International Business Exam One

Which of the following is most likely to be advocated by individualism

Free market ideologies should be followed for achieving better standards of living.

In the context of cost, which of the following can be considered as the most attractive market or investment site?

A country that has well-developed body of business contract law.

In political terms, which of the following translates into an advocacy for democratic ideals and free market economies, which in general creates the most favorable enviornment for international businesses to operate in?

Individualism.

Patents, copyrights, and trademarks establish ownership rights over what type of property?

Intellectual.

In what type of economy are all businesses state-owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals?

pure command

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

Human development Index.

MedPlus incorporated, based in the United States, hesitates to enter into a joint venture with Azpak, a Sri Lankan company, due to inadequate protection of intellectual property rights. MedPlus is trying to avoid what type of risk?

Legal.

In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning?

Mixed.

Karl Marx promoted the ida of an _______ society in which the state owned the means of production, distribution, and exchange.

Socialist.

Which of the following creates an enviornment that is conducive to product and process innovations and to entrepreneurial activity?

Privitization

Which of the following is most likely to be implemented by a country as a part of deregulation?

Removal of price controls.

People in the west tend to associate a (n) ____ with a free market system, strong property rights protection, and economic progress.

Representative democracy.

Which of the following is most likely to be true about the overall attractiveness of a country as a potential market or investment site for an international business?

The costs and risks associated with doing business in a foreign country tend to be greater in politically unstable nations.

Which of the following is true about legal systems?

The government of a country defines the legal framework within which firms do business.

Which of the following is most likely to indicate that the nation of Erbia has adopted deregulation?

The retail sector in Erbia has been opened for foreign direct investment.

In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following revelations that

U.S companies had bribed government officials in foreign countries in an attempt to win lucrative contracts.

Capricorn Creative Inc, a U.S based advertising firm, was the first in the advertising industry to identify the growth potential of Brazil and to make huge investments in its economy. As a result, the firm was able to build brand loyalty and gain experience in that country's business practices. In the language of business strategy, Capricorn Creative has typically benefited from

a first-mover advantage.

Which of the following nations is most likely to be unappealing as a place for doing business?

a nation that has a totalitarian political system.

Which of the following terms best defines the relationship between the level of corruption and economic growth rate in a country?

inversely proportional

Purchasing power parity is used to adjust gross national income in order to make a more direct comparison of _____ in various countries.

living standards.