical because it boosts competition.
d) Firms A and B consider bribery ethical in situations where a rational observer would understand the reason for the action.
Q:
Which of the following is true with regard to bribe payments?
a) A rule under which bribes are allowed is universalizable.
b) Competition is most efficient when bribes replace value and merit as the basis for decisions.
c) Bribes paid to government officials undermine the impartiality of government and hence the equality of political rights.
d) Bribes are expected to indirectly benefit the least advantaged persons.
Q:
In an industry characterized by increasing returns to adoption, there can be powerful advantages to being an early provider.
Q:
From a utilitarian perspective, bribery ________.
a) encourages competition leading to increased output
b) distorts markets and reduces economic efficiency
c) is reversible
d) is morally justified
Q:
The time invested by buyers to become familiar with a products operation cannot be considered as a switching cost.
Q:
The initial cost of a good itself can be a switching cost.
Q:
In a situation in which payments are either demanded or likely to be required to obtain a sale, managers should first consider ________.
a) national trade policies
b) corporate codes of conduct
c) international laws
d) ethics
Q:
________ is an act of paying an individual in an organization with the intention of influencing that persons exercise of his or her responsibilities;
a) Lobbying
b) Bribery
c) Extortion
d) Casuistry
Q:
Early followers enter the market only after a product begins to penetrate the mass market.
Q:
Which of the following is true with regard to the Fair Labor Association (FLA)?
a) The FLA code of workplace standards does not cover forced labor.
b) The FLA code of workplace standards does not cover collective bargaining.
c) The FLA code does not provide for a living wage.
d) The FLA lacks the characteristics of a government institution.
Q:
Early leaders are firms that are the first to enter the market.
Q:
________ are intended to be applied in situations in which institutions are imperfect, entitlements and their protection are unclear, or transactions costs prohibit bargaining to resolve the issue.
a) Paretos principles
b) Donaldsons guidelines for ethical leadership
c) The Calabresi and Melamed principles
d) The Five Modernizations
Q:
What is vaporware? What are its advantages?
Q:
Which of the following is true with regard to the challenges faced by companies operating in developing countries?
a) In developing countries, the liability system assigns the social cost of injuries to producers and consumers.
b) In developing countries, poverty, lack of education, and inadequate health care create situations in which individuals cannot be expected to make the same decisions that would be made in a developed country.
c) Developing countries are twice as vulnerable as developed countries to natural calamities causing considerable difficulties to companies operating in those countries
d) In developing countries, regulation establishes safety standards and requires information and warnings about hazards.
Q:
Explain what factors characterize the technology trajectory. Discuss the factors that determine the success of a new technology, besides its quality and technical advantage.
Q:
According to Donaldson, which of the following rights is subject to cultural interpretation?
a) ownership of property
b) speech and association
c) fair trial
d) physical security
Q:
________ in its strongest form means that in operating internationally a firm maintains the standards of its home country and judges others by those standards.
a) Ethical leadership
b) Paternalism
c) Cultural imperialism
d) Cultural relativism
Q:
Why is the installed base of users of a technology that requires complementary goods so important to a companys future success?
Q:
In considering countries and cultures, Sen (1997) warned against generalizations that hide more than they reveal. He advocated the recognition of ________.
a) the importance of taking a static view of cultures
b) the necessity of recognizing heterogeneity within given communities
c) the importance of restricting social change
d) the need to encourage stereotypes in order to create a strong organizational culture
Q:
What is absorptive capacity? Why do firms that fall behind the technology frontier find it difficult to catch up?
Q:
Firms that operate internationally are subject to ________.
a) only the laws of their home country
b) only the laws of the host country
c) only international trade agreements
d) laws of their home country as well as the host country
Q:
Explain why it is considered advantageous if a companys technology is adopted by users ahead of other technologies.
Q:
International law differs from domestic law in that ________.
a) international law is arbitrary and does not command respect
b) in international law, sanctions are highly credible
c) in international law, sanctions may not be credible and enforcement is often left to individual nations.
d) in international law, sanctions are enforced by the International Criminal Court
Q:
When are winner-take-all markets good for consumers?
a. When monopoly costs exceed the value of network externality returns.
b. When monopoly costs exceed the value of technological utility.
c. When the monopoly cost curve is extremely steep.
d. When the value of technology utility and network externality returns exceeds monopoly costs.
Q:
Which of the following is a national law?
a) the Kyoto Protocol
b) the Foreign Corrupt Practices Act
c) the North American Free Trade Agreement
d) the Geneva Convention
Q:
Which of the following is true of monopoly cost curve?
a. Monopoly costs to market share curve is more s-shaped than network externality returns to market share curve.
b. The steepness of the monopoly cost curve is largely a function of the firms discretionary behavior.
c. It is not possible for a network externality returns curve to cross a monopoly cost curve.
d. A firm choosing to exploit its monopoly power is flattening the monopoly costs curve.
Q:
Which of the following is true with regard to international law?
a) International law consists of national laws that pertain to foreign persons, entities, and other nations.
b) International law does not include intergovernmental treaties and agreements.
c) International law does not include rulings by international courts.
d) Sanctions in international law are highly credible and enforcement is rarely left to individual nations.
Q:
Future Electronics body scanning machine has been adopted by the larger portion of the healthcare market. As a result, the company charges a high price from its customers, mainly hospitals. It is not investing much on innovation and its product variety is also very low. This cost borne by the users is referred to as:
a. marginal cost.
b. social cost.
c. monopoly cost.
d. deferred cost.
Q:
Ethics principles are intended to be ________.
a) country specific
b) orthodox
c) unconventional
d) universal
Q:
Between two technologies competing for dominance, when customers attain their desired level of network externality benefits at lower market share levels:
a. it implies that one specific technology clearly dominates
b. they face a relatively small indifference region.
c. the network externality returns curves flatten out sooner.
d. it implies that both the technologies cannot successfully coexist.
Q:
The OECD Anti-Bribery Convention does not view small facilitation payments that are not made to obtain or retain business as an offense.
Q:
When users are comparing the value of a new technology to an existing technology, they are said to be using objective information when the comparison is based on:
a. anticipated technological benefits.
b. future prediction regarding the availability of complementary goods.
c. advertisements of vaporware.
d. actual technological benefits.
Q:
The OECD Anti-Bribery Convention pertains to private-to-private bribery and does not impose record-keeping obligations on business.
Q:
Oswen Technologies Inc., a software developing company, spent a lot of money in advertising software products that were not in the market. However, the firm hoped to bring these products to the market at a later date. This is termed as _____.
a. puffery
b. vaporware
c. first refusal
d. advertising roll out
Q:
In addition to providing guidance to managers and sales representatives, company policies also establish a basis for a response when a government official or a customer demands a payment.
Q:
A new technology is most likely to be successful in displacing an existing technology when:
a. its installed base is significantly less than that of the existing technology.
b. the new technology competes only on the value of its stand-alone utility.
c. it eclipses the combined value of the existing technologys stand-alone utility, its installed base, and its complementary goods.
d. the new technologys perceived and anticipated components of value are lower than its actual components of value.
Q:
Smart Space Inc. makes shoe racks that are portable and can also be dismantled. After purchasing the shoe rack, customers can visit the companys Web site to learn how to fix it, where to place it, and how to dismantle it when not required. According to the Buyer Utility Map, Smart Space Inc. is aiming to provide simplicity and convenience in the _____ stage of buyer experience.
a. disposal
b. use
c. supplements
d. delivery
Q:
In addition to prohibiting bribery of government officials, the United Kingdom Bribery Act prohibits bribes paid to private companies.
Q:
The U.S. Postal Service now offers a Click-N-Ship online service, where users can buy and print postage and labels online. According to the Buyer Utility Map, the U.S. Postal Service is offering the _____ utility lever, during the _____ stage of buyer experience cycle.
a. risk, use
b. fun and image, maintenance
c. convenience, purchase
d. environmental friendliness, disposal
Q:
The Foreign Corrupt Practices Act (FCPA) does not make bribery of foreign officials a criminal offense.
Q:
TechSense, an electronics manufacturing firm, allows its customers to resell old TechSense products at their retail outlets. The firm reuses the metal, wires, and plastic extracted from these old productsin their new products. This way the company has been able to take waste management to a whole new level. According to the Buyer Utility Map, the firm is applying environmental friendliness utility lever in _____ stage of buyer experience cycle.
a. supplements
b. purchase
c. use
d. disposal
Q:
Under the FCPA, it is unlawful to make any offer, payment, promise to pay, or authorization of the payment of any money, or offer, gift, promise to give, or authorization of anything to influence a decision, omit a required action, or give any improper advantage to the company.
Q:
Joes Diner, a fast food restaurant, has recently added a childrens play area within its premises that allows parents to dine in peacewhile their children are safe in the playing area. According to the Kim and Mauborgnes model, Joes Diner is offering the _____ utility lever during the _____ stage of buyer experience cycle.
a. environmental friendliness, purchase
b. risk, supplements
c. convenience, use
d. simplicity, maintenance
Q:
From the perspective of rule utilitarianism, if a purely self-interested company offers a bribe to a customer, a matching bribe by its competitor is morally justified.
Q:
Earth Love electronics has developed a lawn mower that runs on solar power. The lawn mowers are available in all neighborhood supermarkets and several electronic stores. According to the Buyer Utility Map, the company is trying to offer convenience utility in the _____ stage.
a. supplements
b. purchase
c. disposal
d. maintenance
Q:
Bribery involves transactions costs because both parties must conceal the payments and take measures to justify the selection.
Q:
eZone, an online retailer, uses an online ordering and payment system called PayPlus which accepts credit cards and electronic funds transfers. Its payment Web site has a user-friendly interface. The payment system is heavily secured using encryption technology. According to the Buyer Utility Map, PayPlus is offering _____ utility lever in the purchase stage.
a. cost
b. fun and image
c. environmental friendliness
d. simplicity
Q:
Gerts test for when an injustice is warranted to avoid a greater injustice requires that a rational observer would understand the reason for the action.
Q:
Which of the following is true of dominant design?
a. It is not possible to have legally induced adherence to a dominant design.
b. When a firms technology is locked in as the dominant design of a market, it earns low rewards.
c. A firm that supports a technology that is chosen as the dominant design is in a poor position to shape the evolution of the industry.
d. A firm may find itself locked out of the market if it is unable to adopt the dominant technology.
Q:
Casuist reasoning argues that an unethical action is justified by the benefits it provides to stakeholders.
Q:
Increasing returns to adoption imply that technology trajectories are characterized by _____, meaning that relatively small historical events may have a great impact on the final outcome.
a. the ratchet effect
b. the funnel effect
c. technological trajectories
d. path dependency