Washburn University

BU 355

Chapter 3

1)In Samuel Huntingtons thesis, global terrorism is a product of the:

2. In the context of cost, which of the following can be considered as the most attractive market or investment site?

3. Which of the following statements is most likely to be true about the risks of doing business in a country?

4. In 2012, if the PPP per capita of China was $9,040 and the PPP per capita of the United States was

$52,340, this means that the:

5. In the Republic of Lantharia, the state-owned telephone company enjoys a monopoly. The government of Lantharia Republic wants to maximize the operating efficiency of this company by privatizing it. Which of the following is most likely to help the government succeed in this endeavor?

6. Generally, the costs and risks associated with doing business in a foreign country are typically lower in:

7. Which of the following best exemplifies a first-mover advantage?

8. The risks of doing business are most likely to be the highest in a country that:

9. When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk?

10. Which of the following is most likely to be true about the overall attractiveness of a country as a potential market or investment site for an international business?

11. The government of Nerumbia wants to open the country's economy to international business, and increase its overall attractiveness as a potential market or investment site. Which of the following will facilitate this decision of the Nerumbian government?

12. When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the company?

13. Which of the following is most likely to be implemented by a country as a part of deregulation?

14. Star Volans Inc. is planning on expanding its business globally. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country:

15. The Peruvian development economist Hernando de Soto has argued that much of the developing world will fail to reap the benefits of capitalism until they relax the property rights offered by their legal systems.

16. The United Nation of Zorwaya has strict restrictions on direct investment by foreign enterprises, and it opposes the establishment and operation of private enterprises. The highest authority in the country enforces tight control over prices and production output. According to this information, the United Nation of Zorwaya most likely opposes:

17. The cost of doing business is most likely to be the lowest in:

18. Black economy is most likely to be prevalent when:

19. The gross national income (GNI) per capita comes much closer to Amartya Sen's conception of how development should be measured than narrow economic measures such as Human Development Index (HDI).

20. Which of the following is most likely to prove detrimental to democracy and international business?

21. According to the influential economist Jeffrey Sachs, tropical regions have a more extensive division of labor than temperate regions.

22. The shift toward deregulation has been easier for former command economies than for mixed economies.

23. MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. MedPlus is trying to avoid what type of risk?

24. How have new information and communication technologies, including the Internet, affected the political economy in general?

25. The absence of a legal system that protects property rights and the lack of machinery to enforce that system in a market economy usually results in:

26. Which of the following statements is most likely to be true about the economic prospects of a country?

27. Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high. As a result, the country's business environment is beginning to deteriorate, and the profits of the business enterprises are hurt. According to this information, Lamboria Republic is facing which of the following type of risk?

28. Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth.

29. Economists who argue that innovation and entrepreneurial activity are the engines of long-run economic growth, define innovation broadly to include not just new products but also new processes, new organizations, new management practices, and new strategies.

30. The United Nation of Amberia, a Western European country, fought on the winning side of the Cold War. Which of the following was most likely being propagated by the country by participating in the Cold War?

31. The collapse of which of the following in eastern Europe was precipitated by the growing gulf between the vibrant and wealthy economies of the West and the stagnant economies of the East?

32. The government of Ugania had been extending huge amounts of loans to the business enterprises in the country. However, the borrowers failed to generate the profits necessary to repay their debts. As a result, national banks in Ugania had a lot of nonperforming assets on their books, and the Uganian currency was devalued. In this context, the business enterprises in Ugania are most likely to face which of the following type of risk?

33. The government of Great Lanthania is planning to adopt a market-based economic system. To be able to do so, the government of this country should:

34. Which of the following statements is true about privatization?

35. Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation?

36. The Human Development Index comes close to Amartya Sen's conception of how development should be measured, although which of the following, suggested by Sen in his thesis, is not included in the index?

37. Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In the language of business strategy, Capricorn Creative has typically benefited from:

38. The government of Greenland Republic protects its newly privatized firms from foreign competition by imposing stringent barriers to international trade and foreign direct investment. As a result of this, the newly privatized firms will:

39. Which of the following statements is true about the late influential political scientist Samuel Huntington's vision of the new world?

40. In the context of the changing political economy since the late 1980s, which of the following statements is true?