Question 1

When Galaxy Ventures,a real estate company,entered the low cost housing business,the market was already saturated with other players.Thus,the company was forced to exit the market due to lack of customer loyalty and substantial dividends.Which of the following is a term used to described the situation faced by the company?

Accepted Answer

A)   First-mover disadvantages
B)   Last-mover disadvantages
C)   Last-in first-out disadvantages
D)   Comparative disadvantages
E)   Absolute disadvantagesF) A) and E)
G) A) and D)

Question 2

If a country's economy is to sustain long-run economic growth,the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.

Accepted Answer

A) True 
 B)False

Question 3

According to _____,the collapse of communism will result in the new world order that will dominated by a universal civilization characterized by democratic regimes and free market capitalism.

Accepted Answer

A)   Amartya Sen
B)   Samuel Huntington
C)   Jeffrey Sachs
D)   Francis Fukuyama
E)   Adam SmithF) B) and D)
G) A) and D)

Question 4

Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation?

Accepted Answer

A)   Erbian government exercises tight control over the prices of food grains.
B)   The establishment of private enterprises in steel industry is prohibited by the Erbian government.
C)   The retail sector in Erbia has been opened for foreign direct investment.
D)   The Erbian government has been criticized for its inability to introduce a legal system to safeguard property rights.
E)   Erbia ranks the lowest among the countries that grant both political and economic freedoms to its citizens.F) None of the above
G) A) and D)

Question 5

Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation,entrepreneurial activity,and hence economic growth.

Accepted Answer

A) True 
 B)False

Question 6

Describe Amartya Sen's conceptions of development.

Accepted Answer

The Nobel Prize-winning economist Amarty...

Question 7

Which of the following is most likely to prove detrimental to democracy and international business?

Accepted Answer

A)   Emergence of increasingly prosperous middle and working classes
B)   Development of new information and communication technologies
C)   Dominance of universal civilization which leads to the establishment of a more harmonious world
D)   Transformation of nations from centrally planned command economies to market-based economies
E)   Emergence of different civilizations, each of which has its own value systems and ideologyF) A) and B)
G) A) and C)

Question 8

Why are market economies more conducive to innovation and entrepreneurship than planned or mixed economies?

Accepted Answer

The economic freedom associated with a m...

Question 9

During the late 1980s and early 1990s,many of the world's nation-states moved away from:

Accepted Answer

A)   democratically elected governments.
B)   free market capitalism.
C)   individualism.
D)   political and civil freedoms.
E)   totalitarian governments.F) A) and B)
G) A) and E)

Question 10

The collapse of _____ in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East.

Accepted Answer

A)   democracy
B)   communism
C)   free economy
D)   capitalism
E)   individualismF) A) and D)
G) D) and E)

Question 11

Which of the following best supports the economic transformation from a centrally planned command economy to a market-based economy?

Accepted Answer

A)   Reserving heavy industry for state-owned enterprises
B)   Having a strict industrial licensing system
C)   Restricting the imports of raw materials and several industrial goods
D)   Charging high rates of income tax and corporate tax
E)   Transferring the ownership of state property into the hands of private individualsF) C) and E)
G) B) and E)

Question 12

Which of the following is most likely to be implemented by a country as a part of deregulation?

Accepted Answer

A)   Prohibition of private enterprises from operating in certain sectors
B)   Commitment toward communism
C)   Removal of price controls
D)   Centrally planned economic system
E)   Increased restrictions on foreign direct investmentF) None of the above
G) A) and B)

Question 13

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 14

In most eastern European nations,the title to urban and agricultural property is often uncertain because of incomplete and inaccurate records,multiple pledges on the same property,and unsettled claims resulting from demands for restitution from owners in the pre-Communist era.

Accepted Answer

A) True 
 B)False

Question 15

During the late 1980s and early 1990s,totalitarian governments collapsed and were replaced by democratically elected governments.

Accepted Answer

A) True 
 B)False

Question 16

The risks of doing business are most likely to be the highest in a country that:

Accepted Answer

A)   has low inflation rates.
B)   supports high living standards.
C)   has only one ethnic nationality.
D)   protects intellectual property.
E)   faces frequent changes in government and government policy.F) C) and D)
G) A) and D)

Question 17

Economic freedom does not necessarily equate with political freedom.

Accepted Answer

A) True 
 B)False

Question 18

New information and communication technologies have increased a state's ability to control access to uncensored information.

Accepted Answer

A) True 
 B)False

Question 19

What are the implications of changing political economy for international business?

Accepted Answer

The global changes in political and econ...

Question 20

What changes have occured in the political economy of most of the world's nation-states since the late 1980s?

Accepted Answer

The political economy of many of the wor...

Exam 3: Political Economy and Economic Development

What changes have occured in the political economy of most of the world's nation-states since the late 1980s?

Correct Answer
verified
The political economy of many of the wor...
View Answer

Describe Amartya Sen's conceptions of development.

Correct Answer
verified
The Nobel Prize-winning economist Amarty...
View Answer

Which of the following is most likely to prove detrimental to democracy and international business?

Correct Answer
verified

Economic freedom does not necessarily equate with political freedom.

Correct Answer
verified

Which of the following best supports the economic transformation from a centrally planned command economy to a market-based economy?

Correct Answer
verified

Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation,entrepreneurial activity,and hence economic growth.

Correct Answer
verified

Why are market economies more conducive to innovation and entrepreneurship than planned or mixed economies?

Correct Answer
verified
The economic freedom associated with a m...
View Answer

Which of the following is most likely to be implemented by a country as a part of deregulation?

Correct Answer
verified

The risks of doing business are most likely to be the highest in a country that:

Correct Answer
verified

If a country's economy is to sustain long-run economic growth,the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.

Correct Answer
verified

In most eastern European nations,the title to urban and agricultural property is often uncertain because of incomplete and inaccurate records,multiple pledges on the same property,and unsettled claims resulting from demands for restitution from owners in the pre-Communist era.

Correct Answer
verified

What are the implications of changing political economy for international business?

Correct Answer
verified
The global changes in political and econ...
View Answer

During the late 1980s and early 1990s,totalitarian governments collapsed and were replaced by democratically elected governments.

Correct Answer
verified

New information and communication technologies have increased a state's ability to control access to uncensored information.

Correct Answer
verified

The collapse of _____ in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East.

Correct Answer
verified

During the late 1980s and early 1990s,many of the world's nation-states moved away from:

Correct Answer
verified

Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation?

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

According to _____,the collapse of communism will result in the new world order that will dominated by a universal civilization characterized by democratic regimes and free market capitalism.

Correct Answer
verified

Correct Answer
verified

Exam 3: Political Economy and Economic Development

What changes have occured in the political economy of most of the world's nation-states since the late 1980s?

Correct AnswerverifiedThe political economy of many of the wor...View AnswerShow Answer

Describe Amartya Sen's conceptions of development.

Correct AnswerverifiedThe Nobel Prize-winning economist Amarty...View AnswerShow Answer

Which of the following is most likely to prove detrimental to democracy and international business?

Correct AnswerverifiedShow Answer

Economic freedom does not necessarily equate with political freedom.

Correct AnswerverifiedShow Answer

Which of the following best supports the economic transformation from a centrally planned command economy to a market-based economy?

Correct AnswerverifiedShow Answer

Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation,entrepreneurial activity,and hence economic growth.

Correct AnswerverifiedShow Answer

Why are market economies more conducive to innovation and entrepreneurship than planned or mixed economies?

Correct AnswerverifiedThe economic freedom associated with a m...View AnswerShow Answer

Which of the following is most likely to be implemented by a country as a part of deregulation?

Correct AnswerverifiedShow Answer

The risks of doing business are most likely to be the highest in a country that:

Correct AnswerverifiedShow Answer

If a country's economy is to sustain long-run economic growth,the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.

Correct AnswerverifiedShow Answer

In most eastern European nations,the title to urban and agricultural property is often uncertain because of incomplete and inaccurate records,multiple pledges on the same property,and unsettled claims resulting from demands for restitution from owners in the pre-Communist era.

Correct AnswerverifiedShow Answer

What are the implications of changing political economy for international business?

Correct AnswerverifiedThe global changes in political and econ...View AnswerShow Answer

During the late 1980s and early 1990s,totalitarian governments collapsed and were replaced by democratically elected governments.

Correct AnswerverifiedShow Answer

New information and communication technologies have increased a state's ability to control access to uncensored information.

Correct AnswerverifiedShow Answer

The collapse of _____ in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East.

Correct AnswerverifiedShow Answer

During the late 1980s and early 1990s,many of the world's nation-states moved away from:

Correct AnswerverifiedShow Answer

Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation?

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

According to _____,the collapse of communism will result in the new world order that will dominated by a universal civilization characterized by democratic regimes and free market capitalism.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
The political economy of many of the wor...
View Answer

Correct Answer
verified
The Nobel Prize-winning economist Amarty...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The economic freedom associated with a m...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The global changes in political and econ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified