INTB 3080 -International Business - Ch. 3 PDF

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INTB 3080 -International Business - Ch. 3...

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1 1.) ______ measures the total annual income received by residents of a country. Answer: Gross national income 2.) What three factors are assessed to determine the Human Development Index of a country? Answer: -educational attainment -life expectancy at birth -average incomes 3.) As defined in the text, _____ includes a company's new products, new processes, new organization, new management practices and new strategies. Answer: innovation 4.) Which economic system is MOST conducive to innovation and entrepreneurial activity? Answer: Market economies 5.) To foster innovation in the business environment, it is important that strong legal protection of property rights is in place. Inadequately enforced property rights can lead to an increase in the Answer: risk of expropriation of profits. 6.) The total annual income received by residents of a single nation is reflected in which official measure? Answer: Gross national income 7.) The Human Development Index is based on Answer: life expectancy at birth. 8.) When analyzing the process of innovation, it can be said that it Answer: goes hand-in-hand with entrepreneurship. 9.) Innovators and entrepreneurs flourish most in a _____ because _____. Answer: market economy; it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation 10.) It is ____ for the government to expropriate profits from innovation through excessive taxation. Answer: legal 11.) In the past 40 years, China, South Korea, Taiwan, Singapore, and Hong Kong had the fastest-growing economies. These nations also had ______ in place. Answer: undemocratic governments 12.) Economic progress often leads to Answer: adoption of a democratic government. 13.) Which of these situations relates to Sachs's view on a country's economic development? Answer: Country A has the benefit of nutrient-rich soil which provides a competitive advantage for the country's tobacco industry. 14.) Which trend has been seen in the political systems of nations since the late 1980s?

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Answer: There is more emphasis on the free market economy approach and less on centrally planned and mixed economic models. 15.) Property rights are only truly secure when a _____ exists. Answer: mature democratic state 16.) When analyzing the process of innovation, it can be said that it Answer: goes hand-in-hand with entrepreneurship. 17.) True or False: The recent fast-paced economic growth in some Asian economies can be attributed to their adoption of more totalitarian forms of government. Answer: False 18.) Jeffrey Sachs argued that the ______ of a nation can have an impact on economic development. Answer: geography 19.) One reason for the spread of democracy across the globe is the Answer: failure of totalitarian regimes to provide economic progress to the majority of their citizens 20.) One change in the political systems of nations since the late 1980s is that Answer: totalitarian governments failed and were replaced by democratically elected governments usually supportive of free market capitalism. 21.) Francis Fukuyama's argument regarding the new world order was that Answer: liberal democracy has triumphed and will become the final form of human government.______ is seen as a transfer of ownership of a business, property or enterprise from the public sector to the private sector 22.) The Heritage Foundation index of economic freedom is based on ten indicators. Which of these four are included in that index? (Check all that apply.) Answer: Foreign investment regulations Labor freedom Trade policy Taxation rules 23.) In many nations, which social class has benefited from economic advances and seen the emergence of prosperity? Answer: Middle class 24.) ______ is one of the steps necessary for a country to shift toward a market-based economic system. Answer: Privatization 25.) ______ involves removing or reducing government regulations, typically in the economic sphere. Answer: Deregulation 26.) How does Samuel Huntington's argument about the new world order differ from the view of Fukuyama? Answer: Huntington believed the world would be split into different civilizations with their own ideology. 27.) True or false: Market-based economic systems have failed to produce the same high level of economic performance that command and mixed economies have....