Question 1

The institution-based view has emerged as a leading perspective on global business.

Accepted Answer

A) True 
 B)False  True

Question 2

One fundamental economic function that a legal system serves is to protect _____.

Accepted Answer

A)  property rights 
B)  remedial rights 
C)  conditional rights 
D)  subjective rights 
A)  property rights 
B)  remedial rights 
C)  conditional rights 
D)  subjective rights A

Question 3

According to Richard Scott,which of the following statements is true of the normative pillar?

Accepted Answer

A)  It is the coercive power of governments. 
B)  It acts as the primary supportive pillar of formal institutions. 
C)  It is a primary support for all informal institutions. 
D)  It includes laws,regulations,and rules. 
A)  It is the coercive power of governments. 
B)  It acts as the primary supportive pillar of formal institutions. 
C)  It is a primary support for all informal institutions. 
D)  It includes laws,regulations,and rules. C

Question 4

If a company is doing business in a country with a strong propensity for informal relational exchanges,it may not be a good idea to insist on formalizing the contract right away.Because such countries often have relatively weak legal systems,personal relationship building is often used to substitute for the lack of strong legal protection.

Accepted Answer

A) True 
 B)False

Question 5

What is Nobel laureate Oliver Williamson referring to when he says "Do the gears mesh,are the parts lubricated,is there needless slippage or other loss of energy? Do the parties to exchange operate harmoniously,or are there frequent misunderstandings and conflicts?"

Accepted Answer

A)  normative pillar 
B)  transaction costs 
C)  opportunism 
D)  the legal pillar 
A)  normative pillar 
B)  transaction costs 
C)  opportunism 
D)  the legal pillar

Question 6

Relying on informal connections is relevant only to firms in emerging economies,and firms in developed economies pursue only market-based strategies.

Accepted Answer

A) True 
 B)False

Question 7

Formal and informal institutions combine to govern firm behavior.

Accepted Answer

A) True 
 B)False

Question 8

An institution-based view of global business focuses on:

Accepted Answer

A)  the dynamic interaction between institutions and firms. 
B)  why certain industries within a nation are competitive internationally. 
C)  expanding the range of acceptable actions that firms can take. 
D)  a firm's internal strengths and weaknesses. 
A)  the dynamic interaction between institutions and firms. 
B)  why certain industries within a nation are competitive internationally. 
C)  expanding the range of acceptable actions that firms can take. 
D)  a firm's internal strengths and weaknesses.

Question 9

The cognitive pillar refers to the internalized values and beliefs that guide individual and firm behavior.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of transition economies?

Accepted Answer

A)  They are often emerging economies 
B)  They are characterized by pervasive institutional transitions 
C)  They present huge challenges and tremendous opportunities for domestic and international firms 
D)  All of the above 
A)  They are often emerging economies 
B)  They are characterized by pervasive institutional transitions 
C)  They present huge challenges and tremendous opportunities for domestic and international firms 
D)  All of the above

Question 11

An important source of transaction costs is _____,defined as the act of seeking self-interest with guile.

Accepted Answer

A)  opportunism 
B)  theocracy 
C)  uncertainty 
D)  piracy 
A)  opportunism 
B)  theocracy 
C)  uncertainty 
D)  piracy

Question 12

Describe the differences among the three economic systems.

Accepted Answer

A pure market economy is characterized b

Question 13

India is a democracy as its citizens elect representatives to govern the country on their behalf.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following best defines a political system?

Accepted Answer

A)  It refers to the legal rights to use an economic property and to derive income and benefits from it. 
B)  It refers to a legal system based on religious teachings. 
C)  It refers to the rules of the game on how a country's laws are enacted and enforced. 
D)  It refers to the rules of the game on how a country is governed constitutionally. 
A)  It refers to the legal rights to use an economic property and to derive income and benefits from it. 
B)  It refers to a legal system based on religious teachings. 
C)  It refers to the rules of the game on how a country's laws are enacted and enforced. 
D)  It refers to the rules of the game on how a country is governed constitutionally.

Question 15

Which of the following statements is true of political risk?

Accepted Answer

A)  It is prevalent to the same extent in both totalitarian and democratic countries. 
B)  It is a risk associated with legal changes. 
C)  It can lead to nationalization of foreign assets. 
D)  It can be highly beneficial for global business. 
A)  It is prevalent to the same extent in both totalitarian and democratic countries. 
B)  It is a risk associated with legal changes. 
C)  It can lead to nationalization of foreign assets. 
D)  It can be highly beneficial for global business.

Question 16

No two democracies have ever reportedly gone to war with each other.

Accepted Answer

A) True 
 B)False

Question 17

When markets work smoothly in developed countries,_____.

Accepted Answer

A)  formal institutions are taken for granted 
B)  informal institutions have a very limited role in economic development 
C)  relationship norms play a larger role in reducing uncertainty since formal constraints are unclear 
D)  formal institutions tend to be weak and ineffective 
A)  formal institutions are taken for granted 
B)  informal institutions have a very limited role in economic development 
C)  relationship norms play a larger role in reducing uncertainty since formal constraints are unclear 
D)  formal institutions tend to be weak and ineffective

Question 18

Institutional changes in some emerging economies are so pervasive that these countries are simply called _____.

Accepted Answer

A)  opportunists 
B)  regulatory pillars 
C)  transition economies 
D)  command economies 
A)  opportunists 
B)  regulatory pillars 
C)  transition economies 
D)  command economies

Question 19

A(n)_____ refers to the rules of the game on how a country's laws are enacted and enforced.

Accepted Answer

A)  economic system 
B)  political system 
C)  legal system 
D)  formal system 
A)  economic system 
B)  political system 
C)  legal system 
D)  formal system

Question 20

Even in developed economies,formal rules make up the largest part of institutional constraints,and informal constraints are less pervasive.

Accepted Answer

A) True 
 B)False

The institution-based view has emerged as a leading perspective on global business.

One fundamental economic function that a legal system serves is to protect _____.

According to Richard Scott,which of the following statements is true of the normative pillar?

What is Nobel laureate Oliver Williamson referring to when he says "Do the gears mesh,are the parts lubricated,is there needless slippage or other loss of energy? Do the parties to exchange operate harmoniously,or are there frequent misunderstandings and conflicts?"

Relying on informal connections is relevant only to firms in emerging economies,and firms in developed economies pursue only market-based strategies.

Formal and informal institutions combine to govern firm behavior.

An institution-based view of global business focuses on:

The cognitive pillar refers to the internalized values and beliefs that guide individual and firm behavior.

Which of the following is true of transition economies?

An important source of transaction costs is _____,defined as the act of seeking self-interest with guile.

Describe the differences among the three economic systems.

India is a democracy as its citizens elect representatives to govern the country on their behalf.

Which of the following best defines a political system?

Which of the following statements is true of political risk?

No two democracies have ever reportedly gone to war with each other.

When markets work smoothly in developed countries,_____.

Institutional changes in some emerging economies are so pervasive that these countries are simply called _____.

A(n)_____ refers to the rules of the game on how a country's laws are enacted and enforced.

Even in developed economies,formal rules make up the largest part of institutional constraints,and informal constraints are less pervasive.

Globalizing Business

Emphasizing Cultures Ethics Norms

Leveraging Resources Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing On Global Regional Integration

Growing Internationalizing The Entrepreneurial Firm

Entering Foreign Markets

Making Alliances Acquisitions Work

Strategizing Structuring Learning Around The World

Managing Human Resources Globally

Competing On Marketing and Supply Chain Management

Managing Corporate Social Responsibility Globally

Filters

Exam 2: Understanding Politics Laws Economics

The institution-based view has emerged as a leading perspective on global business.

One fundamental economic function that a legal system serves is to protect _____.

According to Richard Scott,which of the following statements is true of the normative pillar?

What is Nobel laureate Oliver Williamson referring to when he says "Do the gears mesh,are the parts lubricated,is there needless slippage or other loss of energy? Do the parties to exchange operate harmoniously,or are there frequent misunderstandings and conflicts?"

Relying on informal connections is relevant only to firms in emerging economies,and firms in developed economies pursue only market-based strategies.

Formal and informal institutions combine to govern firm behavior.

An institution-based view of global business focuses on:

The cognitive pillar refers to the internalized values and beliefs that guide individual and firm behavior.

Which of the following is true of transition economies?

An important source of transaction costs is _____,defined as the act of seeking self-interest with guile.

Describe the differences among the three economic systems.

India is a democracy as its citizens elect representatives to govern the country on their behalf.

Which of the following best defines a political system?

Which of the following statements is true of political risk?

No two democracies have ever reportedly gone to war with each other.

When markets work smoothly in developed countries,_____.

Institutional changes in some emerging economies are so pervasive that these countries are simply called _____.

A(n)_____ refers to the rules of the game on how a country's laws are enacted and enforced.

Even in developed economies,formal rules make up the largest part of institutional constraints,and informal constraints are less pervasive.

Globalizing Business

Emphasizing Cultures Ethics Norms

Leveraging Resources Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing On Global Regional Integration

Growing Internationalizing The Entrepreneurial Firm

Entering Foreign Markets

Making Alliances Acquisitions Work

Strategizing Structuring Learning Around The World

Managing Human Resources Globally

Competing On Marketing and Supply Chain Management

Managing Corporate Social Responsibility Globally

Filters