Question 1

_____ refers to a legal system based on religious teachings.

Accepted Answer

A)  Common law 
B)  Theocratic law 
C)  Civil law 
D)  Right-wing totalitarian law 
A)  Common law 
B)  Theocratic law 
C)  Civil law 
D)  Right-wing totalitarian law B

Question 2

What are the two core propositions of the institution-based view?

Accepted Answer

The first core proposition of the institution-based view is that managers and firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework.The second proposition is that formal and informal institutions combine to govern firm behavior,in situations where formal constraints are unclear or fail,informal constraints will play a larger role in reducing uncertainty and providing constancy to managers and firms.

Question 3

_____ is a long-standing legal doctrine that excuses firms from living up to the terms of a deal in the event of natural disasters or other calamities.

Accepted Answer

A)  De minimis 
B)  Nolo contendere 
C)  Force majeure 
D)  Travaux préparatoires 
A)  De minimis 
B)  Nolo contendere 
C)  Force majeure 
D)  Travaux préparatoires C

Question 4

In which of the following examples can the role of the cognitive pillar be identified?

Accepted Answer

A)  A firm being exposed after one of its employees turned whistleblower 
B)  A firm being punished for corporate espionage by the courts 
C)  A firm not being able to sell a certain product in a country due to the prevalent cultural beliefs 
D)  A firm outsourcing its jobs 
A)  A firm being exposed after one of its employees turned whistleblower 
B)  A firm being punished for corporate espionage by the courts 
C)  A firm not being able to sell a certain product in a country due to the prevalent cultural beliefs 
D)  A firm outsourcing its jobs

Question 5

Which of the following is the argument used by proponents of the "cultural" explanation for the difference in economic development across the globe?

Accepted Answer

A)  That rich countries have a smarter and harder-working population 
B)  That rich countries tend to be endowed with natural resources 
C)  That rich countries tend to have better market-supporting institutions 
D)  That rich countries generally tend to have a democratic style of government 
A)  That rich countries have a smarter and harder-working population 
B)  That rich countries tend to be endowed with natural resources 
C)  That rich countries tend to have better market-supporting institutions 
D)  That rich countries generally tend to have a democratic style of government

Question 6

Adopting the Paris Convention is required in order to become a signatory country to the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is true of private ownership?

Accepted Answer

A)  Firms are established by entrepreneurs, owners, and investors. 
B)  Management appointments are made by government officials and bureaucrats who may also use non-economic criteria. 
C)  Firm's objective would be to find a "fair" deal for all stakeholders. 
D)  Firms deemed "too big to fail" may be supported by taxpayer dollars indefinitely. 
A)  Firms are established by entrepreneurs, owners, and investors. 
B)  Management appointments are made by government officials and bureaucrats who may also use non-economic criteria. 
C)  Firm's objective would be to find a "fair" deal for all stakeholders. 
D)  Firms deemed "too big to fail" may be supported by taxpayer dollars indefinitely.

Question 8

_____ are legal rights awarded by government authorities to inventors of new products.

Accepted Answer

A)  Copyrights 
B)  Patents 
C)  Trade secrets 
D)  Trade marks 
A)  Copyrights 
B)  Patents 
C)  Trade secrets 
D)  Trade marks

Question 9

_____ are exclusive legal rights of firms to use specific names,brands,and designs to differentiate their products from others.

Accepted Answer

A)  Patents 
B)  Trademarks 
C)  Copyrights 
D)  Trade secrets 
A)  Patents 
B)  Trademarks 
C)  Copyrights 
D)  Trade secrets

Question 10

Disabling formal institutes does not affect transaction costs.

Accepted Answer

A) True 
 B)False

Question 11

Patents are exclusive rights of firms to use specific names and brands.

Accepted Answer

A) True 
 B)False

Question 12

The normative pillar supports informal institutions.

Accepted Answer

A) True 
 B)False

Question 13

Civil law uses comprehensive statutes and codes as a primary means to form legal judgments.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would be considered an example of formal institutions?

Accepted Answer

A)  Laws 
B)  Norms 
C)  Cultures 
D)  Ethics 
A)  Laws 
B)  Norms 
C)  Cultures 
D)  Ethics

Question 15

Which of the following would be considered an example of intellectual property rights?

Accepted Answer

A)  Rights associated with ownership of vehicles 
B)  Rights associated with ownership of trademarks 
C)  Rights associated with ownership of buildings 
D)  Rights associated with ownership of business contracts 
A)  Rights associated with ownership of vehicles 
B)  Rights associated with ownership of trademarks 
C)  Rights associated with ownership of buildings 
D)  Rights associated with ownership of business contracts

Question 16

_____ are represented by laws,regulations,and rules.

Accepted Answer

A)  Normative institutions 
B)  Sociocultural institutions 
C)  Cognitive institutions 
D)  Formal institutions 
A)  Normative institutions 
B)  Sociocultural institutions 
C)  Cognitive institutions 
D)  Formal institutions

Question 17

Firms operating in democracies never confront political risk.

Accepted Answer

A) True 
 B)False

Question 18

In private ownership,liquidation of a firm is forced by competition.

Accepted Answer

A) True 
 B)False

Question 19

A mixed economy has elements of both a market economy and a command economy.

Accepted Answer

A) True 
 B)False

Question 20

Outline the differences between democracy and totalitarianism.

Accepted Answer

Democracy is a political system in which

_____ refers to a legal system based on religious teachings.

What are the two core propositions of the institution-based view?

_____ is a long-standing legal doctrine that excuses firms from living up to the terms of a deal in the event of natural disasters or other calamities.

In which of the following examples can the role of the cognitive pillar be identified?

Which of the following is the argument used by proponents of the "cultural" explanation for the difference in economic development across the globe?

Adopting the Paris Convention is required in order to become a signatory country to the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights.

Which of the following is true of private ownership?

_____ are legal rights awarded by government authorities to inventors of new products.

_____ are exclusive legal rights of firms to use specific names,brands,and designs to differentiate their products from others.

Disabling formal institutes does not affect transaction costs.

Patents are exclusive rights of firms to use specific names and brands.

The normative pillar supports informal institutions.

Civil law uses comprehensive statutes and codes as a primary means to form legal judgments.

Which of the following would be considered an example of formal institutions?

Which of the following would be considered an example of intellectual property rights?

_____ are represented by laws,regulations,and rules.

Firms operating in democracies never confront political risk.

In private ownership,liquidation of a firm is forced by competition.

A mixed economy has elements of both a market economy and a command economy.

Outline the differences between democracy and totalitarianism.

Globalizing Business

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters

Exam 2: Understanding Formal Institutions: Politics, laws, and Economics

_____ refers to a legal system based on religious teachings.

What are the two core propositions of the institution-based view?

_____ is a long-standing legal doctrine that excuses firms from living up to the terms of a deal in the event of natural disasters or other calamities.

In which of the following examples can the role of the cognitive pillar be identified?

Which of the following is the argument used by proponents of the "cultural" explanation for the difference in economic development across the globe?

Adopting the Paris Convention is required in order to become a signatory country to the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights.

Which of the following is true of private ownership?

_____ are legal rights awarded by government authorities to inventors of new products.

_____ are exclusive legal rights of firms to use specific names,brands,and designs to differentiate their products from others.

Disabling formal institutes does not affect transaction costs.

Patents are exclusive rights of firms to use specific names and brands.

The normative pillar supports informal institutions.

Civil law uses comprehensive statutes and codes as a primary means to form legal judgments.

Which of the following would be considered an example of formal institutions?

Which of the following would be considered an example of intellectual property rights?

_____ are represented by laws,regulations,and rules.

Firms operating in democracies never confront political risk.

In private ownership,liquidation of a firm is forced by competition.

A mixed economy has elements of both a market economy and a command economy.

Outline the differences between democracy and totalitarianism.

Globalizing Business

Emphasizing Informal Institutions: Cultures, ethics, and Norms

Leveraging Resources and Capabilities

Trading Internationally

Investing Abroad Directly

Dealing With Foreign Exchange

Capitalizing on Global and Regional Integration

Growing and Internationalizing the Entrepreneurial Firm

Entering Foreign Markets

Managing Global Competitive Dynamics

Making Alliances and Acquisitions Work

Strategizing,structuring,and Learning Around the World

Competing on Marketing and Supply Chain Management

Managing Human Resources Globally

Financing and Governing the Corporation Globally

Managing Corporate Social Responsibility Globally

Filters