Question 1

_____ is regarded as a yardstick for the economic activity of a country; it measures the total annual income received by residents of a country.

Accepted Answer

A)   Income elasticity of demand
B)   Cash reserve ratio
C)   Net cash flow ratio
D)   Gross national income
E)   Income equity ratioF) None of the above
G) B) and C)

Question 2

"Not all democracies are free,as some still restrict certain political and civil liberties." Which of the following countries best fits this argument?

Accepted Answer

A)   Australia
B)   United States
C)   Great Britain
D)   Russia
E)   CanadaF) B) and D)
G) None of the above

Question 3

In economic terms,the long-run monetary benefits of doing business in a country are most likely to be a function of the:

Accepted Answer

A)   gender ratio of the country.
B)   latitudinal and the longitudinal location of the country.
C)   natural resources available in the country.
D)   present wealth (purchasing power)  of consumers of the country.
E)   political history of the country.F) B) and D)
G) A) and B)

Question 4

In the context of political economy,the past three decades have seen a general move toward:

Accepted Answer

A)   autocratic forms of government.
B)   command-based economic reforms.
C)   adoption of legal systems that better enforce property rights.
D)   an environments which is unfavorable for international business.
E)   military parties monopolizing political power worldwide.F) C) and D)
G) B) and E)

Question 5

Although China and India are very large markets when measured by number of consumers,their _____ makes them a relatively small market when measured in economic terms.

Accepted Answer

A)   orientation toward democracy
B)   small share in the world output
C)   high living standards
D)   limited purchasing power
E)   commitment to a free market systemF) B) and E)
G) A) and D)

Question 6

The influential economist Jeffrey Sachs argues that throughout history,_____ ,with their long engagements in international trade,have been the most supportive of market institutions.

Accepted Answer

A)   mountainous states
B)   tropical regions
C)   military societies
D)   landlocked states
E)   coastal statesF) A) and B)
G) A) and E)

Question 7

One common measure of economic development is a country's:

Accepted Answer

A)   gender ratio.
B)   gross national income.
C)   infant mortality rate.
D)   population density.
E)   total geographical area.F) D) and E)
G) A) and B)

Question 8

In Amartya Sen's view,development is solely an economic process,and not a political process.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true about the global changes in political and economic systems?

Accepted Answer

A)   The West lost the Cold War, and East European communist ideology is now widespread.
B)   A lack of deregulation has been the cause for the global financial crisis of 2008-2009, and the recession that followed.
C)   It is guaranteed that democracy will thrive in most of the world's newer democratic states.
D)   The multipolar world dominated by a number of civilizations of the Cold War era has vanished, and is now being replaced by a bipolar world.
E)   Many of the undeveloped and impoverished national markets of eastern Europe, Latin America, Africa, and Asia are potentially enormous for international business.F) C) and D)
G) B) and D)

Question 10

According to the influential economist Jeffrey Sachs,tropical regions have a more extensive division of labor than temperate regions.

Accepted Answer

A) True 
 B)False

Question 11

Discuss Samuel Huntington's idea of the new world order.What are its implications for international business?

Accepted Answer

The late influential political scientist...

Question 12

If a company from a highly developed nation hesitates to enter into a joint venture with a company from a developing nation due to inadequate protection of intellectual property rights,it is trying to avoid a(n) ____ risk.

Accepted Answer

A)   political
B)   legal
C)   ethical
D)   economic
E)   ethnographicF) A) and D)
G) A) and B)

Question 13

Many commentators have blamed the problems that led to global financial crisis of 2008-2009,and the recession that followed on:

Accepted Answer

A)   a lack of free markets.
B)   a lack of regulation.
C)   the political ideologies followed in the Asian countries.
D)   a strong presence of command economies.
E)   a lack of privatization and liberalization.F) C) and D)
G) A) and E)

Question 14

Which of the following statements is most likely to be true about the risks of doing business in a country?

Accepted Answer

A)   Political risk is low in countries that contain more than one ethnic nationality.
B)   Economic risks are independent of political risk.
C)   One visible indicator of economic risk is the level of business and government debt in the country.
D)   One visible indicator of legal risk tends to be a country's inflation rate.
E)   Political risk tends to be low in those countries that have high inflation and falling living standards.F) C) and D)
G) B) and C)

Question 15

In both China and India,the shift toward a command-based economic system has produced large gains despite weak property rights and endemic corruption.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Although free markets and democracy can still be found around the world,the tide has been running in favor of command economies and totalitarian dictatorships.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is an 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) C) and D)
G) B) and C)

Question 19

When a nation shifts away from a market-based economy,the state-owned businesses are sold to private investors.

Accepted Answer

A) True 
 B)False

Question 20

Entrepreneurial individuals have fewer economic incentives to develop valuable new innovations in market economies than in planned economies.

Accepted Answer

A) True 
 B)False

Exam 3: Political Economy and Economic Development

Which of the following is an implication of the global changes in political and economic systems for international business?

Correct AnswerverifiedShow Answer

In the context of political economy,the past three decades have seen a general move toward:

Correct AnswerverifiedShow Answer

Many commentators have blamed the problems that led to global financial crisis of 2008-2009,and the recession that followed on:

Correct AnswerverifiedShow Answer

Although China and India are very large markets when measured by number of consumers,their _____ makes them a relatively small market when measured in economic terms.

Correct AnswerverifiedShow Answer

In Amartya Sen's view,development is solely an economic process,and not a political process.

Correct AnswerverifiedShow Answer

"Not all democracies are free,as some still restrict certain political and civil liberties." Which of the following countries best fits this argument?

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

In economic terms,the long-run monetary benefits of doing business in a country are most likely to be a function of the:

Correct AnswerverifiedShow Answer

Although free markets and democracy can still be found around the world,the tide has been running in favor of command economies and totalitarian dictatorships.

Correct AnswerverifiedShow Answer

Which of the following statements is true about the global changes in political and economic systems?

Correct AnswerverifiedShow Answer

One common measure of economic development is a country's:

Correct AnswerverifiedShow Answer

In both China and India,the shift toward a command-based economic system has produced large gains despite weak property rights and endemic corruption.

Correct AnswerverifiedShow Answer

Entrepreneurial individuals have fewer economic incentives to develop valuable new innovations in market economies than in planned economies.

Correct AnswerverifiedShow Answer

Which of the following statements is most likely to be true about the risks of doing business in a country?

Correct AnswerverifiedShow Answer

The influential economist Jeffrey Sachs argues that throughout history,_____ ,with their long engagements in international trade,have been the most supportive of market institutions.

Correct AnswerverifiedShow Answer

Discuss Samuel Huntington's idea of the new world order.What are its implications for international business?

Correct AnswerverifiedThe late influential political scientist...View AnswerShow Answer

According to the influential economist Jeffrey Sachs,tropical regions have a more extensive division of labor than temperate regions.

Correct AnswerverifiedShow Answer

When a nation shifts away from a market-based economy,the state-owned businesses are sold to private investors.

Correct AnswerverifiedShow Answer

If a company from a highly developed nation hesitates to enter into a joint venture with a company from a developing nation due to inadequate protection of intellectual property rights,it is trying to avoid a(n) ____ risk.

Correct AnswerverifiedShow Answer

_____ is regarded as a yardstick for the economic activity of a country; it measures the total annual income received by residents of a country.

Correct AnswerverifiedShow Answer

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The late influential political scientist...
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