KELLEY SCHOOL OF BUSINESS - D270
FINAL (EXAM 2) 2025 QUESTIONS WITH
COMPLETE SOLUTIONS!!
1 of 88
Term
Organizations to limit bribery? (4)
Give this one a try later!
Could result in legal action
Could result in consumer boycotts
Could lower employee morale
Could cost sales because of bad publicity
,1) Developed Economies:
•A developed economy has a robust economic environment marked by wide-
ranging activities, efficient capital movement, stable institutions, extensive
infrastructure, international trade and investments, advanced technologies, and
higher economic freedom.
•Examples: the US, the UK, Japan, France, Germany (5 largest)
•economies typically champion political freedom, practice multiparty
democratic governance, enforce the rule of law, and support free markets. In
turn, these anchor a stable, productive economic environment. Residents enjoy
a high standard of living, long lives, diverse educational opportunities, adequate
nutrition, broad health care, comprehensive public hygiene, and a variety of
goods and services.
•Have skilled workers, also known as "knowledge workers" or the "creative class"
•Still have problems (i.e. the minimum wage isn't livable)
•Most developed countries outsource manufacturing jobs to developing
countries (lower cost, higher productivity)
2)Developing/Emerging Economies:
•Typically has an uneven economic environment that is marked by narrow
market activities, inefficient capital movement, resistance to foreign
ownership, trade restrictions, imperfect competition, unstable institutions,
limited
infrastructure, sketchy technologies, and lower economic freedom.
•Most are agrarian (work on a farm)
•Top 5 examples: China, India, Russia, Brazil, and Indonesia.
*Economic + Political Freedom, Rule of Law/Rule of Man?
=>every economy is different, but many of these countries have found that
moving towards economic freedom has helped their growth (China is the only
country that has decided not to increase economic freedom, but rather manage
it - state capitalism)
=>Political Freedom as well, with the exception of China
=>Rule of Law, typically - with the exception of
1) Domestic Consumers
2)Foreign Producers
3) Internal Economy
-efficiency loss (specialization and competition)
-encourages lobbying
4) Global Economy
-loss of specialization/efficiency
-retaliation practices
, 1) The OECD:
o The Organization for Economic Cooperation and Development (OECD)
comprises 34 mostly high-income countries from around the world. Its
Anti-Bribery Convention, signed in 1997 by the 34 member countries
plus
six nonmember countries (Argentina, Brazil, Bulgaria, Colombia, Russia, and
South Africa), establishes legally binding standards to criminalize bribery of
foreign public officials in international business transactions and provides
recommendations to the 40 signatory countries, which adopted the 2009
Anti-Bribery Recommendation.
2)The EU/Olaf:
o Published Anti-Corruption Report, adopted many of UN's corruption
policies
3)The FCPA:
o the Foreign Corrupt Practices Act (FCPA) outlaws bribery payments by
U.S. firms to foreign officials, political parties, party officials, and political
candidates.
4)The Department of Justice (DOJ):
Sarbanes-Oxley Act (SOX): SOX toughened standards with regard to
corporate governance, financial disclosure, and oversight of accounting
and auditing practices. With its passage, the Justice Department began to
use the FCPA more aggressively to combat bribery.
Don't know?
2 of 88
Term
Why do companies care about being ethical?
Give this one a try later!
, Where-to-be-born index: Measures
the opportunity for a healthy, safe
WTO provides a dispute/resolution
and prosperous life. .
mechanism.
Switzerland, Australia, Norway
1) move abroad or find
foreign supplies o 1. To develop
2)seek other market niches competitive advantage
3) make domestic o 2. To avoid being
output competitive perceived as irresponsible
4) try to get protection.
Don't know?
3 of 88
Term
In an article from the Wall Street Journal, Bill Gates warned that by
2050, nearly ____% of people who live in poverty will live in Nigeria
and the Dominic Republic of the Congo, if trends continue.
Give this one a try later!
44% 30%
60% 25%
Don't know?
FINAL (EXAM 2) 2025 QUESTIONS WITH
COMPLETE SOLUTIONS!!
1 of 88
Term
Organizations to limit bribery? (4)
Give this one a try later!
Could result in legal action
Could result in consumer boycotts
Could lower employee morale
Could cost sales because of bad publicity
,1) Developed Economies:
•A developed economy has a robust economic environment marked by wide-
ranging activities, efficient capital movement, stable institutions, extensive
infrastructure, international trade and investments, advanced technologies, and
higher economic freedom.
•Examples: the US, the UK, Japan, France, Germany (5 largest)
•economies typically champion political freedom, practice multiparty
democratic governance, enforce the rule of law, and support free markets. In
turn, these anchor a stable, productive economic environment. Residents enjoy
a high standard of living, long lives, diverse educational opportunities, adequate
nutrition, broad health care, comprehensive public hygiene, and a variety of
goods and services.
•Have skilled workers, also known as "knowledge workers" or the "creative class"
•Still have problems (i.e. the minimum wage isn't livable)
•Most developed countries outsource manufacturing jobs to developing
countries (lower cost, higher productivity)
2)Developing/Emerging Economies:
•Typically has an uneven economic environment that is marked by narrow
market activities, inefficient capital movement, resistance to foreign
ownership, trade restrictions, imperfect competition, unstable institutions,
limited
infrastructure, sketchy technologies, and lower economic freedom.
•Most are agrarian (work on a farm)
•Top 5 examples: China, India, Russia, Brazil, and Indonesia.
*Economic + Political Freedom, Rule of Law/Rule of Man?
=>every economy is different, but many of these countries have found that
moving towards economic freedom has helped their growth (China is the only
country that has decided not to increase economic freedom, but rather manage
it - state capitalism)
=>Political Freedom as well, with the exception of China
=>Rule of Law, typically - with the exception of
1) Domestic Consumers
2)Foreign Producers
3) Internal Economy
-efficiency loss (specialization and competition)
-encourages lobbying
4) Global Economy
-loss of specialization/efficiency
-retaliation practices
, 1) The OECD:
o The Organization for Economic Cooperation and Development (OECD)
comprises 34 mostly high-income countries from around the world. Its
Anti-Bribery Convention, signed in 1997 by the 34 member countries
plus
six nonmember countries (Argentina, Brazil, Bulgaria, Colombia, Russia, and
South Africa), establishes legally binding standards to criminalize bribery of
foreign public officials in international business transactions and provides
recommendations to the 40 signatory countries, which adopted the 2009
Anti-Bribery Recommendation.
2)The EU/Olaf:
o Published Anti-Corruption Report, adopted many of UN's corruption
policies
3)The FCPA:
o the Foreign Corrupt Practices Act (FCPA) outlaws bribery payments by
U.S. firms to foreign officials, political parties, party officials, and political
candidates.
4)The Department of Justice (DOJ):
Sarbanes-Oxley Act (SOX): SOX toughened standards with regard to
corporate governance, financial disclosure, and oversight of accounting
and auditing practices. With its passage, the Justice Department began to
use the FCPA more aggressively to combat bribery.
Don't know?
2 of 88
Term
Why do companies care about being ethical?
Give this one a try later!
, Where-to-be-born index: Measures
the opportunity for a healthy, safe
WTO provides a dispute/resolution
and prosperous life. .
mechanism.
Switzerland, Australia, Norway
1) move abroad or find
foreign supplies o 1. To develop
2)seek other market niches competitive advantage
3) make domestic o 2. To avoid being
output competitive perceived as irresponsible
4) try to get protection.
Don't know?
3 of 88
Term
In an article from the Wall Street Journal, Bill Gates warned that by
2050, nearly ____% of people who live in poverty will live in Nigeria
and the Dominic Republic of the Congo, if trends continue.
Give this one a try later!
44% 30%
60% 25%
Don't know?
