GFOB Test 2

What is international​ business?
Question content area bottom
A.
All exported products
B.
A multinational corporation that has direct investment
C.
Small firms that sell international products
D.
Born global firms
E.
Any commercial transaction that crosses the borders of two or more countries

E.
Any commercial transaction that crosses the borders of two or more countries

Which one of the following can best describe born global​ firms?

A.
Companies that adopt a global perspective and engages in international business from the start
B.
Import firms
C.
Companies that employ thousands of workers
D.
Custom brokers
E.
Multinational corporations

A.
Companies that adopt a global perspective and engages in international business from the start

​________ is any commercial transaction that crosses the borders of two or more nations.

A.
Sustainability
B.
An MNC
C.
International business
D.
Gross domestic product
E.
Globalization

C.
International business

​A(n) ________ may see globalization as an opportunity to source goods and services from​ lower-cost locations and to pry open new markets.

A.
political scientist
B.
businessperson
C.
anthropologist
D.
economist
E.
environmentalist

B.
businessperson

Multinational corporations do NOT​ ________.

A.
engage in mergers and acquisitions
B.
have few employees
C.
generate significant​ jobs, investment, and tax revenue
D.
leave thousands of people out of work.
E.
have direct investments abroad in multiple countries

B.
have few employees

A born global​ firm, a company that adopts a global perspective and engages in international business from​ inception, does NOT​ ________.

A.
tend to have an innovative culture and​ knowledge-based organizational capabilities
B.
use electronic distribution for digitized products
C.
become international competitors in less than three​ years' time.
D.
sell traditional products and benefit from technology
E.
wait at least a year before exporting products and expanding operations globally

E.
wait at least a year before exporting products and expanding operations globally

When IBM USA sources computer materials from different locations around the world to reduce the cost of​ production, this is called​ ________.

A.
globalization of markets
B.
globalization of production
C.
Commercialization of products and services
D.
franchising
E.
technological innovation

B.
globalization of production

Which one of following options helps companies reduce costs when they sell consumer goods​ globally?

A.
Receiving payment in U.S. dollars only
B.
Outsourcing most of their business
C.
Considering foreign direct investment
D.
Standardizing certain marketing activities
E.
Hiring international staff to have better control and operate more efficiently

D.
Standardizing certain marketing activities

Which of the following is the name given to the trend toward greater​ economic, cultural,​ political, and technological interdependence among national institutions and​ economies?

A.
Sustainability
B.
Internationalization
C.
Globalization
D.
Denationalization
E.
Globalization of markets

C.
Globalization

Global products and global competition characterize many industries and​ markets, including all of the following EXCEPT​ ________.

A.
automobiles
B.
consumer goods
C.
environmentally harmful products
D.
aircraft
E.
semiconductors

C.
environmentally harmful products

Companies that sell global products can reduce costs by​ ________.

A.
creating local ads
B.
customizing products
C.
polluting local water sources
D.
standardizing certain marketing activities
E.
only advertising products in English

D.
standardizing certain marketing activities

Which of the following is NOT a benefit that companies obtain from the globalization of​ production?

A.
Production inputs
B.
Technical expertise
C.
​Low-cost labor
D.
​High-cost labor
E.
Raw materials

D.
​High-cost labor

Which one of these factors is a key driving force for globalization of market and​ production?

A.
The advancement of the democratization process and economic reforms
B.
The​ WTO, which enforces the rules of international trade
C.
The engagement of more small firms in international business
D.
Falling barriers to trade and investment and technological innovation
E.
The availability of international financing

D.
Falling barriers to trade and investment and technological innovation

GATT​ _______________, which led to the creation of the​ WTO?

A.
was unable to further reduce tariffs charges
B.
lacked the power to enforce world trade rules
C.
was unable to lower the subsidies on all products
D.
lacked the power to promote free trade
E.
was unable to clearly define intellectual property rights

D.
lacked the power to promote free trade

What forces underlie the globalization of markets and​ production?

A.
Literacy and better health care
B.
Higher environmental standards and restrictions on child labor
C.
​Low-cost labor
D.
Intense competition and high interest rates
E.
Falling barriers to trade and investment and technological innovation

E.
Falling barriers to trade and investment and technological innovation

Which of the following is a treaty designed to promote free trade by reducing tariffs and nontariff barriers to international​ trade?

A.
General Agreement on Tariffs and Trade​ (GATT)
B.
North American Free Trade Agreement​ (NAFTA)
C.
World Trade Organization​ (WTO)
D.
World Bank
E.
International Monetary Fund​ (IMF)

A.
General Agreement on Tariffs and Trade​ (GATT)

Innovations that have had a considerable impact on globalization include all of the following EXCEPT​ ________.

A.
​e-mail
B.
intranets
C.
increasing the number of intermediaries
D.
the Internet
E.
videoconferencing

C.
increasing the number of intermediaries

Innovation in the shipping industry is helping globalize markets and production by​ ________.

A.
building new​ high-cost computer servers for businesses
B.
having a cargo ship in port up to 10 days while it was unloaded one pallet at a time
C.
avoiding GPS satellites
D.
making shipping more efficient and dependable
E.
weekly monitoring of individual containers from port of departure to destination

D.
making shipping more efficient and dependable

Which one of the following is the main issue raised by critics of​ globalization?

A.
It increases the consumer prices of goods.
B.
It increases the profit of multinational corporations in developing countries.
C.
It increases wealth and efficiency in both developed and developing nations.
D.
It eliminates jobs and lowers wages in developed nations.
E.
It generates labor market flexibility in developed nations.

D.
It eliminates jobs and lowers wages in developed nations.

Which one of the following is claimed by supporters of​ globalization?

A.
Promotes labor laws reforms
B.
Openness of international trade increases​ production, wealth, and efficiency.
C.
Reduces threats and maintain peace among countries
D.
Creates cultural awareness
E.
Stabilizes currency fluctuations

B.
Openness of international trade increases​ production, wealth, and efficiency.

Arguments in favor of globalization state that​ ________.

A.
globalization causes worker dislocation that gradually lowers wages
B.
globalization eliminates manufacturing jobs in developed nations
C.
globalization increases wealth and efficiency in both developed and developing nations
D.
international outsourcing exploits workers
E.
globalization exploits workers in​ low-wage nations

C.
globalization increases wealth and efficiency in both developed and developing nations

Arguments against globalization state that​ ________.

A.
globalization and international outsourcing help to advance developing​ nations' economies
B.
openness to international trade increases national production by increasing efficiency
C.
openness to international trade raises per capita income by passing savings on to consumers
D.
gains to national economies are not worth the lost livelihoods of individuals
E.
globalization generates labor market flexibility in developed nations

D.
gains to national economies are not worth the lost livelihoods of individuals

Some allege​ that, when a manufacturing job is lost in a wealthy​ nation, the new job pays less than the previous one. As a result those opposed to globalization say this decreases all of the following EXCEPT​ ________.

A.
trade barriers
B.
employee morale
C.
fear
D.
job security
E.
employee loyalty

C.
fear

India became attractive as a location for​ software-writing operations because of its​ low-cost, well-trained,​ English-speaking technicians. What is this an example​ of?

A.
Measuring globalization
B.
Decreasing a​ nation's GDP
C.
Globalization advancing developing​ nations' economies
D.
Globalization causing worker dislocation
E.
Developing an extranet

C.
Globalization advancing developing​ nations' economies

Globalization supporters argue that developing countries can boost incomes for its poorest citizens and reduce income inequality by​ ________.

A.
reducing trade deficit
B.
accelerating privatization process
C.
strengthening local intellectual property rights
D.
reforming labor laws
E.
integrating into the global economy

E.
integrating into the global economy

Opponents of globalization argue that freer trade and​ companies' continuous tendency to reduce costs has led companies to move into lower wage cost locations. This has resulted in​ ________.

A.
raising prices of manufactured goods
B.
currency devaluation
C.
an increase in tariff charges on imported goods
D.
an increase in the wage gap between​ white-collar and​ blue-collar occupations in rich nations
E.
a direct impact on the​ country's exchange rate system

D.
an increase in the wage gap between​ white-collar and​ blue-collar occupations in rich nations

The main aspects of the debate about inequality include all EXCEPT​ ________.

A.
worldwide inequality
B.
gender inequality
C.
inequality within nations
D.
inequality between nations
E.
global inequality

B.
gender inequality

Which of the following statements supports the opponents of​ globalization's viewpoint on its effect on​ income? Globalization increases income inequality among people within nations

A.
Some argue that globalization decreases the wage gap between​ white-collar and​ blue-collar occupations in rich nations.
B.
Freer trade and investment allows international companies to close factories in​ high-wage, developed nations and cause income inequality
C.
Two studies of developed and developing nations draw the same conclusion about income inequality.
D.
Other studies show that by integrating their economies into the global​ economy, developing nations boost the incomes of their richest citizens.
E.
A multidimensional view of poverty focuses on income alone.

B.
Freer trade and investment allows international companies to close factories in​ high-wage, developed nations and cause income inequality

If we compare average incomes in​ high-income countries with average incomes in​ middle- and​ low-income nations, we find a​ ________ gap.

A.
seasonal
B.
very small
C.
widening
D.
multidimensional
E.
narrowing

C.
widening

Home to 13 percent of the​ world's population, Africa accounts for​ ________ percent of world GDP.

A.
25
B.
35
C.
10
D.
3
E.
15

D.
3

Critics of the WTO and the IMF believe that these global​ organizations' policies cause the erosion of​ ________.

A.
national sovereignty
B.
the legal system of the country
C.
a​ country's financial system
D.
local labor laws
E.
a​ country's culture values

A.
national sovereignty

A​ nation's ability to enter into binding international agreements is referred to as having​ ________.

A.
liberalism
B.
national sovereignty
C.
its own culture and values
D.
patriotism
E.
national security

B.
national sovereignty

Globalization's detractors say that​ ________.

A.
it allows us all to profit from our differing circumstances and skills
B.
we all will wear different same​ clothes, eat different​ foods, and watch different movies
C.
it homogenizes our world and destroys its rich diversity of cultures
D.
blame for globalization is placed on​ small, U.S.-based, consumer goods companies
E.
nations can then trade with each other to obtain goods and services they desire but do not produce

C.
it homogenizes our world and destroys its rich diversity of cultures

Which of the following is NOT an argument in the debate over​ globalization's influence on​ culture?

A.
Global​ consumer-goods companies destroy cultural diversity by putting local companies out of business.
B.
Deeper values that embody the essence of cultures are resistant to a global consumer culture.
C.
Local values and traditions are being replaced by U.S. companies promoting​ "Western" values.
D.
A poor marketing effort can cause great products to fade into obscurity.
E.
Globalization fosters two important​ values: tolerance and diversity.

D.
A poor marketing effort can cause great products to fade into obscurity.

Some say that globalization erodes national sovereignty. National sovereignty does not mean that a​ nation-state ________.

A.
can freely select its government
B.
cannot enter into binding international agreements
C.
is autonomous
D.
cannot intervene in the affairs of other nations
E.
can control movements across its borders

B.
cannot enter into binding international agreements

Globalization supporters argue that an amazing consequence of globalization has been​ ________.

A.
an attack on the rights and authority of local and state governments
B.
the spread of democracy worldwide
C.
a dumping ground for the home​ market's outdated products
D.
the exploitation of the environment
E.
illiteracy and less empowerment

B.
the spread of democracy worldwide

It is evident that most multinational firms support environmental laws that are practical for which one of the following​ reasons?

A.
Companies recognize that healthy future markets require a sustainable approach to the business expansion for future local market for their goods and services.
B.
It helps the local economy and their image.
C.
Openness and globalization lessen environmental standards.
D.
Companies want to introduce a new product line.
E.
Companies want to choose​ low-cost resources over environmental concerns.

A.
Companies recognize that healthy future markets require a sustainable approach to the business expansion for future local market for their goods and services.

Globalization supporters argue that the people of many nations have become more​ educated, better​ informed, and more empowered. Supporters say globalization has been instrumental in spreading​ ________.

A.
democracy
B.
lax environmental laws
C.
economic reliance
D.
foreign values
E.
wage equality

A.
democracy

Jason has learned about some​ decision-making tools in his business class and is now using those tools in his workplace. Jason is utilizing the employability skill known as​ _____________.

A.
globalization
B.
knowledge application and analysis
C.
critical thinking
D.
communication
E.
social responsibility

B.
knowledge application and analysis

International firm management is vastly different from the management of a purely domestic business because​ _________________.

A.
companies must abide by the rules in every market in which they choose to operate
B.
every nation has different accounting laws and practices
C.
the varying exchange rates of currencies make it nearly impossible to predict revenues and expenses.
D.
what is considered legal in one country is nearly always illegal in another
E.
all management of an international firm must come from the country where the firm does business

A.
companies must abide by the rules in every market in which they choose to operate

A model of the global business environment weaves together all of the following elements EXCEPT​ ________.

A.
the international business environment
B.
the forces of globalization
C.
many national business environments
D.
the use of information technology
E.
international firm management

D.
the use of information technology

Which of the following influences how firms conduct their operations in both subtle and​ not-so-subtle ways?

A.
International firm management
B.
Income inequality
C.
Each national business environment
D.
The international business environment
E.
Globalization

D.
The international business environment

Which one of the following best defines​ culture?

A.
Understanding​ one's own behaviors
B.
The set of values and beliefs set by the government of any given society
C.
The routine behavior of everyday life
D.
The set of​ values, beliefs, and rules of society
E.
Gender equality and the rules it plays within the society

D.
The set of​ values, beliefs, and rules of society

Imagine you work for a U.S. company that sells its products to​ China, which the company considers one of its important growing markets. Which one of the following would be the most successful approach to increase​ sales?

A.
Ensure product​ packaging, design, and advertising appeal to the different ethnic groups in China
B.
Forego any changes or modifications to product​ design, packaging, and advertisements to cut costs and be able to compete
C.
Find another market that similar to the U.S. culture and use English
D.
Make only necessary modifications that will be accepted by the national culture
E.
Sell the products as is only to the American population living in China because they are familiar with U.S. products

A.
Ensure product​ packaging, design, and advertising appeal to the different ethnic groups in China

When doing business in a foreign​ country, companies need to know about all of the following EXCEPT​ ________.

A.
if there is political stability
B.
the climate
C.
if the local people open to new ideas and new ways of doing business
D.
the language
E.
the number of Internet connections

E.
the number of Internet connections

In national business​ environments, ________ plays a pivotal role in all international commercial activity.

A.
cultural literacy
B.
cultural diffusion
C.
cultural trait
D.
subculture
E.
culture

E.
culture

Which of the following is the belief that​ one's own ethnic group or culture is superior to that of​ others?

A.
Global mindset
B.
Cultural adaptability
C.
Cultural literacy
D.
Ethnocentricity
E.
Aesthetics

D.
Ethnocentricity

It is important to recognize subcultures ​________.

A.
because they have the same purchasing behavior as their national culture
B.
because cultural boundaries do not always correspond to political boundaries
C.
although subcultures do not exist in many nations
D.
because decisions regarding product​ design, packaging, and advertising should not consider each​ group's distinct culture
E.
although subcultures do not exist within the United States

B.
because cultural boundaries do not always correspond to political boundaries

What are the​ ideas, beliefs, and customs to which people are emotionally​ attached?

A.
Values
B.
Aesthetics
C.
Customs
D.
Manners
E.
Attitudes

A.
Values

A westerner​ says, "I do not like the Japanese purifications ritual because it involves being naked in a communal​ bath." The westerner quoted here might value modesty and hold conservative beliefs regarding exposure of the body. The westerner in this case would be communicating​ ________.

A.
values
B.
family relationships
C.
attitudes
D.
manners
E.
ethnocentrism

C.
attitudes

​Ideas, beliefs, and customs to which people are emotionally attached are called​ ________.

A.
manners
B.
attitudes
C.
customs
D.
values
E.
aesthetics

D.
values

Cultures differ in their legal and ethical rules against giving or accepting bribes. Which is this an example​ of?

A.
A custom
B.
An attitude
C.
Brain drain
D.
Material culture
E.
Bridging the gap

A.
A custom

When meeting colleagues from​ Asia, managers should​ ________.

A.
stand very close to the other person
B.
tell jokes
C.
look people in the eye briefly
D.
show familiarity
E.
hug the other person upon leaving

C.
look people in the eye briefly

Which of the following statements about values is​ FALSE?

A.
Honesty is a value.
B.
The influx of values from other cultures can be fiercely resisted.
C.
Values are the same as attitudes.
D.
Values are important to business.
E.
Every culture has segments of people with distinct values.

C.
Values are the same as attitudes.

Which one of the following is a system of social stratification in which people are born into social​ ranking, with no opportunity for social​ mobility?

A.
Class system
B.
Family system
C.
Gender
D.
Caste system
E.
Social group

D.
Caste system

Which country is a classic example of a caste​ culture?

A.
Germany
B.
India
C.
Canada
D.
France
E.
United States

B.
India

​_____________ embodies a​ culture's fundamental organization and the process by which its resources are distributed.

A.
Social stratification
B.
Social structure
C.
A social group
D.
Socialization
E.
A nuclear family

B.
Social structure

Which of the following is NOT a factor that determines social​ status?

A.
Family heritage
B.
Income
C.
Wealth
D.
Nationality
E.
Occupation

D.
Nationality

A caste system is a system of social stratification in which people are born into a social​ ranking, or ​caste, with​ __________ opportunity for social mobility.

A.
a significant amount of
B.
much
C.
some
D.
very little
E.
no

E.
no

Education is crucial for​ ________.

A.
developing traditions
B.
keeping economies stagnant
C.
keeping a high level of illiteracy
D.
replacing​ time-honored customs
E.
attracting the​ lowest-paying manufacturing jobs

E.
attracting the​ lowest-paying manufacturing jobs

Which one of the following religions is the​ world's single largest​ religion?

A.
Judaism
B.
Islam
C.
Buddhism
D.
Confucianism
E.
Christianity

E.
Christianity

Which one of the following religions prohibits the consumption of alcohol and​ pork?

A.
Christianity
B.
Hinduism
C.
Buddhism
D.
Judaism
E.
Islam

E.
Islam

Human values often originate from​ ________.

A.
lingua franca
B.
social mobility
C.
religious beliefs
D.
Confucianism
E.
body language

C.
religious beliefs

Which of the following is TRUE of nations governed by Islamic​ law?

A.
They do not sell coffee or tea.
B.
They allow credit card companies to charge interest.
C.
They have many liquor stores.
D.
They allow the consumption of pork.
E.
They sometimes segregate the sexes at certain activities and in locations such as schools.

E.
They sometimes segregate the sexes at certain activities and in locations such as schools.

What do Hindus believe​ in?

A.
Eating beef
B.
Keeping a high level of illiteracy
C.
Materialism
D.
Praying five times daily
E.
Reincarnation

E.
Reincarnation

Which fact about Buddhism is​ TRUE?

A.
Buddhism relies on a caste system.
B.
Buddhism promotes spirituality.
C.
Buddhism has a membership of 10 million followers.
D.
In Buddhism there is no relationship to Dalai Lama.
E.
Buddhism was founded in the year 1500.

B.
Buddhism promotes spirituality.

Which one of the following causes the most misunderstanding between people of different​ cultures?

A.
Physical gestures
B.
Verbal communication
C.
Language blunders
D.
Perception of time
E.
Personal space

A.
Physical gestures

_____________ is the most widely used language of all web pages on the Internet.

A.
English
B.
French
C.
Arabic
D.
Chinese
E.
Spanish

A.
English

People in every culture have a​ ________ system to convey​ thoughts, feelings,​ knowledge, and information through​ speech, writing, and actions.

A.
lingua franca
B.
social
C.
communication
D.
brain drain
E.
body language

C.
communication

Why is it important to understand a​ culture's body​ language?

A.
Body language tends to dull conversations.
B.
Proximity is not an important element of body language.
C.
Understanding body language helps avoid sending embarrassing messages.
D.
Physical gestures help explain misunderstandings.
E.
Body language does not communicate feelings.

C.
Understanding body language helps avoid sending embarrassing messages.

If you stand or sit too close to your​ counterpart, ________.

A.
you will appear aggressive
B.
you will not appear aggressive
C.
you risk appearing untrustworthy
D.
your behavior will be accepted by counterparts from any culture
E.
it​ doesn't matter

A.
you will appear aggressive

Advertising slogans and company documents must be translated carefully so that​ ________.

A.
computers can review the messages and correct them
B.
a company can make a language blunder in its international business dealings
C.
​non-English speakers can use English as a lingua franca
D.
countries can learn English
E.
messages are received precisely as intended

E.
messages are received precisely as intended

One of the​ Kluckhohn-Strodtbeck Framework six dimensions asks if people focus on past​ events, on the​ present, or on future implications of their actions. Under this dimension the Japanese focus on the​ ________.

A.
future channeling the past
B.
future
C.
past linked with the present
D.
past
E.
present

B.
future

Which one of the following statements identifies culture with high uncertainty​ avoidance?

A.
Tending to have weak system of rules and procedures in the society
B.
Being more open to change and new ideas
C.
Having more formal rules for regulating employee behavior
D.
Suffering from higher employee turnover
E.
Tending to be entrepreneurial

C.
Having more formal rules for regulating employee behavior

Which is the process whereby cultural traits are spread from one culture to​ another?

A.
Cultural diffusion
B.
Cultural trait
C.
Cultural sensitivity
D.
Cultural imperialism
E.
Material culture

A.
Cultural diffusion

The​ Kluckhohn-Strodtbeck framework studies a given culture by NOT asking which of the following​ questions?

A.
Do people believe that their environment controls​ them, that they control the​ environment, or that they are part of​ nature?
B.
Do people prefer to conduct most activities in private or in​ public?
C.
Do people focus on past​ events, on the​ present, or on the future implications of their​ actions?
D.
Do people feel comfortable with uncertainty and​ ambiguity?
E.
Do people believe that individuals or groups are responsible for each​ person's welfare?

D.
Do people feel comfortable with uncertainty and​ ambiguity?

​________ cultures value hard work and promote entrepreneurial risk​ taking, thereby fostering invention and innovation.

A.
Indulgent
B.
Individualist
C.
Masculine
D.
Collectivist.
E.
Feminist

B.
Individualist

Which dimension indicates a​ society's perception of time and its attitudes about overcoming obstacles with​ time, if not with will and​ strength?

A.
Masculinity
B.
Power distance
C.
Uncertainty avoidance
D.
​Long-term orientation
E.
Restraint

D.
​Long-term orientation

​________ is the study of how a country manages its affairs by using its​ political, economic, and legal systems.

A.
Secular totalitarianism
B.
Totalitarian system
C.
Privatization
D.
Political economy
E.
Cultural trait

D.
Political economy

Political economies of nations differ in the degree of​ openness, individualism,​ equality, transparency, and flexibility. Which one of the following political economic systems stresses the primacy of the group over individual​ needs?

A.
Collectivism
B.
Capitalism
C.
Theocratic totalitarianism
D.
Totalitarian system
E.
Individualism

A.
Collectivism

Which of the following is the study of how a country manages its affairs by using its​ political, economic, and legal​ systems?

A.
Collectivism
B.
Political economy
C.
Socialism
D.
Communism
E.
Individualism

B.
Political economy

A political system includes all of the following EXCEPT​ ________.

A.
the activities by which a nation governs itself
B.
the processes by which a nation governs itself
C.
the structures by which a nation governs itself
D.
the laws by which a nation governs itself
E.
the language by which a nation governs itself

E.
the language by which a nation governs itself

Which of the following is NOT one of the​ world's political​ ideologies?

A.
Theocratic totalitarianism
B.
Totalitarianism
C.
Anarchism
D.
Corporate social responsibility
E.
Pluralism

D.
Corporate social responsibility

What are the benefits of doing business in a totalitarian​ nation?

A.
International companies can be relatively less concerned with local political opposition to their activities.
B.
International companies might need to pay bribes to government officials.
C.
The law can be either vague or​ nonexistent, and people in powerful government positions can interpret laws as they please.
D.
International companies might need to pay kickbacks to government officials.
E.
Companies receive criticism for lacking compassion for people hurt by​ host-country policies.

A.
A.
International companies can be relatively less concerned with local political opposition to their activities.

In​ _________, the government makes nearly all​ economy-related decisions including who produces what and what the prices of​ products, labor, and capital will be.

A.
market economies
B.
​laissez-faire economics
C.
capitalism
D.
mixed economies
E.
centrally planned economies

E.
centrally planned economies

What is the name for the selling of​ government-owned economic resources to private​ operators?

A.
Preserving property rights
B.
Expropriation
C.
Nationalization
D.
Privatization
E.
Confiscation

D.
Privatization

Which of the following BEST describes a centrally planned​ economy?

A.
In a centrally planned​ economy, the majority of a​ nation's land,​ factories, and other economic resources are privately​ owned, either by individuals or businesses.
B.
A centrally planned economy is founded on the belief that ownership of the means of production belongs in the hands of individuals and private businesses.
C.
In a centrally planned​ economy, government-owned resources are sold to private operators.
D.
A centrally planned economy is a system in which a​ nation's land,​ factories, and other economic resources are owned by the government.
E.
A centrally planned economy is a system in which​ land, factories, and other economic resources are rather equally split between private and government ownership.

D.
A centrally planned economy is a system in which a​ nation's land,​ factories, and other economic resources are owned by the government.

Which of the following BEST describes the ideology of a centrally planned​ economy?

A.
Achieving economic equality
B.
Satisfying consumer needs
C.
Providing incentives
D.
Achieving rapid growth
E.
Creating economic value

A.
Achieving economic equality

Which of the following ideas is NOT endorsed by advocates of a mixed​ economy?

A.
A successful economic system protects society from the excesses of collectivism.
B.
A successful economic system protects society from organizational greed.
C.
A successful economic system must be innovative.
D.
A successful economic system must be efficient.
E.
A successful economic system protects society from the excesses of unchecked individualism.

A.
A successful economic system protects society from the excesses of collectivism.

Which of the following is NOT a characteristic of a market​ economy?

A.
Price flexibility
B.
Free enterprise
C.
A​ laissez-faire system
D.
Free choice
E.
Price setting

E.
Price setting

The​ ________ of a country refers to its set of rules and​ regulations, including the processes by which its laws are enforced and the ways in which its courts hold parties accountable for their actions.

A.
political system
B.
legal system
C.
economic system
D.
theocratic law
E.
civil law

B.
legal system

Under​ ________, the justice system decides cases by interpreting the law on the basis of​ tradition, precedent, and usage.

A.
traditional law
B.
theocratic law
C.
civil law
D.
common law
E.
contractual law

D.
common law

Which of the following best describes common​ law?

A.
Religious teachings
B.
​Tradition, precedent, and usage
C.
A legal code
D.
A code of moral and ethical behavior
E.
Based on Roman law

B.
​Tradition, precedent, and usage

Which of the following statement does NOT describe civil​ law?

A.
Civil law is not concerned with the explicit wording of the code.
B.
Civil law systems can ignore the unique circumstances of particular cases.
C.
Civil law is more adversarial than common law.
D.
Civil law is practiced only in Western Europe.
E.
​Obligations, responsibilities, and privileges follow directly from tradition and precedent.

B.
Civil law systems can ignore the unique circumstances of particular cases.

Which of the following statements is TRUE about Islamic​ law?

A.
Islamic law does not restrict the type of investments companies can make.
B.
Firms can invest in companies that sell alcohol and tobacco.
C.
Islamic law does not set guidelines for business transactions.
D.
Banks cannot charge interest on loans or pay interest on deposits.
E.
Islamic law is a legal system based on precedent and tradition.

D.
Banks cannot charge interest on loans or pay interest on deposits.

Under the system of common​ law, ________.

A.
laws are not changed to clarify vague wording
B.
business contracts tend to be short and concise
C.
cases are decided on the basis of​ tradition, precedent, and usage
D.
each law is interpreted the same way in each case
E.
each judicial interpretation does not set a precedent

C.
cases are decided on the basis of​ tradition, precedent, and usage

Which one of the following describes intellectual​ property?

A.
A word or symbol that distinguishes a product and its manufacturer.
B.
The legal rights to resources and any income they generate
C.
Includes patents and​ trademarks, which are often a​ firm's most valuable assets.
D.
A right granted to the inventor of a product or process that excludes others from​ making, using, or selling the invention
E.
Property that results from​ people's intellectual talent and abilities

E.
Property that results from​ people's intellectual talent and abilities

​__________ are words or symbols that distinguish a product and its manufacturer.

A.
Contracts
B.
Licensing
C.
Trademarks
D.
Copyrights
E.
Patents

C.
Trademarks

Global legal issues facing international firms include all the​ following, EXCEPT​ ________.

A.
protection of property rights
B.
protection of intellectual property rights
C.
fostering representative democracies
D.
consumer protection through product safety
E.
protection of patents and trademarks

C.
fostering representative democracies

Regulation designed to prevent companies from fixing​ prices, sharing​ markets, and gaining unfair monopoly advantages are called​ ________.

A.
Intellectual property
B.
Value added taxes​ (VAT)
C.
Antitrust laws
D.
Trademarks
E.
Copyright laws

C.
Antitrust laws