Question 1

Which of the following is an indicator of low human development in a country?

Accepted Answer

A) A score of 0.3 on the HDI scale 
B) Rapid "democratization" of political communities 
C) Large population due to a highly developed health care system 
D) Giving citizens a voice in the important decisions made for the community 
E) A higher GNI per capita than the United States 
A) A score of 0.3 on the HDI scale 
B) Rapid "democratization" of political communities 
C) Large population due to a highly developed health care system 
D) Giving citizens a voice in the important decisions made for the community 
E) A higher GNI per capita than the United States

Question 2

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:

Accepted Answer

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. 
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.

Question 3

How does privatization help stimulate gains in economic efficiency?

Accepted Answer

A) It allows newly privatized firms to gain monopoly position in a particular industry. 
B) It provides incentives to new private owners to search for increases in productivity and to enter new markets. 
C) It encourages state control over price and production output. 
D) It raises barriers to direct investment by foreign enterprises. 
E) It results in reservation of heavy industry for state ownership and the increase of import tariffs. 
A) It allows newly privatized firms to gain monopoly position in a particular industry. 
B) It provides incentives to new private owners to search for increases in productivity and to enter new markets. 
C) It encourages state control over price and production output. 
D) It raises barriers to direct investment by foreign enterprises. 
E) It results in reservation of heavy industry for state ownership and the increase of import tariffs.

Question 4

In both China and India, the shift toward a command-based economic system has produced large gains despite weak property rights and endemic corruption.

Accepted Answer

A) True 
 B)False

Question 5

Many commentators have blamed the problems that led to global financial crisis of 2008-2009, and the recession that followed on:

Accepted Answer

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. 
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.

Question 6

One common measure of economic development is a country's:

Accepted Answer

A) gender ratio. 
B) gross national income. 
C) infant mortality rate. 
D) population density. 
E) total geographical area. 
A) gender ratio. 
B) gross national income. 
C) infant mortality rate. 
D) population density. 
E) total geographical area.

Question 7

In the context of cost, which of the following can be considered as the most attractive market or investment site?

Accepted Answer

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 
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

Question 8

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?

Accepted Answer

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 
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

Question 9

Which of the following is an implication of the global changes in political and economic systems for international business?

Accepted Answer

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. 
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.

Question 10

In the context of political economy, the past three decades have seen a general move toward:

Accepted Answer

A) autocratic forms of government. 
B) command-based economic reforms. 
C) adoption of legal systems that better enforce property rights. 
D) an environment which is unfavorable for international business. 
E) military parties monopolizing political power worldwide. 
A) autocratic forms of government. 
B) command-based economic reforms. 
C) adoption of legal systems that better enforce property rights. 
D) an environment which is unfavorable for international business. 
E) military parties monopolizing political power worldwide.

Question 11

Without a legal system that protects property rights, and without the machinery to enforce that system, the incentive to engage in economic activity can be reduced substantially by private and public entities.

Accepted Answer

A) True 
 B)False

Question 12

Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations.

Accepted Answer

A) True 
 B)False

Question 13

In China, state-owned companies still dominate the banking, energy, telecom, health care, and technology sectors.

Accepted Answer

A) True 
 B)False

Question 14

Economic freedom does not necessarily equate with political freedom.

Accepted Answer

A) True 
 B)False

Question 15

As a result of which of the following, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy?

Accepted Answer

A) A large population 
B) Active bartering 
C) Deregulation 
D) Nationalization 
E) Closed totalitarianism 
A) A large population 
B) Active bartering 
C) Deregulation 
D) Nationalization 
E) Closed totalitarianism

Question 16

The collapse of which of the following in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East?

Accepted Answer

A) Democracy 
B) Communism 
C) Free economy 
D) Capitalism 
E) Individualism 
A) Democracy 
B) Communism 
C) Free economy 
D) Capitalism 
E) Individualism

Question 17

Which of the following statements is true about innovations and entrepreneurship?

Accepted Answer

A) A command economy creates greater incentives for innovation and entrepreneurship than a market economy. 
B) If a country's economy is to sustain long-run economic growth, the business environment must restrict entrepreneurial activity. 
C) A high level of entrepreneurial activity leads to a low level of innovation. 
D) Innovations in production and business processes lead to an increase in the productivity of labor and capital. 
E) Strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship. 
A) A command economy creates greater incentives for innovation and entrepreneurship than a market economy. 
B) If a country's economy is to sustain long-run economic growth, the business environment must restrict entrepreneurial activity. 
C) A high level of entrepreneurial activity leads to a low level of innovation. 
D) Innovations in production and business processes lead to an increase in the productivity of labor and capital. 
E) Strong legal protection of property rights creates an unfavorable environment for innovation and entrepreneurship.

Question 18

New information and communication technologies have increased a state's ability to control access to uncensored information.

Accepted Answer

A) True 
 B)False

Question 19

Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth.

Accepted Answer

A) True 
 B)False

Question 20

Although free markets and democracy can still be found around the world, the tide has been running in favor of command economies and totalitarian dictatorships.

Accepted Answer

A) True 
 B)False

Which of the following is an indicator of low human development in a country?

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:

How does privatization help stimulate gains in economic efficiency?

In both China and India, the shift toward a command-based economic system has produced large gains despite weak property rights and endemic corruption.

Many commentators have blamed the problems that led to global financial crisis of 2008-2009, and the recession that followed on:

One common measure of economic development is a country's:

In the context of cost, which of the following can be considered as the most attractive market or investment site?

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?

Which of the following is an implication of the global changes in political and economic systems for international business?

In the context of political economy, the past three decades have seen a general move toward:

Without a legal system that protects property rights, and without the machinery to enforce that system, the incentive to engage in economic activity can be reduced substantially by private and public entities.

Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations.

In China, state-owned companies still dominate the banking, energy, telecom, health care, and technology sectors.

Economic freedom does not necessarily equate with political freedom.

As a result of which of the following, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy?

The collapse of which of the following in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East?

Which of the following statements is true about innovations and entrepreneurship?

New information and communication technologies have increased a state's ability to control access to uncensored information.

Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth.

Although free markets and democracy can still be found around the world, the tide has been running in favor of command economies and totalitarian dictatorships.

Globalization

National Differences in Political, Economic, and Legal Systems

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Filters

Exam 3: National Differences in Economic Development

Which of the following is an indicator of low human development in a country?

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:

How does privatization help stimulate gains in economic efficiency?

In both China and India, the shift toward a command-based economic system has produced large gains despite weak property rights and endemic corruption.

Many commentators have blamed the problems that led to global financial crisis of 2008-2009, and the recession that followed on:

One common measure of economic development is a country's:

In the context of cost, which of the following can be considered as the most attractive market or investment site?

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?

Which of the following is an implication of the global changes in political and economic systems for international business?

In the context of political economy, the past three decades have seen a general move toward:

Without a legal system that protects property rights, and without the machinery to enforce that system, the incentive to engage in economic activity can be reduced substantially by private and public entities.

Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations.

In China, state-owned companies still dominate the banking, energy, telecom, health care, and technology sectors.

Economic freedom does not necessarily equate with political freedom.

As a result of which of the following, large amounts of economic activity in India are unrecorded and the official GDP figures of the country fail to tell the entire story of the economy?

The collapse of which of the following in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East?

Which of the following statements is true about innovations and entrepreneurship?

New information and communication technologies have increased a state's ability to control access to uncensored information.

Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth.

Although free markets and democracy can still be found around the world, the tide has been running in favor of command economies and totalitarian dictatorships.

Globalization

National Differences in Political, Economic, and Legal Systems

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Strategy of International Business

Entering Foreign Markets

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Filters