Chapter 2 International Business Quiz

True/False A civil law system tends to be more adversarial than a common law system.

False

True/False A common feature of many right-wing dictatorships is that they support socialist or communist ideas.

False

True/False In a command economy, certain sectors of the economy are left to private ownership and free market mechanisms, while other sectors have significant state ownership and government planning.

False

True/False Since the demise of communism in the late 1980s, the number of command economies has risen dramatically.

False

In the early twentieth century, the socialist ideology split into two broad camps: communists and social democrats. True/False

True

True/False In a market economy, a supply restriction occurs when a single firm monopolizes a market.

True

Which of these is a characteristic of a pure command economy? a) all businesses are owned by the state. b) there is free and fair competition between private producers. c) the goods and services that a country produces are not planned by anyone. d) prices are determined by market forces.

a) All businesses are owned by the state

Which of the following statements is true about trademarks? a) Trademarks are designs and names by which businesses differentiate their products. b) Trademarks are the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit. c) Trademarks grant the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention. d) Trademarks are certain safety standards to which a product must adhere.

a) Trademarks are designs and names by which businesses differentiate their products.

Historically, command economies were found in ________ countries, where collectivist goals were given priority over individual goals. a) communist b) free-market c) libertarian d) democratic

a) communist

The role of the government in a market economy involves a) encouraging vigorous free and fair competition among private producers. b) mobilizing massive economic resources of the country for public good. c) determining the prices at which the goods and services will be sold. d) planning the types and quantities of goods and services to be produced.

a) encouraging vigorous free and fair competition among private producers

The benefits, costs, and risks associated with doing business in a country are a function of that country's a) political, economic, and legal systems b) legal system only c) political systems only d) economic system only

a) political, economic, and legal systems

Contracts drafted under a common law framework tend to be a) very detailed with contingencies spelled out. b) very short and general in scope. c) inexpensive to draw up between two parties. d) inflexible and difficult to adjudicate.

a) very detailed with contingencies spelled out.

The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a ________ law system. a) Civil b) theocratic c) traditional d) common

b) Theocratic

The common law system is a) lacks the flexibility that other systems have. b) is based on tradition, precedent, and custom. c) gives judges the power only to apply the law. d) is based on a detailed set of laws organized into codes.

b) based on tradition, precedent, and custom.

Which of the following philosophies can be traced back to the ancient Greek philosopher Plato? a) socialism b) collectivism c) individualism d) hedonism

b) collectivism

__________ is the extortion of income or resources of property holders by public officials such as politicians and government bureaucrats. a) civil action b) public action c) corruptive action d) private action

b) public action

The ________ committed themselves to achieving socialism without resorting to violent revolution and dictatorship. a) communists b) social democrats c) Maoists d) anarchists

b) social democrats

Which of the following is a more attractive place to do business? a) a nation where the rule of law does not take precedence b) A nation that lacks democratic institutions c) A nation with a market-based economic system d) A nation where economic activity is regulated by the state

c) A nation with a market-based economic system

Which of the following is a feature of right-wing totalitarianism? a) Monopoly of a group/party that represents the interests of a particular tribe b) Involvement of people in the government, exercised either directly of through elected representatives c)Provision of partial individual economic freedom along with restricted individual political freedom. d) Governances by a single party, group, or individual based on religious principles

c) Provision of partial individual economic freedom along with restricted individual political freedom

________ refers to a philosophy that a person should have freedom in his or her economic and political pursuits. a) Collectivism b) Totalitarianism c) Socialism d) Individualism

d) Individualism