Managerial Ethics

Question 1

🌍 Impact of Globalization

Answer 1

Phones planes and internet have made transports possible, can exchange information’s and goods quickly in a less complicated way.
Pros:
* Increases efficiency and innovation
* Expands markets for businesses
* Cheaper goods for consumers
Cons:
* Can widen inequality
* Loss of local jobs (outsourcing)
* Environmental and cultural degradation

Question 2

Locke’s Theory & Free Markets

Answer 2

• Based on natural rights: life, liberty, and property.
• Free markets protect property rights.
• Government’s role is minimal—just protect rights.

Question 3

Adam Smith’s Utilitarian View

Answer 3

• “Invisible hand” leads to greatest good for greatest number.
• Markets self-regulate; individuals seeking profit unintentionally benefit society.

Question 4

🌐 Comparative Advantage

Answer 4

• Countries should specialize in producing goods where they have lower opportunity cost.
• Promotes efficiency and mutual benefit in free trade.

Question 5

🛠 Marxist View on Trade

Answer 5

• Free markets exploit workers and benefit capitalists.
• Trade/globalization worsen inequality.
• Class conflict is inevitable without redistribution or control.

Question 6

⚖️ Mixed Economy & New View of Property

Answer 6

• Mix of free market + government intervention.
• Property isn’t just private; it includes social obligations (e.g., environmental laws, zoning).
• Business must consider community impact.

Question 7

✅ Ethical Requirements in Perfect Competition

Answer 7

• Full information
• Voluntary exchange
• No deception/coercion
• Equal access
  Ethical because: No one has unfair power.

Question 8

⚠️ Monopoly Competition

Answer 8

Unethical if:
* Exploits consumers (high prices, low output)
* Prevents innovation

Question 9

🏢 Monopolistic vs. Oligopolistic Competition (Ethics)

Answer 9

• Monopolistic: Many firms, differentiated products → Still somewhat ethical, but can manipulate consumer perception.
• Oligopoly: Few firms, potential collusion → More unethical due to price fixing, barrier to entry, power concentration.

Question 10

🏛 Public Policy & Oligopoly

Answer 10

• Needs regulation (antitrust laws)
• Encourage transparency, prevent collusion

Question 11

🌪 Environmental Threats from Consumer Goods

Answer 11

• Overproduction → pollution, waste
• Resource depletion
• Climate change from emissions

Question 12

⚖️ Ethical Pollution Control

Answer 12

Duty-based: Don’t harm others
Utilitarian: Minimize total harm
Rights-based: Right to clean air/water

Question 13

💸 Internalizing External Costs

Answer 13

• Pollution tax
• Cap-and-trade system
• Regulations/fines
  Shifts cost of pollution back to the producer

Question 14

🌿 Resource Conservation Ethics

Answer 14

• Sustainability = meeting present needs without compromising future generations
• Moral duty to preserve resources (Rawlsian justice, intergenerational fairness)