International Business University of Akron- Chapter 3
Which of the following factors is most likely to contribute toward lowering the risk of doing business in a country? A) A high rate of inflation in the country B) Presence of a strong legal system in the country C) Presence of a large number of nonperforming loans on the books of the banks in the country D) Low standard of living in the country E) Presence of more than one ethnic nationality in the country
B
Which of the following factors is one of the three measures used to determine the human development index (HDI) of a country? A) Gender ratio B) Wholesale price index C) Life expectancy at birth D) Carbon footprint of the country E) Balance of payment
C
Which of the following is most likely to be associated with a representative democracy by the people in the West? A) Low level of life expectancy at birth B) A theocratic regime C)A market economic system D) A command economic system E) Weak property rights protection
C
_____ typically involves removing price controls; abolishing laws regulating the establishment and operation of private enterprises; and relaxing or removing restrictions on direct investment by foreign enterprises and international trade. A) Divestiture B) Diversification C) Deregulation D) Disinvestment E) Debasement
C
The spread of democracy among countries is most likely to lead to: A) a strong shift toward a mixed economy. B) a decrease in innovation and entrepreneurship. C) a decline in privatization. D) the promotion of greater competition. E) the widespread use of centrally planned command economies.
D
Which of the following factors is most likely to make a country unattractive for international business? A) A large market size in terms of population B) Market-based economic policies C) Presence of business contract law D) Closed totalitarian dictatorship E) Strong protection of property rights
D
Which of the following is a measure of economic development that allows for a direct comparison of living standards in different countries? A) Gross national income B) Gross domestic product C) Cash reserve ratio D) Purchasing power parity E) Return on investment
D
The present base for the adjustment of purchasing power parity is the cost of living in: A) United Kingdom. B) Russia. C) Brazil. D) China. E) United States.
E
Which of the following has been losing importance globally from the early 1980s? A) Legal systems to safeguard property rights B) Deregulation of economies C) Free markets and democracy D) Privatization of state property E) Centrally planned command economies
E
Which of the following indices is developed by the UN to measure the quality of human life in different nations? A) Consumer Price Index B) Cost of Living Index C) Wholesale price index D) Productivity Index E) Human Development Index
E
According to Freedom House, all democracies are free countries with no restrictions on political and civil liberties. T/F
False
Economic risks are independent of political risk. T/F
False
Gross national income per person figures can be misleading because they don't consider differences in the cost of living. T/F
True
Simply selling state-owned assets to private investors is not enough to guarantee economic growth. T/F
True
There is no guarantee that democracy will thrive in many of the world's newer democratic states. T/F
True
