Quiz #3

13. A major legal challenge that companies face in the global environment often involves which of the following? Dealing with cultural issues Dealing with product profitability Dealing with employee motivation Dealing with product liability issues

Dealing with product liability issues

8. Which of the following statements about approaches to political risk management is not true? Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect. Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.

Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.

5. Which of the following types of political risks often is caused by ethnic conflict or civil disorder and includes random political developments that adversely affect the operations of all companies in a country? procedural political risk catastrophic political risk distributive political risk systemic political risk

catastrophic political risk

3. Proponents of the ideal of ________ argue that individual interests are not as important as the welfare of the group. collectivism capitalism pluralism individualism

collectivism

6. Political systems based on the ________ paradigm, such as those of Japan and China, promote the principle that government may intervene to ensure that business practices benefit society. collectivistic pluralistic laissez-faire individualistic

collectivistic

1. A ________ law system is based on tradition, judge-made precedent, and usage, and assigns a preeminent position to existing case law as a guide to dispute resolution. common civil customary theocratic

common

7. The vigor of IPR protection is highly related to a country's stage of ________. standardization of patent regulations cultural heterogeneity natural resource development economic development

economic development

14. A(n) ________ grants the registered owners of a particular invention, literary or artistic work, symbols, names, images, or designs the right to determine the use of their ideas. intellectual property right patent certificate trademark credential TRIPS permit

intellectual property right

11. The methods a country uses to regulate business practices, define how companies conduct business transactions, specify the rights and obligations of those engaged in business transactions, and provide legal redress to those who believe they have been wronged in business transactions are aspects of a country's ________. basis of rule political system philosophical orientations legal system

legal system

15. A business's day-to-day activities are best described as its ________ concerns. political operational strategic cultural

operational

10. A(n) ________ ideology is the system of ideas that expresses the goals, theories, and aims of how society should work. political legal technological economic

political

12. In a representative democracy, ________. the people's elected representatives hold ultimate sovereignty the extent of personal freedoms varies by class structure democratic means are used to achieve a gradual transition from capitalism to socialism there is little consensus on inalienable freedoms

the people's elected representatives hold ultimate sovereignty

9. Most counterfeit goods are made in markets in which ________ is the basis of the legal system. judge-made precedent the rule of law religious doctrine the rule of man

the rule of man

2. In a(n) ________ system, a single leader advocates a new society where wrongs will be corrected and harmony will prevail. pluralistic individualist totalitarian representative

totalitarian

4. Presently, managers typically find that the rule of law is prevalent in ________. developing, non-Western countries countries inclined toward totalitarian-style government wealthier, westernized countries emerging economies experiencing rapid growth

wealthier, westernized countries