QUESTION Command economies provide a more favorable environment for innovation and entrepreneurs than market economies. Indicate whether the statement is true or false. ANSWER FALSE In a command economy, state-owned enterprises have little incentive to control costs and be efficient, because they cannot go out of business. Also, the abolition of private ownership means […]
QUESTION By adopting the Contracts for the International Sale of Goods (CIGS), a nation signals to other adopters that it will treat the convention’s rules as part of its law. Indicate whether the statement is true or false. ANSWER TRUE By adopting the CIGS, a nation signals to other adopters that it will treat […]
QUESTION When firms do not wish to accept the Contracts for the International Sale of Goods, they often opt for arbitration by a recognized arbitration court to settle contract disputes. Indicate whether the statement is true or false. ANSWER TRUE When firms do not wish to accept the Contracts for the International Sale of […]
QUESTION Intellectual property laws stimulate innovation and creative work. Indicate whether the statement is true or false. ANSWER TRUE The philosophy behind intellectual property laws is to reward the originator of a new invention, book, musical record, clothes design, restaurant chain, and the like, for his or her idea and effort. Such laws stimulate […]
QUESTION Compared to a common law system, it is more expensive to draw up contracts in a civil law jurisdiction. Indicate whether the statement is true or false. ANSWER FALSE It is more expensive to draw up contracts in a common law jurisdiction, and resolving contract disputes can be very adversarial in common law […]
QUESTION The term “public action” refers to the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit. Indicate whether the statement is true or false. ANSWER FALSE Copyrights are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and […]
QUESTION Liability laws are typically the least extensive in highly developed nations. Indicate whether the statement is true or false. ANSWER FALSE Liability laws are typically the least extensive in less developed nations.
QUESTION When product safety laws are tougher in a firm’s home country than in a foreign country, the ethical thing to do is to adhere to home-country standards. Indicate whether the statement is true or false. ANSWER TRUE When product safety laws are tougher in a firm’s home country than in a foreign country […]
QUESTION The benefits, costs, and risks associated with doing business in a country are independent of that country’s political, economic, and legal systems. Indicate whether the statement is true or false. ANSWER FALSE The benefits, costs, and risks associated with doing business in a country are a function of that country’s political, economic, and […]
QUESTION Which of the following statements is true about political systems? A. The political system of a country is independent of its economic and legal systems. B. The political system of a country is of no importance to international business. C. It is not possible to have democratic societies that emphasize a mix of collectivism […]
