Question 1

A black economy occurs when

Accepted Answer

A)   large amounts of economic activity are in the form of legally recorded cash transactions.
B)   citizens engage in barter agreements to avoid paying taxes.
C)   a country's GNI per capita exceeds $30,000.
D)   the expenses of the government are less than its income.
E)   a country has a trade surplus with another foreign country.F) C) and D)
G) D) and E)

Question 2

The nation of Gren recently began privatization efforts; however, as a way to protect newly privatized firms, the government imposed strong tariffs on imports from foreign competitors. This has resulted in little competition for these newly privatized firms and essentially created

Accepted Answer

A)   state monopolies.
B)   few barriers to trade.
C)   a mini-multinational.
D)   a democratic regime.
E)   a totalitarian state.F) None of the above
G) B) and C)

Question 3

Samuel Huntington held the opposite view from Fukuyama and believed that the modernization of non-Western societies caused those societies to

Accepted Answer

A)   become more Western.
B)   retreat toward the traditional.
C)   focus on democratic regimes.
D)   promote diversity and inclusion.
E)   reject material possessions.F) B) and C)
G) A) and D)

Question 4

Diabetic Daily Inc., based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. Diabetic Daily Inc. is trying to avoid what type of risk?

Accepted Answer

A)   political
B)   legal
C)   ethical
D)   economic
E)   ethnographicF) All of the above
G) A) and B)

Question 5

As categorized by Freedom House, citizens in a "partly free" country enjoy a high degree of political and civil freedom.

Accepted Answer

A) True 
 B)False

Question 6

How does privatization help stimulate gains in economic efficiency?

Accepted Answer

A)   It allows newly privatized firms to gain monopoly position in a particular industry.
B)   It provides incentives to new private owners to search for increases in productivity and to enter new markets.
C)   It encourages state control over price and production output.
D)   It raises barriers to direct investment by foreign enterprises.
E)   It results in reservation of heavy industry for state ownership and the increase of import tariffs.F) B) and C)
G) A) and B)

Question 7

Describe some of the risks associated with the changing political economy.

Accepted Answer

Just as the potential gains are large, s...

Question 8

A(n)  ________ risk occurs when a trading partner opportunistically breaks a contract or expropriates property rights.

Accepted Answer

A)   political
B)   legal
C)   economic
D)   sociological
E)   culturalF) C) and D)
G) A) and B)

Question 9

BrandLine Corp. has decided not to do business in a country after learning that many citizens are violently protesting recent government embargoes on food resources. BrandLine is concerned with the ________ risk associated with the country.

Accepted Answer

A)   political
B)   economic
C)   demographic
D)   legal
E)   technologicalF) A) and E)
G) C) and D)

Question 10

When Galaxy Ventures, a real estate company, entered the low-cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Galaxy Ventures was facing

Accepted Answer

A)   first-mover disadvantages.
B)   late-mover disadvantages.
C)   last-in first-out disadvantages.
D)   comparative disadvantages.
E)   absolute disadvantages.F) B) and D)
G) None of the above

Question 11

It is more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.

Accepted Answer

A) True 
 B)False

Question 12

In the context of political economy, one notable development of the past 30 years has been the spread of

Accepted Answer

A)   centrally planned economies.
B)   mixed economies.
C)   totalitarian governments.
D)   democracy.
E)   communism.F) C) and D)
G) A) and D)

Question 13

In the country of Bolar, the state owns key industries such as energy and transportation. The rest of the industries are privately owned. Bolar is a ________ economy.

Accepted Answer

A)   market
B)   planned
C)   mixed
D)   private
E)   democraticF) None of the above
G) A) and B)

Question 14

The nation of Talden sold Talden Communications, a state-owned monopoly, to private investors. This is an example of

Accepted Answer

A)   communism.
B)   isolationism.
C)   privatization.
D)   economizing.
E)   protectionism.F) B) and D)
G) B) and E)

Question 15

Describe Amartya Sen's conceptions of development.

Accepted Answer

The Nobel Prize-winning economist Amarty...

Question 16

Land and Sea Incorporated would like your opinion about various countries as potential markets and investment sites. What general information can you share with them about assessing the overall attractiveness of a potential country as a market?

Accepted Answer

The overall attractiveness of a country ...

Question 17

According to Freedom House, just under ________ of the world's nations are considered "free."

Accepted Answer

A)   5 percent
B)   20 percent
C)   90 percent
D)   75 percent
E)   50 percentF) B) and C)
G) A) and B)

Question 18

If a country's economy is to sustain long-run economic growth, the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.

Accepted Answer

A) True 
 B)False

Question 19

There are currently over 1.3 billion people living in India, which makes it a large market when measuring the number of potential consumers. However, India is still considered a smaller market in economic terms because of

Accepted Answer

A)   the country's orientation toward democracy.
B)   low birthrates.
C)   high living standards.
D)   limited purchasing power.
E)   a commitment to a free market systemF) D) and E)
G) A) and D)

Question 20

According to the Human Development Index, average income adjusted for PPP should be sufficient to

Accepted Answer

A)   provide basic needs such as food and shelter.
B)   promote economic development.
C)   foster decentralization.
D)   boost social class.
E)   foster entrepreneurial dynamism.F) C) and E)
G) D) and E)

Exam 3: National Differences in Economic Development

The nation of Gren recently began privatization efforts; however, as a way to protect newly privatized firms, the government imposed strong tariffs on imports from foreign competitors. This has resulted in little competition for these newly privatized firms and essentially created

Correct AnswerverifiedShow Answer

BrandLine Corp. has decided not to do business in a country after learning that many citizens are violently protesting recent government embargoes on food resources. BrandLine is concerned with the ________ risk associated with the country.

Correct AnswerverifiedShow Answer

Describe some of the risks associated with the changing political economy.

Correct AnswerverifiedJust as the potential gains are large, s...View AnswerShow Answer

How does privatization help stimulate gains in economic efficiency?

Correct AnswerverifiedShow Answer

As categorized by Freedom House, citizens in a "partly free" country enjoy a high degree of political and civil freedom.

Correct AnswerverifiedShow Answer

In the context of political economy, one notable development of the past 30 years has been the spread of

Correct AnswerverifiedShow Answer

According to Freedom House, just under ________ of the world's nations are considered "free."

Correct AnswerverifiedShow Answer

Describe Amartya Sen's conceptions of development.

Correct AnswerverifiedThe Nobel Prize-winning economist Amarty...View AnswerShow Answer

There are currently over 1.3 billion people living in India, which makes it a large market when measuring the number of potential consumers. However, India is still considered a smaller market in economic terms because of

Correct AnswerverifiedShow Answer

A black economy occurs when

Correct AnswerverifiedShow Answer

A(n) ________ risk occurs when a trading partner opportunistically breaks a contract or expropriates property rights.

Correct AnswerverifiedShow Answer

Land and Sea Incorporated would like your opinion about various countries as potential markets and investment sites. What general information can you share with them about assessing the overall attractiveness of a potential country as a market?

Correct AnswerverifiedThe overall attractiveness of a country ...View AnswerShow Answer

If a country's economy is to sustain long-run economic growth, the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.

Correct AnswerverifiedShow Answer

The nation of Talden sold Talden Communications, a state-owned monopoly, to private investors. This is an example of

Correct AnswerverifiedShow Answer

According to the Human Development Index, average income adjusted for PPP should be sufficient to

Correct AnswerverifiedShow Answer

It is more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.

Correct AnswerverifiedShow Answer

Samuel Huntington held the opposite view from Fukuyama and believed that the modernization of non-Western societies caused those societies to

Correct AnswerverifiedShow Answer

When Galaxy Ventures, a real estate company, entered the low-cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Galaxy Ventures was facing

Correct AnswerverifiedShow Answer

Diabetic Daily Inc., based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. Diabetic Daily Inc. is trying to avoid what type of risk?

Correct AnswerverifiedShow Answer

In the country of Bolar, the state owns key industries such as energy and transportation. The rest of the industries are privately owned. Bolar is a ________ economy.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Just as the potential gains are large, s...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Nobel Prize-winning economist Amarty...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The overall attractiveness of a country ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified