Ethics and Globalization
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Ethics in Banking — Ethics in Banking.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the core ethical dilemma multinational banks face due to globalization?
Banks face pressure to adopt lower ethical or regulatory standards of host countries, but the ethical imperative is to maintain consistently high standards across all jurisdictions rather than exploiting lower local standards.
How does the World Bank define globalization according to the chapter?
Growing integration of economies, societies, culture, technology and governance worldwide.
Should a multinational bank adopt the lowest regulatory standards available among its host countries?
No; adopting the lowest standards compromises ethics — banks must uphold principled conduct regardless of which country permits lower standards.
What is described as the biggest ethical challenge arising from globalization?
The challenge of ethical diversity due to differing cultural moral standards.
Can a multinational bank apply only its home-country standards in every foreign jurisdiction?
Applying only home-country standards exclusively ignores legitimate local context, so banks must balance consistent ethical principles with respect for valid local considerations.
What example does the chapter use to illustrate differing contract enforcement norms across cultures?
Germany enforces contracts strictly; Egypt treats signed contracts as renegotiable guidelines.
Does globalization imply that banks should avoid international operations to sidestep ethical conflicts?
No; the ethical requirement is not to avoid international operations but to manage them ethically by maintaining high standards across all markets.
What does the Foreign Corrupt Practices Act (FCPA) restrict regarding international business conduct?
US corporations and US-listed foreign firms from exchanging money or goods for favours.
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