Question 1

Market economies are primarily characterized by ________.

Accepted Answer

A)  formal cooperation among government, companies, and workers to achieve stable growth 
B)  heavy government spending and high taxation to pay for a range of social services 
C)  minimal governmental participation 
D)  restricted consumer powers 
A)  formal cooperation among government, companies, and workers to achieve stable growth 
B)  heavy government spending and high taxation to pay for a range of social services 
C)  minimal governmental participation 
D)  restricted consumer powers

Question 2

Gross national income (GNI),the broadest measure of economic activity for a country,is defined as the ________.

Accepted Answer

A)  total of all consumption and investment that takes place in a national economy 
B)  income generated in one country, regardless of who owns the productive assets 
C)  total of all economic activity in one country less services, such as government administration, health services, and education 
D)  income generated by both total domestic production and the international production activities of national companies 
A)  total of all consumption and investment that takes place in a national economy 
B)  income generated in one country, regardless of who owns the productive assets 
C)  total of all economic activity in one country less services, such as government administration, health services, and education 
D)  income generated by both total domestic production and the international production activities of national companies

Question 3

Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering?

Accepted Answer

A)  Indonesia 
B)  Chile 
C)  Russia 
D)  Bangladesh 
A)  Indonesia 
B)  Chile 
C)  Russia 
D)  Bangladesh

Question 4

According to the concept of green economics,measuring a country's economic performance should also take into account ________.

Accepted Answer

A)  market share 
B)  population size 
C)  ecological costs 
D)  cost-of-living increases 
A)  market share 
B)  population size 
C)  ecological costs 
D)  cost-of-living increases

Question 5

The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.

Accepted Answer

A) True 
 B)False

Question 6

Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

Accepted Answer

A)  minimal government intervention 
B)  standardized minimum wages 
C)  laws favoring sustainability 
D)  state-run corporations 
A)  minimal government intervention 
B)  standardized minimum wages 
C)  laws favoring sustainability 
D)  state-run corporations

Question 7

A car manufactured in the U.S. by Toyota would be included in the calculation of the GDP for the United States.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is most typical of a command economy?

Accepted Answer

A)  Consumers have choices of many substitutes for any given product. 
B)  Quality of products and services tends to be consistent. 
C)  The prices of goods and services frequently change. 
D)  Many products are usually in short supply. 
A)  Consumers have choices of many substitutes for any given product. 
B)  Quality of products and services tends to be consistent. 
C)  The prices of goods and services frequently change. 
D)  Many products are usually in short supply.

Question 9

Country X is in the process of transforming from a command economy to a market economy. This process most likely involves ________.

Accepted Answer

A)  standardized procedures implemented by the state 
B)  high economic growth rates for the long-term 
C)  privatization of many factors of production 
D)  violent political and legal upheaval 
A)  standardized procedures implemented by the state 
B)  high economic growth rates for the long-term 
C)  privatization of many factors of production 
D)  violent political and legal upheaval

Question 10

In a ________ economy,certain sectors of the economy are left to private ownership and free market mechanisms,while other sectors have significant state ownership and government planning.

Accepted Answer

A)  state-directed 
B)  market 
C)  command 
D)  mixed 
A)  state-directed 
B)  market 
C)  command 
D)  mixed

Question 11

A firm with operations in Denmark can most likely expect all of the following EXCEPT ________.

Accepted Answer

A)  high taxes 
B)  significant regulation 
C)  tough job-protection laws 
D)  minimal monetary policies 
A)  high taxes 
B)  significant regulation 
C)  tough job-protection laws 
D)  minimal monetary policies

Question 12

The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.

Accepted Answer

A) True 
 B)False

Question 13

Kyle,an international manager for Apex Industries,has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion. Which of the following questions is LEAST relevant to Kyle's assignment?

Accepted Answer

A)  How much freedom will Apex have to run its foreign operations? 
B)  What are the current economic policies related to development? 
C)  What is the likelihood that Apex can fill manufacturing positions with locals? 
D)  What factors in the country drive or hinder economic change? 
A)  How much freedom will Apex have to run its foreign operations? 
B)  What are the current economic policies related to development? 
C)  What is the likelihood that Apex can fill manufacturing positions with locals? 
D)  What factors in the country drive or hinder economic change?

Question 14

A system in which individuals,rather than the government,make the majority of economic decisions is commonly referred to as a ________.

Accepted Answer

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

Question 15

What is the most likely reason that a universal scheme for assessing the performance and potential of a country's economic environment does NOT exist?

Accepted Answer

A)  difficulties of identifying a definitive set of predictive economic indicators 
B)  a lack of reliable economic data from most developed economies 
C)  the isolation of most markets from each other 
D)  static nature of the marketplace 
A)  difficulties of identifying a definitive set of predictive economic indicators 
B)  a lack of reliable economic data from most developed economies 
C)  the isolation of most markets from each other 
D)  static nature of the marketplace

Question 16

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world?

Accepted Answer

State Capitalism is an economic system w

Question 17

What is the difference between a developing country and a developed country? What significant trends are occurring in each type of market that relate to international business decisions?

Accepted Answer

Low- and middle-income nations are known

Question 18

Which of the following is most likely a true statement about the global economy since the 1980s?

Accepted Answer

A)  Socialist governments are intervening more in global exchanges. 
B)  Wealthy countries are exercising total control over emerging markets. 
C)  Developing countries are losing growing shares of their foreign-exchange reserves. 
D)  Emerging economies are adopting the principles and practices of free markets. 
A)  Socialist governments are intervening more in global exchanges. 
B)  Wealthy countries are exercising total control over emerging markets. 
C)  Developing countries are losing growing shares of their foreign-exchange reserves. 
D)  Emerging economies are adopting the principles and practices of free markets.

Question 19

Inflation occurs because aggregate demand is growing as fast as aggregate supply.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following countries is the best example of a mixed economic model?

Accepted Answer

A)  United States 
B)  France 
C)  United Kingdom 
D)  Australia 
A)  United States 
B)  France 
C)  United Kingdom 
D)  Australia

Market economies are primarily characterized by ________.

Gross national income (GNI),the broadest measure of economic activity for a country,is defined as the ________.

Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering?

According to the concept of green economics,measuring a country's economic performance should also take into account ________.

The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.

Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

A car manufactured in the U.S. by Toyota would be included in the calculation of the GDP for the United States.

Which of the following is most typical of a command economy?

Country X is in the process of transforming from a command economy to a market economy. This process most likely involves ________.

In a ________ economy,certain sectors of the economy are left to private ownership and free market mechanisms,while other sectors have significant state ownership and government planning.

A firm with operations in Denmark can most likely expect all of the following EXCEPT ________.

The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.

Kyle,an international manager for Apex Industries,has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion. Which of the following questions is LEAST relevant to Kyle's assignment?

A system in which individuals,rather than the government,make the majority of economic decisions is commonly referred to as a ________.

What is the most likely reason that a universal scheme for assessing the performance and potential of a country's economic environment does NOT exist?

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world?

What is the difference between a developing country and a developed country? What significant trends are occurring in each type of market that relate to international business decisions?

Which of the following is most likely a true statement about the global economy since the 1980s?

Inflation occurs because aggregate demand is growing as fast as aggregate supply.

Which of the following countries is the best example of a mixed economic model?

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

Market economies are primarily characterized by ________.

Gross national income (GNI),the broadest measure of economic activity for a country,is defined as the ________.

Pender Pharmaceuticals is considering expanding overseas and is focusing primarily on the BRICs. Which of the following countries is one that Pender is considering?

According to the concept of green economics,measuring a country's economic performance should also take into account ________.

The collapse of communism in the late 1980s and early 1990s led to a more widespread adoption of the principles of capitalism.

Taylor Enterprises wants to expand its operations into Asia. Managers are focusing on countries with high degrees of economic freedom most likely because the firm is interested in a country with ________.

A car manufactured in the U.S. by Toyota would be included in the calculation of the GDP for the United States.

Which of the following is most typical of a command economy?

Country X is in the process of transforming from a command economy to a market economy. This process most likely involves ________.

In a ________ economy,certain sectors of the economy are left to private ownership and free market mechanisms,while other sectors have significant state ownership and government planning.

A firm with operations in Denmark can most likely expect all of the following EXCEPT ________.

The government considers itself a better judge of resource allocation than businesses or citizens in a market economy.

Kyle,an international manager for Apex Industries,has been given the task of analyzing the economies of three different emerging countries for the firm's potential expansion. Which of the following questions is LEAST relevant to Kyle's assignment?

A system in which individuals,rather than the government,make the majority of economic decisions is commonly referred to as a ________.

What is the most likely reason that a universal scheme for assessing the performance and potential of a country's economic environment does NOT exist?

What is state capitalism? Why do you think state capitalism is becoming increasingly popular around the world?

What is the difference between a developing country and a developed country? What significant trends are occurring in each type of market that relate to international business decisions?

Which of the following is most likely a true statement about the global economy since the 1980s?

Inflation occurs because aggregate demand is growing as fast as aggregate supply.

Which of the following countries is the best example of a mixed economic model?

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