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Q:
A caste system is a closed system of stratification in which social position is determined by the family into which a person is born.
Q:
The least rigid system of social stratification is a caste system.
Q:
Individuals become a member of the social category to which their parents belong.
Q:
Strong identification with the group tends to create pressures for mutual self-help and collective action.
Q:
The primacy of the value of group identification encourages managers and workers to move from company to company.
Q:
The emphasis on individualism has led to the widespread diffusion of self-managing work teams within Japanese organizations.
Q:
The emphasis on individualism may make it difficult to build teams within an organization to perform collective tasks.
Q:
The emphasis on individualism results in a low degree of managerial mobility between companies.
Q:
There is a strict one-to-one correspondence between a society and a nation-state.
Q:
Rituals and symbols are the most visible manifestations of a culture and constitute the outward expression of deeper values.
Q:
Values provide the context within which a society's norms are established and justified.
Q:
If newly privatized firms are protected from foreign competition by barriers to international trade and foreign direct investment, they continue to act like state monopolies.
Q:
In China, state-owned companies still dominate the banking, energy, telecom, health care, and technology sectors.
Q:
The shift toward deregulation has been easier for former command economies than for mixed economies.
Q:
Economic freedom does not necessarily equate with political freedom.
Q:
In general, command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries adopting market-based systems.
Q:
In Samuel Huntington's thesis, global terrorism is a product of the tension between civilizations and the clash of value systems and ideology.
Q:
Author Francis Fukuyama envisioned a world split into different civilizations, each of which has its own value systems and ideology.
Q:
The late Influential political scientist Samuel Huntington predicted that the universalization of Western liberal democracy will be the final form of human government.
Q:
Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations.
Q:
New information and communication technologies have increased a state's ability to control access to uncensored information.
Q:
According to Freedom House, all democracies are free countries in terms of political and civil liberties.
Q:
During the late 1980s and early 1990s, totalitarian governments collapsed and were replaced by democratically elected governments.
Q:
According to the influential economist Jeffrey Sachs, tropical regions have a more extensive division of labor than temperate regions.
Q:
A strong belief that economic progress leads to adoption of a totalitarian regime underlies the fairly permissive attitude that many Western governments have adopted toward human rights violations in China.
Q:
Totalitarian states, by limiting human freedom, are highly conducive to progress in terms of innovation, entrepreneurship, and economic growth.
Q:
Five of the fastest growing economies of the past 30 yearsChina, South Korea, Taiwan, Singapore, and Hong Konghad one thing in common at the start of their economic growth: democratic governments.
Q:
The Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they relax the property rights offered by their legal systems.
Q:
Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth.
Q:
Entrepreneurial individuals have fewer economic incentives to develop valuable new innovations in market economies than in planned economies.
Q:
If a country's economy is to sustain long-run economic growth, the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.
Q:
Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth, define innovation broadly to include not just new products but also new processes, new organizations, new management practices, and new strategies.
Q:
The gross national income (GNI) per capita comes much closer to Amartya Sen's conception of how development should be measured than narrow economic measures such as Human Development Index (HDI).
Q:
In Amartya Sen's view, development is solely an economic process, and not a political process.
Q:
Although countries such as China and India are currently relatively poor, their economies are already large in absolute terms and growing more rapidly than those of many advanced nations.
Q:
The purchasing power parity for different countries is adjusted (up or down) depending upon whether a country's cost of living is lower or higher than the cost of living in the United States.
Q:
Gamma Gene Incorporated has sought your opinion about the overall attractiveness of various countries as potential markets and investment sites. What would you tell them?
Q:
What are the various types of risks that a business enterprise could face in doing business in a particular country?
Q:
What are the implications of changing political economy for international business?
Q:
Discuss the significance of legal systems in the context of shifting toward a market-based economic system.
Q:
When does the process of privatization fail to deliver predicted benefits? What economic conditions are required for privatization to work?
Q:
Discuss the concept of deregulation.
Q:
Discuss Samuel Huntington's idea of the new world order. What are its implications for international business?
Q:
How does Author Francis Fukuyama's vision of the new world differ from that of the late influential political scientist Samuel Huntington?
Q:
What are the various reasons that account for the spread of democracy?
Q:
What changes have occurred in the political economy of most of the world's nation-states since the late 1980s?
Q:
Discuss Jeffrey Sachs's conception of geography, education, and economic development.
Q:
Why are market economies more conducive to innovation and entrepreneurship than planned or mixed economies?
Q:
List the three measures on which the Human Development Index (HDI) is based.
Q:
Describe Amartya Sen's conceptions of development.
Q:
The government of Nerumbia wants to open the country's economy to international business, and increase its overall attractiveness as a potential market or investment site. Which of the following will facilitate this decision of the Nerumbian government?
A.Shifting toward command economy or an economy where property rights are not enforced strictly
B.Investing in infrastructure and in the required supporting businesses
C.Frequently changing the government and the government policies
D.Maintaining a high inflation rate
E.Adopting a legal system which does not provide any protection for intellectual property rights
Q:
Which of the following is most likely to be true about the overall attractiveness of a country as a potential market or investment site for an international business?
A.The potential long-run benefits of doing business in a foreign country are independent of the country's future economic growth rates.
B.The costs and risks associated with doing business in a foreign country are highest in economically advanced democratic nations.
C.Economic growth tends to be higher in a centrally planned command economy system than in a free market system.
D.The risks associated with doing business are low in developing nations where the governments have huge debts.
E.The costs and risks associated with doing business in a foreign country tend to be greater in politically unstable nations.
Q:
Generally, the costs and risks associated with doing business in a foreign country are typically lower in:
A.less developed countries.
B.economically advanced countries.
C.totalitarian states.
D.countries with high inflation and falling living standards.
E.countries that lack intellectual property rights.
Q:
The risks of doing business are most likely to be the highest in a country that:
A.has low inflation rates.
B.supports high living standards.
C.has only one ethnic nationality.
D.protects intellectual property.
E.faces frequent changes in government and government policy.
Q:
MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. MedPlus is trying to avoid what type of risk?
A.Political
B.Legal
C.Ethical
D.Economic
E.Ethnographic
Q:
What type of risk can be defined as the likelihood that a trading partner will opportunistically break a contract or expropriate property rights?
A.Political
B.Legal
C.Economic
D.Sociological
E.Cultural
Q:
The government of Ugania had been extending huge amounts of loans to the business enterprises in the country. However, the borrowers failed to generate the profits necessary to repay their debts. As a result, national banks in Ugania had a lot of nonperforming assets on their books, and the Uganian currency was devalued. In this context, the business enterprises in Ugania are most likely to face which of the following type of risk?
A.Ethical
B.Economic
C.Technological
D.Legal
E.Sociological
Q:
Which of the following statements is most likely to be true about the risks of doing business in a country?
A.Political risk is low in countries that contain more than one ethnic nationality.
B.Economic risks are independent of political risk.
C.One visible indicator of economic risk is the level of business and government debt in the country.
D.One visible indicator of legal risk tends to be a country's inflation rate.
E.Political risk tends to be low in those countries that have high inflation and falling living standards.
Q:
Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high. As a result, the country's business environment is beginning to deteriorate, and the profits of the business enterprises are hurt. According to this information, Lamboria Republic is facing which of the following type of risk?
A.Legal
B.Ethical
C.Demographic
D.Ethnographic
E.Economic
Q:
Which of the following factors in a country is most likely to cause political risk for an international business?
A.The presence of more than one ethnic nationality
B.Infrequent changes in government and government policy
C.Low inflation rate
D.Low level of government debt
E.High living standards
Q:
When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk?
A.Political
B.Demographic
C.Ethical
D.Technological
E.Physiological
Q:
In the context of cost, which of the following can be considered as the most attractive market or investment site?
A.A country that has adopted a closed totalitarian state
B.A country that has a well-developed body of business contract law
C.A country with a command-based economic system
D.A country with stringent product safety laws and huge liability insurance rates
E.A country which does not provide any protection for property rights
Q:
Star Volans Inc. is planning on expanding its business globally. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country:
A.with a closed totalitarian political system.
B.where the company will have to provide its own infrastructure and supporting business.
C.where laws regarding product safety, safety in the workplace, and environmental pollution are extremely stringent.
D.where politicians are held accountable by the electorate.
E.with no local laws to protect intellectual property.
Q:
The cost of doing business is most likely to be the lowest in:
A.closed totalitarian states.
B.primitive or undeveloped economies.
C.open democratic societies.
D.countries where local laws and regulations set strict standards with regard to product safety, safety in the workplace, and environmental pollution.
E.countries that lack well-established laws for regulating business practice.
Q:
Which of the following statements is most likely to be true about the economic prospects of a country?
A.The economic system and property rights regime are reasonably good predictors of economic prospects of a country.
B.Countries with command economies tend to achieve greater economic growth rates than free market economies.
C.Countries which do not provide any protection for property rights tend to achieve greater economic growth rates than the countries in which property rights are protected.
D.Countries where property rights are not well respected and where corruption is rampant always have very low levels of economic growth.
E.The advantages of building brand loyalty and gaining experience in a country's business practices is greater for a last-mover than for a first-mover.
Q:
Both China and India have achieved high growth rates despite relatively weak property rights regimes and high levels of corruption, because of:
A.the shift toward a communist ideology.
B.their high living standards.
C.their large population.
D.their high consumer purchasing power.
E.the shift toward a market-based economic system.
Q:
When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the company?
A.First-mover disadvantages
B.Last-mover disadvantages
C.Last-in first-out disadvantages
D.Comparative disadvantages
E.Absolute disadvantages
Q:
Which of the following best exemplifies a first-mover advantage?
A.Venus Inc. has more than 50 percent market share in the telecom industry, because no other company had invested in this industry before Venus Inc.
B.Maya won a cash discount of 75 percent on the latest NewY phone as she was the winner of a competition conducted by NewY.
C.The level of satisfaction Simon experienced when dining at the Emerald Inn was greatest the first time, and thereafter it reduced each time he dined there.
D.Innovative Creations Inc. was the first to exit the declining pager phone manufacturing industry and as a result, it avoided losing a lot of money.
E.Product critiques are extremely respected by major firms, as they are the first ones to review new products and services.
Q:
Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In the language of business strategy, Capricorn Creative has typically benefited from:
A.a first-mover advantage.
B.forward integration.
C.unrelated differentiation.
D.lateral diversification.
E.technology transfer.
Q:
In economic terms, the long-run monetary benefits of doing business in a country are most likely to be a function of the:
A.gender ratio of the country.
B.latitudinal and the longitudinal location of the country.
C.natural resources available in the country.
D.present wealth (purchasing power) of consumers of the country.
E.political history of the country.
Q:
Although China and India are very large markets when measured by number of consumers, they are relatively small markets when measured in economic terms due to their:
A.orientation toward democracy.
B.small share in the world output.
C.high living standards.
D.limited purchasing power.
E.commitment to a free market system.
Q:
Countries with which of the following are more likely to attain high and sustained economic growth rates and are thus a more attractive location for international business?
A.Weak protection of property rights
B.Democratic regimes
C.Command-based economic policies
D.Ideologies that differ from Western ideologies
E.Totalitarian dictatorships
Q:
The United Nation of Amberia, a Western European country, fought on the winning side of the Cold War. Which of the following was most likely being propagated by the country by participating in the Cold War?
A.Strong business regulations
B.Communist ideologies
C.Command economies
D.Totalitarian dictatorships
E.Free markets
Q:
Which of the following of the Cold War era has vanished?
A.Multipolar world
B.Democratic system
C.Free market system
D.Bipolar world
E.Widespread belief in Western ideology
Q:
Which of the following statements is true about the global changes in political and economic systems?
A.The West lost the Cold War, and East European communist ideology is now widespread.
B.A lack of deregulation has been the cause for the global financial crisis of 2008-2009, and the recession that followed.
C.It is guaranteed that democracy will thrive in most of the world's newer democratic states.
D.The multipolar world dominated by a number of civilizations of the Cold War era has vanished, and is now being replaced by a bipolar world.
E.Many of the undeveloped and impoverished national markets of eastern Europe, Latin America, Africa, and Asia are potentially enormous for international business.
Q:
Many commentators have blamed the problems that led to global financial crisis of 2008-2009, and the recession that followed on:
A.a lack of free markets.
B.a lack of regulation.
C.the political ideologies followed in the Asian countries.
D.a strong presence of command economies.
E.a lack of privatization and liberalization.
Q:
Which of the following is an implication of the global changes in political and economic systems for international business?
A.The ideological conflict between collectivism and individualism is less in evidence today.
B.Adoption of Western ideology is declining worldwide.
C.The global tide has been running in favor of command economies and totalitarian dictatorships.
D.Free markets and democracy are being replaced by mixed economies and communist governments.
E.Liberalization and privatization of state-owned enterprises has been losing popularity.
Q:
The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in:
A.an improvement in the operating efficiency of newly privatized firms.
B.reduced barriers to foreign direct investment and international trade.
C.an increase in the incentives to engage in economic activity.
D.deregulation and privatization of the economy.
E.the lack of incentive to engage in economic activity.
Q:
In the Republic of Lantharia, the state-owned telephone company enjoys a monopoly. The government of Lantharia Republic wants to maximize the operating efficiency of this company by privatizing it. Which of the following is most likely to help the government succeed in this endeavor?
A.Imposing high corporate taxes on the company immediately after its privatization
B.Increasing barriers to foreign direct investment
C.Intervening in the company's operations by exercising price controls
D.Splitting the company into independent units to compete with each other
E.Prohibiting foreign companies from entering into the field of telecommunication in the Republic of Lantharia
Q:
Which of the following statements is true about privatization?
A.The privatization movement started in China in the early 1980s.
B.Privatization involves replacing a state-owned monopoly with a private monopoly.
C.For privatization to become successful, countries should adopt communism.
D.When newly privatized firms are extensively protected from foreign competition, they have little incentive to restructure their operations to become more efficient.
E.In today's context, a country runs the risk of experiencing a serious economic crisis if it liberalizes and privatizes state-owned enterprises.