Q&A Hero

Q: For emerging market countries strategies for influencing outcomes on issues often involve the development of relationships with government officials. This provides a setting for corruption, and vigilance is required to make certain that managers and advisors do not succumb to temptation.

Q: In both democracies and nondemocracies, however, obtaining access to government officeholders, whether for the purpose of lobbying or using personal ties or political relationships, can be important for success.

Q: High dependence on foreign finance and a move toward external debt denominated in foreign currencies explains the breakdown of emerging market economies during the recent global financial and economic crisis.

Q: Media restrictions, ethnic and religious conflicts, political corruption, and political megalomania are some of the risks faced in emerging market countries.

Q: Emerging markets countries have imposed a variety of restrictions on foreign direct investment, foreign exchange transactions, and the repatriation of earnings.

Q: Emerging market countries face financial restrictions, price controls, and regulatory risks when doing business in developed countries.

Q: The source of all the revolutions in the Middle East was to seek democracy.

Q: Rule of law can override politics and political ties when doing business in emerging market countries.

Q: The immediate source of many risks is the weak rule of law in a country.

Q: One concern with the fair trade concept was whether retailers would charge such a large price premium that demand would be suppressed.

Q: The fair trade movement started in the United States in 1988.

Q: The fair trade movement was begun to improve the lives of poor farmers and workers trapped by market conditions.

Q: The fair trade system attempts to intervene directly on both market and nonmarket issues by coordinating the flow of consumer revenue to participating producers.

Q: Microfinance is independent of nonmarket risks.

Q: Banco Compartamos is am example of microfinance institution.

Q: Microfinance, in its modern version, was introduced by Muhammad Yunus, a Bangladeshi economist.

Q: It is clear that the customers at the bottom of the pyramid, those who lived on less than $2 a day, are highly profitable.

Q: Business groups as well as individual companies have weaker incentives to interact with government when it controls markets, lets contracts, and regulates business activity.

Q: At the level of an individual firm, successful participation in a domestic market requires specific knowledge of that market so as to apply the firms expertise.

Q: Culture can be important, not only shaping the opportunities and risks in a country but also for the likelihood that a company can implement its market strategy.

Q: To use a country to export goods to better developed countries and markets requires foreign markets to be closed, which if generally the case in developing countries.

Q: Transparency Internationals Corruption Perceptions Index (CPI) pertains to the corruption in a country or the demand side of corruption.

Q: The study of the nonmarket environment of an emerging market country involves assessment of labor market, demand and supply relations, and investigation of the competitiveness of incumbent companies.

Q: Assessment measures developed for countries and the growth of political consultancies help draw conclusions about a country before business can be established.

Q: The principles of nonmarket strategy for operating in democracies cannot simply be transported to emerging markets, particularly for countries that are not democratic and where the rule of law is weak.

Q: Emerging Markets

Q: Write a short note on workers rights in China. What are the different aspects of the Labor Contract Law?

Q: Discuss the piracy issues plaguing China. Why was it difficult to stop piracy?

Q: What is an SOE? What is its importance in China?

Q: Explain the idea behind the concepts of ren and li.

Q: Explain briefly the rationale behind the launch of the Great Proletarian Cultural Revolution in 1966. What was the aftermath of the revolution?

Q: Write a short note on the war with Japan and the civil war that resulted in the founding of the Peoples Republic of China.

Q: What has been Chinas principal environmental concern? a) global warming b) domestic pollution c) changes in sea-water levels d) soil erosion

Q: China censored the content on the Internet as well as blocked responses to searches on topics such as ________. a) Confucian ethics b) guanxi c) the Household Responsibility System d) the spiritual Falun Gong movement

Q: International concern about Chinas human rights have centered on which of the following? a) the persecution of the aged b) persecution of religious minorities c) the increasing economic inequities in the Chinese society d) the increasing rate of unemployment and underemployment

Q: Which of the following is true with regard to the SOEs (State-Owned Enterprises)? a) The labor policies of the SOEs were in conflict with the socialist economic system. b) Since the late 1970s, SOE reform has been systematically ignored by the Chinese leaders. c) In addition to production, SOEs provided virtually all the major social services required by employees, their families, and retirees. d) Subsidies provided to SOEs increased steadily from 1989 to 1996.

Q: When the Party Congress is not in session, authority passes to the ________, which convenes at least twice annually. a) Central Committee b) Politburo c) state work units d) Standing Committee of the Politburo

Q: Which of the following forms a part of the four Is? a) injunction b) information c) instant justice d) internal trade barriers

Q: Informal personal ties in Chinese society are referred to as ________. a) li b) ren c) guanxi d) danwei

Q: One of the most striking differences between Confucian and Western political thought is that the former does not conceive of a role for _______. a) the head of state b) family heads c) the family d) civil society

Q: According to the Confucian ideal of hierarchical relations, households were expected to defer to the ________ on nonhousehold matters. a) state b) family heads c) head of the clan d) religious leaders

Q: Confucius considered ________ as the ultimate object of moral self-cultivation. a) li b) danwei c) ren d) guanxi

Q: Which of the following is one of the Five Relationships that, according to the Zhongyong, must be perfected before social harmony is achieved? a) the relationship between mother and daughter b) the relationship between mother and son c) the relationship between father and daughter d) the relationship between father and son

Q: According to Confucian ethics, ________. a) self-cultivation sought a solution to social conflict in defining, limiting, and guaranteeing the rights and interests of the individual b) self-cultivation sought a solution to social conflict in the balance of power and interests between individuals c) the society is the ideal setting for moral self-cultivation d) self-cultivation sought the solution to social conflict from the self-sacrifice of the individual for the preservation of the group.

Q: Confucius was responsible for initiating the central preoccupation of Chinese philosophical thought: ________. a) self-awareness b) moral self-cultivation c) individualism d) hedonic living

Q: Confucianism laid emphasis on ________. a) chauvinism b) hedonic living c) deference d) individualism

Q: Under Chinas ________ policy, Hong Kong was to retain its autonomy, including a separate currency, for 50 years. a) One Country, One System b) One Country, Two Systems c) Two Countries, One System d) Two Countries, Two Systems

Q: Between 1983 and 1985, in the agricultural sector, the government replaced mandatory grain purchases with a contracting system known as the ________. a) One Country, Two Systems b) Household Responsibility System c) Danwei system d) Guanxi system

Q: Which of the following is true with regard to Deng Xiaoping's economic reforms? a) Deng's economic reforms did not focus on defense. b) Foreign investments were strongly discouraged in the Special Economic Zones. c) Small, household-run enterprises were made illegal. d) Dengs economic reforms were headlined by the Four Modernizations."

Q: Which of the following is true with regard to the era of reforms in China? a) In the agricultural sector, the government replaced a contracting system with mandatory grain purchases known as the danwei system. b) Recognizing that China needed more exposure to Western products, ideas, and capital, Beijing lifted import restrictions in 1978 under its open-door policy. c) Dengs economic reforms were headlined by the "Five Relationships." d) In the cities, SOEs were given reduced discretion over their profits, and individual managers were made less accountable for their performance.

Q: According to Deng, which of the following was one of the Four Modernizations? a) defense b) social norms c) cultural heritage d) religion

Q: Which of the following is true with regard to the communist era in China? a) With the aid of Soviet loans, the CCP industrial policy emphasized the consumer goods sector at the expense of sectors such as steel, petroleum, and chemicals. b) In keeping with Marxist philosophy, the CCP sought to control all commerce. c) The end of the Korean War allowed policymakers to concentrate on their next task: the transformation of the Chinese economy into a capitalist system. d) The Cultural Revolution minimized the armys status within the party hierarchy.

Q: According to Mao and Lin, which of the following was one of the four olds? a) old people b) old technology c) old ideas d) old machinery

Q: Labor was furnished through the ________ system, under which workers were permanently assigned to enterprises upon completing their education. a) Five Relationships b) Four Modernizations c) danwei d) guanxi

Q: Which of the following is true with regard to the Republican era in China? a) While many credit Sun Yat-sen with the founding of the Republic of China in 1911, China at the time was hardly a coherent political entity. b) Despite the military offensives launched in the 1920s, Chiang Kai-shek failed to bring most of China under GMD rule. c) The Revolutionary Alliance, led by Mao Zedong, had the backing of a strong armed force. d) By the first decade of the twentieth century, the activities of the Revolutionary Alliance steadily dwindled in Chinas major urban centers.

Q: 26) Ethnic Chinese are also known as the ________ people. a) Xia b) Han c) Sui d) Qing

Q: The Labor Contract Law took effect in 2005 and provided for rights that are as extensive as those found in Europe and the United States.

Q: No company is allowed wholly foreign-owned enterprise (WFOE) status in China.

Q: Joint ventures are illegal in China.

Q: China has no tradition of an independent judiciary.

Q: Chinas paramount executive body is the State Planning Commission (SPC).

Q: The Politburo is responsible for the ongoing administration of the CCP.

Q: The Chinese tendency toward small, family-owned businesses that operate within tight networks shows many traces of the Confucian heritage.

Q: Confucianism has often been linked with the development and operation of capitalism in China and other Asian countries.

Q: Guanxi ties resemble legally circumscribed contracts or quid pro quo arrangements.

Q: Guanxi ties create a form of diffuse reciprocity, allowing individuals to exchange favors even years after a formal relationship has been dissolved.

Q: Formal ties in the Chinese bureaucracy are often referred to as guanxi.

Q: Confucian behavioral norms display a strongly particularistic, as opposed to universal, inclination.

Q: The Confucian tradition places a strong emphasis on behavioral minutiae because of its belief that self-cultivation is not a solitary endeavor, but rather occurs in a social context.

Q: According to the Zhongyong, the relationship between an individual and his/her foe is one of the Five Relationships that must be perfected before social harmony is achieved.

Q: Confucianism views the family as the ideal setting for moral self-cultivation.

Q: The general framework of Confucian thoughts displays considerable rigidity.

Q: With its emphasis on hierarchy, deference, moral rectitude, and behavioral norms, Confucianism was well suited to the needs of social stability and significantly contributed to Chinas long existence as a unified nation.

Q: In 1999 Macao was returned to China by Portugal.

Q: Beijing lifted import restrictions in 1978 under its open-door policy recognizing China's need for exposure to Western products, ideas, and capital.

Q: Mao Zedongs economic reforms were headlined by the Four Modernizations.

Q: A central feature of Chinas First Five Year Plan was the collectivization of agriculture.

Q: The pre-Ming Chinese were strictly against foreign commerce.

Q: The Qin dynasty lacked the technological expertise of its rivals.

Q: Invasion by barbarians resulted in centuries of political fragmentation, during which much of Chinas most impressive philosophy was developed.