Introduction To Business: The Ultimate Practice Exam #2

In 2006, U.S. corporations collectively donated approximately $13 billion to charity. This indicates a significant level of philanthropy and corporate social responsibility within the business community. The large sum highlights the commitment of these corporations towards supporting various charitable causes and making a positive impact on society.

Ben & Jerry's ice cream was started in 1977 in Vermont. This information is not explicitly mentioned in the question, but it is implied by the fact that the question asks for the correct answer, and the only option that matches the given information is "in 1977 in Vermont."

Ethnocentricity refers to the belief held by some American business people that their own culture is superior to all others and that everyone else should adopt the American way of doing things. This attitude can lead to a lack of understanding and appreciation for other cultures, as well as a tendency to judge them based on American standards. It can hinder effective communication and collaboration in a global business environment.

Asking the question "How will it make me feel about myself?" can help us avoid a decision that would injure our self-esteem. This question prompts us to consider the potential impact of the decision on our self-image and self-worth. By evaluating how a decision may affect our feelings about ourselves, we can make choices that align with our values and preserve our self-esteem.

Practicing deception regarding product safety issues is a strategy that is guaranteed to displease customers. This is because customers expect honesty and transparency when it comes to the safety of the products they purchase. Deceiving customers about product safety can lead to harm, loss of trust, and damage to the company's reputation. It is important for businesses to prioritize the safety of their products and be truthful with their customers to maintain their satisfaction and loyalty.

When a business fails in meeting its responsibilities to its employees, it is likely to result in disgruntled workers manipulating budgets and expenses, a loss of employee commitment and trust in the company and its management, and employee retaliation by doing the minimum needed to get by. However, reduced employee turnover would not be expected in this situation. This is because when employees are dissatisfied with their treatment and the company's failure to meet their responsibilities, they are more likely to seek employment elsewhere, leading to higher turnover rates.

The statement claims that 80% of General Dynamics employees surveyed in 1990 had favorable things to say about their company's new ethics program. However, the correct answer is False, indicating that the statement is not true. The explanation for this answer could be that the survey results showed that less than 80% of the employees had favorable opinions about the ethics program, or that the survey was not conducted among all employees, leading to an inaccurate representation of the overall sentiment.

Trade protectionism refers to the use of government regulations to limit the import of goods and services. This can be done through various measures such as tariffs, quotas, and import restrictions. The purpose of trade protectionism is to protect domestic industries and jobs from foreign competition. By limiting imports, the government aims to create a more favorable environment for domestic producers, allowing them to compete more effectively in the domestic market. Trade protectionism can have both positive and negative effects, as it can help certain industries but may also lead to higher prices for consumers and retaliation from other countries.

Franchising is a special form of licensing. In franchising, a company grants another party the right to use its brand name, business model, and operating systems in exchange for a fee or royalty. This allows the franchisee to operate their own business under the established brand and benefit from the franchisor's support and expertise. Licensing, on the other hand, is a broader term that refers to the granting of rights to use intellectual property, such as patents, trademarks, or copyrights, to another party. Therefore, franchising can be considered a specific type of licensing agreement.

Pillsbury being a firm that operated throughout the United States, even when it was owned by a British company, Grand Metropolitan, indicates that it is a foreign subsidiary. A foreign subsidiary is a company that is owned or controlled by a parent company located in a different country. In this case, Pillsbury, being owned by a British company, is considered a foreign subsidiary of Grand Metropolitan.

Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result of changes in the supply of and/or demand for dollars in the global currency market. This means that when the demand for dollars increases, its value relative to other currencies will also increase. Conversely, if the supply of dollars increases or the demand decreases, the value of the dollar will decrease compared to other currencies. This is because currency exchange rates are determined by the market forces of supply and demand.

Revenue tariffs are designed to raise money for the government. Revenue tariffs are imposed on imported goods and are intended to generate income for the government by charging a tax on these goods. The purpose of revenue tariffs is not to protect domestic industries or regulate trade, but solely to generate revenue for the government.

The correct answer is "deficit; 25". This means that the United States has had a trade deficit with Japan for the past 25 years. A trade deficit occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade. This suggests that the United States has been buying more from Japan than it has been selling to them for the past 25 years.

Business relationships often involve complex situations where conflicting interests and values come into play. These ethical dilemmas are not easily resolved because they require careful consideration of various factors such as legal obligations, moral principles, and the long-term consequences of different actions. Simply following relevant laws may not be sufficient to address these dilemmas, as ethical considerations often go beyond legal requirements. Therefore, finding a satisfactory resolution to these dilemmas can be challenging and may require thoughtful analysis and decision-making.

Employees generally prefer working at companies that have an integrity-based ethics code because it reflects a strong commitment to moral and ethical principles. An integrity-based ethics code promotes honesty, transparency, and fairness in the workplace. It emphasizes doing the right thing, even when no one is watching. This type of ethics code creates a positive work environment, fosters trust between employees and management, and encourages ethical decision-making. It also helps attract and retain employees who value integrity and ethical behavior.

The Theory of Comparative Advantage suggests that both two-way and one-way flows of goods can make citizens of trading nations better off. It states that countries should specialize in producing goods that they have a comparative advantage in, and then trade with other countries to obtain goods that they don't produce efficiently. This allows for a more efficient allocation of resources and promotes economic growth for all nations involved. Therefore, one-way flows of goods with money coming the other way can still benefit the citizens of trading nations.

The desire of an ethical manager to achieve a "win-win" relationship with others reflects their intention to create a fair and equitable outcome for all parties involved. By asking if a decision or action is balanced, the manager is considering whether it takes into account the needs and interests of all stakeholders, rather than prioritizing their own benefit at the expense of others. This demonstrates a commitment to ethical behavior and a desire to foster positive and mutually beneficial relationships with others.

According to the textbook, corporate social responsibility has three dimensions.

The statement is false because it states that "One hundred percent of the goods exported to Japan from the United States in 2007 were in one of the following four product categories." This is an incorrect statement as there could have been other goods exported to Japan that were not included in these four categories.

The statement suggests that Pepsi Cola has been more successful in Japan compared to Coca-Cola. However, the correct answer is False. The explanation for this is not available.

The first step when facing an ethical dilemma is to ask "Is it legal?" because legality is a fundamental aspect of ethical decision-making. Understanding the legal implications of a choice helps to determine if it aligns with the laws and regulations governing the situation. By considering the legality, individuals can ensure that their actions do not violate any laws or regulations, thus avoiding potential legal consequences. Additionally, considering the legality of a decision helps to establish a foundation for evaluating its ethicality, as actions that are illegal are generally considered unethical as well.

Contract manufacturing involves the production of private-label goods by a foreign company, which are then branded with the company's name or trademark. This means that the company outsources the production of its goods to a foreign manufacturer, who produces the goods according to the company's specifications and attaches the company's brand name or trademark. This allows the company to benefit from the expertise and resources of the foreign manufacturer while maintaining control over the branding and marketing of the goods.

In 1817, English economist David Ricardo published a book in which he explained the Theory of Comparative Advantage. This theory states that countries should specialize in producing goods or services in which they have a lower opportunity cost compared to other countries. By specializing and trading with other countries, all countries involved can benefit and increase their overall economic welfare. This theory has had a significant impact on international trade and has been widely accepted by economists as a fundamental principle in understanding the benefits of specialization and trade between countries.

In 2003, the U.S. had an unfavorable balance of trade and an unfavorable balance of payments with the rest of the world. This means that the value of imports exceeded the value of exports, resulting in a trade deficit. Additionally, the U.S. had more outflows of money for payments to foreign countries than inflows of money from foreign countries, indicating a negative overall financial position.

Mercantilism is an economic policy that focuses on maximizing a country's exports and minimizing its imports. This is done to increase the country's wealth and power by accumulating precious metals, such as gold and silver, through trade surpluses. By ensuring that exports are greater than imports, a country can maintain a positive balance of trade and accumulate wealth. This policy often involves imposing tariffs and trade restrictions to protect domestic industries and promote exports.

Ethical problems and issues of social responsibility are not unique to the United States. This means that these problems and issues are not exclusive to the United States and can be found in other countries as well. Ethical dilemmas and social responsibility concerns are universal and can arise in any country or organization, regardless of its location or involvement in global trade. These issues are important and relevant in today's society and cannot be disregarded.

A weakening dollar actually has a positive effect on the welfare of a U.S.-based manufacturer that earns over 50% of its revenues from overseas sales. When the dollar weakens, it means that foreign currencies are stronger in comparison, which makes the manufacturer's products cheaper for international buyers. This can lead to an increase in demand for their products and ultimately boost their revenues and overall welfare.

According to Mr. Lilly's lecture, when the dollar weakens, it tends to help America's trade deficit.

Martha Stewart was involved in insider trading, which refers to the illegal practice of trading stocks based on non-public information. In this case, she was accused of using her position and access to privileged information to make trades that would benefit her financially. Insider trading is considered a serious offense as it undermines the fairness and integrity of the stock market.

Licensing involves granting permission to a foreign company to use intellectual property, such as trademarks or patents, in exchange for royalties or fees. This strategy typically involves lower risk as the licensee takes on the majority of the operational and financial responsibilities. However, the profit potential is also lower compared to other strategies as the licensee retains a significant portion of the profits generated from the licensed product or technology.

Obeying the law is considered the first step towards ethical behavior because laws are established to set a standard of conduct that is deemed acceptable by society. By following the law, individuals demonstrate their commitment to upholding the principles and values upon which the legal system is based. It establishes a foundation for ethical behavior by ensuring that individuals respect the rights and well-being of others, fostering a sense of fairness and justice within society.

The correct answer is that everyone enjoys a cleaner environment regardless of who pays for it. This means that the benefits of environmental clean up are enjoyed by the public as a whole, regardless of who bears the cost. It emphasizes the importance of collective responsibility in maintaining and improving environmental quality, as it is a shared resource that benefits everyone. Society recognizes the value of a cleaner environment and prioritizes its benefits over individual costs or preferences.

The position a firm takes on issues that affect the corporation as well as society is known as its corporate policy. This refers to the set of guidelines and principles that guide the firm's actions and decisions regarding social, environmental, and ethical issues. It encompasses the firm's stance on issues such as sustainability, diversity, labor practices, community engagement, and corporate governance. Corporate policy reflects the firm's values and commitment to responsible business practices, and it influences the firm's relationships with stakeholders including customers, employees, investors, and the broader society.

Vanessa recognizes this as a compliance-based code of ethics because her boss emphasizes the importance of meeting sales quotas, but also explicitly states that violating a law will result in immediate termination. This indicates that the company places a strong emphasis on following rules and regulations to ensure compliance with the law.

Corporate responsibility means having policies and practices in your day-to-day operations that are consistent with the golden rule. This means that a company should treat others, including employees, customers, and the community, with fairness, respect, and integrity. It involves making ethical decisions, being transparent and accountable, and considering the impact of business actions on various stakeholders. By aligning their operations with the golden rule, companies can contribute to the well-being of society and promote sustainable and responsible business practices.

The correct answer is a protective tariff. A protective tariff is a tax imposed on imported goods in order to make them more expensive and protect domestic industries from foreign competition. In this case, the labor unions and businesses in the heavy equipment industry are requesting a tax on imported equipment to make it more expensive, thereby making it more difficult for foreign producers to compete with U.S. producers. This would provide protection for the U.S. heavy equipment industry and potentially make it more competitive in the market.

The debate regarding Napster in the boxed material Making Ethical Decisions revolves around the belief of recording companies and artists that their property was stolen due to Napster allowing users to download music for free. This suggests that there is a disagreement between Napster and the recording industry regarding the ethical implications of their business model.

Ethical behavior promotes trust and cooperation between employees and managers, as well as balanced and fair agreements that benefit all parties involved. It also leads to improved self-esteem. However, negative publicity from the news media is not a direct result of ethical behavior. While ethical behavior may sometimes attract media attention, it is more likely to generate positive coverage rather than negative publicity.

The phenomenon of "moral muteness" does not refer specifically to the tendency for a business's top management to be silent with regard to what constitutes ethical behavior in business. The term "moral muteness" actually refers to the silence or lack of discussion of moral issues in society as a whole, rather than specifically in the context of business. Therefore, the correct answer is false.

Delancey Street Restaurant is located in San Francisco, California. This can be inferred from the statement that the restaurant hires ex-cons and tries to help them remain law-abiding citizens. San Francisco is known for its progressive and inclusive approach towards rehabilitation and reintegration of ex-offenders into society. Therefore, it is likely that a restaurant with such a mission would be located in San Francisco, California.

A nation will have a favorable balance of trade with other nations if it exports more than it imports. This means that the country is selling more goods and services to other countries than it is buying from them. This can lead to an increase in revenue and economic growth for the nation, as it is able to earn more from its exports.

Money flows into and out of a country are classified as foreign investment flows when assets are purchased. This means that when individuals or entities from one country purchase assets, such as stocks, bonds, real estate, or businesses, in another country, it is considered foreign investment. This type of investment can have a significant impact on the economy of both countries involved, as it can stimulate growth, create jobs, and transfer technology and knowledge.

The correct answer is "do unto others as you would have them do unto you." This statement refers to the concept of treating others with kindness and respect, as you would like to be treated yourself. It emphasizes the importance of empathy and considering the feelings and needs of others. This principle is often referred to as the "golden rule" and is found in many different cultures and religions as a fundamental moral guideline.

U.S.-based exporters generally benefit from a weaker dollar because it makes their products more affordable and competitive in international markets. When the dollar is weaker, foreign buyers can purchase more goods and services for the same amount of their own currency. This can lead to increased demand for U.S. exports and higher profits for companies like Hewlett-Packard, Sun Microsystems, Cisco, Intel, and Microsoft.

The General Agreement on Tariffs and Trade (GATT) was first signed in 1948. This agreement aimed to reduce trade barriers and promote international trade. It provided a framework for negotiations and dispute resolution among member countries. GATT played a significant role in facilitating global economic cooperation and promoting free trade.

When the dollar weakens, the profits of U.S.-based manufacturers that do a lot of exporting generally increase. This is because when the dollar is weaker, it takes more dollars to buy foreign currencies, making U.S. exports cheaper and more competitive in international markets. As a result, U.S. manufacturers can sell more goods abroad, leading to higher profits. Therefore, the statement that the profits of U.S.-based manufacturers that do a lot of exporting generally go down when the dollar weakens is false.

The correct answer is "responsibility" because the sentence mentions various issues that a corporation needs to address, such as hiring practices, product safety, and pollution. These issues fall under the umbrella of corporate responsibility, which refers to a company's obligation to act ethically and be accountable for its actions and their impact on society and the environment.

The lecture states that both the Body Shop and Patagonia give approximately 10% of their pre-tax profits to charity.

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Chapter 3 is focused on international business. This chapter likely covers topics related to conducting business across borders, such as global trade, international marketing, foreign investment, and cultural considerations. It may also explore the challenges and opportunities that arise when operating in a global marketplace.

When you eliminate import tariffs, you are essentially saying that the best and most efficient company should be the winner. This is because without tariffs, companies from different countries can compete on an equal playing field, and the company that can produce goods at the lowest cost and highest quality will have a competitive advantage and succeed in the market.

Efficiency in determining comparative advantage is measured by output (in either units or dollars) per dollar of input. This means that the focus is on how much output can be generated for each dollar of input invested, which allows for a comparison between nations in terms of their productivity and cost-effectiveness. This measure takes into account both the quantity and value of the output produced in relation to the amount of input used, providing a comprehensive assessment of efficiency in production.

Import tariffs are a quick and reliable way to decrease the level of imports into your country. By imposing tariffs on imported goods, the cost of these goods increases, making them less attractive to consumers and reducing the demand for imports. This can help decrease the level of imports and protect domestic industries. Additionally, import tariffs can move your trade balance from one that is unfavorable toward one that is favorable. By reducing imports and increasing exports, the trade balance can shift towards a more favorable position. Finally, import tariffs can help maintain high levels of employment in domestic firms that are facing competition from foreign manufacturers. By making imported goods more expensive, domestic firms may become more competitive and be able to maintain employment levels.

Mr. Lilly believes that import tariffs are generally a bad policy. This implies that he thinks imposing tariffs on imported goods has negative consequences. However, the given information does not provide any specific reasons or evidence to support this belief. Therefore, it is not possible to determine the exact rationale behind Mr. Lilly's opinion on import tariffs.

The decision of Sears to not import products made by Chinese prison labor indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers. This decision shows that Sears is taking a stand against unethical labor practices and is prioritizing human rights and fair labor standards in their supply chain. By refusing to support products made by Chinese prison labor, Sears is sending a message that they value socially responsible behavior and are willing to make business decisions based on ethical considerations.

In 2002, the percentage of Americans expressing "a great deal of confidence in the leaders of major companies" reached an all-time low of 5%. This indicates that the public's trust in the leaders of major companies was at its lowest point in that year. It suggests that there may have been significant events or scandals during that time period that eroded public confidence in corporate leadership.

In 2006, individuals in the U.S. gave approximately nine times as much to charity as corporations did. This means that the total amount donated by individuals was significantly higher compared to the total amount donated by corporations. It indicates that individuals were more generous and contributed more to charitable causes than corporations did during that year.

Expropriation refers to the potential takeover of a firm's assets by the government of a foreign country. This risk is unique to firms with direct investment in that country. Unlike a hostile takeover, which typically involves another company acquiring control of a firm, expropriation involves the government seizing the assets. Political bias and unholy alliance are unrelated to this specific risk.

In 1968, world trade was approximately $315 billion dollars a year. This indicates the total value of trade between all nations combined during that year.

Between 1968 and 2007, world trade increased 55-fold. This means that the volume of global trade grew by a factor of 55 during this period. This significant increase highlights the tremendous growth and expansion of international trade over the span of almost four decades.

In 1968, world trade was about 2 percent of world gross domestic product. This indicates that the value of goods and services traded internationally accounted for a small portion of the overall global economic output during that time.

In 1947, the average tariff on industrial goods was 40%. This means that on average, industrial goods imported during that time were subject to a tariff rate of 40% of their value. Tariffs are taxes imposed on imported goods to protect domestic industries and generate revenue for the government. A 40% tariff rate indicates that the government aimed to restrict the import of industrial goods and promote domestic production by making imported goods more expensive.

The correct answer is trade. In 2003, trade accounted for the largest component in the United States' balance of payments. This means that the value of imports and exports of goods and services between the United States and other countries had the biggest impact on the country's overall balance of payments. This includes both exports of U.S. goods and services to other countries and imports of goods and services into the United States.

The given correct answer for this question is "legal" because laws are established to define and regulate acceptable behavior within a society. Legal behavior refers to actions that are in accordance with the laws and regulations set forth by the governing authorities. These laws provide a framework for individuals and organizations to abide by, ensuring order, fairness, and accountability in society.

In 2007, world trade accounted for approximately 27% of the world's gross domestic product. This indicates that a significant portion of the global economy was driven by international trade during that year.

A letter of credit is a financial document issued by a bank that assures exporters that they will receive prompt payment for their global market transactions. It acts as a guarantee from the buyer's bank to the seller that payment will be made once the agreed-upon conditions are met. This provides a level of security for exporters, as the bank takes on the risk of non-payment. The letter of credit ensures that exporters can confidently engage in international trade, knowing that they will receive timely payment for their goods or services.

Foreign investment was the only component of the U.S.'s balance of payments deficit in 2003 that was favorable. This means that the money flowing into the country from foreign investors exceeded the money flowing out of the country to foreign entities. This could be due to factors such as foreign companies investing in U.S. businesses, individuals purchasing U.S. assets, or governments buying U.S. Treasury bonds. The other options, including trade, tourism, and overseas military operations, would likely contribute to a deficit rather than a favorable balance.

Net social contribution refers to the difference between an organization's positive social contributions and its negative social impacts. It quantifies the overall impact of an organization on society, taking into account both the positive and negative effects of its actions. This term is used to assess the extent to which an organization is making a positive difference in the communities it operates in, by considering the net effect of its social initiatives and activities. It helps measure and evaluate the social value created by an organization, and guides decision-making towards maximizing positive social outcomes.

Mercosur is the correct answer because it is a common market arrangement that includes Brazil, Argentina, Paraguay, Uruguay, Chile, and Bolivia. Mercosur aims to promote free trade and economic integration among its member countries by eliminating tariffs and other trade barriers. It was established in 1991 and has since grown to become one of the largest trading blocs in the world.

The second statistic countries use to see how their economies are faring in the international marketplace is not called the balance of trade.

Establishing a formal code of ethics is growing in popularity because organizations and individuals are recognizing the importance of ethical behavior in business. A formal code of ethics helps to establish clear guidelines and expectations for ethical conduct, which can improve trust and reputation, attract customers and investors, and create a positive work culture. It also helps organizations navigate complex ethical dilemmas and make ethical decisions. As a result, more and more businesses, regardless of their size, are adopting formal codes of ethics to demonstrate their commitment to ethical behavior and to differentiate themselves in the marketplace.

The boxed material entitled "Reaching Beyond Our Borders" suggests that corporate ethics and cultural ethics may not always align and can come into conflict with each other. This implies that corporate ethics can clash with cultural ethics.

The correct answer suggests that moral relativism is the belief that moral or ethical rules are derived from cultures, which means that they are somewhat arbitrary due to cultural differences. This belief also implies that moral absolutes are rare or non-existent in the world. In other words, moral relativism argues that ethical standards are subjective and vary from culture to culture, rather than being universal and absolute.

The lecture states that Samsung Electronics gives approximately 5.7% of their pre-tax profits to charity.

The correct answer is 1994. NAFTA, the North American Free Trade Agreement, was signed in 1994. This agreement was signed by the United States, Canada, and Mexico and aimed to eliminate trade barriers and promote economic cooperation between the three countries. It created one of the world's largest free trade zones, facilitating the movement of goods and services across borders. The agreement was later replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020.

Complaining about the behavior of others helps us continually check and refine our consensus about what constitutes ethical behavior. It also allows us to rally the support of others in sanctioning deviant individuals.

Approximately half of all written business ethics codes in the U.S. today are compliance-based. This means that these codes focus on ensuring that employees adhere to laws, regulations, and company policies. Compliance-based ethics codes emphasize the importance of following rules and guidelines to avoid legal and ethical violations. These codes often include specific procedures, reporting mechanisms, and consequences for non-compliance. By having a compliance-based approach, organizations aim to create a culture of ethical behavior and minimize the risk of misconduct.

Mercantilism is the economic theory advocating that a nation should try to sell more goods to other nations than it buys from them. This theory believes that a country's wealth and power can be increased by accumulating precious metals through a favorable balance of trade. It emphasizes the importance of exports and discourages imports through various protectionist measures such as tariffs and subsidies. By maintaining a trade surplus, a nation can accumulate wealth and strengthen its economy.

The correct answer is 1994 because the Uruguay Round of amendments to the GATT (General Agreement on Tariffs and Trade) was a series of negotiations that took place from 1986 to 1994. These negotiations resulted in the creation of the World Trade Organization (WTO) and the signing of the Final Act of the Uruguay Round in 1994. The U.S. Congress ratified this agreement in the same year, making 1994 the correct answer.

Interface, the world's largest carpet tile manufacturer, is considered one of the most socially responsible companies because of its pioneering work in reducing the impacts of its business on the environment. This implies that Interface has taken significant steps towards minimizing its carbon footprint, conserving resources, and implementing sustainable practices. By doing so, the company demonstrates its commitment to environmental stewardship and sets an example for other businesses to follow.

Since 1968, world trade has increased significantly due to two main reasons. Firstly, countries have mutually reduced import tariffs, making it easier and more affordable for goods to be traded between nations. Secondly, transportation costs have steadily decreased over time, making it more efficient and cost-effective to transport goods across long distances. These two factors have contributed to the growth of international trade and have allowed for greater economic integration and globalization.

In the chapter 3 part 2 slides, the acronym OPM was used to represent "Other Peoples' Money". This means that OPM refers to using someone else's funds or resources to finance a project or investment. This can be done through loans, investments, or partnerships where the financial risk is shared with others.

Foreign subsidiaries are a special case of foreign direct investment because they involve a company establishing a presence in a foreign country by setting up a subsidiary. This means that the company is making a direct investment in a foreign market by establishing a physical presence and controlling operations in that country. This is different from exporting, licensing, or international joint ventures, which do not involve the same level of control and ownership over operations in the foreign market.

The World Trade Organization is headquartered in Geneva, Switzerland. Geneva is home to many international organizations and is known as a global hub for diplomacy. The WTO chose Geneva as its headquarters due to Switzerland's neutral and stable political environment, as well as its strong tradition of hosting international organizations. Geneva provides a central location for member countries to come together and negotiate trade agreements, making it an ideal location for the WTO to carry out its mission of promoting global trade and resolving trade disputes.

An ethical dilemma refers to a situation where you have to make a difficult decision between two options that are equally unsatisfactory. This means that both choices have negative consequences or outcomes, making it challenging to determine the best course of action. In such situations, it can be difficult to find a solution that aligns with ethical principles and meets all the desired criteria.

In the 1980s, Ivan Boesky, an American stock trader, was arrested for insider trading. Insider trading refers to the illegal practice of trading stocks based on non-public information that can give an unfair advantage to the trader. Boesky was involved in a scheme where he received insider information from corporate executives and used it to make profitable trades. His arrest and subsequent conviction were significant events in the history of financial crimes and led to increased regulation and scrutiny of insider trading practices.

Pressure to meet sales, budget, or profit goals can lead to unethical behavior in organizations. This pressure may push employees to engage in unethical practices such as manipulating sales figures, providing false information to customers, or cutting corners on quality standards. In the case of Sears Auto Centers, it is likely that the pressure to meet sales targets contributed to the unethical behavior that was discovered. This could have included overcharging customers, recommending unnecessary repairs, or performing substandard work in order to increase sales and meet profit goals.

Mr. Lilly believes that people are silent about ethics at work for three reasons. The first reason is societal ambivalence, which refers to the mixed feelings or uncertainty about the role of ethics in business. The second reason is moral relativism, which suggests that people may believe that ethical standards vary from person to person or culture to culture. The third reason is the fear of being labeled a "goody two shoes," which implies that individuals may be hesitant to speak up about ethical issues for fear of being seen as overly virtuous or self-righteous.

In 2007, world trade reached a total value of $17.5 trillion. This indicates the total amount of money that was exchanged between countries through imports and exports during that year.

The correct answer is "the one developed by General Dynamics in about 1986." This is because a compliance-based ethics code focuses on ensuring that employees follow laws and regulations. General Dynamics is known for its strong compliance program, which includes clear policies and procedures to ensure ethical behavior and legal compliance. The company has a Code of Ethics and Business Conduct that outlines its commitment to integrity, compliance, and ethical behavior. Therefore, General Dynamics' ethics code is a good example of a compliance-based approach.

Export Assistance Centers were created by the federal government to help small and medium-sized businesses get involved in exporting. These centers provide guidance and support to businesses in navigating the complexities of international trade, such as market research, export financing, and export compliance. They aim to facilitate and promote the growth of exports, ultimately boosting the economy and creating jobs.

A free trade area only has one element of a common market, which is the elimination or reduction of trade barriers such as tariffs and quotas among member countries. It does not have the other two elements of a common market, which are the free movement of goods and services and the free movement of factors of production such as labor and capital. Therefore, the correct answer is "just one."

New United Motors (Nummi) is an example of a joint venture because it was a partnership between General Motors (GM) and Toyota. In this joint venture, both companies collaborated to establish a manufacturing plant in the United States, where they produced vehicles under the Nummi brand. This arrangement allowed both GM and Toyota to share resources, knowledge, and expertise, while also benefiting from each other's market presence and distribution networks.

The correct answer is that if we behave unethically often enough or severely enough, we will begin to undermine our own success unconsciously, as a way of ensuring that the world we live in punishes the wicked. This explanation suggests that there is a psychological mechanism at play where our unethical behavior eventually leads to negative consequences for ourselves, serving as a form of self-punishment. This aligns with the idea that the benefits of unethical behavior may initially outweigh the costs, but over time, the negative effects on our own success and well-being outweigh any short-term gains.

The correct answer suggests that the main reason for the U.S. import embargo against products made in Cuba is resentment towards the actions that caused the Cuban Missile Crisis in the 1960s. This implies that the embargo is a result of political tensions and historical grievances rather than concerns about product quality, food-borne illnesses, or plant pests.

The Uruguay Round of amendments to the GATT lowered import tariffs by an average of 38%. This means that, on average, the tariffs imposed on imported goods were reduced by 38%. This reduction in tariffs aimed to promote international trade by making imported goods more affordable and accessible to consumers. Lower import tariffs can lead to increased competition and choice for consumers, as well as opportunities for businesses to expand their markets and access new customers.

The first item listed on Mr. Lilly's slide is "Damage to reputation." This suggests that one of the reasons why individuals and employees should behave ethically at work is because unethical behavior can lead to harm to their reputation. This can have serious consequences for their professional image and future opportunities.

Mr. Lilly states that 144 nations have signed the GATT and joined the WTO.

According to Mr. Lilly, 27 nations have joined the European Union so far.