BUS-200 Final Review (Multiple choice)

The social market model of national economy prioritizes which one of the following?

societal goals

The government of Nerumbia wants to open the country's economy to international business and increase its overall attractiveness as a potential market or investment site. Which of the following will facilitate this decision of the Nerumbian government?

Investing in infrastructure and in the required supporting businesses

Taxation as a percentage of GDP is generally high in advanced economies, but which of the following countries is an exception?

the US

The government of Great Lanthania is planning to adopt a market-based economic system. To be able to do so, the government of this country should:

adopt privatization

What impact does high inequality have on economic growth?

It adversely affects the sustainability of growth.

To what extent is regulation part of the liberal market economy?

To the extent needed to ensure open and fair markets

Which of the following countries has relatively low inequality?

Norway

All but which one of the following is a worry for a government when there is rising inflation?

The country's interest rates are likely to fall.

How is income inequality measured in net terms?

By taking account of an individual's income after taxes and transfers

The result of the 'Bre' referendum in the UK was which of the following?

To leave the EU

What is recession in a national economy?

Two consecutive quarters of negative economic growth

Why is adjustment for PPP important in comparing national economic data?

Because it takes of differences in spending power in different countries

Which of the following describes a country when the income its residents earn from exports is equal to the money its residents pay to other countries for imports?

Balance-of-trade equlibrium

Which one of the following best describes the foundation principles of the liberal market economy?

laissez-faire capitalism

Which one of the following describes the EU single market?

Free movement of goods, people, capital and information

A current account surplus indicates which of the following?

The country exports more than it imports

How can MNEs promote sustainable growth in the economies where they operate?

By adopting a CSR approach to social well-being in each location

Capitalism rests on all but which one of the following basic assumptions?

social justice

Which one of the following best describes China's economic model?

Market freedoms in the context of ultimate political controls

What is 'macroeconomics'?

The study of national economies

A global political environment following a. realpolitik approach would be based on which of the following?

power politics

Which one of the following is not a source of internal political risk?

Conflict with a neighbouring country

All but which one of the following is a civil society organization?

A government agency

What was the importance of the 'Citizens United' Supreme Court judgment in the US?

To allow individuals and companies to give unlimited donations to political causes

Which one of the following is not a. risk to sustainability in political systems?

respect for international law

Which one of the following descriptions comes closest to justifying China's authoritarian rule?

Directing development from the top benefits all in the end.

Pluralism is associated with all but which one of the following

authoritarian rule

Which of the following elements is not associated with extreme nationalism?

Tolerance of minority cultures

The rule of law is characterized by which one of the following?

The law is above ruler and ruled.

A populist ideology is likely to focus on all but which one of the following?

democratic freedoms

Which one of the following best defines the nation-state?

The authoritative institutional framework for governing a defined territory

Why is proportional representation as a. system of voting considered more representative than first-past-the-post?

It more accurately reflects divergent interests and viewpoints.

All but which one of the following is likely to be a source of political risk in large emerging economies?

Established and tested democratic institutions

Which of the following is likely to occur when an extreme populist party wins elections and takes control of the government in a. democratic political system?

The democratic constitutional processes will come under strain from the executive.

Which of the following is the main reason for engaging private-sector companies in delivering public services?

The service can be delivered more efficiently and cheaply.

As globalization has spread, the impacts on states have included all but which one of the following?

More nationalization of industries

The legislative assembly in a. democracy serves which one of the following purposes?

To represent the sovereignty of the people

Regional conflicts and internal instabilities are driving up military expenditures significantlyin which of the following?

middle eastern countries

The 'external' aspect of sovereignty rests on which one of the following principles?

That each nation-state must respect the sovereignty of every other.

Which one of the following is a. legitimate lobbying activity by a. business?

Providing information to legislators on the company's business

Investor-state dispute settlement (ISDS) facilitates which of the following?

Foreign companies pursuing claims for lost profits in a host country where they have invested

All but which one of the following points is a criticism of the Investor-state dispute settlement (ISDS)?

The process helps to clarify the law.

What is the most important legal risk foreign businesses might face in politically unstable countries? Philippines

corruption

Treaties can be any but which one of the following?

Between a country and a large business

All but which one of the following litigants would be able to pursue a case of product liability?

A buyer of a vacuum cleaner that fails to work

What areas of the legal environment of business as it relates to corporate social responsibility are covered by treaties?

human rights

Which one of the following aims to harmonize the law of the international sale of goods?

The Convention on Contracts for the International Sale of Goods

In what ways has the US legal climate facilitated litigation processes for product liability?

The use of class action, award of punitive damages and the contingency fee system

What is the significance of the 'crime of aggression' in the jurisdiction of the International Criminal Court?

It should deter states' leaders from launching invasions other countries.

The depth of the rule of law within a legal system can be assessed by all but one of the following?

Weak regulation

Where does the International Court of Justice in Den Hague derive its authority from?

United Nations

All but one are alternatives to the litigation process in alternative dispute resolution

class action settlement

The International Criminal Court (ICC) would hear which one of the following cases?

Claims of crimes against humanity

What is the 'contingency-fee basis' for the payment of lawyers?

The lawyer's fees are an agreed percentage of the damages awarded to the plaintiff.

Islamic law, or Shari'a law, involves which of the following?

The use of alternative legal forms that do not involve the payment of interest

A party launching a case in criminal law is known as....

prosecutor

Which one of the following falls under public law?

relations between citizens and the state

International law relies on which of the following, in order to be enforced?

Recognition of its status by the world's states

Which of the following areas of law does not generally apply to business:

Divorce law

The function of the European Court of Justice is best described by which one of the following?

Interpretation of EU law

The theory of comparative advantage stresses which of the following?

Countries should specialize in industries in which they hold the greatest advantage in comparison with other countries.

Trade tensions between the US and China have been caused by all but which one of the following?

Large trade unions in the US

Which one of the following countries has promoted industrialization through policies of import substitution?

india

Which of the following regions is resource-rich but has to import manufactured goods?

africa

All but which one of the following is a protectionist trade policy?

Allowing duty-free goods to be imported

All but which one of the following are GATT principles?

Right to take unilateral action

How can sustainable trading relations be fostered by companies?

By placing social responsibility on the same level as profits in business decisions

All but which one of the following factors has helped China to become the largest exporter of merchandise?

Little integration in global supply chains

Which one of the following best describes the contribution of Porter's theory of competitive advantage?

It takes in numerous dimensions of a nation's competitive environment.

Which one of the following is a criticism of GMO farming on grounds of sustainability?

Farmers' interests are subordinated to corporate power.

What of the following are 'intermediate goods'?

Components that cross borders before being made into final products

In negotiations for the new NAFTA, which of the following issues was the most hard fought?

Rules for tariff-free status on cars and other vehicles

The TRIPS agreement is best described as focusing on which of the following?

A framework for developing countries to strengthen IP laws

Which one of the following countries has benefited the most from the import of intermediate goods?

china

MERCOSUR is a common market among countries of which continent?

South America

Countries that concentrate on low-tech manufacturing are likely to experience all but one of the following?

Sustainable rise in economic development

Mecantilism focuses on...

Trade as a source of national wealth that strengthens the country internationally

Which of the following groups of countries have historically been dominant in world trade?

The triad countries

Globalization of production has been facilitated by all but which one of the following?

Governments' support for domestic producers

Which one of the following producer countries has suffered economically from US cotton subsidy programmes?

Mali

Which of the following groups benefited most from quantitative easing?

Investors in equities

Lessons from the Asian financial crisis of 1997-8 included all but which one of the following?

Global capital flows are invariably beneficial in developing economies.

Banking scandals have included all but which one of the following?

The separation of retail banking from investment banking

Which of the following refers to the gold standard?

Pegging currencies to gold and guaranteeing convertibility

All but which one of the following is a drawback of 'self-regulation' in financial services?

It reduces regulatory bureaucracy.

All but which one of the following was a cause of the global financial crisis 2008?

Too much government regulation of financial services

Hedge funds are criticized for which one of the following reasons?

Their speculative activities can distort markets.

A merger of pharmaceutical companies is likely to lead to all but which one of the following?

Lower prices for drugs in poor countries

Which of the following is true of a banking crisis?

It leads to individuals and companies withdrawing their deposits from banks.

In terms of the gold standard, the amount of currency needed to purchase one ounce of gold was referred to as the:

gold par value

Which of the following is a Bretton Woods institution?

The International Monetary Fund (IMF)

When did the gold standard prevail in the international finance?

the 1870s to 1914

Sustainable banking involves which of the following?

Taking stakeholder interests into account

Which of the following is an advantage of the pegged exchange rate?

It attracts foreign investors.

Which sector has seen the highest surges in stock prices in the decade following the 2008 financial crash?

High-tech companies

The Washington consensus includes all but which one of the following policies?

Nationalizing key industries

A country's exporters favour all but which one of the following?

A strong domestic currency

Which of the following was an outcome of Russia's currency crisis of 1998?

The fall of the government and election of Vladimir Putin

The Argentina financial crisis was caused mainly by which of the following?

Too much accumulated sovereign debt