Question 1

Paralleling the spread of democracy, since the 1980s there has been the transformation from:

Accepted Answer

A)  free-market economies to socialist economies. 
B)  mixed economies to collectivist economies. 
C)  open economies to closed economies. 
D)  command economies to market-based economies. 
A)  free-market economies to socialist economies. 
B)  mixed economies to collectivist economies. 
C)  open economies to closed economies. 
D)  command economies to market-based economies.

Question 2

Sony was a pioneer in the portable music market segment. Sony's Walkman was an innovative product which created a new category altogether and made Sony a technological leader. This gave the company an edge over other consumer electronics brands that introduced portable music players for a very long time. In this example, Sony had the:

Accepted Answer

A)  vertical integration advantage. 
B)  purchasing power parity advantage. 
C)  free-rider advantage. 
D)  first-mover advantage. 
A)  vertical integration advantage. 
B)  purchasing power parity advantage. 
C)  free-rider advantage. 
D)  first-mover advantage.

Question 3

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for _____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s.

Accepted Answer

A)  state ownership of productive resources 
B)  regulated markets 
C)  democratic reforms 
D)  planned economies 
A)  state ownership of productive resources 
B)  regulated markets 
C)  democratic reforms 
D)  planned economies

Question 4

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

Accepted Answer

A) True 
 B)False

Question 5

Political scientist Samuel Huntington argues that modernization in non-Western societies can result in a retreat toward the traditional. This is exemplified by the _____.

Accepted Answer

A)  Islamic resurgence 
B)  popularization of modern gadgets 
C)  adoption of Western culture 
D)  higher levels of literacy and education 
A)  Islamic resurgence 
B)  popularization of modern gadgets 
C)  adoption of Western culture 
D)  higher levels of literacy and education

Question 6

New information and communication technologies have enabled the spread of democratic ideals.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a first-mover advantage?

Accepted Answer

A)  International firms may gain experience in that country's business practices. 
B)  An international firm can reap the rewards of growth in a new market without incurring the risks. 
C)  A firm may have the opportunity to be the first to introduce generic brands to a market. 
D)  A firm can gauge how well their product will do in the market without taking the risk of investing their. 
A)  International firms may gain experience in that country's business practices. 
B)  An international firm can reap the rewards of growth in a new market without incurring the risks. 
C)  A firm may have the opportunity to be the first to introduce generic brands to a market. 
D)  A firm can gauge how well their product will do in the market without taking the risk of investing their.

Question 8

According to Amartya Sen, development should be:

Accepted Answer

A)  seen as a process of expanding the real freedoms that people experience. 
B)  seen as a non-political concept that focuses on the net income of a country. 
C)  viewed as a purely economic process. 
D)  assessed by material output measures such as GNI per capita. 
A)  seen as a process of expanding the real freedoms that people experience. 
B)  seen as a non-political concept that focuses on the net income of a country. 
C)  viewed as a purely economic process. 
D)  assessed by material output measures such as GNI per capita.

Question 9

What are the factors that contribute to the risks of doing business in a country?

Accepted Answer

The risks of doing business in a country

Question 10

One visible indicator of _____ tends to be a country's inflation rate.

Accepted Answer

A)  economic mismanagement 
B)  high GNI 
C)  political risks 
D)  low HDI 
A)  economic mismanagement 
B)  high GNI 
C)  political risks 
D)  low HDI

Question 11

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n) _____.

Accepted Answer

A)  economic risk 
B)  legal risk 
C)  cultural risk 
D)  political risk 
A)  economic risk 
B)  legal risk 
C)  cultural risk 
D)  political risk

Question 12

When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true about Samuel Huntington?

Accepted Answer

A)  Samuel Huntington argues that there is a universal civilization based on widespread acceptance of Western democratic ideals. 
B)  Samuel Huntington argues that the rise of Islamic fundamentalism is a response to the alienation produced by modernization. 
C)  Samuel Huntington argues that global terrorism is a product of the static nature of traditional values and religious systems. 
D)  Samuel Huntington argues that many societies, by adopting the material paraphernalia of the modern world, are becoming more Western. 
A)  Samuel Huntington argues that there is a universal civilization based on widespread acceptance of Western democratic ideals. 
B)  Samuel Huntington argues that the rise of Islamic fundamentalism is a response to the alienation produced by modernization. 
C)  Samuel Huntington argues that global terrorism is a product of the static nature of traditional values and religious systems. 
D)  Samuel Huntington argues that many societies, by adopting the material paraphernalia of the modern world, are becoming more Western.

Question 14

Which of the following statements pertaining to innovation and entrepreneurship is true?

Accepted Answer

A)  They are the engines of growth. 
B)  They require strong legal systems. 
C)  They require state ownership of means of production. 
D)  They require a mixed economy. 
A)  They are the engines of growth. 
B)  They require strong legal systems. 
C)  They require state ownership of means of production. 
D)  They require a mixed economy.

Question 15

By identifying and investing early in a potential future economic star, international firms can _____ and gain experience in that country's business practices.

Accepted Answer

A)  build brand loyalty 
B)  learn which government officials need to receive kickbacks 
C)  begin to stockpile that country's currency 
D)  build infrastructure 
A)  build brand loyalty 
B)  learn which government officials need to receive kickbacks 
C)  begin to stockpile that country's currency 
D)  build infrastructure

Question 16

Since the late 1980s, there has been a spread of democracy. This is because:

Accepted Answer

A)  a state's ability to control access to uncensored information has increased. 
B)  the socialist model failed to deliver economic progress to the vast bulk of their populations. 
C)  in many countries the middle and working classes have become less powerful. 
D)  in many countries state-ownership of firms has encouraged innovation and entrepreneurship. 
A)  a state's ability to control access to uncensored information has increased. 
B)  the socialist model failed to deliver economic progress to the vast bulk of their populations. 
C)  in many countries the middle and working classes have become less powerful. 
D)  in many countries state-ownership of firms has encouraged innovation and entrepreneurship.

Question 17

Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation, and entrepreneurial activity in developing nations.

Accepted Answer

A) True 
 B)False

Question 18

Without a strong legal systems in a market economy:

Accepted Answer

A)  the incentive to engage in economic activity can be increased substantially. 
B)  private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities. 
C)  mechanisms for contract enforcement fall to private and corporate lawyers. 
D)  private and public entities can expropriate the profits generated by the efforts of private-sector entrepreneurs. 
A)  the incentive to engage in economic activity can be increased substantially. 
B)  private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities. 
C)  mechanisms for contract enforcement fall to private and corporate lawyers. 
D)  private and public entities can expropriate the profits generated by the efforts of private-sector entrepreneurs.

Question 19

The government of a country takes over the airport security industries following a major terrorist attack, to improve airport security. This is an example of privatization.

Accepted Answer

A) True 
 B)False

Question 20

If a country's economy is to sustain long-run economic growth, the business environment must be conducive to innovations and entrepreneurial activity.

Accepted Answer

A) True 
 B)False

Paralleling the spread of democracy, since the 1980s there has been the transformation from:

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for _____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s.

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

Political scientist Samuel Huntington argues that modernization in non-Western societies can result in a retreat toward the traditional. This is exemplified by the _____.

New information and communication technologies have enabled the spread of democratic ideals.

Which of the following is a first-mover advantage?

According to Amartya Sen, development should be:

What are the factors that contribute to the risks of doing business in a country?

One visible indicator of _____ tends to be a country's inflation rate.

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n) _____.

When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.

Which of the following statements is true about Samuel Huntington?

Which of the following statements pertaining to innovation and entrepreneurship is true?

By identifying and investing early in a potential future economic star, international firms can _____ and gain experience in that country's business practices.

Since the late 1980s, there has been a spread of democracy. This is because:

Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation, and entrepreneurial activity in developing nations.

Without a strong legal systems in a market economy:

The government of a country takes over the airport security industries following a major terrorist attack, to improve airport security. This is an example of privatization.

If a country's economy is to sustain long-run economic growth, the business environment must be conducive to innovations and entrepreneurial activity.

Globalization

National Differences in Political Economy, and Legal Systems

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 3: National Differences in Economic Development

Paralleling the spread of democracy, since the 1980s there has been the transformation from:

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for _____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s.

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

Political scientist Samuel Huntington argues that modernization in non-Western societies can result in a retreat toward the traditional. This is exemplified by the _____.

New information and communication technologies have enabled the spread of democratic ideals.

Which of the following is a first-mover advantage?

According to Amartya Sen, development should be:

What are the factors that contribute to the risks of doing business in a country?

One visible indicator of _____ tends to be a country's inflation rate.

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n) _____.

When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.

Which of the following statements is true about Samuel Huntington?

Which of the following statements pertaining to innovation and entrepreneurship is true?

By identifying and investing early in a potential future economic star, international firms can _____ and gain experience in that country's business practices.

Since the late 1980s, there has been a spread of democracy. This is because:

Peruvian development economist Hernando de Soto has argued that the chronic inability of property owners to establish legal title to the property they own is a key problem for innovation, and entrepreneurial activity in developing nations.

Without a strong legal systems in a market economy:

The government of a country takes over the airport security industries following a major terrorist attack, to improve airport security. This is an example of privatization.

If a country's economy is to sustain long-run economic growth, the business environment must be conducive to innovations and entrepreneurial activity.

Globalization

National Differences in Political Economy, and Legal Systems

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters