Question 1

An economic system based on public ownership fosters growth much better than an economy based on private ownership.

Accepted Answer

A) True 
 B)False

Question 2

The ultimate goal of a market economy is to ensure that the government takes complete control over the distribution of a nation's resources.

Accepted Answer

A) True 
 B)False

Question 3

Central planning is rooted in the ideology that ________.

Accepted Answer

A) the welfare of a group is more important than individual well-being 
B) individual concerns should be placed above group consensus 
C) individual and group concerns are just as important as government concerns 
D) privatization will enhance a country's economic well-being

Question 4

When one company alone controls a product's supply and therefore,its price,it is considered a(n)________.

Accepted Answer

A) oligopsony 
B) monopoly 
C) duopoly 
D) oligopoly

Question 5

Individualist cultures tend to offer fewer incentives and rewards than collectivist cultures.

Accepted Answer

A) True 
 B)False

Question 6

How does economic development in countries affect international business?

Accepted Answer

The answer of How does economic development in countries affect...

Question 7

In a market economy,access to alternative purchase options is known as ________.

Accepted Answer

A) price-sensitivity 
B) economic transition 
C) laissez-faire 
D) free choice

Question 8

The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called ________.

Accepted Answer

A) gross national product 
B) gross domestic product 
C) purchasing power 
D) purchasing power parity

Question 9

Entrepreneurs are businesspeople who accept the risks and opportunities involved in operating new business ventures.

Accepted Answer

A) True 
 B)False

Question 10

In most centrally planned economies that failed,________.

Accepted Answer

A) market conditions had determined who would produce goods 
B) prices of products were seen as a function of supply and demand 
C) central planning agencies had specified the production goals 
D) central planners had paid attention to efficiency improvement

Question 11

Which of the following is the main goal of privatization?

Accepted Answer

A) to ensure that the government specifies production goals 
B) to increase economic efficiency 
C) to increase subsidies to companies 
D) to increase government's control on the market

Question 12

________ is the process by which a nation changes its fundamental economic organization and creates new free-market institutions.

Accepted Answer

A) Central planning 
B) Economic transition 
C) Industrialization 
D) Economic liberalism

Question 13

Scenario: Cleanshot USA in Russia
When Cleanshot USA,a photography products company,decided to enter the international arena,it chose Russia as its main market.Although Russia has been in transition for years,Cleanshot managers believe their company has tremendous opportunities there.
-Russia is in transition from ________.

Accepted Answer

A) a capitalist economy to a mixed economy 
B) a centrally planned economy to a free-market economy 
C) a market economy to a centrally planned economy 
D) a mixed economy to a centrally planned economy

Question 14

Scenario: Stephanie Wong
Stephanie Wong,a Chinese-American,owns a consultancy that advises clients on strategies for business expansions into China.Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China.Therefore,she is preparing answers in advance for questions that symposium participants would most likely ask.
-Stephanie also expects participants to ask: "Are the Chinese as formal and business-oriented as Americans are?" Which of the following would most likely be Stephanie's response?

Accepted Answer

A) The Chinese operate very much like Americans,for them business is more important than pleasure. 
B) The Chinese dislike guessing games;give them your sales pitch right away and let the meeting develop. 
C) Don't overlook the importance of personal relationships;friendship comes before business. 
D) The Chinese are very flexible and will easily adapt to your culture's way of doing business.

Question 15

Supply and demand are dictated by ________.

Accepted Answer

A) government ownership 
B) free enterprise 
C) the price mechanism 
D) the management's decisions

Question 16

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

Accepted Answer

A) fiat money 
B) letter of credit 
C) barter 
D) guanxi

Question 17

Which of the following would most likely characterize a nation with a low degree of economic freedom?

Accepted Answer

A) low government intervention 
B) protected property rights 
C) strict trade policies 
D) low tariffs

Question 18

Both GDP and GNP measure a nation's income per person.

Accepted Answer

A) True 
 B)False

Question 19

France,Germany,and Sweden are examples of ________.

Accepted Answer

A) centrally planned economies 
B) market economies 
C) closed economies 
D) mixed economies

Question 20

Scenario: Cleanshot USA in Russia
When Cleanshot USA,a photography products company,decided to enter the international arena,it chose Russia as its main market.Although Russia has been in transition for years,Cleanshot managers believe their company has tremendous opportunities there.
-Which of the following challenges is Cleanshot most likely to face in Russia?

Accepted Answer

A) organized crime 
B) too many competitors 
C) low demand for the products of non-Russian companies 
D) fading underground economy

Exam 4: Economics and Emerging Markets

An economic system based on public ownership fosters growth much better than an economy based on private ownership.

The ultimate goal of a market economy is to ensure that the government takes complete control over the distribution of a nation's resources.

Central planning is rooted in the ideology that ________.

When one company alone controls a product's supply and therefore,its price,it is considered a(n) ________.

Individualist cultures tend to offer fewer incentives and rewards than collectivist cultures.

How does economic development in countries affect international business?

In a market economy,access to alternative purchase options is known as ________.

The relative ability of two countries' currencies to buy the same basket of goods in those two countries is called ________.

Entrepreneurs are businesspeople who accept the risks and opportunities involved in operating new business ventures.

In most centrally planned economies that failed,________.

Which of the following is the main goal of privatization?

________ is the process by which a nation changes its fundamental economic organization and creates new free-market institutions.

Supply and demand are dictated by ________.

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

Which of the following would most likely characterize a nation with a low degree of economic freedom?

Both GDP and GNP measure a nation's income per person.

France,Germany,and Sweden are examples of ________.