Study Questions for “Doing Business in Foreign Countries”
Bribery in Third World Countries
(1) What is the definition of bribery, and how does it differ from extortion and gift giving?
(2) What are the two main arguments usually given in favor of bribery?
(3) What is the main problem with both of the arguments for bribery?
(4) What penalty did Lockheed pay when it was caught in a bribery scandal?
Endorsing, Influencing, and Opposing Foreign Governments
(5) What problems might arise when a multinational sets up in right-wing country and left wing foreign countries respectively?
(6) During the 1970s and 1980s, some critics argued that US companies should leave South Africa. What were some of their reasons?
(7) What were the negative consequences of ITT interfering in Chile’s government in the 1970s?
Exploiting Third World Countries.
(8) What are some ways that multinationals exploit third world countries?
(9) What were the principal irresponsible actions of Union Carbide in the Bhopal explosion?
(10) What actions of the Tobacco companies in third world countries are especially exploitive?
(11) What reasons do some multinationals give for not abiding by US standards in third world countries?
Cultural Relativism and Universal Moral Principles
(12) Define cultural relativism
(13) What are some moral values that seem to be held by all cultures?
(14) What are Norman Bowie’s three recommended moral principles for multinationals?
(15) What external monitoring organizations help assure that multinationals act responsibly?
