DONE True False Test 2 (includes chpt. 2 & 3) Globalization 10th and 11th edition
A shadow economy refers to similar economic activity that takes place in competing nations.
FALSE
A textbook author would apply for a patent to obtain the exclusive legal rights associated with their written piece.
FALSE
All right-wing dictatorships display an affinity toward socialist or communist ideas.
FALSE
As categorized by Freedom House, citizens in a "partly free" country enjoy a high degree of political and civil freedom.
FALSE
By the mid-1990s, communism had reached its highest point in history.
FALSE
By the mid-1990s, communism was rising worldwide.
FALSE
Command economies provide a more favorable environment for innovation and entrepreneurs than market economies.
FALSE
Communist nations were the first to adopt deregulation efforts.
FALSE
Compared to a common law system, it is more expensive to draw up contracts in a civil law jurisdiction.
FALSE
Contracts in a common law system tend to be shorter and less detailed than those created in a civil law system.
FALSE
Five of the fastest growing economies of the past 30 years—China, South Korea, Taiwan, Singapore, and Hong Kong—had one thing in common at the start of their economic growth: democratic governments.
FALSE
Gross national income is a measure of the monthly income received by residents of a nation.
FALSE
In a common law system, judges base decisions on detailed legal codes.
FALSE
In a planned economy, there is a great deal of freedom for entrepreneurial activity and reward.
FALSE
In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply.
FALSE
In most democratic states, those who question the right of the rulers to rule find themselves imprisoned, or worse.
FALSE
Liability laws are typically the least extensive in highly-developed nations.
FALSE
One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their own economic self-interest.
FALSE
Political systems that emphasize collectivism tend to be democratic, while political systems that place a high value on individualism tend to be totalitarian.
FALSE
Social unrest and disorder are less likely to be found in countries that contain more than one ethnic nationality.
FALSE
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.
FALSE
The benefits, costs, and risks associated with doing business in a country are independent of that country's political, economic, and legal systems.
FALSE
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).
FALSE
The late influential political scientist Samuel Huntington predicted that the universalization of Western liberal democracy will be the final form of human government.
FALSE
The most common form of theocratic totalitarianism is Christianity.
FALSE
The social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship.
FALSE
The term "patent" refers to the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.
FALSE
The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other and do not influence one another.
FALSE
When law courts interpret civil law, they do so with regard to tradition, precedent, and custom.
FALSE
Advances in technology and communication have fostered the growth of democratic ideals.
TRUE
By adopting the Contracts for the International Sale of Goods (CIGS), a nation signals to other adopters that it will treat the convention's rules as part of its law.
TRUE
By adopting the Contracts for the International Sale of Goods (CISG), a nation signals to other adopters that it will treat the convention's rules as part of its law.
TRUE
During the late 1980s and early 1990s, many totalitarian governments collapsed and were replaced by democratically elected governments.
TRUE
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.
TRUE
Francis Fukuyama promoted the idea that Western liberal democracy would be the final form of human government and lead to a harmonious world.
TRUE
If a country's economy is to sustain long-run economic growth, the business environment must be conducive to the consistent production of product and process innovations and to entrepreneurial activity.
TRUE
In a criminal case involving product safety law, defendants who are found guilty are subject to fines or imprisonment.
TRUE
In a totalitarian country, all the constitutional guarantees on which representative democracies are built—an individual's right to freedom of expression and organization, a free media, and regular elections—are denied to the citizens.
TRUE
In general, command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries adopting market-based systems.
TRUE
Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.
TRUE
It is more costly to do business in relatively primitive or undeveloped economies because of the lack of infrastructure and supporting businesses.
TRUE
It is predicted that China will surpass the United States and become the world's largest national economy within the next two decades.
TRUE
Judges under a civil law system have less flexibility than those under a common law system.
TRUE
Karl Marx advocated state ownership of the basic means of production, distribution, and exchange (i.e., businesses).
TRUE
Karl Marx believed that in a capitalist society, the few benefit at the expense of the many.
TRUE
Nations that have economic freedom also have political freedom.
TRUE
One identifier of a democratic state is a free media.
TRUE
One way to assess a political system is by understanding the emphasis on individualism or collectivism.
TRUE
Other things being equal, a nation with democratic political institutions is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions.
TRUE
Plato did not equate collectivism with equality.
TRUE
Privatization occurs when state-owned property is transferred into the hands of individuals.
TRUE
State-owned enterprises still dominate the banking and health care industries in China.
TRUE
The Cold War can be thought of as a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.
TRUE
The Cold War was in many respects a war between collectivism, championed by the former Soviet Union, and individualism, championed by the United States.
TRUE
The governments of China, Vietnam, and Laos are communist in name only because those nations have adopted wide-ranging, market-based economic reforms.
TRUE
The governments of China, Vietnam, and Laos are communist nations, but they have adopted wide-ranging, market-based economic reforms.
TRUE
The purchasing power parity for different countries is adjusted (up or down) depending upon whether a country's cost of living is lower or higher than the cost of living in the United States.
TRUE
Under the tenets of individualism, citizens should have freedom to choose their own economic and political pursuits.
TRUE
When firms do not wish to accept the Contracts for the International Sale of Goods, they often opt for arbitration by a recognized arbitration court to settle contract disputes.
TRUE
The term political economy is used to stress the fact that the political, economic, and legal systems of a country are independent of each other.
FALSE
When considering the violation of property rights, blackmail is a form of public action.
FALSE
A common law system tends to be less adversarial than a civil law system.
FALSE
Entrepreneurial individuals have fewer economic incentives to develop valuable new innovations in market economies than in planned economies.
False
In both China and India, the shift toward a command-based economic system has produced large gains despite weak property rights and endemic corruption.
False
The shift toward deregulation has been easier for former command economies than for mixed economies.
False
Totalitarian states, by limiting human freedom, are highly conducive to progress in terms of innovation, entrepreneurship, and economic growth.
False
A common law system is based on tradition and precedent.
TRUE
A nation that has inadequate enforcement of property rights reduces the motivation for innovative activity.
TRUE
A strong belief that economic progress leads to adoption of a democratic regime underlies the fairly permissive attitude that many Western governments have adopted toward human rights violations in China.
TRUE
A totalitarian regime can promote economic growth if it commits to a market system and values strong protection of property rights.
TRUE
By identifying and investing early in a potential future economic star, international firms build brand loyalty and gain experience in that country's business practices.
True
In Samuel Huntington's thesis, global terrorism is a product of the tension between civilizations and the clash of value systems and ideology.
True
In general, command and mixed economies failed to deliver the kind of sustained economic performance that was achieved by countries adopting market-based systems.
True
Many totalitarian regimes failed to deliver economic progress to the vast bulk of their populations.
True
Strong legal protection of property rights is a requirement for a business environment to be conducive to innovation, entrepreneurial activity, and hence economic growth.
True