Question 1

Tatum Manufacturing recently opened a new facility in Hong Kong.The firm can most likely expect the Hong Kong government to ________.

Accepted Answer

A) monitor market prices 
B) control natural resources 
C) ensure fair competition 
D) provide innovation incentives 
A) monitor market prices 
B) control natural resources 
C) ensure fair competition 
D) provide innovation incentives C

Question 2

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure the economic development, performance, and potential of a country?

Accepted Answer

Managers apply three perspectives to help make sense of the economic environments of various countries.First, they estimate how much freedom they will have to make investments and run operations as they see fit.Second, they evaluate the type of economic system in the country, studying how current policies shape development and performance.The third investigates the points of change that drive economic change, assessing the conditions that moderate economic freedom as well as move a country from one economic system to another.Collectively, the insights help managers pinpoint where investments should go and, perhaps more importantly, where they should not.The key dimension used to distinguish one country from another is the gross national income (GNI).In particular, countries are classified according to per capita GNI, or the size of GNI of a nation divided by its total population.Those countries with high populations and high per capita GNI are generally most desirable in terms of market potential.A country's GNI growth rate also indicates its economic potential.Businesses comparing markets will also likely examine the purchasing power parity (PPP)of a possible foreign market.

Question 3

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  True

Question 4

An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.

Accepted Answer

A) True 
 B)False

Question 5

Presently, which of the following countries is BEST characterized as a pure example of a command economy?

Accepted Answer

A) Russia 
B) North Korea 
C) China 
D) Vietnam 
A) Russia 
B) North Korea 
C) China 
D) Vietnam

Question 6

Since the late 1980s, the growing emergence of freer markets has been powered by the realization that ________.

Accepted Answer

A) economic growth is directly related to economic freedom 
B) economic growth has a limited effect on the standard of living 
C) adoption of free market principles contributes to social injustices 
D) centrally planned economies are best designed to deliver progress 
A) economic growth is directly related to economic freedom 
B) economic growth has a limited effect on the standard of living 
C) adoption of free market principles contributes to social injustices 
D) centrally planned economies are best designed to deliver progress

Question 7

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 8

In a market economy, the patterns of resource allocation are most directly influenced by ________.

Accepted Answer

A) government administrators who monitor the equilibrium of supply and demand 
B) industry coalitions that strive to improve the efficiency of production and service 
C) consumer group alliances that negotiate with firms to improve product quality 
D) consumers who "vote" by their personal decision to buy or not buy products 
A) government administrators who monitor the equilibrium of supply and demand 
B) industry coalitions that strive to improve the efficiency of production and service 
C) consumer group alliances that negotiate with firms to improve product quality 
D) consumers who "vote" by their personal decision to buy or not buy products

Question 9

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 10

Why is economic freedom an important factor to consider when analyzing a country's economic development, performance, and potential?

Accepted Answer

Economic freedom helps explain a country

Question 11

What is meant by the idea of economic freedom? What factors are used in the Economic Freedom Index? For managers, what role does the Economic Freedom Index play in analyzing the potential of a country?

Accepted Answer

a.Economic freedom is the "absolute righ

Question 12

Which of the following calls for economic activity that meets present needs without hindering the future needs of society?

Accepted Answer

A) privatization 
B) state capitalism 
C) economic freedom 
D) sustainable development 
A) privatization 
B) state capitalism 
C) economic freedom 
D) sustainable development

Question 13

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 14

Communism primarily relies on a system of ________.

Accepted Answer

A) private business ownership 
B) competitive pricing and marketing 
C) market-generated supply and demand 
D) government-controlled economic activity 
A) private business ownership 
B) competitive pricing and marketing 
C) market-generated supply and demand 
D) government-controlled economic activity

Question 15

In a country's balance of payments, the ________ tracks all trade activity in merchandise.

Accepted Answer

A) capital account 
B) current account 
C) payment account 
D) deficit account 
A) capital account 
B) current account 
C) payment account 
D) deficit account

Question 16

Which of the following governmental actions is LEAST likely to increase national debt?

Accepted Answer

A) macroeconomic stimulus plans 
B) unemployment benefits 
C) corporate bailouts 
D) T-bond sales 
A) macroeconomic stimulus plans 
B) unemployment benefits 
C) corporate bailouts 
D) T-bond sales

Question 17

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 18

There is a positive correlation between economic freedom and economic growth.

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Tatum Manufacturing recently opened a new facility in Hong Kong.The firm can most likely expect the Hong Kong government to ________.

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure the economic development, performance, and potential of a country?

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

An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.

Presently, which of the following countries is BEST characterized as a pure example of a command economy?

Since the late 1980s, the growing emergence of freer markets has been powered by the realization that ________.

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

In a market economy, the patterns of resource allocation are most directly influenced by ________.

Which of the following is NOT a characteristic of capitalism?

Why is economic freedom an important factor to consider when analyzing a country's economic development, performance, and potential?

What is meant by the idea of economic freedom? What factors are used in the Economic Freedom Index? For managers, what role does the Economic Freedom Index play in analyzing the potential of a country?

Which of the following calls for economic activity that meets present needs without hindering the future needs of society?

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

Communism primarily relies on a system of ________.

In a country's balance of payments, the ________ tracks all trade activity in merchandise.

Which of the following governmental actions is LEAST likely to increase national debt?

Market economies are primarily characterized by ________.

There is a positive correlation between economic freedom and economic growth.

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

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?

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters

Exam 4: The Economic Environments Facing Businesses

Tatum Manufacturing recently opened a new facility in Hong Kong.The firm can most likely expect the Hong Kong government to ________.

What general characteristics of a country should managers consider when analyzing an economic environment? What specific indicators help managers measure the economic development, performance, and potential of a country?

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

An economic system is the set of structures and processes that guides the allocation of resources and shapes the conduct of business activities within a country.

Presently, which of the following countries is BEST characterized as a pure example of a command economy?

Since the late 1980s, the growing emergence of freer markets has been powered by the realization that ________.

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

In a market economy, the patterns of resource allocation are most directly influenced by ________.

Which of the following is NOT a characteristic of capitalism?

Why is economic freedom an important factor to consider when analyzing a country's economic development, performance, and potential?

What is meant by the idea of economic freedom? What factors are used in the Economic Freedom Index? For managers, what role does the Economic Freedom Index play in analyzing the potential of a country?

Which of the following calls for economic activity that meets present needs without hindering the future needs of society?

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

Communism primarily relies on a system of ________.

In a country's balance of payments, the ________ tracks all trade activity in merchandise.

Which of the following governmental actions is LEAST likely to increase national debt?

Market economies are primarily characterized by ________.

There is a positive correlation between economic freedom and economic growth.

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

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?

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

Global Capital Markets

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 and Finance Issues

International Human Resource Management

Filters