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Incoterms 2010 and International Business - Wild - Chapter 3 - QUIZ (2) Incoterms 2010 and International Business - 101

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1) In ________ cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives. A) individualist B) high uncertainty avoidance C) feminine D) large power distance Answer: A AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

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2) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 3) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

4) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 5) ________ 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 6) ________ 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

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7) ________ political systems include democracies, constitutional monarchies, and some aristocracies. A) Totalitarian B) Anarchist C) Fascist D) Pluralistic Answer: D AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

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8) 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: Analytical thinking; Application of knowledge Skill: Application Difficulty: Moderate LO: 3.1: Describe the key features of each form of political system. 9) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

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10) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

11) 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

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Answer: D AACSB: Analytical thinking; Ethical understanding and reasoning Skill: Application Difficulty: Moderate LO: 3.1: Describe the key features of each form of political system. 12) ________ 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 13) 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 Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

14) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 15) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 16) 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

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country. D) The government has little power over the economic activities of the nation. Answer: C AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 17) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

18) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 19) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 20) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 21) The government maintains control over the banking industry in a country. Which of the following is most likely true if the country has a mixed economy? A) Businesses in most economic sectors of the country are privately owned.

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B) The government considers banking sector as important to national security. C) The country has never experienced threats against its long-term stability. D) The government views banking as more important than manufacturing. Answer: B AACSB: Analytical thinking Skill: Application Difficulty: Hard LO: 3.1: Describe the key features of each form of political system. 22) Which of the following do governments impose upon people to help pay for the consequences of using a particular product? A) income taxes B) consumption taxes C) property taxes D) value-added taxes Answer: B AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. Scenario: Susan Goes Global with Grape Fizz Susan is the CEO of Grape Fizz, a global drinks-manufacturing company. She wishes to set up production facilities in other countries and has been advised to assess the political system of each country before she does so. 23) Susan decides not to set up production facilities in Konesia because its business laws are vague and are often interpreted according to the convenience of the government. Bribery is a common feature in conducting business deals there and a refusal to pay up is not an option. What kind of government does Konesia have? A) democratic B) theocratic C) totalitarian D) pluralist Answer: C AACSB: Analytical thinking; Application of knowledge Skill: Application Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 24) Susan also decides not to set up production facilities in Margazo, a country which functions by a strict set of religious tenets, because some of them contradict her company's work policy. Expecting potential employees to break away from these traditions is not an option since religion plays an important role in the functioning of the nation. What kind of political system prevails in Margazo? A) pluralistic B) theocracy C) tribal totalitarian D) democracy Answer: B AACSB: Analytical thinking; Application of knowledge Skill: Application Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

25) In a totalitarian system, rulers tightly control people's lives and do not tolerate opposing viewpoints. Answer: TRUE

AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 26) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 27) Pluralism is the belief that only individuals and private groups should control a nation's political activities. Answer: FALSE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 28) Pluralistic political systems include authoritarian regimes such as communism and fascism. Answer: FALSE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 29) When a country's religious leaders are also its political leaders, its political system is called a theocracy. Answer: TRUE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 30) Pluralism is a political system in which political leaders rely on military and bureaucratic power. Answer: FALSE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 31) 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: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 32) The most peaceful nations today are those that were once controlled and stabilized by colonial powers. Answer: FALSE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system.

33) In a coalition government, the strongest political parties share power by dividing government responsibilities among themselves. Answer: TRUE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 34) The bureaucracy is the part of government that implements the rules and laws passed by elected representatives. Answer: TRUE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 35) Economic socialism won the battle over communist totalitarianism and capitalism. Answer: FALSE AACSB: Application of knowledge Skill: Concept Difficulty: Easy LO: 3.1: Describe the key features of each form of political system. 36) Incentives and rewards for individual business initiatives are an important aspect of collectivist cultures. Answer: TRUE AACSB: Diverse and multicultural work environments Skill: Concept Difficulty: Moderate LO: 3.1: Describe the key features ...