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| 1 | |
In the early 20th century, the social ideology split into two broad categories – communism and social democracy – both of which were still going strong at the beginning of the 21st century |
| | A) | True |
| | B) | False |
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| 2 | |
Both U.S. law and OECD conventions condemn all forms of bribery with the exception of grease payments which expedite the performance of routine government action. |
| | A) | True |
| | B) | False |
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| 3 | |
Gross National Income (GNI) figures can be misleading because they don't consider differences in the cost of living. |
| | A) | True |
| | B) | False |
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| 4 | |
Although democracy may not always be the cause of initial economic progress, it seems to be one consequence of that process. |
| | A) | True |
| | B) | False |
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| 5 | |
While terrorism can affect the military and often police departments, there is little impact of terrorism on international business. |
| | A) | True |
| | B) | False |
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| 6 | |
A country's political, economic, and legal system constitutes its |
| | A) | legal economy |
| | B) | political economy |
| | C) | economic economy |
| | D) | FDI economy |
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| 7 | |
The notion of "political system" refers to |
| | A) | cultural values and norms in a country |
| | B) | a nation's system of government |
| | C) | a nation's economic standards |
| | D) | the military relationship of a country with the rest of the world |
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| 8 | |
_______ has its roots in the philosophies of Aristotle. |
| | A) | totalitarianism |
| | B) | socialism |
| | C) | individualism |
| | D) | collectivism |
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| 9 | |
_________ is a political system in which government is by the people, exercised either directly or through elected representatives. |
| | A) | collectivism |
| | B) | democracy |
| | C) | socialism |
| | D) | totalitarianism |
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| 10 | |
Totalitarianism is recognized to have four different forms. Which of the following is not recognized as one of the forms: |
| | A) | Communist totalitarianism |
| | B) | Theocratic totalitarianism |
| | C) | Intellectual totalitarianism |
| | D) | Right-wing totalitarianism |
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| 11 | |
The three general types of economic systems are: |
| | A) | free, limited and fixed. |
| | B) | industrial, service and social. |
| | C) | international, domestic and multi-domestic. |
| | D) | market, command and mixed. |
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| 12 | |
The three general types of legal systems are: |
| | A) | paralegal, extralegal and regulatory. |
| | B) | common law, civil law and theocratic law. |
| | C) | national law, international law and global law. |
| | D) | federal law, state law and municipal law. |
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| 13 | |
Which of the following is not true about contracts in common law systems: |
| | A) | Contracts tend to be vague and ambiguous because the courts will sort out problems. |
| | B) | Due to the length and complexity, it tends to be more expensive to draw up contracts. |
| | C) | Contracts tend to be flexible. |
| | D) | Differences between countries' legal systems mean international contracts drawn up in the common law systems must be especially sensitive to others. |
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| 14 | |
Property rights: |
| | A) | are universal defined. |
| | B) | refer to the legal rights over the use of a resource. |
| | C) | are not yet recognized in China. |
| | D) | can only be violated through private action in systems that recognize private property. |
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| 15 | |
Which of the following is true about intellectual property rights: |
| | A) | Copyrights give exclusive rights to authors, composers and artists on how their creations can be used. |
| | B) | Intellectual property rights have no fixed time limits. |
| | C) | The internet is above property rights due to its distributed nature. |
| | D) | Intellectual property rights have no direct connection to innovation. |
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| 16 | |
Product liability laws: |
| | A) | have reduced the cost of doing business by protecting businesses from frivolous law suits. |
| | B) | protect businesses even if they do not conform to required safety standards. |
| | C) | are typically least extensive in developed countries. |
| | D) | could be either civil or criminal laws or both. |
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| 17 | |
The purchasing power parity adjustment (PPP): |
| | A) | measures the difference between the value of the US dollar and the Euro. |
| | B) | distorts historical economic data. |
| | C) | makes it difficult to compare spending patterns between countries. |
| | D) | is based on the cost of living in the United States. |
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| 18 | |
The Nobel Prize-winning economist who argued that development should be assessed not only by economic measures but also by the capabilities and opportunities that people enjoy is: |
| | A) | Adam Smith |
| | B) | Amartya Sen |
| | C) | Francis Fukuyama |
| | D) | Samuel Huntington |
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| 19 | |
Innovation and entrepreneurship: |
| | A) | help to increase economic growth by creating new products and services. |
| | B) | are separate and distinct from productivity consideration. |
| | C) | have benefitted other countries more than the United States. |
| | D) | cannot be part of an overall strategy because they are usually narrowly defined. |
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| 20 | |
For a business environment to be conducive to innovation and entrepreneurial activity, ________ is important. |
| | A) | government intervention in the market |
| | B) | collectivism |
| | C) | state-ownership |
| | D) | a market economy |
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| 21 | |
A nation may _______ as a means of encouraging business owners to seek gains in economic efficiency. |
| | A) | privatize |
| | B) | downsize |
| | C) | regulate |
| | D) | divest |
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| 22 | |
Countries experiencing strikes, demonstrations, and terrorism probably have higher levels of |
| | A) | political risk |
| | B) | industrial risk |
| | C) | commercial risk |
| | D) | economic risk |
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| 23 | |
Legal risk |
| | A) | is the likelihood that economic mismanagement will cause drastic changes in a country's business environment that hurt the profit and goals of a particular business enterprise |
| | B) | is the likelihood that political forces will cause drastic changes in country's business environment that adversely affect the profit and goals of a business enterprise |
| | C) | is the likelihood that a trading partner will opportunistically break a contract or expropriate property rights |
| | D) | is the likelihood that commercial mismanagement will cause drastic changes in a country's business environment that will negatively affect the profit and goals of a particular business enterprise is known as social democrats |
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| 24 | |
Political risk |
| | A) | is the likelihood that economic mismanagement will cause drastic changes in a country's business environment that hurt the profit and goals of a particular business enterprise |
| | B) | is the likelihood that political forces will cause drastic changes in country's business environment that adversely affect the profit and goals of a business enterprise |
| | C) | is the likelihood that a trading partner will opportunistically break a contract or expropriate property rights |
| | D) | is the likelihood that commercial mismanagement will cause drastic changes in a country's business environment that will negatively affect the profit and goals of a particular business enterprise is known as social democrats |
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| 25 | |
The likelihood that economic mismanagement will cause drastic changes in a country's business environment that hurt the profit and other goals of a particular business enterprise is an example of |
| | A) | legal risk |
| | B) | political risk |
| | C) | economic risk |
| | D) | fiscal risk |
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