INB 300 Quiz 1 Review Test – Flashcards

An international business, unlike a multinational enterprise, _____. A. need not customize its products to the requirements of national markets B. needs to have manufacturing units in at least two foreign nations C. need not invest directly in operations in other countries D. needs to manufacture products or provide services that target a global market

Which of the following is a measure that is developed by the United Nations to measure the quality of life in different nations? A. Gross domestic product B. Human Development Index C. Purchasing power parity D. Gross national income

Since the 1960s, which of the following has been a notable trend in the demographics of the multinational enterprise? A. The decline of multinational companies in the manufacturing sector B. The growth of mini-multinationals C. The growth of government-owned multinational enterprises D. The decline of non-U.S. multinationals

A political system that prioritizes the needs of the society over individual freedoms is called _____. A. egalitarianism B. collectivism C. capitalism D. totalitarianism

Since the late 1980s, there has been a spread of democracy. This is because _____. A. in many countries the middle and working classes have become less powerful B. a state's ability to control access to uncensored information has increased C. the socialist model failed to deliver economic progress to the vast bulk of their populations D. in many countries state-ownership of firms has encouraged innovation and entrepreneurship

Globalization of markets results in markets becoming _____. A. less competitive B. less interdependent C. less diverse D. more protected

In a _____ economy, certain sectors of the economy are left to private ownership and free market mechanisms while other sectors have significant state ownership and government planning. A. mixed B. command C. market D. private

A free market economy in which property rights are protected leads to subsequent economic growth, which often leads to the establishment of: A. a democratic regime. B. government owned enterprises. C. a socialist economy. D. a planned economy.

Design and names by which merchants or manufacturers designate and differentiate their products are known as _____. A. trademarks B. copyrights C. patents D. licenses

A _____ system is based on a very detailed set of laws organized into codes. A. common law B. traditional law C. civil law D. theocratic law

Which of the following statements is true about an international business? A. An international business needs to have homogenous practices across countries. B. An international business needs to invest directly in operations in other countries. C. An international business must find ways to work within the limits imposed by government intervention. D. An international business can be managed in the same way that a domestic business is managed.

Which of the following statements about the legal systems of countries is NOT true? A. They can affect the attractiveness of a country as an investment site or market. B. They are almost the same for all countries. C. They are influenced by the prevailing political system of the country. D. They are of immense importance to international business.

A market economy encourages innovation because _____. A. the prices of goods and services, including new products, are fixed by government B. economic freedom leads to greater incentives for innovation C. state ownership of enterprises reduces risks of innovation D. government-owned and funded research centers become hubs of innovation

The World Trade Organization promotes _____. A. infrastructural development in poor nations through low-interest loans B. state ownership of major enterprises C. lowering of barriers to cross-border trade and investment D. regulation of national economies

Many states in Asia, Latin America, and Western Europe have shifted away from a mixed economy to a market-based economy. Which of the following measures is most likely to be promoted by such states? A. Lowering competition B. Deregulation of the economy C. Fixing of prices by the government D. State-ownership of enterprises

An economy in which the interaction of supply and demand determines the quantity in which goods and services are produced is called a _____. A. command economy B. market economy C. closed economy D. planned economy

Supporters of globalization maintain that the apparent decline in real wage rates of unskilled workers: A. is due to the migration of low-wage manufacturing jobs offshore. B. can be checked by limiting free trade and foreign investment. C. can be checked by increasing government ownership of enterprises. D. is due to technological changes that create greater demand for skilled workers.

GNI per person figures can be misleading because _____. A. they don't consider differences in the cost of living B. they provide a dynamic picture of development C. they also include barter agreements D. they don't consider exchange rate

Which of the following statements about individualism is NOT true? A. Individualism advocates for a democratic political system. B. Individualism creates an anti-business environment. C. Individualism promotes private entrepreneurship. D. Individualism promotes free market economics.

The sale of state assets through an auction is most likely to lead to _____. A. nationalization B. trade certification C. market regulation D. privatization