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ch 3
Terms in this set (90)
1) In ________ cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.
A) individualist
B) high uncertainty avoidance
C) feminine
D) large power distance
A
2) Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective?
A) totalitarianism
B) capitalism
C) anarchism
D) pluralism
A
3) In a totalitarian political system, ________.
A) political power resides with the citizens of the country
B) governments direct most
economic activity but few social ones
C) an individualistic outlook shapes political debate and policy formation
D) one agent monopolizes political power
D
4) Totalitarian political systems include authoritarian regimes such as ________.
A) democracy and theocracy
B) anarchism and pluralism
C) communism and fascism
D) capitalism and secularism
C
5) ________ is the belief that only individuals and private groups should control a nation's political activities.
A) Pluralism
B) Anarchism
C) Theocracy
D) Totalitarianism
B
6) ________ is the belief that both private and public groups play important roles in a nation's political activities.
A) Totalitarianism
B) Capitalism
C) Anarchism
D)
Pluralism
D
7) ________ political systems include democracies, constitutional monarchies, and some aristocracies.
A) Totalitarian
B) Anarchist
C) Fascist
D) Pluralistic
D
8) Konesia is a country whose political leaders do not tolerate opposing viewpoints and often suppress or punish dissidents. The lives of
Konesians are tightly controlled by its rulers. Which of the following political systems prevails in the country?
A) totalitarianism
B) democracy
C) anarchism
D) pluralism
A
9) Which of the following is a characteristic of totalitarian governments?
A) Political dissidents can oppose the government with no repercussions.
B) Citizens are guaranteed civil, property, and minority rights.
C) The means of production are owned by the people who use them.
D) Leaders rule without the explicit approval of the people.
D
10) A ________ is a political system in which a country's religious leaders serve as its political leaders.
A) democracy
B) theocracy
C) plutocracy
D) septocracy
B
11) Renzi
belongs to a country in which religion governs all aspects of his life, whether personal or public. He has to abide by a strict, rigid, code that dictates everything from the clothes he wears to the food he eats. Breaking away from these traditions is not an option since religion plays an important role in the functioning of the nation. What political system prevails in his country?
A) communist totalitarianism
B) left-wing totalitarianism
C) right-wing totalitarianism
D)
theocratic totalitarianism
D
12) ________ is a political system in which political leaders rely on military and bureaucratic power to support their rule.
A) Secular totalitarianism
B) Secular anarchism
C) Theocratic totalitarianism
D) Theocratic pluralism
A
13) Under ________, the government endorses private
ownership of property and a marketbased economy but grants little or no political freedom.
A) left-wing totalitarianism
B) theocratic totalitarianism
C) secular totalitarianism
D) right-wing totalitarianism
D
14) Which of the following terms is also used to refer to communism?
A) tribal totalitarianism
B) right-wing totalitarianism
C) left-wing totalitarianism
D) civil
totalitarianism
C
15) Which of the following is an advantage of conducting business in totalitarian nations?
A) International companies are less likely to face local political opposition to their activities.
B) Government deals are always straightforward and transparent.
C) Laws regarding the resolution of contractual disputes are clearly defined.
D) International companies run no risk of their
public image being tarnished.
A
16) Which of the following is a disadvantage of conducting business in totalitarian nations? A) Laws regarding the resolution of contractual disputes are rigid and inflexible. B) Companies have to contend with the interference of local political opposition.
C) A refusal to pay a bribe can result in the forfeiture of investments in the country.
D) The government has little
power over the economic activities of the nation.
C
17) A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives.
A) democracy
B) theocracy
C) plutocracy
D) autocracy
A
18) Which of the following statements about
representative democracies is true?
A) All citizens participate freely and actively in political processes.
B) Leaders of representative democracies can stay in power indefinitely.
C) Citizens elect individuals from political groups to act on their behalf.
D) Representative democracies across the world share identical features.
C
19) In a ________ government, the strongest political parties share
power by dividing government responsibilities among themselves.
A) coalition
B) bilateral
C) totalitarian
D) theocratic
A
20) Democracies try to preserve peaceful coexistence among groups of people with diverse cultural, ethnic, and racial backgrounds. These rights are known as ________ rights.
A) indirect
B) central
C) subcapital
D) minority
D
21) The government maintains control over the banking industry in a country. Which of the following is most likely true if the country has a mixed economy?
A) Businesses in most economic sectors of the country are privately owned.
B) The government considers banking sector as important to national security.
C) The country has never experienced threats against its long-term stability.
D) The government views banking as more important than
manufacturing.
B
22) Which of the following do governments impose upon people to help pay for the consequences of using a particular product? A) income taxes
B) consumption taxes
C) property taxes
D) value-added taxes
B
Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
23) Susan decides not to set up production facilities in Konesia because its business laws are vague and are often interpreted according to the convenience of the government. Bribery is a common feature in conducting business deals there and a refusal to pay up is not an option. What kind of government does Konesia
have?
A) democratic
B) theocratic
C) totalitarian
D) pluralist
C
24) Susan also decides not to set up production facilities in Margazo, a country which functions by a strict set of religious tenets, because some of them contradict her company's work policy. Expecting potential employees to break away from these traditions is not an option since religion plays an important role in the
functioning of the nation. What kind of political system prevails in Margazo?
A) pluralistic
B) theocracy
C) tribal totalitarian
D) democracy
B
25) In a totalitarian system, rulers tightly control people's lives and do not tolerate opposing viewpoints.
T or F
True
26) Anarchism is the belief that every aspect
of people's lives must not be controlled in order for a nation's political system to be effective.
T or F
True
27) Pluralism is the belief that both private and public groups play important roles in a nation's political activities.
T or F
True
28) Pluralistic political systems include democracies, constitutional
monarchies, and some aristocracies.
T or F
True
29) A political system in which a country's religious leaders are also its political leaders is called a theocracy.
T or F
True
30) Pluralism is a political system in which political leaders rely on military and bureaucratic power.
T or F
False
31) Secular totalitarianism is a political system in which government leaders are elected directly by the wide participation of the people or their representatives.
T or F
False
32) The most peaceful nations today are those that were never controlled and stabilized by colonial powers
T or F
True
33) In a coalition government, the strongest political parties share power by dividing government responsibilities among themselves.
T or F
True
34) The bureaucracy is the part of government that implements the rules and laws passed by elected representatives.
T or F
True
35) Communists are socialists, but
socialists are not necessarily communist.
T or F
True
36) Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent.
T or F
True
37) Totalitarian governments tend to favor government ownership of economic resources.
T or
F
True
Central planning is rooted in the ideology that ________.
A) the welfare of a group is more important than individual well-being
B) individual concerns should be placed above group consensus
C) individual and group concerns are just as important as government concerns
D) privatization will enhance a country's economic well-being
A
In a command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are planned by ________.
A) government officials
B) private industries
C) individual entrepreneurs
D) local trade associations
A
In Country X, all dimensions of economic activity, including pricing and production
decisions, are determined by the central government. Which term best describes Country X?
A) market economy
B) mixed economy
C) command economy
D) democratic economy
C
Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity?
A) socialism
B) sovereign nationalism
C) political bureaucracy
D)
pluralism
A
Robert believes that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. However, he does not think of himself as a communist, but as a socialist. Which of the following statements about Robert is true?
A) Robert does not believe that a violent revolution is needed to seize control over
resources.
B) Robert does not think that political dissidents should go unpunished.
C) Robert believes that the pricing of goods should be left to the discretion of laborers.
D) Robert believes that the means of production should be owned by the people who use them
A
Both Pat and Terry believe that social and economic equality can be obtained only by establishing an economic system in which the
government owns and controls all types of economic activity. Which of the following statements proves that Pat is a communist and Terry is a socialist?
A) Unlike Terry, Pat believes that the government should decide the prices at which goods are sold.
B) Unlike Pat, Terry does not believe in the elimination of political opponents.
C) Unlike Terry, Pat believes that the means of production should be owned only by the public.
D) Unlike Pat, Terry believes that a violent revolution
is necessary to seize control over resources.
B
What do communists and socialists have in common?
A) Both believe in the elimination of political opponents.
B) Both believe that the government should control all types of economic activity.
C) Both believe that the pricing of goods should be the responsibility of individuals.
D) Both believe that a violent revolution is necessary to seize control
over resources.
B
The segment of the economic environment comprising independently owned firms that seek to earn profits is called the ________.
A) political sector
B) private sector
C) democratic sector
D) public sector
B
Which of the following philosophies asserts that ownership of the means of production
belongs in the hands of individuals and private businesses?
A) capitalism
B) communism
C) tribalism
D) socialism
A
In a market economy, the patterns of resource allocation are most directly influenced by ________.
A) government administrators who monitor the equilibrium of supply and demand
B) industry coalitions that strive to improve the efficiency of production and service
C)
consumer group alliances that negotiate with firms to improve product quality
D) consumers who "vote" by their personal decision to buy or not buy products
D
Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan thinks that it would be easiest setting up production facilities in a country whose government leaders are elected directly by the wide participation of the people or by their representatives. Which of the following political systems should the country have?
A) anarchist
B) democratic
C) theocratic
D) fascist
B
A value-added tax is a tax levied on each party that adds
value to a product throughout its production and distribution.
T or F
True
The U.S. legal system is largely based on ________.
A) common law
B) social law
C) civil law
D) theocratic law
A
________ is based on the cumulative wisdom of judges' decisions on individual cases through history.
A) Common law
B) Civil law
C) Statutory law
D) Bureaucratic law
A
________ is a legal system which is based on a detailed set of written rules and statutes that constitute a legal code and it is also based on a codification of what is and is not permissible.
A) International law
B) Civil law
C) Tribal law
D) Common law
B
A
legal tradition based on religious teachings is called ________ law.
A) democratic
B) common
C) civil
D) theocratic
D
Laws designed to prevent companies from fixing prices, sharing markets, and gaining unfair monopoly advantages are called ________. A) antitrust laws
B) theocratic laws
C) anarchist laws
D) bilateral laws
A
Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan is worried that San Tarino's demand that she must use locally available raw material and employ local workers might interfere with the quality and efficiency of her business. San Tarino, on the
other hand, views this as a way to foster local business activity and lessen regional unemployment. What are these laws called?
A) local content requirements
B) antitrust laws
C) nationalization laws
D) internalization policies
A
Scenario: Stephanie Wong Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
The first question that Stephanie expects participants to ask is: "Which is more important for the Chinese, contacts or contracts?" Which of the following is the most effective response Stephanie could give for this question?
A) Contracts are critical because of their
extreme importance in Chinese business.
B) Face-to-face communications and personal relationships take priority over written contracts.
C) Non-Chinese businesspeople should take time to agree on a legal contract before developing personal relationships.
D) Business relationships are established only after successful legal dealings are concluded.
B
Which of the following factors should the legal
experts of Wayne's consider while evaluating the legal systems of Paribo and Kirawi?
A) the profits made by local companies in the countries
B) the prevalence of crime in the two countries
C) the resolution of contractual dispute with local vendors
D) the profits made by international companies in other countries
C
Which of the following statements is true of Kirawi, a democratic nation whose
legal system is based on common law?
A) The law is based on religious teachings and is enforced by the country's religious leaders.
B) The law is inflexible and is applied the same way in all situations.
C) The law is based on a detailed set of written rules that constitute a legal code.
D) The law is interpreted on the basis of tradition, precedent and usage.
D
Which of the following statements
is true of Paribo, a democratic nation whose legal system is based on civil law?
A) The law is based on religious teachings and is enforced by the country's religious leaders.
B) The law is flexible and its interpretations differ with situations.
C) The law is based on a detailed set of written rules that constitute a legal code.
D) The law is interpreted on the basis of tradition, precedent and usage
C
Which
of the following, if true, demonstrates that Kirawi has an unstable business environment?
A) Its business laws are inflexible and cannot be interpreted according to the comfort of government officials.
B) Its government does not enforce product liability laws or protect individual property rights.
C) Its activities are bound by several multilateral agreements conducted with neighboring countries.
D) Its private sector comprises independently owned firms that exist to make
profits.
B
A common law system is based on tradition, judge-made precedent, and usage in which the courts assign a preeminent position to existing case law to guide dispute resolution
T or F
True
Islamic law is the most widely practiced theocratic legal system today.
T or F
True
Which of the following is an important factor in forming successful business ventures in China?
A) following the strategies of western countries for establishing business relationships
B) focusing on establishing tight formal contracts
C) giving high importance to written contracts
D) establishing a trusting relationship before proceeding with business
D
________
refers to the transfer of ownership of resources from the private to the public sector.
A) Nationalization
B) Expropriation
C) Federalization
D) Conversion
A
A ________ is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention.
A) patent
B) trademark
C) watertight
D) copyright
A
Expropriation is best defined as the ________.
A) transference of ownership of resources from private to public sector with no compensation
B) transference of ownership from private to public sector with compensation to private owners for their losses
C) conversion of state-owned property to privately owned property
D) conversion of state-owned property to privately owned property with no compensation
B
Shimmer and Sparkle is an American jewelry store which discovers that several shops in developing countries are selling counterfeited necklaces under their name and label. Which of the following problems are they facing?
A) patent expiration
B) trademark infringement
C) copyright expiration
D) monopolization
B
Which of the following statements referring to
intellectual property rights and violations is INCORRECT?
A) Richer countries claim looser regulation of intellectual property rights will hinder innovation.
B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO).
C) The International Anti-Counterfeiting Coalition estimates international trade in counterfeit products at $600 billion a year.
D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their
economic development.
B
Which of the following functions does a copyright perform?
A) It protects the trade secrets of an organization, including its business plans.
B) It prevents a company from monopolizing an invention.
C) It distinguishes the product and manufacturers from competitors through distinct words and symbols.
D) It gives creators of original work the freedom to publish or dispose
of them as they choose.
D
Product liability laws are those which ________. A) provide consumers with a wide variety of products at fair prices
B) add value to a product throughout its production and distribution
C) protect people from defective products
D) define the taxation on locally manufactured products
C
On a
recent trip to Hong Kong, a group of tourists found several Prada bags being sold on the pavement. They cost only a few dollars and were clearly fake; though they bore the Prada trademark. This is an example of ________. A) piracy
B) monopolization
C) ethnocentrism
D) nationalization
A
Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so.
Susan finally settles upon Valmira because it has a stable business environment. Which of the following factors, if true, proves her decision to be a good one?
A) Valmira does not enforce any product liability laws.
B) Valmira's legal system protects individual property rights satisfactorily.
C) The business laws of Valmira are
flexible and can be interpreted according to the comfort of government officials.
D) The government of Valmira does not allow the private sector to flourish.
B
Scenario: Stephanie Wong Stephanie Wong, a Chinese-American, owns a consultancy that advises clients on strategies for business expansions into China. Wong is to lead a symposium for small and mid-sized exporters who are planning on expanding their businesses in China. Therefore, she is preparing answers in advance for questions that symposium participants would most likely ask.
Stephanie also expects participants to ask: "Are the Chinese as formal and business-oriented as Americans are?" Which of the following would most likely be Stephanie's response?
A) The Chinese operate very much like Americans, for them business is more important than pleasure.
B) The Chinese dislike guessing games; give them your sales pitch right
away and let the meeting develop.
C) Don't overlook the importance of personal relationships; friendship comes before business.
D) The Chinese are very flexible and will easily adapt to your culture's way of doing business.
C
Another question that Stephanie anticipates concerns the acceptability of certain topics of discussion like: "Should we avoid discussing our families and spouses?" Which of the
following represents the most effective response to this question?
A) Absolutely, family is kept completely separate from business in China.
B) Yes, because it is considered very rude by businesspeople to discuss family.
C) No, Chinese businesspeople may invite business partners to family functions.
D) It's fine to discuss family, but never agree to go to a business partner's house.
C
Trademark
protection typically lasts indefinitely, provided the word or symbol continues to be distinctive.
T or F
True
Product liability laws hold only manufacturers responsible for damage, injury, or death caused by defective products.
T or F
False
Developed nations have the toughest product liability laws, while developed
countries have more relaxed laws.
T or F
True
________ is the layer of corporate social responsibility whereby a corporation donates money and, perhaps, employee time toward a specific social cause.
A) Risk management
B) Strategic Corporate Social Responsibility (CSR)
C) Socialist Corporate Social Responsibility (CSR)
D) Traditional philanthropy
D
________ is the layer of corporate social responsibility whereby a company develops a code of conduct that it will follow in its global operations and agrees to operate with greater transparency.
A) Strategic Corporate Social Responsibility (CSR)
B) Risk management Corporate Social Responsibility (CSR)
C) Traditional philanthropy
D) Task orientation
B
________
is the layer of corporate social responsibility in which a business builds social responsibility into its core operations to create value and build competitive advantage.
A) Risk management
B) Traditional philanthropy
C) Strategic Corporate Social Responsibility (CSR)
D) Political polity
C
Horizon Ltd. is a software company that, over the last year, incorporated social responsibility into its
core operations to create value and build competitive advantage. Which layer of corporate social responsibility does Horizon Ltd. function at? A) risk management
B) traditional philanthropy
C) strategic Corporate Social Responsibility (CSR)
D) political Corporate Social Responsibility (CSR)
C
Which of the following philosophies maintains that a company's sole responsibility is to maximize profits for
its owners?
A) utilitarian view
B) righteous moralist view
C) Friedman view
D) cultural relativist view
C
The ________ view states that a company should adopt local ethics wherever it operates because all belief systems are determined within a cultural context.
A) Friedman
B) cultural relativist
C) righteous moralist
D) utilitarian
B
The ________ view says that a company should maintain its home-country ethics wherever it operates because the home-country's view of ethics and responsibility is superior to others' views.
A) Friedman
B) righteous moralist
C) cultural relativist
D) utilitarian
B
Which of the following philosophies maintains that a company should maximize "good" outcomes and
minimize "bad" outcomes wherever it operates?
A) Friedman view
B) righteous moralist view
C) cultural relativist view
D) utilitarian view
D
________ is the environmental impact of greenhouse gases (measured in units of carbon dioxide) that results from human activity.
A) Carbon footprint
B) Greenhouse log
C) Carbon cycle
D) Greenhouse check
A
________ measures the indirect carbon dioxide emissions from the whole life cycle of products—from their manufacture to eventual breakdown.
A) Primary footprint
B) Secondary footprint
C) Tertiary footprint
D) Internalized footprint
B
Which of the following does the secondary footprint measure?
A) the burning of fossil fuels
B) direct energy consumption
C) indirect carbon dioxide emissions
D) emissions caused by natural forces
C
The cultural relativist view says that a company's sole responsibility is to maximize profits for its owners while operating within the law.
T or F
False
Corporate social responsibility is the practice of going beyond legal obligations to
actively balance commitments to investors, customers, other companies, and communities
T or F
True
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