International Business Midterm Exam (Chapter 3)

Shimmer and Sparkle is an American jewelry store which discovers that several shops in developing countries are selling counterfeited necklaces under their name and label. Which of the following problems are they facing? A) patent expiration B) trademark infringement C) copyright expiration D) monopolization

B) trademark infringement

________ is the layer of corporate social responsibility in which a business builds social responsibility into its core operations to create value and build competitive advantage. A) Risk management B) Traditional philanthropy C) Strategic Corporate Social Responsibility (CSR) D) Political polity

C) Strategic Corporate Social Responsibility (CSR)

A legal tradition/judicial system based on religious teachings is called ________ law. A) International Law B) Civil Law C) Theocratic law D) Common Law

C) Theocratic law

Which of the following functions does a copyright perform? A) It protects the trade secrets of an organization, including its business plans. B) It prevents a company from monopolizing an invention. C) It distinguishes the product and manufacturers from competitors through distinct words and symbols. D) It gives creators of original work the freedom to publish or dispose of them as they choose.

D) It gives creators of original work the freedom to publish or dispose of them as they choose.

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

D) Minority

________ 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

D) Pluralism

In a market economy, the patterns of resource allocation are most directly influenced by ________. A) government administrators who monitor the equilibrium of supply and demand B) industry coalitions that strive to improve the efficiency of production and service C) consumer group alliances that negotiate with firms to improve product quality D) consumers who "vote" by their personal decision to buy or not buy products

D) consumers who "vote" by their personal decision to buy or not buy products

Which of the following is an important factor in forming successful business ventures in China? A) following the strategies of western countries for establishing business relationships B) focusing on establishing tight formal contracts C) giving high importance to written contracts D) establishing a trusting relationship before proceeding with business

D) establishing a trusting relationship before proceeding with business

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

D) right-wing totalitarianism

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

B) Theocracy

________ is based on the accumulation of judges' decisions on individual cases through history according to custom and practice. This judicial form has its origins in English law. A) Common Law B) Civil Law C) Statutory Law D) Bureaucratic Law

.A) Common Law

In ________ cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives. A) Feminine B) Individualist C) High Uncertainty Avoidance D) Large Power Distance

B) Individualist

________ is the environmental impact of greenhouse gases (measured in units of carbon dioxide) that results from human activity. A) Carbon footprint B) Greenhouse tracking C) Carbon cycle D) Chlorine effect

A) Carbon footprint

In a ________ government, the strongest political parties share power by dividing government responsibilities among themselves. A) Coalition B) Bilateral C) Totalitarian D) Theocratic

A) Coalition

Which of the following do governments impose upon people to help pay for the consequences of using a particular product? A) Consumption taxes B) Income taxes C) Property taxes D) Value-added taxes

A) Consumption taxes

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

A) Democracy

________ refers to the transfer of ownership of resources from the private to the public sector. A) Nationalization B) Expropriation C) Federalization D) Conversion

A) Nationalization

A ________ is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention. A) Patent B) Trademark C) Watermark D) Copyright

A) Patent

A theory or system of social organization that advocates the vesting of the collective ownership and control of the means of production and distribution of capital, land, and other resources in the community as a whole. A) Socialism B) Sovereign nationalism C) Political bureaucracy D) Pluralism

A) Socialism

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

A) Totalitarianism

The segment of the economic environment comprising independently-owned firms that seek to earn profits is called the ________. A) Political sector B) Private sector C) Democratic sector D) Public sector

B) Private sector

Expropriation is best defined as the ________. A) transference of ownership of resources from private to public sector with no compensation B) transference of ownership from private to public sector with compensation to private owners for their losses C) conversion of state-owned property to privately owned property D) conversion of state-owned property to privately owned property with no compensation

B) transference of ownership from private to public sector with compensation to private owners for their losses

________ is the belief that only individuals and private groups should control a nation's political activities. A) Totalitarianism B) Theocracy C) Anarchism D) Pluralism

C) Anarchism

In Country X, all dimensions of economic activity, including pricing, production and investment decisions, as well as incomes are determined by the central government. Which term best describes Country X? A) Market Economy B) Mixed Economy C) Planned/Command economy D) Democratic economy

C) Planned/Command economy

Product liability laws are those which ________. A) Provide consumers with a wide variety of products at fair prices B) Add value to a product throughout its production and distribution C) Protect people from defective products D) Define the taxation on locally manufactured products

C) Protect people from defective products