QUESTION Which of the following is a power of the WTO? A. It can restrict the membership of nations in other supranational organizations such as the United Nations. B. It can grant loans to cash-strapped governments in poor nations. C. It supersedes IMF and has complete authority over IMF’s actions. D. It can issue a […]
QUESTION In a totalitarian country, all the constitutional guarantees on which representative democracies are built—an individual’s right to freedom of expression and organization, a free media, and regular elections—are denied to the citizens. Indicate whether the statement is true or false. ANSWER TRUE In a totalitarian country, all the constitutional guarantees on which representative […]
QUESTION Which of the following is NOT a concern for managers in international businesses? A. Fundamental differences in culture B. Perceived distance between home country and operating nations C. Government restrictions on international trade D. Cross-border transactions involving currency exchange E. Ethical adherence to environmental standards ANSWER B In sum, managing an international business […]
QUESTION All right-wing dictatorships display an affinity toward socialist or communist ideas. Indicate whether the statement is true or false. ANSWER FALSE A common feature of many right-wing dictatorships is an overt hostility for socialist or communist ideas.
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 […]
