Firms with Operations Overseas Are Most Likely to Deal Effectively

question 12

Multiple Choice

Firms with operations overseas are most likely to deal effectively with cross-cultural CSR dilemmas by ________.

• A) translating the firm's ethics code into different languages
• B) adopting local customs regarding worker treatment
• C) establishing labor standards for suppliers
• D) using only home-country managers

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Definitions:

Covert Collusion

An implicit or indirect agreement among competitors to fix prices, limit supply, or divide markets, without explicit communication or a formal agreement.

Gentlemen's Agreements

Informal, non-binding agreements between parties based on honor and not legally enforceable.

Formal Cartels

An agreement among competing firms to control prices, production, and market distribution, which is often illegal.

Cartel

An association of manufacturers or suppliers that maintains prices at a high level by restricting competition and output.