QUESTION Free trade alone, some argue, is a necessary but not sufficient prerequisite to help the world’s poorest countries bootstrap themselves out of poverty. They also recommend: A. a highly regulated command economy. B. weaker property rights laws. C. weaker labor regulations. D. large-scale debt relief. E. rapid expansion in population. ANSWER D Free […]
QUESTION The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms. Indicate whether the statement is true or false. ANSWER TRUE In many respects, the governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based […]
QUESTION The minimum that a firm has to do to engage in international business is to: A. export or import products from other countries. B. invest directly in operations in another country. C. establish joint ventures or strategic alliances with companies in other countries. D. export low-wage manufacturing jobs to companies in other countries. E. […]
QUESTION In a pure 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 all dictated by the interaction of demand and supply. Indicate whether the statement is true or false. ANSWER FALSE In a pure command economy, […]
QUESTION Ryan is the executive general manager of a U.S. multinational and Veronica is a manager in a similar position, but works for another U.S. company that operates only in its home country. In this context, which of the following business functions will be most typically exclusive to Ryan? A. Marketing a product or service […]
QUESTION The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other. Indicate whether the statement is true or false. ANSWER FALSE We use the term political economy to stress that the political, economic, and legal systems of a country […]
QUESTION Political systems that emphasize collectivism tend to be democratic, while political systems that place a high value on individualism tend to be totalitarian. Indicate whether the statement is true or false. ANSWER FALSE Political systems that emphasize collectivism tend to be totalitarian, while political systems that place a high value on individualism tend […]
QUESTION Plato did not equate collectivism with equality. Indicate whether the statement is true or false. ANSWER TRUE Plato did not equate collectivism with equality; he believed that society should be stratified into classes, with those best suited to rule administering society for the benefit of all.
QUESTION The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. Indicate whether the statement is true or false. ANSWER FALSE The social democrats committed themselves to achieving socialism by democratic means, turning their backs on violent revolution and dictatorship.
QUESTION Karl Marx advocated state ownership of the basic means of production, distribution, and exchange (i.e., businesses). Indicate whether the statement is true or false. ANSWER TRUE Karl Marx advocated state ownership of the basic means of production, distribution, and exchange (i.e., businesses).
