Deck 1: Globalizing Business

Question 1

Due to solid economic reforms in the early 1800s and a free trade agreement with the EU Turkey was considered an attractive location for business, especially for labour intensive industries.

Answer 1

False

Question 2

Which of the following represents a category of institutions introduced by economic historian Douglas North?

A)Formal
B)Informal
C)Formal and informal
D)Neither formal nor informal

Answer 2

C

Question 3

The resource-based view analyzes how formal and informal institutions affect firms and other economic actors

Answer 3

False

Question 4

Autocracy is a political system in which the legitimacy of government is derived from its election by the citizens of the country.

Question 5

Informal institutions include edicts and regulations issues by governmental authorities.

Question 6

What is not a characteristic of a market economy?

A)Buyers and sellers meeting in a market
B)Prices react to changes in supply and demand
C)Businesses planning production to supply the market in the future
D)Business producing according to an economy-wide central plan

Question 7

Common law has been derived from Roman law, and has been influenced by the legal code introduced in France after the French Revolution.

Question 8

Walter Eucken is known as a key intellectual inspiration for which scholarly school of thought?

A)The institution-based view
B)The varieties of capitalism view
C)The legal traditions view
D)The German form of market economy

Question 9

Which of the following are pillars of the institutional framework as described by sociologist Richard Scott?

A)Cognitive
B)Normative
C)Regulatory
D)All of the above answers

Question 10

Political risk is associated with the possibility of which type of event?

A)The nationalization of a company's assets abroad
B)The elimination of tariffs subsequent to a company investing in local production
C)Civil unrest
D)All of the above

Question 11

Corporate governance refers to the rules by which shareholders and other interested parties control corporate decision makers.

Question 12

Which of the following represents a form of property right?

A)Ownership of a house
B)Copyright
C)Shareholdings
D)All of the above answers

Question 13

China's economic transition has frequently been described as a 'big bang', whereas Russian economic transition has frequently described as 'gradual'.