Question 1

The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in

Accepted Answer

A)   an improvement in the operating efficiency of newly privatized firms.
B)   reduced barriers to foreign direct investment and international trade.
C)   an increase in the incentives to engage in economic activity.
D)   deregulation and privatization of the economy.
E)   the lack of incentive to engage in economic activity.F) B) and E)
G) C) and D)

Question 2

China, South Korea, Taiwan, Singapore, and Hong Kong have had the fastest-growing economies in the past 40 years. What did these five countries have in common at the start of their economic spur?

Accepted Answer

A)   extensive trade agreements
B)   undemocratic governments
C)   active entrepreneurial activity
D)   high tariff barriers
E)   strong property rights protectionF) C) and D)
G) All of the above

Question 3

Five of the fastest growing economies of the past 30 years-China, South Korea, Taiwan, Singapore, and Hong Kong-had one thing in common at the start of their economic growth: democratic governments.

Accepted Answer

A) True 
 B)False  False

Question 4

Discuss the concept of deregulation and its role in a market-based economic system.

Accepted Answer

Deregulation involves removing legal res...

Question 5

A totalitarian regime can promote economic growth if it commits to a market system and values strong protection of property rights.

Accepted Answer

A) True 
 B)False

Question 6

Only a totalitarian regime that is committed to ________ is capable of promoting economic growth.

Accepted Answer

A)   a command economy
B)   a dictatorship
C)   limiting human freedom
D)   a strong protection of property rights
E)   limiting individualism and privatizationF) A) and B)
G) A) and C)

Question 7

In the context of global economy, what has been widely accepted since the late 1980s?

Accepted Answer

A)   centrally planned command economy
B)   mixed economy
C)   nationalization of private property
D)   deregulation of economies
E)   authoritarian regimeF) A) and B)
G) B) and E)

Question 8

Jason loves to invent new products but knows that in his country it is difficult for him to reap the rewards of innovations because they are quickly and legally copied by others after he releases them into the marketplace. As a result, Jason has decided to stop inventing. What is preventing Jason from doing what he loves?

Accepted Answer

A)   weak property rights protection
B)   excessive tariffs
C)   privatization
D)   strong government intervention
E)   purchasing power parityF) D) and E)
G) A) and D)

Question 9

Social unrest and disorder are less likely to be found in countries that contain more than one ethnic nationality.

Accepted Answer

A) True 
 B)False

Question 10

When social unrest and disorder in a country cause drastic changes in its business environment that adversely affect the profit of a business, the business is facing a ________ risk.

Accepted Answer

A)   political
B)   demographic
C)   ethical
D)   technological
E)   physiologicalF) A) and B)
G) B) and C)

Question 11

Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth, define innovation broadly to include not just new products but also new processes, new organizations, new management practices, and new strategies.

Accepted Answer

A) True 
 B)False

Question 12

In 2017, if the PPP per capita of China was $16,760 and the PPP per capita of the United States was $60,200, this means that the

Accepted Answer

A)   GNI per capita was greater in China.
B)   percent of goods and services consumed in the United States was lower.
C)   standard of living in China was better.
D)   cost of living was lower in China.
E)   annual average GDP growth rate was lower in China.F) A) and B)
G) C) and D)

Question 13

In 2017, if the GNI per capita of India was $1,820 and its PPP per capita was $7,060, this means that the cost of living in India was lower than the cost of living in

Accepted Answer

A)   China.
B)   Great Britain.
C)   Germany.
D)   the United States.
E)   the rest of the world.F) B) and E)
G) A) and E) D

Question 14

Describe how author Francis Fukuyama's vision of the new world differs from that of the late influential political scientist Samuel Huntington.

Accepted Answer

Fukuyama's envisioned a harmonious world...

Question 15

What is one implication of the global changes in political and economic systems for international business?

Accepted Answer

A)   The ideological conflict between collectivism and individualism is less in evidence today.
B)   Adoption of Western ideology is declining worldwide.
C)   The global tide has been running in favor of command economies and totalitarian dictatorships.
D)   Free markets and democracy are being replaced by mixed economies and communist governments.
E)   Liberalization and privatization of state-owned enterprises has been losing popularity.F) None of the above
G) D) and E)

Question 16

Which of these countries demonstrates Jeffrey Sachs's argument about trade?

Accepted Answer

A)   The nation of Ilar exports rice but imports wheat because it is more cost effective.
B)   The soil conditions in Sarut are so poor that no crops can be grown and the country must import all food sources.
C)   Intellectual property rights are well-protected in the nation of Acher which provides an absolute advantage.
D)   The citizens of Rener fail to participate in entrepreneurial activity because of the planned economy.
E)   The true GNI of the nation of Wolcott is unknown because of the "hidden economy."F) C) and D)
G) A) and C)

Question 17

Which activity engaged in by DenimExpress best exemplifies innovation?

Accepted Answer

A)   DenimExpress cut the prices of its products by 10 percent.
B)   DenimExpress entered the Chinese market.
C)   DenimExpress offered a "me-to" product similar to that of a competitor.
D)   DenimExpress developed a new business model by selling directly to customers.
E)   DenimExpress cut its costs by 10 percent.F) None of the above
G) A) and C)

Question 18

The belief that geography can influence economic policy, and hence economic growth rates, goes back to

Accepted Answer

A)   Adam Smith.
B)   Amartya Sen.
C)   Plato.
D)   Aristotle.
E)   Karl Marx.F) A) and C)
G) B) and D) A

Question 19

The gross national income (GNI) per capita comes much closer to Amartya Sen's conception of how development should be measured than narrow economic measures such as Human Development Index (HDI).

Accepted Answer

A) True 
 B)False

Question 20

Complexion Care Inc., a U.S.-based skin care firm, was the first in the industry to identify the growth potential of Thailand and made huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In this situation, Complexion Care Inc. has benefited from

Accepted Answer

A)   a first-mover advantage.
B)   forward integration.
C)   unrelated differentiation.
D)   deregulation.
E)   privatization.F) D) and E)
G) A) and E)

Exam 3: National Differences in Economic Development

The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in

Correct Answer
verified

China, South Korea, Taiwan, Singapore, and Hong Kong have had the fastest-growing economies in the past 40 years. What did these five countries have in common at the start of their economic spur?

Correct Answer
verified

Five of the fastest growing economies of the past 30 years-China, South Korea, Taiwan, Singapore, and Hong Kong-had one thing in common at the start of their economic growth: democratic governments.

Correct Answer
verified
False

Discuss the concept of deregulation and its role in a market-based economic system.

Correct Answer
verified
Deregulation involves removing legal res...
View Answer

A totalitarian regime can promote economic growth if it commits to a market system and values strong protection of property rights.

Correct Answer
verified

Only a totalitarian regime that is committed to ________ is capable of promoting economic growth.

Correct Answer
verified

In the context of global economy, what has been widely accepted since the late 1980s?

Correct Answer
verified

Correct Answer
verified

Social unrest and disorder are less likely to be found in countries that contain more than one ethnic nationality.

Correct Answer
verified

When social unrest and disorder in a country cause drastic changes in its business environment that adversely affect the profit of a business, the business is facing a ________ risk.

Correct Answer
verified

Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth, define innovation broadly to include not just new products but also new processes, new organizations, new management practices, and new strategies.

Correct Answer
verified

In 2017, if the PPP per capita of China was $16,760 and the PPP per capita of the United States was $60,200, this means that the

Correct Answer
verified

In 2017, if the GNI per capita of India was $1,820 and its PPP per capita was $7,060, this means that the cost of living in India was lower than the cost of living in

Correct Answer
verified
D

Describe how author Francis Fukuyama's vision of the new world differs from that of the late influential political scientist Samuel Huntington.

Correct Answer
verified
Fukuyama's envisioned a harmonious world...
View Answer

What is one implication of the global changes in political and economic systems for international business?

Correct Answer
verified

Which of these countries demonstrates Jeffrey Sachs's argument about trade?

Correct Answer
verified

Which activity engaged in by DenimExpress best exemplifies innovation?

Correct Answer
verified

The belief that geography can influence economic policy, and hence economic growth rates, goes back to

Correct Answer
verified
A

The gross national income (GNI) per capita comes much closer to Amartya Sen's conception of how development should be measured than narrow economic measures such as Human Development Index (HDI).

Correct Answer
verified

Correct Answer
verified

Exam 3: National Differences in Economic Development

The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in

Correct AnswerverifiedShow Answer

China, South Korea, Taiwan, Singapore, and Hong Kong have had the fastest-growing economies in the past 40 years. What did these five countries have in common at the start of their economic spur?

Correct AnswerverifiedShow Answer

Five of the fastest growing economies of the past 30 years-China, South Korea, Taiwan, Singapore, and Hong Kong-had one thing in common at the start of their economic growth: democratic governments.

Correct AnswerverifiedFalse

Discuss the concept of deregulation and its role in a market-based economic system.

Correct AnswerverifiedDeregulation involves removing legal res...View AnswerShow Answer

A totalitarian regime can promote economic growth if it commits to a market system and values strong protection of property rights.

Correct AnswerverifiedShow Answer

Only a totalitarian regime that is committed to ________ is capable of promoting economic growth.

Correct AnswerverifiedShow Answer

In the context of global economy, what has been widely accepted since the late 1980s?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Social unrest and disorder are less likely to be found in countries that contain more than one ethnic nationality.

Correct AnswerverifiedShow Answer

When social unrest and disorder in a country cause drastic changes in its business environment that adversely affect the profit of a business, the business is facing a ________ risk.

Correct AnswerverifiedShow Answer

Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth, define innovation broadly to include not just new products but also new processes, new organizations, new management practices, and new strategies.

Correct AnswerverifiedShow Answer

In 2017, if the PPP per capita of China was $16,760 and the PPP per capita of the United States was $60,200, this means that the

Correct AnswerverifiedShow Answer

In 2017, if the GNI per capita of India was $1,820 and its PPP per capita was $7,060, this means that the cost of living in India was lower than the cost of living in

Correct AnswerverifiedD

Describe how author Francis Fukuyama's vision of the new world differs from that of the late influential political scientist Samuel Huntington.

Correct AnswerverifiedFukuyama's envisioned a harmonious world...View AnswerShow Answer

What is one implication of the global changes in political and economic systems for international business?

Correct AnswerverifiedShow Answer

Which of these countries demonstrates Jeffrey Sachs's argument about trade?

Correct AnswerverifiedShow Answer

Which activity engaged in by DenimExpress best exemplifies innovation?

Correct AnswerverifiedShow Answer

The belief that geography can influence economic policy, and hence economic growth rates, goes back to

Correct AnswerverifiedA

The gross national income (GNI) per capita comes much closer to Amartya Sen's conception of how development should be measured than narrow economic measures such as Human Development Index (HDI).

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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False

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Deregulation involves removing legal res...
View Answer

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D

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Fukuyama's envisioned a harmonious world...
View Answer

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A

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