Question 1

A change in political regime in a country can result in laws that _____ to international businesses.

Accepted Answer

A)  are more favorable 
B)  are less favorable 
C)  provide less incentives 
D)  provide more incentives 
A)  are more favorable 
B)  are less favorable 
C)  provide less incentives 
D)  provide more incentives

Question 2

What is the philosophy of Amartya Sen?

Accepted Answer

Amartya Sen is a Nobel Prize-winning eco

Question 3

GNI allows a more direct comparison of living standards in different countries.

Accepted Answer

A) True 
 B)False

Question 4

Google launched Google Plus to gain a foothold in the social media market. However, given that there are numerous social networking platforms and Facebook is already a leader in social media, Google Plus found it challenging to generate brand loyalty and establish itself in the market. This was because of ____.

Accepted Answer

A)  incumbent disadvantage. 
B)  disintermediation disadvantage. 
C)  late-mover disadvantage. 
D)  horizontal integration disadvantage. 
A)  incumbent disadvantage. 
B)  disintermediation disadvantage. 
C)  late-mover disadvantage. 
D)  horizontal integration disadvantage.

Question 5

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for ____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s.

Accepted Answer

A)  state ownership of productive resources 
B)  regulated markets 
C)  democratic reforms 
D)  planned economies 
A)  state ownership of productive resources 
B)  regulated markets 
C)  democratic reforms 
D)  planned economies

Question 6

What are the factors that determine the costs of doing business in a country?

Accepted Answer

A number of political, economic, and leg

Question 7

What are first-mover advantages? Explain with an example.

Accepted Answer

First-mover advantages are the advantage

Question 8

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

Accepted Answer

A) True 
 B)False

Question 9

When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.

Accepted Answer

A) True 
 B)False

Question 10

Stagnation can occur in planned economies because:

Accepted Answer

A)  entrepreneurial individuals have few economic incentives for innovation. 
B)  private ownership of means of production leads to exploitation of workers. 
C)  prices of goods and services are fixed by market forces of demand and supply. 
D)  lack of barriers to trade results in increased competition for domestic producers. 
A)  entrepreneurial individuals have few economic incentives for innovation. 
B)  private ownership of means of production leads to exploitation of workers. 
C)  prices of goods and services are fixed by market forces of demand and supply. 
D)  lack of barriers to trade results in increased competition for domestic producers.

Question 11

The benefits of doing business in a country are a function of all of the following EXCEPT:

Accepted Answer

A)  the size of the market. 
B)  its present wealth. 
C)  its past growth. 
D)  its future growth prospects. 
A)  the size of the market. 
B)  its present wealth. 
C)  its past growth. 
D)  its future growth prospects.

Question 12

Paralleling the spread of democracy, since the 1980s there has been the transformation from:

Accepted Answer

A)  free-market economies to socialist economies. 
B)  mixed economies to collectivist economies. 
C)  open economies to closed economies. 
D)  command economies to market-based economies. 
A)  free-market economies to socialist economies. 
B)  mixed economies to collectivist economies. 
C)  open economies to closed economies. 
D)  command economies to market-based economies.

Question 13

The state can expropriate the profits from innovation through legal means, such as ____.

Accepted Answer

A)  bureaucratic kickbacks 
B)  excessive taxation 
C)  black market transactions 
D)  privatization 
A)  bureaucratic kickbacks 
B)  excessive taxation 
C)  black market transactions 
D)  privatization

Question 14

Why does doing business in a country with a relatively unsophisticated economy result in increased costs?

Accepted Answer

One of the most important economic varia

Question 15

In all of the following scenarios, the costs of doing business in a country tend to be greater, EXCEPT where:

Accepted Answer

A)  political payoffs are required to gain market access. 
B)  supporting infrastructure is lacking. 
C)  local laws set strict standards with regard to environmental pollution. 
D)  there is limits or caps on damage awards. 
A)  political payoffs are required to gain market access. 
B)  supporting infrastructure is lacking. 
C)  local laws set strict standards with regard to environmental pollution. 
D)  there is limits or caps on damage awards.

Question 16

In some countries, the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:

Accepted Answer

A)  it doesn't consider differences in the cost of living. 
B)  it gives a static picture of development. 
C)  it fails to include income earned from other countries in the form of dividends. 
D)  large amounts of economic activity may be in the form of barter agreements. 
A)  it doesn't consider differences in the cost of living. 
B)  it gives a static picture of development. 
C)  it fails to include income earned from other countries in the form of dividends. 
D)  large amounts of economic activity may be in the form of barter agreements.

Question 17

One visible indicator of political risks tends to be a country's inflation rate.

Accepted Answer

A) True 
 B)False

Question 18

What is deregulation? What are the steps involved in the deregulation of a command economy?

Accepted Answer

Deregulation involves removing legal res

Question 19

According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

Accepted Answer

A)  Detailed state planning 
B)  Restricting direct investment by foreign enterprises 
C)  Strong property rights 
D)  Market regulation 
A)  Detailed state planning 
B)  Restricting direct investment by foreign enterprises 
C)  Strong property rights 
D)  Market regulation

Question 20

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n) ____.

Accepted Answer

A)  economic risk 
B)  legal risk 
C)  cultural risk 
D)  political risk 
A)  economic risk 
B)  legal risk 
C)  cultural risk 
D)  political risk

A change in political regime in a country can result in laws that _____ to international businesses.

What is the philosophy of Amartya Sen?

GNI allows a more direct comparison of living standards in different countries.

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for ____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s.

What are the factors that determine the costs of doing business in a country?

What are first-mover advantages? Explain with an example.

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.

Stagnation can occur in planned economies because:

The benefits of doing business in a country are a function of all of the following EXCEPT:

Paralleling the spread of democracy, since the 1980s there has been the transformation from:

The state can expropriate the profits from innovation through legal means, such as ____.

Why does doing business in a country with a relatively unsophisticated economy result in increased costs?

In all of the following scenarios, the costs of doing business in a country tend to be greater, EXCEPT where:

In some countries, the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:

One visible indicator of political risks tends to be a country's inflation rate.

What is deregulation? What are the steps involved in the deregulation of a command economy?

According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n) ____.

Globalization

National Differences in Political Economy

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 3: Political Economy and Economic Development

A change in political regime in a country can result in laws that _____ to international businesses.

What is the philosophy of Amartya Sen?

GNI allows a more direct comparison of living standards in different countries.

In many countries entrepreneurs and other business leaders, eager to protect their property rights and ensure the dispassionate enforcement of contracts, had pushed for ____. This contributed to a wave of democratic revolutions during the late 1980s and early 1990s.

What are the factors that determine the costs of doing business in a country?

What are first-mover advantages? Explain with an example.

Political freedom is one of the measures used by the Human Development Index (HDI) to measure the quality of human life in different nations.

When communism collapsed, many of the communist countries lacked the legal structure required to protect property rights because all the property was earlier held by the state.

Stagnation can occur in planned economies because:

The benefits of doing business in a country are a function of all of the following EXCEPT:

Paralleling the spread of democracy, since the 1980s there has been the transformation from:

The state can expropriate the profits from innovation through legal means, such as ____.

Why does doing business in a country with a relatively unsophisticated economy result in increased costs?

In all of the following scenarios, the costs of doing business in a country tend to be greater, EXCEPT where:

In some countries, the official GNI per capita measured at PPP data does not reflect the actual the total annual income because:

One visible indicator of political risks tends to be a country's inflation rate.

What is deregulation? What are the steps involved in the deregulation of a command economy?

According to Hernando de Soto, which of the following factors is essential for the developing world to be able to reap the benefits of innovation and entrepreneurship?

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n) ____.

Globalization

National Differences in Political Economy

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters