Question 1

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

Accepted Answer

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

Question 2

What is not a characteristic of a market economy?

Accepted Answer

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 D

Question 3

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

Accepted Answer

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 D

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following represents a form of property right?

Accepted Answer

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

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

Question 8

Informal institutions include edicts and regulations issues by governmental authorities.

Accepted Answer

A) True 
 B)False

Question 9

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.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Exam 1: Globalizing Business

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

What is not a characteristic of a market economy?

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

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

Which of the following represents a form of property right?

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

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

Informal institutions include edicts and regulations issues by governmental authorities.

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.

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

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

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

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