Question 1

The recent global credit crisis has interrupted the trend of national economies ________.

Accepted Answer

A)  rapidly adopting the command market model 
B)  steadily adopting the free market model 
C)  moving from the mixed to the command model 
D)  turning away from the mixed model 
A)  rapidly adopting the command market model 
B)  steadily adopting the free market model 
C)  moving from the mixed to the command model 
D)  turning away from the mixed model

Question 2

A worrisome outcome of chronic inflation is that it tends to ________.

Accepted Answer

A)  erode confidence in a country's currency 
B)  give central banking officials excessive flexibility to manage monetary policy 
C)  increase the real income of people, thereby inflating their spending and borrowing levels 
D)  lower consumer demand for foreign goods, which triggers lower prices and eventually lower employment 
A)  erode confidence in a country's currency 
B)  give central banking officials excessive flexibility to manage monetary policy 
C)  increase the real income of people, thereby inflating their spending and borrowing levels 
D)  lower consumer demand for foreign goods, which triggers lower prices and eventually lower employment

Question 3

Country X has a significant amount of external debt. Which of the following is the most likely cause?

Accepted Answer

A)  The government of Country X borrowed money from local banks. 
B)  The government of Country X borrowed money from other governments. 
C)  The government of Country X spent more than it collected in revenues. 
D)  The government of Country X received short-term credits from selling bonds. 
A)  The government of Country X borrowed money from local banks. 
B)  The government of Country X borrowed money from other governments. 
C)  The government of Country X spent more than it collected in revenues. 
D)  The government of Country X received short-term credits from selling bonds.

Question 4

In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are all planned by the government.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

Accepted Answer

A)  trade deficit 
B)  Gini coefficient 
C)  balance of payments 
D)  purchasing power parity 
A)  trade deficit 
B)  Gini coefficient 
C)  balance of payments 
D)  purchasing power parity

Question 6

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

Accepted Answer

A)  Human Development Index 
B)  Emerging Economic Stability 
C)  Genuine Progress Indicator 
D)  Net National Product 
A)  Human Development Index 
B)  Emerging Economic Stability 
C)  Genuine Progress Indicator 
D)  Net National Product

Question 7

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

Accepted Answer

A) True 
 B)False

Question 8

What is inflation? How does inflation affect international business?

Accepted Answer

Inflation means that prices are going up

Question 9

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government. Which term best describes Country X?

Accepted Answer

A)  market economy 
B)  mixed economy 
C)  command economy 
D)  democratic economy 
A)  market economy 
B)  mixed economy 
C)  command economy 
D)  democratic economy

Question 10

In the Economic Freedom Index,________ exhibit high economic freedom whereas ________ exhibit little to no economic freedom.

Accepted Answer

A)  mixed economies; market economies 
B)  command economies; market economies 
C)  market economies; command economies 
D)  centrally planned economies; command economies 
A)  mixed economies; market economies 
B)  command economies; market economies 
C)  market economies; command economies 
D)  centrally planned economies; command economies

Question 11

The recent global economic crisis has led to which of the following?

Accepted Answer

A)  governments seeking to impose more constraints on capitalism 
B)  governments seeking to eliminate constraints on capitalism 
C)  governments seeking to increase the interdependence of developing economies 
D)  governments seeking to eliminate the interdependence of developing economies 
A)  governments seeking to impose more constraints on capitalism 
B)  governments seeking to eliminate constraints on capitalism 
C)  governments seeking to increase the interdependence of developing economies 
D)  governments seeking to eliminate the interdependence of developing economies

Question 12

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

Accepted Answer

A)  be added to the GNI of the United States as well as to the GNI and GDP of Mexico 
B)  not be added to the GNI of the United States but would be added to the GNI of Mexico 
C)  only affect the computation of GDP and have no bearing on GNI 
D)  be added to the GNI of the United States but not the GNI of Mexico 
A)  be added to the GNI of the United States as well as to the GNI and GDP of Mexico 
B)  not be added to the GNI of the United States but would be added to the GNI of Mexico 
C)  only affect the computation of GDP and have no bearing on GNI 
D)  be added to the GNI of the United States but not the GNI of Mexico

Question 13

According to research,which of the following countries is the strongest supporter of free markets?

Accepted Answer

A)  China 
B)  India 
C)  France 
D)  Ukraine 
A)  China 
B)  India 
C)  France 
D)  Ukraine

Question 14

In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are planned by ________.

Accepted Answer

A)  government officials 
B)  private industries 
C)  individual entrepreneurs 
D)  local trade associations 
A)  government officials 
B)  private industries 
C)  individual entrepreneurs 
D)  local trade associations

Question 15

When analyzing the key elements of a country's economic environment,it is best to apply a systems perspective.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT a characteristic of capitalism?

Accepted Answer

A)  private ownership of assets 
B)  right to profit from individual effort 
C)  state control of factors of production 
D)  private control of investment 
A)  private ownership of assets 
B)  right to profit from individual effort 
C)  state control of factors of production 
D)  private control of investment

Question 17

The Human Development Index measures the average achievements in a country on three basic dimensions of human development,including ________.

Accepted Answer

A)  promotion of cultural values 
B)  quantity of free time 
C)  extent of knowledge 
D)  sustainability 
A)  promotion of cultural values 
B)  quantity of free time 
C)  extent of knowledge 
D)  sustainability

Question 18

The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its________.

Accepted Answer

A)  net national product (NNP) 
B)  gross national product (GNP) 
C)  gross domestic product (GDP) 
D)  gross national income (GNI) 
A)  net national product (NNP) 
B)  gross national product (GNP) 
C)  gross domestic product (GDP) 
D)  gross national income (GNI)

Question 19

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

Accepted Answer

A) True 
 B)False

Question 20

In a country's balance of payments,the current account and the capital account represent equal values.

Accepted Answer

A) True 
 B)False

The recent global credit crisis has interrupted the trend of national economies ________.

A worrisome outcome of chronic inflation is that it tends to ________.

Country X has a significant amount of external debt. Which of the following is the most likely cause?

In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are all planned by the government.

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

What is inflation? How does inflation affect international business?

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government. Which term best describes Country X?

In the Economic Freedom Index, exhibit high economic freedom whereas exhibit little to no economic freedom.

The recent global economic crisis has led to which of the following?

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

According to research,which of the following countries is the strongest supporter of free markets?

In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are planned by ________.

When analyzing the key elements of a country's economic environment,it is best to apply a systems perspective.

Which of the following is NOT a characteristic of capitalism?

The Human Development Index measures the average achievements in a country on three basic dimensions of human development,including ________.

The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its________.

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

In a country's balance of payments,the current account and the capital account represent equal values.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 4: The Economic Environments Facing Businesses

The recent global credit crisis has interrupted the trend of national economies ________.

A worrisome outcome of chronic inflation is that it tends to ________.

Country X has a significant amount of external debt. Which of the following is the most likely cause?

In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are all planned by the government.

Which of the following is a statement that summarizes all economic transactions between a country and the rest of the world during a given period of time?

The United Nations' ________ measures life expectancy,educational attainment,and the standard of living in a given country.

In a mixed economy,all dimensions of economic activity,including pricing and production decisions,are determined by a central government plan.

What is inflation? How does inflation affect international business?

In Country X,all dimensions of economic activity,including pricing and production decisions,are determined by the central government. Which term best describes Country X?

In the Economic Freedom Index,________ exhibit high economic freedom whereas ________ exhibit little to no economic freedom.

The recent global economic crisis has led to which of the following?

In computing GNI,the value of a Ford car that is manufactured in Mexico using capital from the United States would ________.

According to research,which of the following countries is the strongest supporter of free markets?

In a command economy,the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold are planned by ________.

When analyzing the key elements of a country's economic environment,it is best to apply a systems perspective.

Which of the following is NOT a characteristic of capitalism?

The Human Development Index measures the average achievements in a country on three basic dimensions of human development,including ________.

The measure of the value of production that occurs within a country's borders without regard to whether the production is done by domestic or foreign factors of production is its________.

A market economy gives individuals the freedom to decide where to work doing what,how to spend or save money,and whether to consume now or later.

In a country's balance of payments,the current account and the capital account represent equal values.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

In the Economic Freedom Index, exhibit high economic freedom whereas exhibit little to no economic freedom.