BUS 303 Final Exam Questions with Verified Answers
A+ Grade 100%.
BRIBERY AND CORRUPTION -
This organization provides regular information and data regarding the extent of corruption and
bribery in countries around the world:
a. World Trade Organization (WTO)
b. Transparency International (TI)
c. United Nations Conference on Trade and Development (UNCTAD)
d. World Economic Forum (WEF) - b. Transparency International (TI)
Why was Siemens liable to prosecution under US law for violations of the Foreign Corrupt
Practices Act (FCPA) despite the fact that it is a German company?
a. Siemens is a US-headquartered company
b. Siemens is listed on the New York Stock Exchange
c. Siemens engaged in bribery, which is illegal under US law
d. Siemens tried to bribe US companies - b. Siemens is listed on the New York Stock Exchange
Which of the following actions would NOT be illegal under US anti-bribery law?
a. Payments through a foreign third party like a consultant
b. Payments to an employee of a foreign state-owned pharmaceutical company
c. Payment to a government official to facilitate routine business (e.g. permits)
d. All-expenses paid travel to Disneyland for a government official and family - c. Payment to a
government official to facilitate routine business (e.g. permits)
Definitions of bribery and corruption that include a distinction between "public" and "private"
realms of life rest on the following cultural value dimension:
a. Individualism-collectivism b. Specific-diffuse
c. Time orientation d. Power Distance - b. Specific-diffuse
,What business sector has the highest perceived frequency of bribery?
a. Banking/finance b. Mining c. Construction, public works
d. Pharmaceuticals e. Real Estate - c. Construction, public works
What characteristic of business sectors is NOT generally associated with high levels of
corruption?
a. Business sectors that require numerous permits and authorizations
b. Sectors with open and transparent competitive bidding processes
c. High degree of project complexity
d. Large size and financial value of projects
e. Sectors in which officials have wide discretion in making decisions - b. Sectors with open and
transparent competitive bidding processes
The consequences of corruption for countries where it is widely practiced include all of the
following EXCEPT these two:
a. Reduced levels of foreign direct investment
b. Low cost, high quality products
c. Inefficient allocation of government resources to projects
d. Weak government institutions
e. High levels of political stability - b. Low cost, high quality products
e. High levels of political stability
Which dimension of corruption is more difficult for companies to deal with when it is present at
a high level in a country?
a. Pervasive corruption b. Arbitrary corruption - b. arbitrary corruption
What ethical framework evaluates activities like corruption based on its costs or consequences?
a. De-ontology or rule-based systems
b. The Golden Rule
c. Teleology or consequential systems
,d. Situational ethics - c. Teleology or consequential systems
What characteristics of a country are generally considered to contribute to high levels of
corruption?
1. Low level of economic development
2. Large government role in economy
3. Low discretionary authority of government officials in making decisions
4. Prevailing national culture of high individualism and egalitarianism
5. Low level of economic, political and social change in the country - 1. Low level of economic
development
2. Large government role in economy- slide 35
5. Low level of economic, political and social change in the country
Besides actually paying bribes to officials of foreign governments, what actions does the FCPA
prohibit?
a. Misleading advertising of products
b. Making false or misleading entries on a company's books
c. Tax avoidance on foreign-earned income
d. Including "conflict minerals" in the corporate supply chain - b. Making false or misleading
entries on a company's books
If a company uncovers potential FCPA violations, what three steps can it take to gain leniency
from the US Department of Justice (DOJ) under its Corporate Enforcement Policy?
1. Make voluntary disclosure of wrongdoing to DOJ
2. Cooperate with investigators
3. Make improvements to the company's compliance programs
4. Publicly apologize for wrongdoing
5. Make financial contributions to designated charities - 1. Make voluntary disclosure of
wrongdoing to DOJ
2. Cooperate with investigators
3. Make improvements to the company's compliance programs
, GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT -
According to Richard Baldwin, what factor contributed to the "first unbundling" (physical
separation of consumption from production) in the globalization process?
a. Wage differentials between "north" and "south" countries
b. Information and communication technology (ICT) capabilities
c. Lower transport costs arising from the advent of steam power
d. Reduction of barriers to foreign direct investment (FDI)
e. Management skills in integrating widely distributed operations - c. Lower transport costs
arising from the advent of steam power
The "second unbundling" about 1990 of the links in the global supply chain had the following
characteristics:
1. ICT technology lowered costs of moving ideas & coordinating distributed activities,
2. Wage differentials between countries made it appealing
3. It de-emphasized the importance of services in international trade
4. Scale economies from specialization made it compelling
5. Management skills enabled integration of dispersed production - 1. ICT technology lowered
costs of moving ideas & coordinating distributed activities,
2. Wage differentials between countries made it appealing
4. Scale economies from specialization made it compelling
5. Management skills enabled integration of dispersed production
Which of the following statements are true regarding global supply chains?
1. Most emerging economies have benefited significantly from participation in global supply
chains (yes)?
2. Any industry can develop a global supply chain
3. Countries that specialize in "upstream" activities in the global value chain derive the greatest
benefit from them
A+ Grade 100%.
BRIBERY AND CORRUPTION -
This organization provides regular information and data regarding the extent of corruption and
bribery in countries around the world:
a. World Trade Organization (WTO)
b. Transparency International (TI)
c. United Nations Conference on Trade and Development (UNCTAD)
d. World Economic Forum (WEF) - b. Transparency International (TI)
Why was Siemens liable to prosecution under US law for violations of the Foreign Corrupt
Practices Act (FCPA) despite the fact that it is a German company?
a. Siemens is a US-headquartered company
b. Siemens is listed on the New York Stock Exchange
c. Siemens engaged in bribery, which is illegal under US law
d. Siemens tried to bribe US companies - b. Siemens is listed on the New York Stock Exchange
Which of the following actions would NOT be illegal under US anti-bribery law?
a. Payments through a foreign third party like a consultant
b. Payments to an employee of a foreign state-owned pharmaceutical company
c. Payment to a government official to facilitate routine business (e.g. permits)
d. All-expenses paid travel to Disneyland for a government official and family - c. Payment to a
government official to facilitate routine business (e.g. permits)
Definitions of bribery and corruption that include a distinction between "public" and "private"
realms of life rest on the following cultural value dimension:
a. Individualism-collectivism b. Specific-diffuse
c. Time orientation d. Power Distance - b. Specific-diffuse
,What business sector has the highest perceived frequency of bribery?
a. Banking/finance b. Mining c. Construction, public works
d. Pharmaceuticals e. Real Estate - c. Construction, public works
What characteristic of business sectors is NOT generally associated with high levels of
corruption?
a. Business sectors that require numerous permits and authorizations
b. Sectors with open and transparent competitive bidding processes
c. High degree of project complexity
d. Large size and financial value of projects
e. Sectors in which officials have wide discretion in making decisions - b. Sectors with open and
transparent competitive bidding processes
The consequences of corruption for countries where it is widely practiced include all of the
following EXCEPT these two:
a. Reduced levels of foreign direct investment
b. Low cost, high quality products
c. Inefficient allocation of government resources to projects
d. Weak government institutions
e. High levels of political stability - b. Low cost, high quality products
e. High levels of political stability
Which dimension of corruption is more difficult for companies to deal with when it is present at
a high level in a country?
a. Pervasive corruption b. Arbitrary corruption - b. arbitrary corruption
What ethical framework evaluates activities like corruption based on its costs or consequences?
a. De-ontology or rule-based systems
b. The Golden Rule
c. Teleology or consequential systems
,d. Situational ethics - c. Teleology or consequential systems
What characteristics of a country are generally considered to contribute to high levels of
corruption?
1. Low level of economic development
2. Large government role in economy
3. Low discretionary authority of government officials in making decisions
4. Prevailing national culture of high individualism and egalitarianism
5. Low level of economic, political and social change in the country - 1. Low level of economic
development
2. Large government role in economy- slide 35
5. Low level of economic, political and social change in the country
Besides actually paying bribes to officials of foreign governments, what actions does the FCPA
prohibit?
a. Misleading advertising of products
b. Making false or misleading entries on a company's books
c. Tax avoidance on foreign-earned income
d. Including "conflict minerals" in the corporate supply chain - b. Making false or misleading
entries on a company's books
If a company uncovers potential FCPA violations, what three steps can it take to gain leniency
from the US Department of Justice (DOJ) under its Corporate Enforcement Policy?
1. Make voluntary disclosure of wrongdoing to DOJ
2. Cooperate with investigators
3. Make improvements to the company's compliance programs
4. Publicly apologize for wrongdoing
5. Make financial contributions to designated charities - 1. Make voluntary disclosure of
wrongdoing to DOJ
2. Cooperate with investigators
3. Make improvements to the company's compliance programs
, GLOBAL LOGISTICS AND SUPPLY CHAIN MANAGEMENT -
According to Richard Baldwin, what factor contributed to the "first unbundling" (physical
separation of consumption from production) in the globalization process?
a. Wage differentials between "north" and "south" countries
b. Information and communication technology (ICT) capabilities
c. Lower transport costs arising from the advent of steam power
d. Reduction of barriers to foreign direct investment (FDI)
e. Management skills in integrating widely distributed operations - c. Lower transport costs
arising from the advent of steam power
The "second unbundling" about 1990 of the links in the global supply chain had the following
characteristics:
1. ICT technology lowered costs of moving ideas & coordinating distributed activities,
2. Wage differentials between countries made it appealing
3. It de-emphasized the importance of services in international trade
4. Scale economies from specialization made it compelling
5. Management skills enabled integration of dispersed production - 1. ICT technology lowered
costs of moving ideas & coordinating distributed activities,
2. Wage differentials between countries made it appealing
4. Scale economies from specialization made it compelling
5. Management skills enabled integration of dispersed production
Which of the following statements are true regarding global supply chains?
1. Most emerging economies have benefited significantly from participation in global supply
chains (yes)?
2. Any industry can develop a global supply chain
3. Countries that specialize in "upstream" activities in the global value chain derive the greatest
benefit from them
