Question 1

How do the political,economic,and legal environments of a country affect international trade? And what factors make a country favorable for doing business?

Accepted Answer

The political,economic,and legal environments of a country clearly influence the attractiveness of that country as a market or investment site.The benefits,costs,and risks associated with doing business in a country are a function of that country's political,economic,and legal systems.The overall attractiveness of a country as a market or investment site depends on balancing the likely long-term benefits of doing business in that country against the likely costs and risks.Other things being equal,a nation with democratic political institutions,a market-based economic system,and strong legal system that protects property rights and limits corruption is clearly more attractive as a place in which to do business than a nation that lack democratic institutions,where economic activity is heavily regulated by the state,and where corruption is rampant and the rule of law is not respected.

Question 2

In which countries are we likely to find free market economies?

Accepted Answer

A)   Countries where the good of the society has precedence over private profit
B)   Countries where individual goals are given primacy over collective goals
C)   Countries where state-owned enterprises have monopoly in certain industries
D)   Countries that have adopted communism as their political system
E)   Countries where the government plans the goods and services produced

Question 3

The _____ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations.

Accepted Answer

A)   Contracts for the International Sale of Goods
B)   Bill of Exchange
C)   United Nations Charter
D)   International Forwarding Agent Contract
E)   International Promissory Note

Question 4

The philosophy behind intellectual property laws is to:

Accepted Answer

A)   reward the originator of a new invention, book, musical record, and the like for his or her idea and effort.
B)   protect the consumers from being subjected to business malpractice.
C)   safeguard a firm and its officers from being responsible for injury, death, or damage caused by the firm's product.
D)   eliminate monopoly in international trade.
E)   ensure that the rights to manufacture, use, or sell an invention are made available to the whole society.

Question 5

_____ is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

Accepted Answer

A)   Capitalism
B)   Totalitarianism
C)   Pure democracy
D)   Republicanism
E)   Representative democracy

Question 6

What are grease payments? Are they acceptable by the U.S.law and OECD convention?

Accepted Answer

Grease payments are the facilitating or ...

Question 7

The term political economy is used to stress the fact that the political,economic,and legal systems of a country are independent of each other.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following best exemplifies facilitating or expediting payments in business?

Accepted Answer

A)   Making payments to government officials not to cancel the business license after violating local laws
B)   Paying a lump sum amount in order to win a government tender for road construction in a foreign country
C)   Making unsolicited payments to the concerned officers in return for employing child labor
D)   Making payments to customs officials in order to ship pirated merchandise
E)   Making small payments to government officials in order to speed up the work they are already obligated to perform

Question 9

Intellectual property laws stimulate innovation and creative work.

Accepted Answer

A) True 
 B)False

Question 10

Jewish law is an example of a _____ law system.

Accepted Answer

A)   autocratic
B)   civil
C)   common
D)   theocratic
E)   universal

Question 11

In the context of property rights,which of the following best exemplifies private action?

Accepted Answer

A)   Levying excessive taxes
B)   Requiring expensive licenses or state permits from private property holders
C)   Taking assets into state ownership without compensating the owners
D)   Government bureaucrats demanding bribes from businesses in return for the rights to operate in a country
E)   Business owners stealing their competitors trade secrets and intellectual properties E

Question 12

In the context of common law,the term "tradition" most likely refers to the:

Accepted Answer

A)   religious aspect in the law.
B)   ways in which laws are applied in specific situations.
C)   political beliefs of the majority of the people in the country
D)   legal history of a country.
E)   ways in which laws are organized into codes.

Question 13

Which of the following is a typical function of a trademark?

Accepted Answer

A)   It marks the sales territory for which individual salespeople are assigned.
B)   It restrains authors, composers, playwrights, artists, and publishers from trading their creative work.
C)   It signifies that a country is a member of the World Trade Organization.
D)   It acts as a permit to expand a business globally.
E)   It allows merchants or manufacturers to designate and differentiate their products.

Question 14

Veronica had been getting red patches on her face after using a protein-based lotion manufactured by Nature Life Research Lab.On consulting a dermatologist,she learnt that the lotion's steroid levels were beyond the standard levels permitted by the government and the damage caused by the lotion was irreversible.Which of the following will address Veronica's grievances?

Accepted Answer

A)   Laws related to property rights
B)   Product liability laws
C)   Intellectual property laws
D)   Foreign Corrupt Practices Act
E)   Sarbanes-Oxley Act

Question 15

What are the various safeguards that are typically enshrined in constitutional law of an ideal representative democracy?

Accepted Answer

To guarantee that elected representative...

Question 16

Which of the following statements is most likely to be true regarding private ownership?

Accepted Answer

A)   It reduces a nation's dynamism and its investments in innovation and creativity.
B)   It is most commonly found in command economies.
C)   It eliminates competitors and reduces pressure to lower production costs.
D)   It gives entrepreneurs an incentive to search for better ways of serving consumer needs.
E)   It is based on the philosophy that "the good of society is more important than the interests of an individual."

Question 17

In the context of property rights,_____ refers to theft,piracy,blackmail,and the like by private individuals or groups.

Accepted Answer

A)   private consumption
B)   Private practice
C)   privacy tort
D)   private action
E)   privacy violation D

Question 18

Which of the following is true about the three broad types of economic systems?

Accepted Answer

A)   For pure market economy to function efficiently product supply must be restricted.
B)   In a command economy, state-owned enterprises have little incentive to control costs and be efficient.
C)   The sole role of government in a command economy is to encourage vigorous free and fair competition between private producers.
D)   Mixed economies were once uncommon throughout much of the world, although they are becoming much popular now.
E)   Production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.

Question 19

In a pure _____ economy,the government plans the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold.

Accepted Answer

A)   command
B)   market
C)   mixed
D)   laissez-faire
E)   deregulated

Question 20

How do international businesses respond to violations of their intellectual property?

Accepted Answer

International businesses have a number o...

Exam 2: National Differences in Political Economy

How do the political,economic,and legal environments of a country affect international trade? And what factors make a country favorable for doing business?

In which countries are we likely to find free market economies?

Correct Answer
verified

The _____ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations.

Correct Answer
verified

The philosophy behind intellectual property laws is to:

Correct Answer
verified

_____ is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

Correct Answer
verified

What are grease payments? Are they acceptable by the U.S.law and OECD convention?

Correct Answer
verified
Grease payments are the facilitating or ...
View Answer

The term political economy is used to stress the fact that the political,economic,and legal systems of a country are independent of each other.

Correct Answer
verified

Which of the following best exemplifies facilitating or expediting payments in business?

Correct Answer
verified

Intellectual property laws stimulate innovation and creative work.

Correct Answer
verified

Jewish law is an example of a _____ law system.

Correct Answer
verified

In the context of property rights,which of the following best exemplifies private action?

Correct Answer
verified
E

In the context of common law,the term "tradition" most likely refers to the:

Correct Answer
verified

Which of the following is a typical function of a trademark?

Correct Answer
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Correct Answer
verified

What are the various safeguards that are typically enshrined in constitutional law of an ideal representative democracy?

Correct Answer
verified
To guarantee that elected representative...
View Answer

Which of the following statements is most likely to be true regarding private ownership?

Correct Answer
verified

In the context of property rights,_____ refers to theft,piracy,blackmail,and the like by private individuals or groups.

Correct Answer
verified
D

Which of the following is true about the three broad types of economic systems?

Correct Answer
verified

In a pure _____ economy,the government plans the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold.

Correct Answer
verified

How do international businesses respond to violations of their intellectual property?

Correct Answer
verified
International businesses have a number o...
View Answer

Exam 2: National Differences in Political Economy

How do the political,economic,and legal environments of a country affect international trade? And what factors make a country favorable for doing business?

In which countries are we likely to find free market economies?

Correct AnswerverifiedShow Answer

The _____ establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations.

Correct AnswerverifiedShow Answer

The philosophy behind intellectual property laws is to:

Correct AnswerverifiedShow Answer

_____ is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties.

Correct AnswerverifiedShow Answer

What are grease payments? Are they acceptable by the U.S.law and OECD convention?

Correct AnswerverifiedGrease payments are the facilitating or ...View AnswerShow Answer

The term political economy is used to stress the fact that the political,economic,and legal systems of a country are independent of each other.

Correct AnswerverifiedShow Answer

Which of the following best exemplifies facilitating or expediting payments in business?

Correct AnswerverifiedShow Answer

Intellectual property laws stimulate innovation and creative work.

Correct AnswerverifiedShow Answer

Jewish law is an example of a _____ law system.

Correct AnswerverifiedShow Answer

In the context of property rights,which of the following best exemplifies private action?

Correct AnswerverifiedE

In the context of common law,the term "tradition" most likely refers to the:

Correct AnswerverifiedShow Answer

Which of the following is a typical function of a trademark?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What are the various safeguards that are typically enshrined in constitutional law of an ideal representative democracy?

Correct AnswerverifiedTo guarantee that elected representative...View AnswerShow Answer

Which of the following statements is most likely to be true regarding private ownership?

Correct AnswerverifiedShow Answer

In the context of property rights,_____ refers to theft,piracy,blackmail,and the like by private individuals or groups.

Correct AnswerverifiedD

Which of the following is true about the three broad types of economic systems?

Correct AnswerverifiedShow Answer

In a pure _____ economy,the government plans the goods and services that a country produces,the quantity in which they are produced,and the prices at which they are sold.

Correct AnswerverifiedShow Answer

How do international businesses respond to violations of their intellectual property?

Correct AnswerverifiedInternational businesses have a number o...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Grease payments are the facilitating or ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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E

Correct Answer
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Correct Answer
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Correct Answer
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To guarantee that elected representative...
View Answer

Correct Answer
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D

Correct Answer
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Correct Answer
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Correct Answer
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International businesses have a number o...
View Answer