Chapter 4 Multiple Choice Questions | Global Strategic Management by Philippe Lasserre

1. Sustainable development is:

An economic policy geared to growth A policy geared to promote long-term investments A set of policies that can be financed over several years A set policy that meets the needs of the present without compromising the ability of future generations to meet their own needs

2. What is a ‘cap and trade’ scheme to reduce CO2 emissions?

A regulation that obliges companies to close high CO2-emitting facilities A scheme by which a high emitting company is taxed heavily by authorities A scheme by which authorities allow companies to emit CO2 up to a preset limit, above which they have to buy extra CO2 credits

3. Between 2000 and 2013, depletion of natural resources amounted to (choose both that apply):

Around 5% of world gross national income per year US$1700 billion per year Around 1% of world gross national income per year Around 2.8% of world gross national income per year

4. What is an eco-friendly investment?

An investment in renewable energies projects An investment in projects that have a low environmental impact in all input and output factors An investment in projects that are not producing CO2

5. According to Transparency International, corruption is defined as:

The abuse of entrusted power for private gain Bribery of government officials A way to avoid taxes The inefficiency of a legal system

6. Which is the most efficient way to eliminate corrupt practices by global firms?

(a) Delegate the distribution of bribes to third parties (b) Modify their performance and rewards systems (c) Let managers and employees make their own decisions (d) Set up an Ethics Committee

7. What is the estimated cost of corruption for the world economy as a percentage of global GDP?

15.2% 3.3% 5% 1%

8. Why is corruption often considered to discourage foreign investment?

It hides the real economic value of a project Bribes often go to the wrong person It dislocates the social fabric in host countries

9. Tax evasion occurs when:

A firm pays taxes in a low-tax country A firm does not pay taxes at all A firm transfers taxable income from a high-tax country to a low-tax country A firm does ‘creative accounting’

10. Which of these practices is not part of ‘global citizenship’?

Ensuring dialogue and engagement with local stakeholders and communities Developing products and services that are environmentally sustainable Learning the culture and languages of the country in which a global manager operates Providing resources to improve local people’s access to technology and educational opportunities

11. An ethical dilemma may arise when (choose both that apply):

One takes a self-interested choice on an ethical decision An ethical choice generates a bad outcome An ethical choice runs against current business practices Good outcomes may result from a morally wrong choice

12. Which of these three types of action that global companies can use to integrate social responsibility issues into their business strategies?

Design and implement information systems Design and implement incentive systems Contribute to local institutions All of the above

Chapter 4: Globalization, Sustainable Development and Social Responsibility