International Business Exam 1

The religion where followers try to achieve nirvana or spiritual enlightenment is _____.

Buddhism

During the early years of globalization, outsourcing was primarily confined to _____ activities.

Manufacturing

Which economic system is MOST conducive to innovation and entrepreneurial activity?

Market economies

What statement characterizes social democrats?

They believed in achieving socialism through non-violent means.

What is an example of a transaction that would take place in the shadow economy of a country?

To avoid paying the federal gift tax, the broker advised his client to transfer the funds without declaring them as a gift.

The common law system is

based on tradition, precedent, and custom.

Due to globalization, firms follow each other around the world, thereby

creating some uniformity across markets.

International trade occurs when a company

exports goods or services to consumers in another country.

One reason for the spread of democracy across the globe is the

failure of totalitarian regimes to provide economic progress to the majority of their citizens

The G20 is comprised of ______ from the 19 largest economies in the world.

finance ministers

Monica asked her manager if appropriate dress for the meeting was business casual or traditional business. Monica is inquiring about the ______ associated with the meeting.

folkway

There _____ a strict one-to-one relationship between one culture and a nation-state.

is not

A(n) ______ risk is one that arises from failure to follow statutory or regulatory obligations and, therefore, one that can impact a trading partner.

legal

One factor that could topple democracy in a newer democratic state is

severe economic setback.

If you were asked to provide a fact about a common law system, what should you say?

A common law system has a degree of flexibility that other legal systems lack.

In which of these countries is the cost-benefit-risk trade-off likely to be MOST favorable?

A country with a free market system

What risk is associated with a change in the political economy?

A multipolar world, controlled by a number of civilizations, could replace the bipolar world.

What condition must be present to create an ideal representative democracy?

A nonpolitical state bureaucracy

While it is known for its peacekeeping role, the United Nations devotes nearly 70% of its work toward promoting conditions of

A vibrant global economy

Refer to Map 3.1 in the text. Which four countries have high gross national income (GNI) per capita (based on 2017 data)? (Check all that apply.)

Australia Switzerland Sweden Japan

What is an accurate depiction of Karl Marx's arguments on socialism?

Capitalists take the value created by workers for their own use.

Based on market potential, _____ has the ability to have a larger market than the United States, the European Union, and Japan combined.

China

Which country has been the world's largest exporter since 2009?

China

Based on the political party beliefs of the governments of China and North Korea, these countries practice ______ totalitarianism.

Communist

Which statement accurately describes the economic prospects in a country?

Countries with free market economies in which property rights are protected tend to achieve greater economic growth rates than other economies.

Which of these situations relates to Sachs's view on a country's economic development?

Country A has the benefit of nutrient-rich soil which provides a competitive advantage for the country's tobacco industry.

What is one of the steps that pave the way for a shift toward a market-based economic system?

Creation of a legal system to safeguard property rights

______ refers to a political system in which the citizens exercise power directly or elect representatives to form a governing body.

Democracy

______ involves removing or reducing government regulations, typically in the economic sphere.

Deregulation

Which of these statements would Amartya Sen agree with?

Development requires the removal of social deprivation.

______ is judging another's culture solely by the values and standards of one's own culture.

Ethnocentrism

According to Karl Marx, the pay of workers in a capitalist society reflects the full value of their labor.

False

History shows that state ownership of the means of production never ran counter to the public interest.

False

True or False: Economic risks are independent of political risks.

False

True or False: Unlike the economic system of a country, the legal system is NOT influenced by the prevailing political system.

False

Boeing outsources a large portion of its production. For example, for its most recent jet airliner (the 787), nearly ______ of the total value of the aircraft is outsourced to foreign companies.

65%

True or False: The Chinese government passed a law that provided private property owners with the same protections granted to the state. Hernando de Soto would be in favor of this law.

True

True or False: While religion can influence the values and norms of society, the values and norms of society can also impact religion.

True

True or false: Communism is in decline worldwide.

True

True or false: Economic advancement and globalization may be important factors in societal change.

True

True or false: Education provides a competitive economic advantage through the creation of a pool of skilled and educated workers.

True

Which of the following statements about political systems is TRUE?

Typically, political systems that place a high emphasis on individualism tend to be democratic.

______ is the Hofstede dimension that measures a society's tolerance for ambiguity and uncertainty.

Uncertainty avoidance

What global institution was established on October 24, 1945 and one of its key purposes is to maintain international peace and security?

United Nations

Which statement accurately describes a civil law system?

Unlike a common law system, a civil law system relies on detailed codes, and therefore, can be less adversarial.

The trade agreement called the _____, finalized in December 1993, established the World Trade Organization to police the international trading system.

Uruguay Round

An international firm, entering a country's market early, may achieve a significant payback if that country

achieves sustained high economic growth rates.

According to the tenets of Islam, the objective of life is to fulfill the dictates of God in hopes of achieving

admission to paradise.

With the collapse of communism in eastern Europe, many countries didn't have a legal structure in place to protect property rights because

all property had previously been held by the state.

The system of values and norms that are shared among a group of people and when considered as a whole represent a design for living is called

culture

Gross national income (GNI) per person figures can provide an incomplete picture because they

don't factor in the cost of living.

When comparing early and late entrants into a market, it can be said that

early entrants build brand loyalty and gain experience in a country's business practices.

A(n) ______ risk is the chance that conditions like a change in exchange rates will affect an investment.

economic

FarmDay Inc. decided not to conduct business in the nation of Bartu because it learned that most businesses in the country were in debt. FarmDay Inc. was assessing _____ risk to make its decision.

economic

Sachs would agree that _____ helps explain why Malaysia and Singapore have been able to overcome the issues associated with their tropical geography and achieve economic growth faster than some tropical nations in Africa.

education

The role of the government in a market economy involves

encouraging vigorous free and fair competition among private producers.

In return for offering loans, the International Monetary Fund (IMF)

enforces its economic policies on nations.

Geoff believes that the way his US-based company does business is superior to the way his French affiliate office conducts business. Geoff's attitude is an example of _____.

ethnocentrism

The routine conventions of living, thinking and acting in a group are called ______.

folkways

When a company invests in a company or entity outside its home country, it is participating in

foreign direct investment

The G20 was originally established to

formulate a coordinated policy response to financial crises in developing countries

When discussing the changes in the political and economic systems of the world, it can be said that

the battle between the ideologies of collectivism and individualism is less distinct today.

When discussing economic development, Amartya Sen said that development should be measured by

the capabilities and opportunities people enjoy.

The base used to make the purchasing power parity adjustment is

the cost of living in the United States.

Company ABC, based in Tennessee, sources goods from Southeast Asia to take advantage of labor cost savings. This is an example of _____.

the globalization of production

In the past 40 years, China, South Korea, Taiwan, Singapore, and Hong Kong had the fastest-growing economies. These nations also had ______ in place.

undemocratic governments

One of the global institutions that emerged over the past 75 years is GATT which stands for the General Agreement on Tariffs and _____.

Trade

______ totalitarianism occurs when a political party that represents the interests of a particular tribe monopolizes power.

Tribal

True or False: For privatization to work, it must be accompanied by a more general deregulation and opening of the economy.

True

What is a challenge faced by companies entering the global market?

Differences in consumer tastes and preferences

True or False: The recent fast-paced economic growth in some Asian economies can be attributed to their adoption of more totalitarian forms of government.

False

True or false: Market-based economic systems have failed to produce the same high level of economic performance that command and mixed economies have.

False

True or false: The PPP adjustment is used in business to balance credits and debits at the end of the accounting cycle.

False

True or False: While there are a large number of nations that are members of the WTO, these nations account for only a small portion of world trade.

False; Reason: As of 2019, there were 164 nations that were members of WTO and they accounted for 98% of world trade.

Mallory's US-based lifestyle company decides to invest in an Italian company that specializes in health and wellness. This would be an example of

Foreign direct investment

The Heritage Foundation index of economic freedom is based on ten indicators. Which of these four are included in that index? (Check all that apply.)

Foreign investment regulations Labor freedom Taxation rules Trade policy

______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.

Individualism

________ refers to a philosophy that a person should have freedom in his or her economic and political pursuits.

Individualism

What are three examples of factors of production?

Labor, Land, and Capital

______ is/are something that one believes in that is concerned with the sacred and follows with some measure of devotion.

Religion

Economic progress often leads to

adoption of a democratic government.

Energy Resources Ltd. does business in 50 countries around the world. The company stresses to all employees the importance of understanding the prevailing culture in the countries that they are doing business in. In other words, the company is aware of the importance of

cross-cultural literacy.

Aristotle (384- 322 BC) argued in favor of individualism by noting that

diversity and private ownership are beneficial to society.

When describing the value of FDI over the last 30 years, it can be said that

it has grown significantly.

In a common law system, ______ refers to cases that have come before the courts in the past.

precedent

The globalization of _____ refers to the fact that producers can source goods and services from anywhere in the world to take advantage of cost savings.

production

The long-run monetary benefits of doing business in a country are influenced by the

purchasing power of consumers.

The ______ adjustment helps provide a more direct comparison of the living standards found in different countries.

purchasing power parity

One indicator of economic mismanagement in a country is the

rate of inflation

The set of shared beliefs followed by Catholics and those of the Jewish faith represent their individual _____.

religions

A country that is ruled based on theocratic totalitarianism is governed based on

religious principles.

All societies are divided on a hierarchical basis into social categories called social _____.

strata

If you needed to describe the concept of individualism, you would say that individualism

stresses that the interests of the people are more important than the interests of the state.

The basic social organization of a society is called its social _____.

structure

To guarantee that elected representatives can be held accountable for their actions by the electorate, an ideal representative democracy has a number of safeguards. What is one of those safeguards?

universal adult suffrage

Contracts drafted under a common law framework tend to be

very detailed with contingencies spelled out.

Identify the CORRECT statement from the following:

A country's investment in education and subsequent growth rates result in a more productive population.

______ refers to a political system that values the needs of society over that of an individual.

Collectivism

The three broad types of economic systems include a market economy, a mixed economy and a(n) _____ economy.

Command

What are the three broad types of economic systems?

Command, Mixed, Market

The text notes that there are two macro factors fueling the trend toward greater globalization. These two factors focus on a decline in trade barriers and

Technological change

What ethical system was the official ethical system of China until the communist revolution and emphasizes taking the right actions to attain salvation?

Confucianism

Some U.S. hospitals outsource radiology work to India. This is a recent advancement that is possible because of advancements in _____.

technology

When discussing a common law system, a country's legal history is known as ______.

tradition

True or false: Patents provide a reassurance for companies to pursue extensive research projects.

true

What are the determinants of culture?

-Religion -Social Structure -Language -Education -Economic Philosophy -Political Philosophy

What are the "hidden curriculum" taught in schools?

-Respect for others -Obedience to authority -Honesty -Neatness -Being on time

What are the four dimensions originally identified by Hofstede?

-Uncertainty avoidance -Masculinity vs femininity -Individualism vs collectivism -Power distance

Buddhism has all the same basic beliefs as Hinduism except for which two of the following?

-support for the caste system. -advocacy in extreme ascetic behavior.

What are the four principles of social stratification?

1. A trait of society, not a reflection of individual differences 2. Carries over a generation to the next 3. Generally universal but variable 4. Involves not just inequality but also beliefs

Which of these intellectual property protections should Juliet, the CEO of a fast food restaurant chain, apply for to prevent competitors from copying her restaurant logo?

A trademark

The majority of Christians live in Europe and the Americas. However, Christianity is rapidly growing in ______.

Africa

Which countries have experienced tribal totalitarianism rule?

African

Which of these is a characteristic of a pure command economy?

All businesses are owned by the state.

What is the objective of a pure command economy?

Allotment of resources for the overall good of society

To determine which country is attractive for potential investments, you need to balance which three considerations? (Check all that apply.)

Benefits Risks Costs

______ are those individuals who first commercialize a concept, service, or product.

Entrepreneurs

True or False: The International Monetary Fund (IMF) is considered less controversial than the World Bank.

False Reason: Both the IMF and the World Bank were established at Bretton Woods. The World Bank is the less controversial of the two institutions.

Boeing's rationale for outsourcing so much production to foreign suppliers is based on which two factors, according to the text?

Increasing the chance to win significant orders from airlines in those countries Using suppliers that are the best in the world at a particular activity

______ property refers to property such as a screenplay, a music score, or the chemical formula for a new drug.

Intellectual

What is an accurate depiction of the World Bank?

It focuses on helping developing countries fight poverty through investments in the underlying structure of the country.

What statement BEST describes a totalitarian system?

It is a form of government in which the state recognizes no limits to its authority and strives to regulate all aspects of public and private life.

Kent needs to describe theocratic totalitarianism to his classmates. Which of these statements should he use?

It is a political system in which rulers govern based on religious rules and principles.

Which businessperson is an example of an entrepreneur?

Natalia, the CEO and founder of Mountain Top Inc., an adventure travel company

Carrie's professor asked her to describe democracy. Which of these statements should she use?

The pure form of democracy believes that laws and policies should be made directly by citizens.

What statement accurately describes the current membership of the United Nations?

Today, nearly every nation in the world belongs to the United Nations.

Understanding how cultural differences across and within nations affect the way business is practiced is known as ______ literacy.

cross-cultural

A system of values and norms that are shared among a group of people and that when taken together constitute a design for living is called

culture

Hofstede studied how ______ relates to values in the workplace.

culture

Which of the following is a more attractive place to do business?

nation with a market-based economic system

The process of privatization fails to perform as expected when

newly privatized firms are protected from foreign competition.

Refer to Map 3.6 in the text. This map shows that Singapore ranks in the top two states in terms of economic freedom. Yet in terms of political freedom, Singapore is ranked as _____ on the Freedom House's index.

partly free

A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.

patent

What is the focus of Hofstede's power distance dimension?

people are not equal in physical capabilities

Plato would have agreed that society should be stratified into classes and ______ were best suited to rule society.

philosophers and soldiers

Lax enforcement of intellectual property rights in the computer software industry has lead to stealing of software applications. This illegal process is also known as

piracy

Joaquin is worried about his company locating a manufacturing facility in Indonesia because of the unstable government which could devastate their business. Which type of risk is affecting Joaquin's decision?

political

The likelihood that political forces will cause drastic changes in a country's business environment and adversely affect the potential for a company to make a profit is called a _____ risk.

political

The system of government in a nation is called the ______ system.

political

When Hugo Chavez took over power in Venezuela, he railed against American imperialism. Western enterprises doing business in that country were concerned how this would affect their interactions with Venezuela. This demonstrates how ______ can impact the economics of a country.

political change

The term ______ is used to stress that the political, economic, and legal systems of a country are connected

political economy

One thing the Human Development Index does not assess but which Amartya Sen believes should be included to determine development is

political freedoms

What are two impediments to globalization that a company might face?

political risk transportation costs

In the ______ dimension identified by Hofstede, the degree of power and wealth is not balanced within a country.

power distance

According to Aristotle's philosophy on individualism,

private property receives greater care compared to communal property.

The government of a foreign nation had controlled the oil and gas industry for many years but recently transferred the business into the hands of several small businesses. These companies are now motivated to increase productivity and enter new markets to achieve greater profits. What tactic did this nation use to help it move toward a market-based economic system?

privatization

A lack of _____ has been blamed by many as the cause of the problems that led to the global financial crisis of 2008-2009.

regulation

In a theocratic law system, the law is based on

religious teachings.

In a(n) ______ democracy, elected representatives represent the citizens and make decisions on behalf of the electorate.

representative

Collectivism refers to a political system that

restricts an individual's right to do something on the grounds that it runs counter to the "good of society".

To foster innovation in the business environment, it is important that strong legal protection of property rights is in place. Inadequately enforced property rights can lead to an increase in the

risk of expropriation of profits.

The ________ committed themselves to achieving socialism without resorting to violent revolution and dictatorship.

social democrats

Nigel was born into a poor, working-class family in England. He is resigned to the fact that his life will be much like his fathers as he has no way to earn a degree and change his status. Nigel believes that a lack of _____ determines his fate.

social mobility

During the economic downturn of 2008-2009, the U.S. government "bailed out" AIG to prevent that financial institution from collapsing because it felt that if AIG collapsed, it would lead to serious consequences for the entire U.S. financial system. By helping out this troubled firm because it appeared vital to national interests, the U.S. government was acting as a ____ economy.

Mixed

Adherents of Islam are called

Muslims.

______ join the political entity of a state to the cultural entity of a nation.

Nation-states

Which statement accurately describes the globalization of markets?

National differences in tastes and preferences for consumer products is an important factor that acts as a brake on globalization.

The members of the World Intellectual Property Organization have signed international treaties designed to protect intellectual property, including the oldest such treaty known as the ______, which dates to 1883.

Paris Convention for the Protection of Industrial Property

Peter, a research associate at a biotechnology firm, develops a diagnostic kit for the rapid detection of malaria. In order to prevent his competitors from duplicating his invention, Peter should apply for a _________.

Patent.

Which Greek philosopher is credited with advocating the origins of collectivism?

Plato

What three systems make up the political economy of a country?

Political system, Economic system, Legal system

______ is one of the steps necessary for a country to shift toward a market-based economic system.

Privatization

______ is seen as a transfer of ownership of a business, property or enterprise from the public sector to the private sector.

Privatization

______ refers to the process of selling state-owned enterprises to private investors.

Privatization

Which of the following is a feature of right-wing totalitarianism?

Provision of partial individual economic freedom along with restricted individual political freedom.

Differences in Political Systems Political systems, the systems of government in nations, differ from country to country. It is important to understand the nature of different political systems and develop an awareness of and appreciation for the significance of national differences. Political systems are assessed according to two dimensions. The first is the degree to which they emphasize collectivism as opposed to individualism. The second is the degree to which they are democratic or totalitarian. These dimensions are interrelated and may share certain characteristics.

Right-wing totalitarianism - Germany in 1930s Tribal Totalitarianism - Kenya Psudo Democracy - Russia Communist Totalitarianism - China Representative Democracy - United States Theocratic Totalitarianism - Saudi Arabia

Which statement accurately describes the effects of social unrest on a country?

Social unrest can result in abrupt changes in government which tend to have negative economic implications.

What is an accurate description of the International Monetary Fund (IMF)?

The IMF is often seen as the lender of last resort to nation-states whose economies are in turmoil.

The GNI per capita of a country is $5,000, but the PPP per capita is $8,000. Which of the following can be inferred from the given data?

The cost of living is lower in that country than the United States.

What is the best way to characterize the impact of existing impediments to globalization?

The impediments make it difficult for companies to maximize production activities.

In many nations, which social class has benefited from economic advances and seen the emergence of prosperity?

The middle class

_____ often back(s) right-wing totalitarianism governments.

The military

The two major Christian organizations are

-Orthodox Church -Roman Catholic

Privatization became a worldwide practice starting in the

1980s

______ refers to the shift toward economic international integration.

Globalization

The privatization movement was started in

Great Britain in the 1980s with the sale of British Telecom.

______ measures the total annual income received by residents of a country.

Gross national income

In the years leading up to the Great Depression, what practice created a barrier to international trade?

High tariffs on imports of foreign goods

The religion where followers believe in reincarnation and karma is

Hinduism.

How does Samuel Huntington's argument about the new world order differ from the view of Fukuyama?

Huntington believed the world would be split into different civilizations with their own ideology.

What two countries are identified in the text as being currently underdeveloped and having the greatest market potential for business?

India China

What is an accurate description of intellectual property laws?

Intellectual property laws reward creativity and provide an incentive for people to search for novel ways of doing things.

What statement BEST defines right-wing totalitarianism?

It restricts political freedom, frequently on the grounds that it would lead to the rise of communism, but does allow some economic freedom.

Which one of these individuals should apply for a copyright?

Jude, a musician who is composing his maiden album

Javabucks in China This short video clip deals with the legal issues of a hypothetical foreign-owned coffee shop opening in China and facing trademark violation issues from a Chinese competitor. In a legal sense, the term property refers to a resource over which an individual or business holds a legal title, that is, a resource that it owns. Intellectual property refers to property that is the product of intellectual activity. Patents, copyrights, and trademarks establish ownership rights over intellectual property.

Intellectual property rights are intended to - Protect original ideas/works The philosophy behind intellectual property rights is to - Reward the creator of an idea The organization of approximately 185 countries that have all signed treaties to protect intellectual property rights is known as the - World Intellectual Property Organization In January 2006, a Shanghai court said Coffeebux's decision to use the logo and similar sounding name to Javabucks was - "Clearly Malicious"

The most widely practiced theocratic legal system in the modern world is ______ law.

Islamic

How has social media affected group life?

It has emphasized the idea of an extended social group.

Which organization would help out a cash-strapped government with a low-interest loan to help that country build new roads?

World Bank

Which global institution is the successor to GATT?

World Trade Organization

Which organization is responsible for policing the rules of trade between nations and making sure countries adhere to the rules of trade treaties signed by member states?

World Trade Organization

In the early 20th century, communists differed from social democrats in that communists believed in

a strategy of revolutionary action.

Legal risk is evident in a country that has _____.

a violation of property rights

As countries get richer, we often see a shift ______ traditional values (such as staying married and obeying one's parents) and ______ secular rational values (including abortion and divorce).

away from; toward

Within the Human Development Index, for a country to have "medium" human development it must score

between 0.5-0.8.

A country under totalitarian rule would experience which two of these situations?

censored media & denial of civil liberties

A _____ law system is based on a detailed set of laws organized into codes.

civil

A government plans the quantity of goods and services produced as well as the prices at which they are sold in a pure ______________ economy.

command

A country that bases its laws on the traditions within the country's legal history operates under a _____ law legal system.

common

Historically, command economies were found in ________ countries, where collectivist goals were given priority over individual goals.

communist

The International Monetary Fund (IMF) has been criticized for

compromising the jurisdiction and decision-making powers of the receiving country.

A ______ refers to a legal right that enables the creator of an original work the right to publish and distribute their work as they see fit.

copyright

What are the two macro factors that underlie the trend toward greater globalization?

decline in trade barriers technological change

What economic tactic was used when former communist countries removed price controls and allowed prices to be set as the result of supply and demand?

deregulation

What are the four purposes of the United Nations according to its charter?

develop friendly relations among nations maintain international peace and security be a center for harmonizing the actions of nations cooperate in solving international problems

Hindus believe in ______, the behaviors and responsibilities governing individual conduct.

dharma

What is an example of an obstacle to globalization?

differences in legal regulations among national markets

Jeffrey Sachs argued that the ______ of a nation can have an impact on economic development.

geography

According to Huntington, ______ is a conflict that results from the strong ideological boundaries separating civilizations from one another.

global terrorism

In the 1960s, when a customer in the United States purchased a television, that television had been manufactured in the United States. Today, thanks to the fall of international trade barriers, televisions purchased in the United States might be manufactured in China or South Korea. This change has occurred as the result of _____.

globalization

When analyzing the process of innovation, it can be said that it

goes hand-in-hand with entrepreneurship.

A country's economic system and property rights regime are _____ predictors of economic prospects.

good

Stephen usually eats lunch with three of his co-workers and on the weekends he gets together with his college friends. The people Stephen interacts with represent two types of _____.

groups

Compared to the United States, the piracy of computer software is _____ in China.

higer

According to Hofstede, societies with stiff codes of behavior, rules, and laws score___ on the uncertainty avoidance index.

high

The national differences in the quality of factors of production help companies

improve the quality or functionality of their product offering.

One positive aspect of innovation is that it

increases the economic activity within a country.

The Hofstede dimension that is focused on the degree to which people in a society are integrated into groups is

individualism versus collectivism.

According to Hofstede, if the ties between people are loose, it is most likely a sign of a(n) ______ society.

individualistic

Western society values _______ over ______.

individuals; groups

As defined in the text, _____ includes a company's new products, new processes, new organization, new management practices and new strategies.

innovation

The development of a new idea, process, method or technology is called ______.

innovation

Michael wrote a screenplay and he is traveling to Los Angeles next week to pitch his idea to a movie studio. The screenplay is an example of _____ property.

intellectual

A company is involved in foreign direct investment when it

invests in business activities outside of its home country.

When assessing the legal factors that determine the cost of doing business in a country, it's important to know that

it can be more costly to do business in a country where local laws and regulations set strict standards with regard to product safety.

Alex considers himself a "true French Canadian" and agrees with political activists who think there should be a separation from English speaking citizens who are dominating certain provinces. What seems to be the cause of this division in Canada?

language

Kate's grandmother was born in Belgium and she says she is Flemish. Anne's grandmother was also born in Belgium and she says she is French. In some areas of Belgium, all signs are in French and are not possible to read unless you know the French language. The same is true for other areas with all signs in Flemish. What is creating the divide between these two cultures?

language

It is ______ for the government to expropriate profits from innovation through excessive taxation. (Choose between legal or illegal)

legal

The ______ system of a country refers to the rules, or laws, that regulate behavior along with the system that enforces them.

legal

Without a legal system that protects property rights, and the machinery that enforces those rights, there is substantially _____ incentive to engage in economic activity.

less

Francis Fukuyama's argument regarding the new world order was that

liberal democracy has triumphed and will become the final form of human government.

What three factors are assessed to determine the Human Development Index of a country?

life expectancy at birth average incomes educational attainment

The Human Development Index is based on

life expectancy at birth.

South Korea was considered an impoverished country in 1960. Yet in 2017, it was the world's 11th largest economy. International businesses must consider the present wealth of customers as well as the

likely future wealth of the consumers.

Confucianism values harmonious relationships, which are based on moral and ethical conduct and ______.

loyalty to others

Hernando de Soto's arguments to improve property rights protection stemmed from the fact that

many property owners in poor countries can't establish legal title to property they own.

In a pure ______ economy, all productive activities are owned privately -- not by the state.

market

Innovators and entrepreneurs flourish most in a _____ because _____.

market economy; it grants existing businesses and entrepreneurs the freedom to improve their operations through innovation

The Heritage Foundation's index measures the degree of economic freedom in the nations -- in other words, the degree of shift to ______ economic systems.

market-based

Property rights are only truly secure when a _____ exists.

mature democratic state

In a ______ economy, both private enterprise and some state monopoly co-exist.

mixed

Social _____ refers to how difficult or easy it is for an individual to move out of the social strata into which they are born.

mobility

Islam is a ______ religion, believing in one true God.

monotheistic

It would probably be _____ costly to do business in a relatively underdeveloped economy.

more

What does individualism emphasize?

the importance of guaranteeing one's freedom and self-expression

According to individualism, economic interests should be dictated by _____.

the individual

In a pure market economy, production of goods is determined by

the interaction of supply and demand.

According to Samuel Huntington's thesis, global terrorism is

the result of a clash of value systems.

In a totalitarian country, you would find that

the ruler's decisions are not questioned by individuals.

In some countries, barter agreements take the place of cash transactions and this skews the "official" economic activity figures. This is referred to as _____.

the shadow economy

The government of Iran is ruled by religious figures and they ensure that citizens adhere to Islamic teachings. Iran is a ________ law system.

theocratic

When considering how intellectual property rights are viewed around the world, it can be said that

they are subjected to various forms of protection from country to country.

One change in the political systems of nations since the late 1980s is that

totalitarian governments failed and were replaced by democratically elected governments usually supportive of free market capitalism.

A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.

trademark