International MAN Chapter 3
People in the West tend to associate a representative democracy with a...
market economic system.
A country that abolishes laws that regulate private enterprises and removes price controls is in the process of
Deregulation
economic trends
Deregulation, Privatization, Spread of market based systems.
The Simpson Group decided against doing business with a country in Central America because the country exercises tight control over prices and output, prohibits private enterprises from operating in most sectors of the economy, and severely restricts foreign direct investment and international trade. In other words, this country is against the practice of
Deregulation
Ocean Athletics is hesitant about entering Ukraine, because the country has been experiencing social unrest in recent years. Based on this information, what type of risk is Ocean Athletics trying to avoid?
Political
Political trends
Spread of Democracy, New world order
What is an accurate description of how the political economy of many of the world's nation-states has changed radically since the late 1980s?
There has been a move away from centrally planned and mixed economies and toward a more free market economic model.
Country's attractiveness: Evaluate Benefits/ costs/ Risks
benefits: Middle class population growth potential, free market economy, first mover advantages. Costs: Bribe payments, infrastructure issues, resolving contract disputes. Risks: Unexpected political change, economic uncertainty.
More nations have gravitated toward the market-based model because
command and mixed economies failed to deliver sustained economic performance.
The main reason that gross national income figures can be misleading is because they...
don't consider differences in the cost of living.
Economist Hernando de Soto believes that the benefits of capitalism will not be achieved until
property rights are better protected.
A country that has __________ lowers the risk of doing business in that country.
the presence of a strong legal system
Miller Plastic Group is considering two different countries for their upcoming expansion. When the board was reviewing the financial figures of the countries, the chief financial officer reminded board members that the figures might not tell the entire story as some economic activity could be taking place in the form of barter agreements and cash transactions that are never recorded. What is the CFO referring to?
the shadow economy
