1.

Richard DeGeorge claims that business, and so international business, operates within
particular background conditions that include a countrys economic system, level of
economic growth, standard of living, political system, existing laws, local traditions,
beliefs and expectations. What conclusion does DeGeorge draw from this claim?
A: Each local market has different rules for doing business and so multinational
corporations operating in those markets must follow local ethical rules or standards.
B: Only countries operating with the same background conditions can follow the same
ethical rule or standard.
C: There are two sets of ethical rules, one for local business people in mixed markets and
another for multinational Western businesses.
D: Some actions are morally permissible for local business people in mixed markets if they
are necessary, temporary and the lesser of two evils.
2. Thomas Donaldson introduces the following three principles for guiding companies
operating in different countries:
A: Respect for local norms even when they conflict with the hypernorms, respect for the
local traditions, and the belief that core human values apply only in Western countries.
B: Respect for core human values, respect for local traditions. and the belief that context
matters when deciding what is right and what is wrong.
C: Respect for core human values, respect for local traditions, and the belief that a global
ethic is necessary to maintain a global economy
3. Thomas Donaldson crafts guidelines for ethical leadership for companies operating
abroad. What are they?
A: 1) Treat corporate values and formal standards of conduct as absolutes.
2) In host countries, support efforts to decrease institutional corruption.

B: 1) Exercise moral imagination.

2) In host countries, allow local managers to help formulate ethical standards and
interpret ethical issues.
C: 1) Design and implement conditions of engagement for suppliers and
customers.
2) Treat corporate values and standards of conduct as absolutes.
D: All of the above.
E: None of the above.
4. Richard DeGeorge would view Britain's (and later Norway's) management of Guyana
Rainforests as:
A: eco-colonialism
B: right for Guyana even though it would be wrong for the United States
C: in line with the hypernorms
D: wrong even though Guyana has a low standard of economic development
E: right because Guyana has a low standard of economic development
5. Bharrat Jagdeo, the president of Guyana, made a novel proposal to Great Britain and
later Norway. He offered to put Guyana's entire standing rainforest under the control
of a British-led international body in exchange for sustainable development funds.
Thomas Donaldson would view this proposal as:
A: Exercising moral imagination
B: Not allowing foreign business units to help formulate ethical standards and interpret
ethical issues
C: Supporting efforts to decrease institutional corruption in foreign markets
D: Resolving a conflict of relative development
E: All of the above

F: None of the above