Globalization chapter 3

According to Freedom House, just under ________ of the world's nations are considered "free."

50 percent

What is one implication of the global changes in political and economic systems for international business?

The ideological conflict between collectivism and individualism is less in evidence today.

Economic advances in many countries have led to the

emergence of increasingly prosperous middle and working classes.

The base for the adjustment of purchasing power parity is the cost of living in

the United States.

"Not all democracies are free, as some still restrict certain political and civil liberties." Which country best fits this argument?

Russia

Jason loves to invent new products but knows that in his country it is difficult for him to reap the rewards of innovations because they are quickly and legally copied by others after he releases them into the marketplace. As a result, Jason has decided to stop inventing. What is preventing Jason from doing what he loves?

weak property rights protection

The belief that geography can influence economic policy, and hence economic growth rates, goes back to

Adam Smith.

Based on calculations for 2018, which country is ranked by the Heritage Foundation as having the world's freest economy?

Hong Kong

The three measures of the ________ are life expectancy at birth, educational attainment, and average incomes based on PPP estimates.

Human Development Index

________ is broadly defined as the development of new products, processes, organizations, management practices, and strategies.

Innovation

How does privatization help stimulate gains in economic efficiency?

It provides incentives to new private owners to search for increases in productivity and to enter new markets.

How have new information and communication technologies, including the Internet, affected the political economy in general?

They have reduced a state's ability to control access to uncensored information.

How have new information and communication technologies, including the Internet, affected the political economy in general?

They have reduced a state's ability to control access to uncensored information. C

A country that has ________ is an unattractive choice for international business.

a closed totalitarian dictatorship

A country with ________ is more likely to attain high and sustained economic growth rates and is a more attractive location for international business.

a democratic regime

Some believe that the global financial crisis of 2008-2009 was the result of

a lack of regulation.

People in the West tend to associate a representative democracy with

a market economic system.

In many of the world's nation-states, there has been a move away from ________ since the late 1980

centrally planned command economies

The influential economist Jeffrey Sachs argues that which of the following, with their long engagements in international trade, have been the most supportive of market institutions throughout history?

coastal states

The collapse of ________ in Eastern Europe was precipitated by the growing gulf between the vibrant and wealthyeconomies of the West and the stagnant economies of the East.

communism

The main reason that gross national income figures can be misleading is because they

don't consider differences in the cost of living.

Generally, the costs and risks associated with doing business in a foreign country are typically lower in

economically advanced countries.

In economic terms, the long-run monetary benefits of doing business in a country are based on the size of the market, the present purchasing power of consumers and the _____ of the country.

future consumer wealth

A country's ________ measures the total annual income received by residents of a country and is regarded as a yardstick for the economic activity of a country.

gross national income

One common measure of economic development is a country's

gross national income.

Traditional grocery stores now have to compete with Amazon's front-door delivery services. As a result, many grocery stores now offer online ordering and home delivery. This new strategy is an example of

innovation

The development of new products, processes, organizations, management practices, and strategies is called

innovation.

When considering innovations and entrepreneurship, it can be said that

innovations in production and business processes lead to an increase in the productivity of labor and capital.

What is one of the three measures used to determine the Human Development Index (HDI) of a country?

life expectancy at birth

There are currently over 1.3 billion people living in India, which makes it a large market when measuring the number of potential consumers. However, India is still considered a smaller market in economic terms because of

limited purchasing power.

As democracy has spread since the 1980s, so has the development of more ________ economies.

market-based

At one time, economic stagnation resulted in Great Britain because the coal mining and telecommunications industries were

monopolies owned by the state.

What started in Great Britain in the early 1980s when Prime Minister Margaret Thatcher started to sell state-owned assets such as the British telephone company?

privatization

In 2017, the Brazilian government transferred the state ownership of the electric company, the airports, highways, and ports to private investors to stimulate the economy. This is an example of

privatization.

According to the Human Development Index, average income adjusted for PPP should be sufficient to

provide basic needs such as food and shelter.

Julie asked her assistant to determine the gross national income of three different countries by evaluating the GNI against the cost of living in the United States. What measure is Julie asking her assistant to use?

purchasing power parity

A nation would ________ as part of deregulation efforts.

remove price controls

Gross national income figures should be carefully evaluated because they don't take into account differences in

the cost of living.

When considering the economic prospects of a country, it can be said that

the economic system and property rights regime are reasonably good predictors of economic prospects of a country.

A country that has ________ lowers the risk of doing business in that country.

the presence of a strong legal system

China, South Korea, Taiwan, Singapore, and Hong Kong have had the fastest-growing economies in the past 40 years. What did these five countries have in common at the start of their economic spur?

undemocratic governments