Denise International Busine chap 3 PDF

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International Business: The Challenges of Globalization, 7e (Wild) Chapter 3 Politics, Law, and Business Ethics In a totalitarian system, rulers tightly control people's lives and do not tolerate opposing viewpoints. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Diff...

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International Business: The Challenges of Globalization, 7e (Wild) Chapter 3 Politics, Law, and Business Ethics 1) In a totalitarian system, rulers tightly control people's lives and do not tolerate opposing viewpoints. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 2) Anarchism is the belief that every aspect of people's lives must be controlled in order for a nation's political system to be effective. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 3) Pluralism is the belief that only individuals and private groups should control a nation's political activities. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 4) Pluralistic political systems include authoritarian regimes such as communism and fascism. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 5) When a country's religious leaders are also its political leaders, its political system is called a theocracy. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 1 Copyright © 2014 Pearson Education, Inc.

6) Pluralism is a political system in which political leaders rely on military and bureaucratic power. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 7) Secular totalitarianism is a political system in which government leaders are elected directly by the wide participation of the people or their representatives. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 8) The most peaceful nations today are those that were once controlled and stabilized by colonial powers. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 9) In a coalition government, the strongest political parties share power by dividing government responsibilities among themselves. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 10) The bureaucracy is the part of government that implements the rules and laws passed by elected representatives. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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11) Economic socialism won the battle over communist totalitarianism and capitalism. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 12) A solid grasp of local values, customs, and traditions can help reduce a company's exposure to political risk. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 2 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 13) Expropriation involves the forced transfer of assets from a company to the government without compensation. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 2 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 14) Among asset seizure approaches, expropriation is more common than confiscation and nationalization. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 2 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 15) Lobbying is the policy of hiring people to represent a company's views on political matters. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 2 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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16) The Foreign Corrupt Practices Act forbids U.S. companies from bribing government officials or political candidates in other nations. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 2 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 17) Totalitarian governments tend to favor private ownership of economic resources. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 3 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 18) Civil law can be more adversarial than common law because civil law relies more on the need to interpret laws according to tradition, precedent, and usage. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 3 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 19) Islamic law is the most widely practiced theocratic legal system today. Answer: TRUE AACSB: Multicultural and diversity understanding Skill: Concept Objective: 3 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 20) Trademark protection typically lasts indefinitely, provided the word or symbol continues to be distinctive. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 3 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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21) Product liability laws hold only manufacturers responsible for damage, injury, or death caused by defective products. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 3 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 22) Developing nations have the toughest product liability laws, while developed countries have more relaxed laws. Answer: FALSE AACSB: Dynamics of the global economy Skill: Concept Objective: 3 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 23) A value-added tax is a tax levied on each party that adds value to a product throughout its production and distribution. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 3 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 24) The cultural relativist view says that a company's sole responsibility is to maximize profits for its owners while operating within the law. Answer: TRUE AACSB: Dynamics of the global economy; Ethical understanding and reasoning abilities Skill: Concept Objective: 4 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 25) Corporate social responsibility is the practice of going beyond legal obligations to actively balance commitments to investors, customers, other companies, and communities. Answer: TRUE AACSB: Dynamics of the global economy Skill: Concept Objective: 5 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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26) Which of the following political ideologies states that every aspect of people's lives must be controlled for a nation's political system to be effective? A) totalitarianism B) capitalism C) anarchism D) pluralism Answer: A AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 27) Under a(n) ________ political system, the state reigns supreme over institutions such as family, religion, business, and labor. A) pluralistic B) totalitarian C) democratic D) anarchist Answer: B AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 28) Totalitarian political systems include authoritarian regimes such as ________. A) democracy and theocracy B) anarchism and pluralism C) communism and fascism D) capitalism and secularism Answer: C AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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29) ________ is the belief that only individuals and private groups should control a nation's political activities. A) Pluralism B) Anarchism C) Theocracy D) Totalitarianism Answer: B AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 30) ________ is the belief that both private and public groups play important roles in a nation's political activities. A) Totalitarianism B) Capitalism C) Anarchism D) Pluralism Answer: D AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 31) ________ political systems include democracies, constitutional monarchies, and some aristocracies. A) Totalitarian B) Anarchist C) Fascist D) Pluralistic Answer: D AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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32) Konesia is a country whose political leaders do not tolerate opposing viewpoints and often suppress or punish dissidents. The lives of Konesians are tightly controlled by its rulers. Which of the following political systems prevails in the country? A) totalitarianism B) democracy C) anarchism D) pluralism Answer: A AACSB: Dynamics of the global economy; Analytic skills Skill: Application Objective: 1 Difficulty: Moderate Course LO: Describe how differences in political economy influence economic development 33) Which of the following is a characteristic of totalitarian governments? A) Political dissidents can oppose the government with no repercussions. B) Citizens are guaranteed civil, property, and minority rights. C) The means of production are owned by the people who use them. D) Leaders rule without the explicit approval of the people. Answer: D AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 34) A ________ is a political system in which a country's religious leaders serve as its political leaders. A) democracy B) theocracy C) plutocracy D) septocracy Answer: B AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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35) Renzi belongs to a country in which religion governs all aspects of his life, whether personal or public. He has to abide by a strict, rigid, code that dictates everything from the clothes he wears to the food he eats. Breaking away from these traditions is not an option since religion plays an important role in the functioning of the nation. What political system prevails in his country? A) communist totalitarianism B) left-wing totalitarianism C) right-wing totalitarianism D) theocratic totalitarianism Answer: D AACSB: Analytic skills; Ethical understanding and reasoning abilities Skill: Application Objective: 1 Difficulty: Moderate Course LO: Describe how differences in political economy influence economic development 36) ________ is a political system in which political leaders rely on military and bureaucratic power to support their rule. A) Secular totalitarianism B) Secular anarchism C) Theocratic totalitarianism D) Theocratic pluralism Answer: A AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 37) Which of the following terms refers to an economic system in which the government owns and controls all types of economic activity? A) socialism B) sovereign nationalism C) political bureaucracy D) pluralism Answer: A AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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38) Robert believes that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. However, he does not think of himself as a communist, but as a socialist. Which of the following statements about Robert is true? A) Robert does not believe that a violent revolution is needed to seize control over resources. B) Robert does not think that political dissidents should go unpunished. C) Robert believes that the pricing of goods should be left to the discretion of laborers. D) Robert believes that the means of production should be owned by the people who use them. Answer: A AACSB: Dynamics of the global economy; Reflective thinking skills Skill: Critical Thinking Objective: 1 Difficulty: Hard Course LO: Describe how differences in political economy influence economic development 39) Both Pat and Terry believe that social and economic equality can be obtained only by establishing an economic system in which the government owns and controls all types of economic activity. Which of the following statements proves that Pat is a communist and Terry is a socialist? A) Unlike Terry, Pat believes that the government should decide the prices at which goods are sold. B) Unlike Pat, Terry does not believe in the elimination of political opponents. C) Unlike Terry, Pat believes that the means of production should be owned only by the public. D) Unlike Pat, Terry believes that a violent revolution is necessary to seize control over resources. Answer: B AACSB: Dynamics of the global economy; Reflective thinking skills Skill: Critical Thinking Objective: 1 Difficulty: Hard Course LO: Describe how differences in political economy influence economic development 40) What do communists and socialists have in common? A) Both believe in the elimination of political opponents. B) Both believe that the government should control all types of economic activity. C) Both believe that the pricing of goods should be the responsibility of individuals. D) Both believe that a violent revolution is necessary to seize control over resources. Answer: B AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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41) Under ________ the government endorses private ownership of property and a market-based economy but grants little or no political freedom. A) left-wing totalitarianism B) theocratic totalitarianism C) secular totalitarianism D) right-wing totalitarianism Answer: D AACSB: Ethical understanding and reasoning abilities; Multicultural and diversity understanding Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 42) Which of the following terms is also used to refer to communism? A) tribal totalitarianism B) right-wing totalitarianism C) left-wing totalitarianism D) civil totalitarianism Answer: C AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 43) Which of the following is an advantage of conducting business in totalitarian nations? A) International companies are less likely to face local political opposition to their activities. B) Government deals are always straightforward and transparent. C) Laws regarding the resolution of contractual disputes are clearly defined. D) International companies run no risk of their public image being tarnished. Answer: A AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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44) Which of the following is a disadvantage of conducting business in totalitarian nations? A) Laws regarding the resolution of contractual disputes are rigid and inflexible. B) Companies have to contend with the interference of local political opposition. C) A refusal to pay a bribe can result in the forfeiture of investments in the country. D) The government has little power over the economic activities of the nation. Answer: C AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 45) A ________ is a political system in which government leaders are elected directly by the wide participation of the people or by their representatives. A) democracy B) theocracy C) plutocracy D) autocracy Answer: A AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 46) Which of the following statements about representative democracies is true? A) All citizens participate freely and actively in political processes. B) Leaders of representative democracies can stay in power indefinitely. C) Citizens elect individuals from political groups to act on their behalf. D) Representative democracies across the world share identical features. Answer: C AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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47) In a ________ government, the strongest political parties share power by dividing government responsibilities among themselves. A) coalition B) bilateral C) totalitarian D) theocratic Answer: A AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 48) Democracies try to preserve peaceful coexistence among groups of people with diverse cultural, ethnic, and racial backgrounds. These rights are known as ________ rights. A) indirect B) central C) subcapital D) minority Answer: D AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development 49) The segment of the economic environment comprising independently owned firms that seek to earn profits is called the ________. A) political sector B) private sector C) democratic sector D) public sector Answer: B AACSB: Dynamics of the global economy Skill: Concept Objective: 1 Difficulty: Easy Course LO: Describe how differences in political economy influence economic development

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50) Which of the following philosophies asserts that ownership of the means of production belongs in the hands of individuals and private businesses? A) capitalism B) communism C) tribalism D) socialism Answer: A AACSB: Dynamics of the global e...