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Q:
_____, a Nobel Prize winning economist, has argued that development is not just an economic process, but it is a political one as well.
A) Hernando de Soto
B) Karl Marx
C) Samuel Huntington
D) Amartya Sen
Q:
Which of the following is one of the measures that HDI is based on?
A) life expectancy at birth
B) political freedom
C) attainment of housing
D) whether the lowest incomes are sufficient to meet the basic needs of life
Q:
Many countries in Africa score below 0.5 on the Human Development Index. This means that these countrieshave
A) few political freedoms.
B) poor quality of life.
C) low purchasing power parity.
D) no gross domestic product.
Q:
Which of the following was developed by the United Nations to measure the quality of life in different nations?
A) gross national income
B) Human Development Index
C) purchasing power parity
D) gross domestic product
Q:
GNI per person figures can be misleading because
A) they also include barter agreements.
B) they provide a dynamic picture of development.
C) they don t consider differences in the cost of living.
D) they don t consider exchange rate.
Q:
In a _____, any individual who has an innovative idea is free to try to make money out of that idea by starting a business (by engaging in entrepreneurial activity).
A) command economy
B) planned economy
C) market economy
D) mixed economy
Q:
To account for differences in the cost of living, one can adjust GNI per capita by _____, which allows for a more direct comparison of living standards in different countries.
A) gross domestic product
B) Human Development Index
C) living standards rate
D) purchasing power
Q:
The general assertion is that nations investing more in _____ will have higher economic growth rates.
A) services
B) centralized urban centers
C) education, health, and infrastructure
D) manufacturing
Q:
Several of the fastest-growing Asian economies adopted more _____ governments during the past three decades, including South Korea and Taiwan.
A) totalitarian
B) democratic
C) dictatorial
D) socialist
Q:
Which of the following is a legal means by which the state can expropriate the profits from business activity?
A) demands for money to grant a license
B) expropriation
C) enforcing property rights
D) excessive taxation
Q:
The economic freedom associated with a _____ creates greater incentives for competition, innovation, and entrepreneurship than either a planned or a mixed economy.
A) closed economy
B) political economy
C) market economy
D) command economy
Q:
In a _____, the state owns all means of production.
A) mixed economy
B) planned economy
C) market economy
D) totalitarian state
Q:
The _____ adjustment allows for a more direct comparison of living standards in different countries.
A) gross domestic product
B) value added
C) gross national income (GNI)
D) purchasing power parity (PPP)
Q:
GNI per capita can be adjusted by _____ to account for differences in the cost of living.
A) gross domestic product
B) gross values added
C) purchasing power
D) the total value of goods and services produced
Q:
________ per person figures can be misleading because they don t consider differences in the cost of living.
A) Gross domestic product (GDP)
B) Gross national income (GNI)
C) Purchasing power parity (PPP)
D) Human Development Index (HDI)
Q:
Discuss Samuel Huntington s views on Islamic fundamentalism.
Q:
When Penelope returned home from vacation, she found her store had been robbed and her most valuable merchandise was gone. This violation of property rights is considered private action.
⊚ true
⊚ false
Q:
The Trade-Related Aspects of Intellectual Property Rightsagreement attempts to reduce intellectual property protections to enhance trade.
⊚ true
⊚ false
Q:
Patents discourage companies from committing themselves to extensive basic research.
⊚ true
⊚ false
Q:
Fred wanted to protect his novel from piracy, so he copyrighted it. Patents, copyrights, and trademarks establish ownership rights over intellectual property.
⊚ true
⊚ false
Q:
The Foreign Corrupt Practices Act does not allow for grease payments.
⊚ true
⊚ false
Q:
Property rights can be violated in two ways through private action and through public action.
⊚ true
⊚ false
Q:
Many of the world s larger trading nations, including India and the United Kingdom, have not ratified the United Nations Convention on Contracts for the International Sale of Goods (CISG).
⊚ true
⊚ false
Q:
Judge Michaels operates in a country with a civil law system. This system has more flexibility than a common law system.
⊚ true
⊚ false
Q:
A nation s legal system is usually of very little interest to international business managers.
⊚ true
⊚ false
Q:
In mixed economies, governments tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests.
⊚ true
⊚ false
Q:
The Republic of Elbow has a command economy, and as such, its objective is to encourage free and fair competition between private producers.
⊚ true
⊚ false
Q:
Democracy is a form of government that prohibits opposing political parties.
⊚ true
⊚ false
Q:
Most modern democratic states practice representative democracy.
⊚ true
⊚ false
Q:
Some believe the Cold War was simply about nuclear proliferation, but in many respects, it was a war between ideas of economic and political governance.
⊚ true
⊚ false
Q:
Although many countries have stringent intellectual property regulations on their books, the enforcement of these regulations has often been lax. This has been the case even among many of the 185 countries that are now members of the _____, all of which have signed international treaties designed to protect intellectual property.
A) World Intellectual Property Organization
B) General Agreement on Tariffs and Trade
C) Business Software Alliance
D) Trade-Related Aspects of Intellectual Property Rights (TRIPS)
Q:
A law system that is based on a detailed set of laws organized into codes is
A) municipal.
B) contract.
C) civil.
D) common
Q:
In the 1970s, the United States _____, which requires all publicly traded companies, whether or not they are involved in international trade, to keep detailed records that would reveal whether a violation of the act has occurred.
A) adopted the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions policy
B) passed the Foreign Corrupt Practices Act
C) joined Transparency International
D) joined the Organisation for Economic Co-operation and Development (OECD)
Q:
The most widely practiced theocratic legal system in the modern world is
A) Christian.
B) Hindu.
C) Jewish.
D) Islamic.
Q:
In common law, _____ refers to cases that have come before the courts in the past.
A) custom
B) precedent
C) codification
D) tradition
Q:
_____ are established through patents, copyrights, and trademarks.
A) Digital signatures
B) Ownership rights over private property
C) Origination fees and tributes
D) Ownership rights over intellectual property
Q:
Company Zee has been found guilty of manufacturing a product that caused harm to its users, violating criminal liability laws. Which of the following is the most likely outcome for Company Zee?
A) payment and monetary damages
B) more severe punishment if Company Zee is outside the United States
C) fines or imprisonment
D) nothing if it was Company Zee s first offense
Q:
The _____ makes it illegal for American companies to bribe a foreign government official in order to obtain or maintain business over which that foreign official has authority, and requires all publicly traded companies to keep detailed records that would reveal whether a violation of the act has occurred.
A) Trade-Related Aspects of Intellectual Property Rights (TRIPS)
B) Foreign Corrupt Practices Act (FCPA)
C) Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
D) Organisation for Economic Co-operation and Development (OECD)
Q:
The _____ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers that have their places of business in different nations.
A) Trade-Related Aspects of Intellectual Property Rights (TRIPS)
B) Paris Convention for the Protection of Industrial Property
C) United Nations Convention on Contracts for the International Sale of Goods (CISG)
D) World Trade Organization (WTO)
Q:
Private action refers to
A) public officials extorting income, resources, or the property itself from property holders.
B) bribing government officials in foreign countries in an attempt to win lucrative contracts.
C) theft, piracy, blackmail, and the like by private individuals or groups.
D) violations of intellectual property rights.
Q:
Which of the following statements about the Trade-Related Aspects of Intellectual Property Rights (or TRIPS) agreement is true?
A) It was designed to oversee the loosening of intellectual property regulations, beginning in 1995.
B) It obliged WTO members to grant and enforce patents lasting at least 20 years and copyrights lasting 50 years.
C) It directed rich countries to comply with its rules of intellectual property protection within five years.
D) It provided the very poorest countries amnesty from complying with its rules of intellectual property protection.
Q:
Designs and names by which merchants or manufacturers designate and differentiate their products are known as
A) trademarks.
B) copyrights.
C) patents.
D) licenses.
Q:
Which of the following is an example of intellectual property?
A) a music score
B) a laser-tag game
C) a software business
D) a theater
Q:
_____ rights refer to the legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource.
A) Trade
B) Property
C) Positive
D) Common
Q:
A _____ law system is based on a very detailed set of laws organized into codes.
A) traditional
B) theocratic
C) civil
D) common
Q:
One key component of a country s legal system is
A) establishing a mixed economy.
B) taking a hands-off approach to business practices.
C) defining the rights and obligations of those involved in business transactions.
D) leaving the monitoring of the way business transactions are executed to the United Nations.
Q:
Which of the following is a reason that command economies tend to stagnate?
A) Costs are tightly controlled and business are forced to be efficient rather than dynamic and innovative.
B) The abolition of private ownership means there is no incentive for individuals and no competition.
C) All economic resources are mobilized for the public good.
D) Individuals in command economy countries lack the skills to be innovative.
Q:
In 2008, the U.S. government took an 80 percent stake in AIG to stop that financial institution from collapsing, the theory being that if AIG did collapse, it would have very serious consequences for the entire financial system. What type of economy is this an example of?
A) command
B) mixed
C) capitalistic
D) market
Q:
In a _____, if demand for a product exceeds supply, prices will rise, signaling to producers to produce more.
A) mixed economy
B) market economy
C) collectivist economy
D) command economy
Q:
The local grocery in a small southern city is the only option for the residents, so it has a monopoly on the grocery business there. When the population of the city grows and demand for groceries increases, what is the grocery store most likely to do?
A) Restrict output to drive prices down.
B) Increase output to drive prices down.
C) Restrict output and let prices rise.
D) Increase output and keep prices constant.
Q:
The abolition of _____ in a command economy distorts incentive and competition.
A) private ownership
B) public ownership
C) government-owned businesses
D) co-operatives
Q:
_____ refers to a state where political power is monopolized by a party, group, or individual that governs according to religious principles.
A) Representative democracy
B) Theocratic totalitarianism
C) Tribal anarchism
D) Monotheistic communism
Q:
People s right to protest on issues of accountability in public expenditure would be possible in a _____ political setup.
A) dictatorial
B) democratic
C) totalitarian
D) fascist
Q:
Which of the following is a safeguard that representative democracies use to ensure that their elected officials are held responsible for their actions?
A) unlimited terms for elected representatives
B) a court system that is integrated with the political system
C) an individual s right to freedom of expression, opinion, and organization
D) a political police force and armed service
Q:
Which of the following statements about individualism is true?
A) Individualism promotes state ownership of the basic means of production, distribution, and exchange.
B) Individualism promotes globalization.
C) Individualism creates an antibusiness environment.
D) Individualism and democracy go hand in hand.
Q:
Modern socialism has been popularized largely through the work of
A) Adam Smith.
B) Karl Marx.
C) David Hume.
D) Thomas Hobbes.
Q:
Systems that emphasize collectivism tend toward
A) totalitarianism.
B) capitalism.
C) democracy.
D) privatization.
Q:
In a(n) _____ society, the welfare of society is best served by letting people pursue their own economic self-interest.
A) individualist
B) collectivist
C) communist
D) totalitarian
Q:
_____ argued that individual diversity and private ownership are desirable.
A) Karl Marx
B) Plato
C) John Stuart Smith
D) Aristotle
Q:
What term is used to describe a state in which authoritarian elements have captured some or much of the machinery of state and use this in an attempt to deny basic political and civil liberties?
A) authoritarian dictatorship
B) right-wing democracies
C) representative totalitarianism
D) pseudo-democracies
Q:
When _____ is emphasized, an individual s right to do something may be restricted on the grounds that it runs counter to the good of society."
A) individualism
B) totalitarianism
C) collectivism
D) theocracy
Q:
Plato _____; he believed that society should be stratified into classes, with those best suited to rule administering society for the benefit of all.
A) equated individualism with equality
B) equated collectivism with equality
C) promoted representative democracy
D) did not equate collectivism with equality
Q:
Manchu believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.Manchu was likely a
A) libertarian.
B) communist.
C) collectivist.
D) social democrat.
Q:
Modern socialists trace their intellectual roots to _____, although socialist thought clearly predates this individual.
A) David Hume
B) Karl Marx
C) Adam Smith
D) John Stuart Mill
Q:
The term _____ stresses that the political, economic, and legal systems of a country are interdependent.
A) political economy
B) common law
C) socialism
D) collectivism
Q:
Who was the author of The Wealth of Nations in which he stated that "an individual who intends his own gain is led by an invisible hand to promote an end that was no part of his intention..."?
A) David Hume
B) Adam Smith
C) Karl Marx
D) John Stuart Mill
Q:
_____ occurs when a political party that represents the interests of a particular tribe (and not always the majority tribe) monopolizes power.
A) Tribal monopoly
B) Communist totalitarianism
C) Tribal totalitarianism
D) Privatization
Q:
What factors contribute to the attractiveness of a country as a market or investment site?
Q:
What is a country s legal system? Why is it important to international businesses?
Q:
Managing an international business is quite similar to managing a domestic business.
⊚ true
⊚ false
Q:
A firm needs to become a multinational enterprise to engage in international business.
⊚ true
⊚ false
Q:
According to supporters of debt relief, new democratic governments in poor nations should not be forced to honor debts incurred by corrupt and dictatorial predecessors.
⊚ true
⊚ false
Q:
According to critics of globalization, today s interdependent global economy increases a nation s exposure to global risks.
⊚ true
⊚ false
Q:
According to supporters of free trade, as countries become more integrated into global economy and trade, they are more likely to enforce stricter environmental and labor regulations.
⊚ true
⊚ false
Q:
Evidence suggests that technological change and automation has had a bigger impact than globalization on the declining share of national income enjoyed by unskilled labor.
⊚ true
⊚ false
Q:
According to globalization critics, the decline in unskilled wage rates is due to the migration of low-wage manufacturing jobs offshore and a corresponding reduction in demand for unskilled workers.
⊚ true
⊚ false
Q:
Because Russia has shown signs of shifting back toward greater state involvement in economic activity and authoritarian government, doing business in Russia is considered riskier.
⊚ true
⊚ false
Q:
Foreign direct investment by non-U.S. firms increased because they wanted to disperse production activities to optimal locations and to build a direct presence in major foreign markets.
⊚ true
⊚ false
Q:
According to WTO data, the volume of global trade has grown faster than the world economy since 1950.
⊚ true
⊚ false
Q:
The lowering of barriers to international trade enables firms to compete globally and view the world, rather than a single country, as their market.
⊚ true
⊚ false