Sample Chapter

 

INSTANT DOWNLOAD COMPLETE TEST BANK WITH ANSWERS

 

Test Bank for Business Government and Society A Managerial Perspective 13th Edition by Steiner

 

 

 

SAMPLE QUESTIONS

 

 

ch03

 

Student: ___________________________________________________________________________

 

  1. The strength to act or to compel another entity to act is called power. True False

 

  1. The grounds of legitimacy of business power are the same in all societies. True False

 

  1. Corporate actions have an impact on society at two levels. True False

 

  1. On the surface level, corporate power shapes society over time through the aggregate changes of industrial growth.

True   False

 

  1. The laws of the United States have been shaped by the consequences of the industrial activities. True False

 

  1. Activity in the environmental sphere is the primary force for change. True False

 

  1. The dominance theory holds that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked.

True   False

 

  1. The pluralist theory of business power was supported by Karl Marx. True False

 

  1. According to the dominance theory, business abuses the power its size and wealth confer in a number of ways.

True   False

 

  1. During the period from 1895 to 1904, the public saw the growth of huge firms as a natural, inevitable, and desirable response to the new economic incentives.

True   False

 

  1. An argument that supports the dominance theory is that there exists a small group of individuals who, by virtue of wealth and position, control the nation.

True   False

 

  1. According to sociologist C. Wright Mills, the American society was a pyramid of power and status where a group of elites carried out the lieutenant’s policies.

True   False

 

  1. William Domhoff argues the existence of a cohesive American upper class based on wealth, socialization in private schools, memberships in exclusive clubs, and occupancy of high positions in business, government, and nonprofit institutions.

 

True   False

 

  1. Political scientist Thomas R. Dye identified an “institutional elite” of individuals who occupied the top positions in 10 sectors.

True   False

 

  1. Elites challenge the logic of democratic ideology because in spite of being few in number they pilot the vast majority.

True   False

 

  1. Within a pluralistic society, the authoritative entity has an overriding power over all other entities. True False

 

  1. Democratic values are one of the features of a pluralistic society. True False

 

  1. Constitutional support has no role in encouraging pluralism. True False

 

  1. Predictable and strong forces in a pluralistic, free market society limit business power. True False

 

  1. There are five major boundaries on managerial power: government and laws, social interest groups, social values, markets and economic stakeholders, and demographics of the society in which the managerial power wants to operate.

 

True   False

 

  1. The force to act or to compel another person or entity to act is called:

 

 

 

 

  1. _____ exists on a wide spectrum ranging from coercion at one extreme to weak influence at the other.
    1. An ideology

 

  1. Justice
  2. Power

 

  1. Pluralism

 

  1. Which of the following is true about power?
    1. Power is generally evenly distributed.

 

  1. Most societies do not have mechanisms to control and channel it for benefit.

 

  1. Multiple, competing formations of power never balance each other.

 

  1. Although power is sometimes used to prevent change, such resistance is itself a force that alters history.

 

  1. In return for converting resources efficiently into needed goods and services, society gives corporations the authority to take necessary actions and permits a profit. This agreement derives from:
    1. natural law.
    2. positive law.

 

 

  1. social contract.

 

  1. The rightful use of business power is called:

 

 

 

 

  1. According to John Locke, for governments the opposite of power is ____, defined as “the exercise of power beyond right.”
    1. monarchy
    2. tyranny

 

  1. oligarchy

 

  1. theocracy

 

  1. In terms of levels of corporate power, on which of the following levels is business power the direct cause of visible, immediate changes, both great and small?
    1. Deep level

 

  1. Profound level

 

  1. Multilayered level

 

  1. Surface level

 

  1. On which of the following levels does corporate power shape society over time through the aggregate changes of industrial growth?
    1. Deep level

 

  1. Apparent level
  2. Exterior level

 

  1. Surface level

 

  1. At the _____ level of corporate power, society encounters an intangible realm of social networks, time, and physical space, a realm crossed by complex chains of cause and effect that converge and interact, shaping and reshaping the society.

 

  1. apparent

 

  1. exterior

 

  1. deep
  2. surface

 

  1. At this level, the workings of corporate power are unplanned, unpredictable, indirect, and irregular, but they are constant and far more significant.
    1. Exterior

 

  1. Deep

 

  1. Surface

 

  1. Apparent

 

  1. _____ power is the ability of a company to influence events, activities, and people by virtue of control over resources.
    1. Legal

 

  1. Technological
  2. Economic

 

  1. Social

 

  1. At the _____ level of economic power, the operation of a corporation affects its stakeholders.
    1. deep

 

  1. profound

 

  1. multilayered

 

  1. surface

 

  1. _____ power is the ability to influence the direction, rate, characteristics, and consequences of physical innovations as they develop.
    1. Technological

 

  1. Political
  2. Cultural

 

  1. Economic

 

  1. The ability of a business to influence government is called:
    1. social power.

 

  1. political power.

 

  1. general power.

 

  1. personal power.

 

  1. When businesses give money to candidates and lobby legislation, they are attempting to use:
    1. political power at the surface level.
    2. social power at the deeper level.

 

  1. cultural power at the abysmal level.

 

  1. legal power at the exterior level.

 

  1. On this level of political power, industrialization engenders values that radiate freedom and erode authoritarian regimes.
    1. Apparent

 

  1. Exterior

 

  1. Deeper
  2. Surface

 

  1. The ability of businesses to influence the laws of the society in which they operate is called:
    1. social power.
    2. technological power.

 

  1. environmental power.

 

  1. legal power.

 

  1. On the _____ of legal power, big corporations have formidable legal resources that intimidate opponents.
    1. abysmal level

 

  1. fathomless level

 

  1. surface level
  2. deep level

 

  1. At which level of legal power do industrial activities influence the laws of the society?
    1. Deeper level
    2. Surface level

 

  1. Apparent level

 

  1. Exterior level

 

  1. The ability of businesses to influence the values and habits of people in a society is called:
    1. economic power.

 

  1. cultural power.

 

  1. technological power.

 

  1. legal power.

 

  1. The impact of a company on nature is called its:
    1. social power.

 

  1. technological power.
  2. environmental power.

 

  1. economic power.

 

  1. Activity in the _____ sphere is the primary force of change and from this, change radiates to other spheres.
    1. environmental

 

  1. economic

 

  1. social

 

  1. political

 

  1. Which of the following is an example of a speculative technique?
    1. Stock splitting

 

  1. Declaring dividends
  2. Short-selling

 

  1. Stock dilution

 

  1. Which of the following had a negative impact on traditional American society with the introduction of trains and the subsequent extension of the railroads?
    1. Bringing more youth into rural areas.

 

  1. Giving frequent services to small towns.

 

  1. Redefining of rural areas from cultural heartland to rustic places.

 

  1. Centralization of corporate power in rural areas.

 

  1. In which of the following ways did the railroads change American politics on the surface level?

 

  1. Trains brought delegates to national party nominating conventions, changing the way candidates were picked.
  2. Their lobbyists could dominate legislatures.
  3. Trains enabled all sorts of associations to have national meetings.

 

D The movement to give women the vote succeeded after Susan B. Anthony took trains to all parts of the . country, spreading her rhetoric and unifying the cause.

 

  1. In the American society, the _____ were the first businesses to require modern management structures.
    1. railroads

 

  1. airways

 

  1. car manufacturers
  2. glass makers

 

  1. The idea that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked is based on the _____ theory of business power.

 

  1. dominance

 

  1. state autonomy

 

  1. pluralist

 

  1. agonism

 

  1. According to Karl Marx:
    1. business power is exercised in a society in which other institutions also have great power.

 

  1. a ruling capitalist class exploited workers and dominated other classes.
  2. business power is counterbalanced, restricted, controlled, and subject to defeat.

 

  1. largely through market forces, business power could be disciplined to benefit society.

 

  1. Which theory holds that business power is exercised in a society in which other institutions such as markets, government, labor unions, advocacy groups, and public opinion also have great power?
    1. State autonomy theory

 

  1. Elite theory

 

  1. Pluralist theory

 

  1. Dominance theory

 

  1. According to the _____ theory, business power is counterbalanced, restricted, controlled, and subject to defeat.
    1. dominance
    2. state autonomy

 

  1. elite

 

  1. pluralist

 

  1. Which theory of business power is the basis of the countervailing forces model of the business-government-society relationship?
    1. Dominance theory

 

  1. State autonomy theory

 

  1. Pluralist theory
  2. Elite dominance theory

 

  1. For the largest companies in each era, economies of scale and _____ in markets led to high profits and prolonged their dominance.
    1. monopolistic competition

 

  1. perfect competition

 

  1. monopoly

 

  1. oligopoly

 

  1. One of the arguments that supports this theory is that there is a small group of individuals that exist, by virtue of wealth and position, control the nation and act in undemocratic ways.
    1. Dominance theory

 

  1. Pluralist theory
  2. Agonism theory

 

  1. Positive political theory

 

  1. The modern impetus for this theory comes from the sociologist C. Wright Mills.
    1. Pluralist theory

 

  1. Theory of elite dominance

 

  1. State autonomy theory

 

  1. Positive political theory

 

  1. Sociologist C. Wright Mills saw American society as a pyramid of power and status. The base of the pyramid was composed of:
    1. a mass of powerless citizens.

 

  1. a large elite in command of the economic, political, and military domains.
  2. a big group of lieutenants who carried out the elite’s policies.

 

D professional managers of corporations, politicians beholden to the elite for their election, and . bureaucrats appointed by the politicians.

 

  1. According to G. William Domhoff:
    1. a new “superclass” eclipses the power of national elites.

 

  1. the elite used government “as an umbrella under whose authority they do their work.”

 

C.the power elite has the power to shape the economic and political frameworks within which other groups and classes must operate.

 

  1. a “superclass” has emerged, operating across borders through networks of individuals and organizations.

 

  1. Political scientist Thomas R. Dye:
    1. identified a “superclass” operating across borders through networks of individuals and organizations.

 

  1. suggested that the new “superclass” eclipsed the power of national elites.

 

  1. coined the term “power elite”.

 

  1. identified an “institutional elite” of individuals who occupied the top positions in 10 sectors.

 

  1. Scholar David Rothkopf:
    1. suggests that the new superclass lags behind the power of national elites.

B says that with globalization, a transnational power elite or “superclass” has emerged, operating across

.  borders through “networks of individuals and organizations.”

 

C calculates a superclass membership of about 4,000, which is 0.0001 percent of the world population, or

.   a member for each 1 million people.

  1. says that the new superclass conspires to rule.

 

  1. A(n) _____ society is one that has multiple groups and institutions through which power is diffused.
    1. oligarchic

 

  1. totalitarian

 

  1. pluralistic

 

  1. power elite

 

  1. Which of the following doctrines held that all persons were created equal and were entitled to the same opportunities and protections?
    1. The doctrine of natural rights

 

  1. The Hallstein Doctrine

 

  1. The Monroe Doctrine

 

  1. The Fairness Doctrine

 

  1. Several features of American society support the thesis of pluralism. Which of the following is one of them?
    1. It has capitalist values.

 

  1. It encompasses a small population spread over a small geography but engaged in diverse occupations.
  2. Its businesses are free of market pressures.

 

  1. Its Constitution encourages pluralism.

 

  1. _____ represent every segment of global society and have many ways to restrict business, including boycotts, lawsuits, picket lines, media campaigns, and lobbying for more regulation.
    1. Social interest groups

 

  1. Governments

 

  1. Markets

 

  1. Economic stakeholders

 

  1. _____ are the ultimate arbiters of legitimate behavior and can act forcefully to blunt the exercise of corporate power that harms the public.
    1. Governments
    2. Social interest groups

 

  1. Markets

 

  1. Economic stakeholders

 

  1. All of the following are norms of social values EXCEPT:

 

 

 

 

  1. Which of the following wields an important influence on corporate decisions?
    1. Communities

 

  1. Social values
  2. Families

 

  1. Stockholders

 

  1. Discuss the concept of power.

 

 

 

 

 

 

 

 

 

 

  1. Corporate actions have an impact on society at two levels. What are they?

 

  1. What are the two major perspectives on business power?

 

 

 

 

 

 

 

 

 

 

  1. Define the concept of elite dominance.

 

 

 

 

 

 

 

 

 

 

  1. Define a pluralistic society.

 

 

 

 

 

 

 

 

 

 

  1. Explain in brief the concept of business power.

 

 

 

 

 

 

 

 

 

 

  1. Discuss the concept of legitimacy. Explain how it is applicable to business power.

 

 

 

 

 

 

 

 

 

 

  1. On both the surface and deep levels, business power is exercised in spheres corresponding to the seven business environments. Discuss with examples.

 

  1. How did the introduction of railroads change American politics?

 

 

 

 

 

 

 

 

 

 

  1. Briefly discuss the dominance theory.

 

 

 

 

 

 

 

 

 

 

  1. What are merger waves? What was the main impetus for the 1895-1904 wave?

 

 

 

 

 

 

 

 

 

 

  1. Discuss sociologist C. Wright Mill’s views on the theory of the power elite.

 

 

 

 

 

 

 

 

 

 

  1. Discuss Domhoff’s, Dye’s, and Rothkopf’s views on elite dominance.

 

 

 

 

 

 

 

 

 

 

  1. Why is the American society considered to be a pluralistic society?

 

  1. According to the theory of pluralism, what are the boundaries of managerial power?

 

ch03 Key

 

  1. (p. 58) TRUE

 

  1. (p. 58) FALSE

 

  1. (p. 59) TRUE

 

  1. (p. 59) FALSE

 

  1. (p. 60) TRUE

 

  1. (p. 61) FALSE

 

  1. (p. 64) TRUE

 

  1. (p. 65) FALSE

 

  1. (p. 65) TRUE

 

  1. (p. 66) FALSE

 

  1. (p. 69) TRUE

 

  1. (p. 69) FALSE

 

  1. (p. 69-70) TRUE

 

  1. (p. 70) TRUE

 

  1. (p. 71) TRUE

 

  1. (p. 71) FALSE

 

  1. (p. 71) TRUE

 

  1. (p. 73) FALSE

 

  1. (p. 73) TRUE

 

  1. (p. 73-74) FALSE

 

  1. (p. 58) A

 

  1. (p. 58) C

 

  1. (p. 58) D

 

  1. (p. 58) D

 

  1. (p. 58) A

 

  1. (p. 58) B

 

  1. (p. 59) D

 

  1. (p. 59) A

 

  1. (p. 59) C

 

  1. (p. 59) B

 

  1. (p. 59) C

 

  1. (p. 59) D

 

  1. (p. 59) A

 

  1. (p. 59) B

 

  1. (p. 59) A

 

  1. (p. 59) C

 

  1. (p. 59) D

 

  1. (p. 59) C

 

  1. (p. 59-60) A

 

  1. (p. 60) B

 

  1. (p. 61) C

 

  1. (p. 61) B

 

  1. (p. 62) C

 

  1. (p. 62) C

 

  1. (p. 63) B

 

  1. (p. 63) A

 

  1. (p. 64) A

 

  1. (p. 64) B

 

  1. (p. 65) C

 

  1. (p. 65) D

 

  1. (p. 65) C

 

  1. (p. 67) D

 

  1. (p. 69) A

 

  1. (p. 69) B

 

  1. (p. 69) A

 

  1. (p. 70) C

 

  1. (p. 70) D

 

  1. (p. 70) B

 

  1. (p. 71) C

 

  1. (p. 71) A

 

  1. (p. 73) D

 

  1. (p. 73) A

 

  1. (p. 73) B

 

  1. (p. 74) C

 

  1. (p. 74) D

 

  1. (p. 58) Power is the force or strength to act or to compel another entity to act. In society, it is used to organize and control people and materials in order to achieve individual or collective goals. It exists on a wide spectrum ranging from coercion at one extreme to weak influence at the other. Its use in human society creates change. Although power is sometimes exerted to prevent change, such resistance is itself a force that alters history.

 

  1. (p. 59) The two levels at which corporate actions impact the society are the surface level and the deep level. On the surface level, business power is the direct cause of visible, immediate changes, both great and small. On the deep level, corporate power shapes society over time through the aggregate changes of industrial growth.

 

  1. (p. 64-65) The two major perspectives on business power are the dominance theory and the pluralist theory. The dominance theory holds that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked. On the other hand, the pluralist theory holds that business power is exercised in a society in which other institutions such as markets, government, labor unions, advocacy groups, and public opinion also have great power and is thus counterbalanced, restricted, controlled, and subject to defeat.

 

  1. (p. 69) One of the arguments that supports the dominance theory is that there exists a small group of individuals who, by virtue of wealth and position, control the nation. Members of this elite are alleged to act in concert and in undemocratic ways. The modern impetus for the theory of elite dominance comes from the sociologist C. Wright Mills, who wrote a scholarly book in 1956 describing a “power elite” in American society.

 

  1. (p. 71) A pluralistic society is one having multiple groups and institutions through which power is diffused. Within such a society no entity or interest has overriding power, and each may check and balance others. In such a society, business must interact with constraining forces in its environment. It may have considerable influence over some of them; but over most it has limited influence, and over a few none at all.

 

  1. (p. 58) Business power is the force behind an act by a company, industry, or sector. The greater this force, the more the action creates change or influences the actions of other entities in society. Its basic origin is a grant of authority from society to convert resources efficiently into needed goods and services. In return for doing this, society gives corporations the authority to take necessary actions and permits a profit. This agreement derives from the social contract. The social contract legitimizes business power by giving it a moral basis.

 

in the United States, is no longer permitted, but it exists in other nations.

 

Business power is legitimate when it is used for the common good. The grounds of legitimacy vary between societies and over time. For instance, child labor which was once widespread

 

  1. (p. 58) Legitimacy is the rightful use of power. The power of giant corporations is legitimate when it is exercised in keeping with the agreed-upon contract. The social contract legitimizes business power by giving it a moral basis.

 

 

 

  • Power over individuals is exercised over employees, managers, stockholders, consumers, and citizens. On the surface, a corporation may determine the work life and buying habits of individuals. At a deeper level, industrialism sets the pattern of daily life. People are regimented, moving in routes fixed by the model of an industrial city with its streets and sidewalks. Their occupation determines their status and fortune.

 

  • Environmental power is the impact of a company on nature. On the surface, a power plant may pollute the air; on a deeper level, since the 17th century, emission of gases in the burning of wood, coal, and oil to power industry has altered the chemistry of earth’s atmosphere.

 

  • Cultural power is the ability to influence cultural values, habits, and institutions such as the family. John Wanamaker started Mother’s Day in the early 1900s. He ran full-page ads in the “Philadelphia Inquirer” about a woman mourning for her mother, creating the sentiment that gratitude for mothers should be expressed by a gift on a special day. At a deeper level, the cumulative impact of ads has altered American society by reinforcing values selectively, for example, materialism over asceticism, personal appearance over inner character, etc.

 

  • Legal power is the ability to shape the laws of society. On the surface, big corporations have formidable legal resources that intimidate opponents. On a deeper level, the laws of the United States have been shaped by the consequences of industrial activity.

 

  • Political power is the ability to influence governments. On the surface, corporations give money to candidates and lobby legislatures. On a deeper level, around the world industrialization engenders values that radiate freedom and erode authoritarian regimes.

 

  • Technological power is the ability to influence the direction, rate, characteristics, and consequences of physical innovations as they develop. On a surface level, assembly lines run by new electric motors allowed Henry Ford to introduce transportation based on the internal combustion engine. By this method, he turned a luxury of the rich into a mass consumer product. But at a deeper level, as the auto took hold in American society, one juvenile court judge called the automobile a “house of prostitution on wheels”.

 

  • Economic power is the ability of the corporation to influence events, activities, and people by virtue of control over resources. At the surface level, the operation of a corporation may immediately and visibly affect its stakeholders. At a deeper level, the accumulating impact of corporate economic activity has sweeping effects.
  1. (p. 59-61) On both the surface and deep levels, business power is exercised in spheres corresponding to the seven business environments.

 

 

 

 

 

 

 

 

 

 

  1. (p. 63) The introduction of railroads changed American politics. On the surface, their lobbyists could dominate legislatures. On a deeper

 

level, the changes were more profound. Congress had always selected nominees before presidential elections, but now trains brought delegates to national party nominating conventions, changing the way candidates were picked. Trains enabled all sorts of associations to have national meetings, and the rails spread issues that might in an earlier era have remained local. The movement to give women the vote succeeded after Susan B. Anthony took trains to all parts of the country, spreading her rhetoric and unifying the cause.

 

In industrializing societies, business organizations grow in size and concentrate wealth. According to the dominance theory, business abuses the power its size and wealth confer in a number of ways. The rise of huge corporations creates a business elite that exercises inordinate power over public policy. Asset concentration creates monopoly or oligopoly in markets that reduces competition and harms consumers. Corporations wield financial and organizational resources unmatched by opposing interests. Large corporations achieve such importance in a nation’s economy that elected officials are forced to adopt probusiness measures or face public wrath.

 

  1. (p. 64-65) The dominance theory holds that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked. Corporations can alter their environments in self-interested ways that harm the general welfare. This was the thesis of Karl Marx, who wrote that a ruling capitalist class exploited workers and dominated other classes. The dominance theory is the basis of the dominance model of the business-government-society relationship.

 

 

The main stimulus for the 1895-1904 wave was growth of the transcontinental railroads, which reduced transportation costs, thereby creating new national markets.

 

  1. (p. 65-66) The idea that concentration of economic power results in abuse arose, in part, as an intellectual reaction to the tremendous economic growth of the late 19th Until then, the United States had been primarily an agricultural economy. But between 1860 and 1890, industrial progress transformed the country. This growth did more than create wealth; it also concentrated it. At the end of the century, between 1895 and 1904, an unprecedented merger wave assembled dominant firms in industry after industry. Since then, there have been other great merger waves, but this was the first. It made a definitive impression on the American mind, and its legacy is an enduring fear of big companies. Merger waves are caused by changes in the economic environment that create incentives to combine.

 

  1. (p. 69) The modern impetus for the theory of elite dominance comes from the sociologist C. Wright Mills, who wrote a scholarly book in 1956 describing a “power elite” in American society. He saw American society as a pyramid of power and status. At the top was a tiny elite in command of the economic, political, and military domains. Just below was a group of lieutenants who carried out the elite’s policies. They included professional managers of corporations, politicians beholden to the elite for their election, and bureaucrats appointed by the politicians. The large base of the pyramid was composed of a mass of powerless citizens, including feeble groups and associations with little policy impact. Mills did not see America as a democracy and thought that the elite simply used government “as an umbrella under whose authority they do their work.”

 

According to scholar David Rothkopf, globalization led to the emergence of a transnational power elite or “superclass,” operating across borders through “networks of individuals and organizations.” The superclass eclipses the power of national elites. It does not rule or conspire, but its dominant business subset, having “more power than any other group on the planet,” abets an agenda of oil dependence, free markets, free trade, and military spending.

 

Political scientist Thomas R. Dye tried to identify precisely which individuals made up an American elite. Believing that power comes from leadership in organizations, he identified an “institutional elite” of individuals who occupied the top positions in 10 sectors-industrial, banking, insurance, investments, mass media, law, education, foundations, civic and cultural organizations, and government.

 

  1. (p. 69-71) Scholars inspired by C. Wright Mill’s theory of elite dominance continue to study elites and are less reluctant to suggest business One of them is G. William Domhoff, who, in a series of books, argues the existence of a cohesive American upper class based on wealth, socialization in private schools, membership in exclusive clubs, and occupancy of high positions in business, government, and nonprofit institutions. Within this upper class lies a smaller leadership group, a controlling core of leaders in the corporate community. According to Domhoff, this core is a power elite. Domhoff does not quantify the power elite. Its power can be measured by the maintenance of a pro-corporate environment. Using foundation money, think tanks, lobbying, and campaign contributions it is consistently able to defeat the policy preferences of liberals and progressives who favor income redistribution and greater equality of opportunities.

 

 

 

  • In addition, business is exposed to constraining market pressures that force a stream of resource allocation decisions centered on cost reduction and consumer satisfaction, forces that can fell even the mighty.

 

  • Third, the Constitution encourages pluralism. Its guarantees of rights protect the freedom of individuals to form associations and freely to express and pursue interests. Thus, business is challenged by human rights, environmental, and other groups. The Constitution diffuses political power through the three branches of the federal government and between the federal and state governments and to the people. This creates a remarkably open political system.

 

  • Second, America encompasses a large population spread over a wide geography and engaged in diverse occupations. It has a great mixture

 

of interests, more than some other countries. Economic interests, including labor, banking, manufacturing, agriculture, and consumers, are a permanent fixture.

 

  • First, it is infused with democratic values. America has no history of feudal or authoritarian rule, so there is no entrenched deference to an aristocracy of wealth. In Colonial days, Americans adopted the then-revolutionary doctrine of natural rights, which held that all persons were created equal and entitled to the same opportunities and protections. In America, laws apply equally to all. All interests have the right to be heard. To be legitimate, power must be exercised for the common good.

 

  1. (p. 71-73) Several features of American society support the thesis of pluralism.

 

 

 

 

 

 

 

  • Markets and economic stakeholders impose strong limits. Stockholders, employees, suppliers, creditors, and competitors influence corporate decisions. The market also registers the great waves of technological change that can sweep away even the largest corporations.

 

  • Social values are transmitted across generations, reflected in public opinion, and embedded in the law. Managers internalize them in schools and churches. Social values include norms of duty, justice, truth, and piety that can direct a manager’s behavior as powerfully as laws.

 

  • Social interest groups represent every segment of global society and have many ways to restrict business, including boycotts, lawsuits, picket lines, media campaigns, and lobbying for more regulation. Historically, labor has been the great antagonist and counterweight to business power, but also prominent in recent years are environmental, human rights, religious, and consumer groups. Increasingly, groups form coalitions with other groups, governments, and international institutions.

 

  • Governments and laws in all countries regulate business activity. Governments are the ultimate arbiters of legitimate behavior and can act forcefully to blunt the exercise of corporate power that harms the public. Laws channel and regulate operations.

 

  1. (p. 73-74) Overall, there are four major boundaries on managerial power:

 

ch03 Summary

 

Category # of Question
s
Difficulty: Difficult 7
Difficulty: Easy 46
Difficulty: Medium 27
Steiner – Chapter 03 80

 

ch11

 

Student: ___________________________________________________________________________

 

  1. MNCs are all similar in their organizational structures and operations. True False

 

  1. In global production, a value chain can span two or more countries. True False

 

  1. As MNCs moved into the fifth tier of internationalization, their strategic thinking was more influenced by national boundaries.

True   False

 

  1. Sometimes those using the name multinational mean to imply that these companies have erased national allegiances, becoming itinerant firms that move investment and activity from nation to nation in search of profits.

 

True   False

 

  1. Though TNCs differ greatly in international dimensions, a single measure has been created that can capture the definitive meaning of “transnational.”

True   False

 

  1. The typical MNC is international rather than national. True False

 

  1. Corporations are formed under national incorporation laws. True False

 

  1. In many fifth-tier companies, there is a strong trend toward more centralized authority rather than more “statelessness.”

True   False

 

  1. When an MNC invests funds to acquire a foreign company, this is called a foreign direct investment. True False

 

  1. The single measure that best captures the activity and power of MNCs is portfolio investment. True False

 

  1. Foreign direct investment is the limited, speculative purchase of stocks and bonds in a foreign company by individuals.

True   False

 

  1. Almost all FDI comes from multinational corporations. True False

 

  1. The primary motive of companies investing in LDCs is getting an adequate return on capital invested. True False

 

  1. Even without making direct investments in a nation, powerful MNCs can shake its economy. True False

 

  1. The Sullivan Principles was a 1977 code of conduct that required multinational corporations in South Africa to do business in a nondiscriminatory way.

True   False

 

  1. The OECD Guidelines for Multinational Enterprises is a set of 16 broadly worded principles about protecting and conserving the natural environment.

True   False

 

  1. The OECD is a group of 33 nations formed in 1961 as an outgrowth of cooperation to rebuild Europe after World War II.

True   False

 

  1. Voluntary CSR is the full corrective for flaws in markets. True False

 

  1. The Global Compact is a code of conduct that enforces its principles. True False

 

  1. Bluewashing is a report from a corporation about its actions in support of the 10 Global Compact principles.

True   False

 

  1. An entity headquartered in one country that does business in one or more foreign countries is called a(n):

 

 

 

  1. Most multinational corporations (MNCs) are:
    1. public enterprises.

 

  1. state-owned.

 

 

  1. private enterprises.

 

  1. The five tiers of internationalization in MNCs:
    1. state a common method to enter foreign market in five stages.

 

  1. represent alternate ways to extend business activity into foreign markets.

 

  1. explain a common method to enter the domestic market in stages.
  2. represent ways to expand business in the domestic market.

 

  1. Each of the five tiers of internationalization is seen as all of the following EXCEPT:
    1. a theory.
    2. an ideal.

 

  1. a model.

 

  1. a policy.

 

  1. Which of the following is a part of the tiers of internationalization?
    1. Export sales

 

  1. Indirect investments

 

  1. Importing essential goods

 

  1. Portfolio investment

 

  1. This is a part of the tiers of internationalization.
    1. Indirect investments

 

  1. Establishment of foreign sales offices
  2. Portfolio investment

 

  1. Importing essential goods

 

  1. Identify the tier that is a part of internationalization.
    1. Indirect investments

 

  1. Importing essential goods

 

  1. Licensing franchises

 

  1. Portfolio investment

 

  1. All of the following are a part of global production EXCEPT:

 

 

  1. portfolio investment.

 

  1. The economic policy of lowering tariffs and other barriers to encourage trade and investment is known as:

 

 

 

  1. Which of the following is a less preferred name, compared to the others, for a multinational corporation?

 

  1. Global
  2. Multidomestic

 

  1. Transnational

 

  1. International

 

  1. Transnational corporations are defined as:
    1. doing business in the state in which they are incorporated.

 

  1. doing business in the state of incorporation as well as neighboring states in the same country.

 

  1. parent entities that control assets of affiliated entities in foreign countries.
  2. entities formed between two or more parties only to import essential goods.

 

  1. The United Nations defines transnational corporations (TNCs) as:
    1. doing business in the state in which they are incorporated.
    2. doing business in the state of incorporation as well as neighboring states in the same country.

 

C companies that have erased national allegiances and become itinerant firms that move investment and . activity from nation to nation in search of profits.

 

D.parent firms that control the assets of affiliated entities in foreign countries including branches, subsidiaries, and joint ventures.

 

  1. Business entities in foreign countries controlled by parent transnational corporations are known as:
    1. foreign affiliates.

 

  1. indigenous producers.
  2. domestically owned firms.

 

  1. parent firms.

 

  1. The most widely used index measure of a corporation’s “multinationality” is called the:

 

 

 

 

  1. All of the following ratios are used to compute the TNI EXCEPT:
    1. foreign employment to total employment.

 

  1. foreign assets to total assets.

 

  1. foreign sales to total sales.
  2. foreign assets to total unemployment.

 

  1. Which of the following is true about typical MNCs?
    1. Most MNCs are said to be stateless.
    2. Corporations are formed under international incorporation laws.

 

  1. They remain national rather than international.

 

  1. MNCs have become too transnational.

 

  1. With regard to MNCs in the United States:
    1. it is still rare for top executives to be naturalized citizens.
    2. boards of directors are dominated by foreign country majorities.

 

  1. most employees at company headquarters are foreign country nationals.

 

  1. each company must be chartered by a state.

 

  1. Which Act makes it illegal for U.S. citizens anywhere in the world to bribe foreign officials?
    1. The International Anti-Bribery Act

 

  1. The Foreign Corrupt Practices Act

 

  1. The Sarbanes-Oxley Act

 

  1. The Foreign Investment and National Security Act

 

  1. When multinational corporations invest their funds to start a business in a foreign country, this is called a(n):

 

 

 

  1. Direct investment means:
    1. buying or creating facilities in another country for producing in local markets.

 

  1. buying or creating facilities in home country.

 

  1. buying facilities based in home country for the purpose of exporting products.

 

  1. buying facilities in home country for the sole purpose of importing essential goods.

 

  1. This is measured as the dollar value of funds invested by a parent corporation for starting, acquiring, or expanding an enterprise in a foreign nation.
    1. Portfolio investment
    2. FDI

 

  1. Debt security

 

  1. TNI

 

  1. This is the limited, speculative purchase of stocks and bonds of a foreign company by individuals or mutual funds.
    1. Portfolio investment

 

  1. FDI

 

  1. TNI
  2. Direct investment

 

  1. This is the financial process by which a corporation takes partial or total control of foreign assets with the intention of having a long-term presence.
    1. TPI

 

  1. Indirect investment

 

  1. Portfolio investment

 

  1. FDI

 

  1. All of the following statements are true of FDI EXCEPT:
    1. it is the financial process by which a corporation takes partial or total control of foreign assets.

 

  1. it is measured as the dollar value of funds invested by a parent corporation.

 

  1. it is a short-term investment that can be sold anytime.
  2. it is almost always made by transnational corporations.

 

  1. Which of the following statements about portfolio investments is true?
    1. It is measured as the dollar value of funds invested by a parent corporation.
    2. It is limited and speculative.

 

  1. It confers a degree of control over the company.

 

  1. It is a long-term investment that cannot be sold anytime.

 

  1. Almost all FDI comes from:
    1. hedge funds.
    2. sovereign wealth funds.

 

  1. multinational corporations.

 

  1. private equity.

 

  1. A(n) _____ is a government entity that invests the savings of a nation.
    1. angel investor

 

  1. private investor

 

  1. central bank

 

  1. sovereign wealth fund

 

  1. Which of the following is NOT one of the three most common reasons for corporations to make foreign direct investments?
    1. They seek access to new markets.
    2. They seek to introduce new management skills and technologies to foreign markets.

 

  1. Companies in nations with small domestic markets enter foreign markets to grow.

 

  1. Some companies create efficiencies and lower their costs by moving production across borders.

 

  1. According to leading progressive, David C. Korten:
    • power on earth was being transferred from national governments to transnational corporations which by

 

.  their nature serve only the short-term interests of citizens.

 

  • “a few hundred” multinational corporations are making daily business decisions which have more

.  impact than those of most sovereign governments.

Cdeveloping nations should set up a stable and enabling regulatory environment that indulges

 

. the “concern of the business sector for national policies that are enabling but not overly regulating.” D. in seeking return on capital invested, MNCs may build or buy facilities, contract with local suppliers,

and hire workers.

 

  1. Which of the following is a negative economic effect of FDI?
    1. Governments protect politically powerful industries with characteristic control.

 

  1. MNCs in manufacturing are accused of exploiting factory workers.

 

  1. Although competition from a new foreign affiliate can stimulate local firms, the new entry can also

overwhelm them.

D Multinational corporations are criticized for repatriating profits to host countries, so that local residents

.   get limited benefit from their presence.

 

  1. These are aspirational statements of principles, policies, and rules for foreign operations that a multinational corporation voluntarily agrees to follow.
    1. Industrial codes of conduct

 

  1. Professional codes of conduct

 

  1. International codes of conduct
  2. Corporate codes of conduct

 

  1. This is a 1977 code of conduct that required multinational corporations in South Africa to do business in a nondiscriminatory way.
    1. The MacBride Principles

 

  1. The Equator Principles

 

  1. The CERES Principles

 

  1. The Sullivan Principles

 

  1. The OECD Guidelines for Multinational Enterprises:
    1. are a set of 16 broadly worded principles about protecting and conserving the natural environment.

 

  1. reinforces capitalism by making it moral.

 

  1. are global guidelines for socially responsible and ethical behavior based on ethical ideas in the great religions.
  2. is the only comprehensive global code of corporate conduct endorsed by governments.

 

  1. The main purpose of this code is to boost economic growth of its members by expanding trade.
    1. The OECD Guidelines for Multinational Enterprises
    2. The Caux Round Table principles for business

 

  1. The Business Charter for Sustainable Development

 

  1. The FLA Workplace Code of Conduct

 

  1. Which of the following is true about the OECD Guidelines?
    1. An informal process exists to “encourage” observance of the guidelines.

 

  1. Each government that joins in the guidelines sets up an office, called a “national contact point.”

 

  1. Observance of the guidelines is obligatory.

 

  1. There are legal sanctions and penalties for violations of the guidelines.

 

  1. Which of the following is NOT a general policy of the OECD Guidelines for Multinational Enterprises?

 

  • Enterprises should encourage human capital formation, in particular by creating employment

.  opportunities and facilitating training opportunities for employees.

 

  1. Enterprises should take disciplinary action against employees who make bona fide reports to management.

CEnterprises should refrain from seeking or accepting exemptions not contemplated in the statutory or

. regulatory framework related to environmental, taxation, or other issues.

DEnterprises should respect the human rights of those affected by their activities consistent with the host

.  government’s international obligations and commitments.

 

  1. The treaty that requires nations to preserve biological diversity by promoting sustainable economic activity is known as the:
    1. Convention on Biological Diversity.

 

  1. 2010 Biodiversity Target.

 

  1. Global Biodiversity Information Facility.

 

  1. Pacific Biodiversity Information Forum.

 

  1. The single most conspicuous effort to promote MNC social responsibility and to harness FDI for economic development is the:
    1. social contract.
    2. Universal Declaration of Human Rights.

 

  1. Global Compact.

 

  1. transnationality index.

 

  1. The Global Compact:
    1. is a code of conduct.

 

  1. enforces its principles.

 

  1. advances its principles as an “aspirational” set of “shared values.”

 

  1. requires mandatory participation.

 

  1. Principle 9 of the Global Compact Principles urges a precautionary approach to environmental risks, a philosophy rising from the _____ and accepted by regulators in Europe, but less so in the United States.

 

  1. Earth Summit

 

  1. Convention on Biological Diversity

 

  1. Earth Charter

 

  1. Rio Declaration

 

  1. That businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining comes under which Global Compact principle?
    1. Anti-corruption

 

  1. Human rights
  2. The environment

 

  1. Labor standards

 

  1. This is the act of a corporation cloaking its lack of social responsibility by insincere membership in the UN Global Compact.
    1. Apartheid

 

  1. Bluewashing

 

  1. Snowballing

 

  1. Astroturfing

 

  1. This is a 1789 law permitting foreign citizens to litigate alleged violations of international law in U.S. federal district courts.
    1. The Alien Tort Claims Act

 

  1. The Sherman Antitrust Act
  2. The Foreign Exchange Regulation Act

 

  1. The Sarbanes-Oxley Act

 

  1. What was the original intent of the 1789 Alien Tort Claims Act?
    1. To make it illegal for U.S. citizens anywhere in the world to bribe foreign officials.

 

  1. To set criminal penalties in abetting the overthrow of the U.S. government.

 

  1. To protect the United States from enemy aliens.

 

  1. To protect the rights of ambassadors and to try pirates.

 

  1. Business groups say that the Alien Tort Claims Act:
    1. brings justice for the oppressed.

 

B victimizes the world’s poor “by imposing an enormous tax on investment in developing countries at a . time the world desperately needs such investment.”

 

  1. will restrict U.S. officials from going to different corners of the globe and exploiting the local populations.

 

  1. gives “people in foreign countries comfort that U.S. corporations will abide by international standards.”

 

  1. Explain the three ratios that are used to compute a TNI index for a multinational company.

 

 

 

 

 

 

 

 

 

 

  1. Explain what is meant by foreign direct investment.

 

 

 

 

 

 

 

 

 

 

  1. What is soft law?

 

  1. What is the Rio Declaration?

 

 

 

 

 

 

 

 

 

 

  1. Define bluewashing.

 

 

 

 

 

 

 

 

 

 

  1. List the five tiers of internationalization.

 

 

 

 

 

 

 

 

 

 

  1. Why were the strategic advantages of the fourth-tier model less compelling for American manufacturers?

 

 

 

 

 

 

 

 

 

 

 

  1. What is portfolio investment? How is it different from FDI?

 

 

 

 

 

 

 

 

 

 

  1. What are the three most common reasons for corporations to make foreign direct investments?

 

  1. Discuss the negative economic and social effects of FDI.

 

 

 

 

 

 

 

 

 

 

  1. Briefly explain international codes of conduct with reference to the Sullivan Principles.

 

 

 

 

 

 

 

 

 

 

  1. Discuss the OECD Guidelines for Multinational Enterprises.

 

 

 

 

 

 

 

 

 

 

  1. Discuss the United Nation’s efforts to promote MNC social responsibility and to harness FDI for economic development.

 

 

 

 

 

 

 

 

 

 

  1. Give two examples of actions reported by Global Compact participants.

 

 

 

 

 

 

 

 

 

 

  1. Discuss the relevance of the Alien Tort Claims Act.

 

ch11 Key

 

  1. (p. 354) FALSE

 

  1. (p. 355) TRUE

 

  1. (p. 356) FALSE

 

  1. (p. 356) TRUE

 

  1. (p. 358) FALSE

 

  1. (p. 359) FALSE

 

  1. (p. 359) TRUE

 

  1. (p. 359) TRUE

 

  1. (p. 362) TRUE

 

  1. (p. 362) FALSE

 

  1. (p. 362) FALSE

 

  1. (p. 362) TRUE

 

  1. (p. 364) TRUE

 

  1. (p. 366) TRUE

 

  1. (p. 367) TRUE

 

  1. (p. 369) FALSE

 

  1. (p. 369) TRUE

 

  1. (p. 375) FALSE

 

  1. (p. 375) FALSE

 

  1. (p. 378) FALSE

 

  1. (p. 354) A

 

  1. (p. 354) D

 

  1. (p. 354) B

 

  1. (p. 354) D

 

  1. (p. 354) A

 

  1. (p. 354) B

 

  1. (p. 354) C

 

  1. (p. 355) D

 

  1. (p. 356) A

 

  1. (p. 356) B

 

  1. (p. 356) C

 

  1. (p. 356) D

 

  1. (p. 356) A

 

  1. (p. 358) B

 

  1. (p. 358) D

 

  1. (p. 359) C

 

  1. (p. 359) D

 

  1. (p. 361) B

 

  1. (p. 362) A

 

  1. (p. 362) A

 

  1. (p. 362) B

 

  1. (p. 362) A

 

  1. (p. 362) D

 

  1. (p. 362) C

 

  1. (p. 362) B

 

  1. (p. 362) C

 

  1. (p. 362) D

 

  1. (p. 363) B

 

  1. (p. 364-365) A

 

  1. (p. 365) C

 

  1. (p. 367) C

 

  1. (p. 367) D

 

  1. (p. 369) D

 

  1. (p. 369) A

 

  1. (p. 369) B

 

  1. (p. 370) B

 

  1. (p. 373) A

 

  1. (p. 375) C

 

  1. (p. 375) C

 

  1. (p. 375) D

 

  1. (p. 376) D

 

  1. (p. 378) B

 

  1. (p. 379) A

 

  1. (p. 379) D

 

  1. (p. 380) B

 

  1. (p. 358) The transnationality index, or TNI, is used by the United Nations to rank corporations based on the relative importance of their domestic and foreign operations. The TNI is calculated as the average of three ratios: 1) foreign assets to total assets, 2) foreign sales to total sales, and 3) foreign employment to total employment.

 

  1. (p. 362) The single measure that best captures the activity and power of MNCs is the amount of capital they inject into foreign economies. This capital is called foreign direct investment. It is measured as the dollar value of funds invested by a parent corporation for starting, acquiring, or expanding an enterprise in a foreign nation.

 

  1. (p. 369) Soft law refers to statements of philosophy, policy, and principle found in nonbinding international agreements that, over time, gain legitimacy as guidelines for interpreting the “hard law” in legally binding agreements.

 

  1. (p. 375) The Rio Declaration is a set of 27 principles for sustainable development that emerged from the 1992 Earth Summit, a UN Conference of 172 nations and 2,400 NGOs held in Rio de Janeiro.

 

  1. (p. 378) Bluewashing is the act of a corporation cloaking its lack of social responsibility by insincere membership in the UN Global Compact.

 

  • Practice global production in which a value chain spans two or more countries. Work on one or more tasks—research, design, manufacturing, logistics, distribution, marketing, sales, or support services—that would be confined to a single country in the fourth-tier model now is done in two or more countries. Organization and control of these cross-border processes are centralized in the parent company’s headquarters.

 

  • Buy or create facilities in another country for producing in local markets. Such facilities may become hubs for regional or global sales. The company operates as a group of country-based business units or subsidiaries.

 

  • License franchises, brands, the use of patents, or technology to foreign firms that make or sell the MNC’s products.
  • Establish foreign sales offices.
  • Export sales to foreign countries.

 

  1. (p. 354-355) MNCs vary widely in their organizational structures and operations. In general, however, there are five tiers of internationalization that represent alternative ways to extend business into foreign markets. These are:

 

 

 

 

 

 

 

 

  1. (p. 356) By the end of the 20th century, the strategic advantages of the fourth-tier model were less compelling. One reason was the spread of liberalization. As trade barriers fell it became easier for corporations to move components, products, and services across borders. Also, revolutionary changes in information technology and telecommunications made new forms of global production possible. What ensued was fierce global competition stemming from the adoption of border-spanning production systems. To lower costs and speed output, MNCs created far-reaching networks of suppliers and foreign affiliates. Using new technologies they integrated work across geographic boundaries. As they did, they moved into the fifth tier of internationalization, where their strategic thinking was less influenced by national boundaries.

 

  1. (p. 362) Portfolio investment is the purchase of stocks and bonds of a foreign company by individuals or equity funds. Compared with FDI, portfolio investment is limited and speculative. Unlike FDI, it does not confer any degree of control over the company and it can be a short-term position sold any time.

 

  • Some companies create efficiencies and lower their costs by moving production across borders.
  • Companies in nations with small domestic markets enter foreign markets to grow.
  • They seek access to new markets.
  1. (p. 363) Corporations make foreign direct investments for many reasons. Three are most common.

 

 

 

 

 

Social impacts often accompany the economic impacts of multinational corporations. Where social regulation is rudimentary, they can be negative. Recurrently there are charges that mining and drilling facilities in remote areas harm the environment and disrupt native peoples. MNCs in manufacturing are accused of exploiting factory workers. MNCs selling consumer products such as entertainment, fast food, and apparel

 

are suspected of tainting local cultural values with Western indulgence and materialism. Even as their power builds or distorts, the companies themselves frequently take a beating in developing economies.

 

  1. (p. 365-366) Negative economic and social effects of FDI exist. Although competition from a new foreign affiliate can stimulate local firms, the new entry can also overwhelm them and, in a lax regulatory climate, come to monopolize a domestic market. Governments protect weak or politically powerful industries with patchworks of control. Multinational corporations are criticized for repatriating profits to home countries, so that local residents get limited benefit from their presence. Even without making direct investments in a nation, powerful MNCs can shake its economy.

 

 

  1. (p. 367-368) International codes of conduct are aspirational statements of principles, policies, and rules for foreign operations that a multinational corporation voluntarily agrees to follow. The first such code to engage a large number of corporations was the Sullivan Principles. The Sullivan Principles required MNCs in South Africa to integrate workplaces, provide equal pay, and promote nonwhites to supervisory roles. In effect, they turned foreign corporations into civil disobedients, since these requirements violated South African employment law. The Sullivan Principles inspired subsequent efforts to codify standards of conduct for corporations.

 

  1. (p. 369-370) The OECD Guidelines for Multinational Enterprises is the only comprehensive global code of corporate conduct endorsed by The OECD, or the Organization for Economic Co-operation and Development, is a group of 33 nations formed in 1961 as an outgrowth of cooperation to rebuild Europe after World War II. Its main purpose is to boost economic growth of its members by expanding trade. The guidelines emphasize that corporations must act responsibly if global economic progress is to be sustainable.

 

  1. (p. 375-376) The single most conspicuous effort to promote MNC social responsibility and to harness FDI for economic development is the Global Compact. It started in 2000 when UN Secretary-General Kofi Annan challenged leaders of global corporations to collaborate with UN agencies, labor unions, NGOs, and governments in embracing a set of “universal values.” The Global Compact is administered by an office housed in the United Nations Secretariat. Participation by all parties is voluntary. Its central purposes are to (1) promote responsible corporate behavior that (2) advances central UN goals such as world peace, protection of human rights, poverty reduction, and sustainable markets.

 

For decades the Brantas River in East Java was polluted by the waste of riverside residents. Poor water quality caused serious health problems and killed fish. A nearby Unilever factory that took water from the river bore high treatment costs. Unilever adopted four villages along the river, reorganized waste collection, and educated residents. It planted trees on the river’s banks and released small fish that could grow and provide

 

a livelihood for local fishermen. Rather than work alone, Unilever created a coalition of local businesses, environmental groups, schools, and government agencies to help the effort and named a full-time employee to lead it.

 

  1. (p. 377) In Africa, power grids do not reach many impoverished areas. Without electricity, children do not study in the evening and productive work stops with nightfall. ABB Group of Switzerland, which makes power station equipment, started a rural electrification program in Tanzania. Working with the World Wildlife Fund and local governments, it donates generators so that desert hamlets can have electricity. New businesses spring up when power goes on. New homes are built and children are doing better in school.

 

 

  1. (p. 379) The Alien Tort Claims Act allows foreign citizens to bring civil actions in U.S. courts against corporations for violating international law anywhere in the world. The original intent of the Alien Tort Claims Act, an old law passed in 1789, was to protect the rights of ambassadors and bring justice to pirates on the high seas. Long in disuse, it was rediscovered by progressive and labor movement lawyers who saw it as a way to prosecute MNCs for crimes anywhere in the world.

 

ch11 Summary

 

Category # of Question
s
Difficulty: Easy 22
Difficulty: Hard 10
Difficulty: Medium 48
Steiner – Chapter 11 80