BA 310 Chapter 6

Which of the following is NOT true about family planning in China?

Beginning in 1850, the communist government of China formally adopted a "one child" family planning policy.

_____ risks are the risks that political forces or problems in a given country will have a meaningful negative impact upon the conduct of business in that country.

political

The potential overthrow of a democratically elected presidential regime by a military junta is likely a(n) _____ risk.

macropolitcal

A 2010 survey asked individuals whether they or someone in their household had paid a bribe in the past 12 months. The survey found a _____ percent bribery rate in the United States.

5

Laws to promote "fair competition" among businesses are known as _____ laws.

Antitrust

_____ refers to an economic system where businesses are privately owned with a strong individualistic profit orientation.

Capitalism

A legal system based on a comprehensive listing of legal rules in sets of written codes of law is known as a _____ law legal system.

Civil

A legal system where legislative bodies generally enact specific legal rules giving judges or courts considerable authority in interpreting these rules based on precedent and other factors is called a _____ law legal system.

Common

A party wishing to sell a given piece of commercial real estate to another party would enter into a real estate agreement with the other party. This is an example of which type of law?

Contract

A situation where businesses are able to illegally alter relevant private and/or public decision making by way of bribes, kickbacks, blackmail, extortion, and related activities is known as _____.

Corruption

Which of the following is NOT true about socialism?

Countries with socialist economies aspire to be "classless."

_____ establishes which violations of a nation's laws are crimes punishable by possible incarceration.

Criminal

_____ is Greek for "rule by the people"; it is a form of government in which all citizens have the right to vote

Democracy

A country that has particularly militant labor unions known for frequent unplanned or wildcat strikes, or perhaps a country known for holding corporate executives hostage until their demands are met, are examples of _____ risk.

Economic

A country's potential nationalization of companies in the oil industry would represent a macropolitical risk.

False

China, with its strong individualistic, entrepreneurial, free-market spirit, historically has been viewed as the leading economically capitalistic economy in the world.

False

Fortunately for global businesses, economic risks are independent of political risks.

False

Singapore historically has had a highly anti-business political system in a parliamentary model context, with one ruling party, in power since 1959.

False

Tax law is the body of law governing legally enforceable agreements between parties to engage in economic exchange.

False

Totalitarian government refers to a form of government in which total (all) citizenry have the right to vote.

False

Under Communist economic ideology, collectivistic rights give way in the extreme to individual rights.

False

Of the following statements, which is NOT true about totalitarian governments?

Finland, Norway, and South Korea are run by a military dictatorship.

The _____ is a U.S. law that prohibits U.S. companies from bribing or otherwise corrupting foreign government officials to win foreign government contracts or obtain other foreign government assistance for their businesses.

Foreign corrupt practices act

The words "aspirin," "escalator," and "zipper" are examples of _____.

Generalized trademarks

Which of the following is NOT true about capitalism?

Historically, Russia has been viewed as the leading economically capitalistic economy in the world.

A country's potential nationalization of companies in the oil industry would represent a(n) _____ risk.

Micropolitical

Of the following statements, which is NOT true about democracies?

Most, if not all, democracies today are what are known as Athenian democracies.

_____ corruption is business corruption involving other private businesses, individuals, or groups.

Private

Which of the following is a U.S. government agency that sells political risk insurance to U.S. businesses operating in countries with which the U.S. has a bilateral investment treaty?

Oversees private investment corporation

A supplier paying a bribe to an officer of a company that purchases its products to help "facilitate" the purchase of said products is an example of _____ corruption.

Private

Paying "protection money" or giving sales kickbacks to an organized crime group would represent at example of _____ corruption.

Private

The practice of making illegal payments to government officials or engaging in blackmail, extortion, or other related activities to obtain government contracts or governmental approval for business activities is called _____ corruption.

Public

Most, if not all, democracies today are what are known as _____ democracies.

Representative

According to the text regarding a study of corporate bribery in developed countries conducted by Transparency International, _____ had the most corporate bribery.

Russia

_____ involves an economic ideology in which the government or state plays a strong role in the economy and may own stakes in certain businesses.

Socialism

_____ involves unlawful arts or violence threatening the physical safety of others.

Terrorism

Which of the following laws provides for (after a certain deductible) U.S. government insurance coverage for the risk of a U.S. business or property being attacked by a "foreign person or foreign interest?"

Terrorism risk insurance act

Of the following statements about common law legal systems, which is NOT true?

They originated in Asia in 1250

Rankings of countries throughout the world by potential political risks typically place Scandinavian and European countries such as Norway, Sweden, Switzerland, Luxembourg and Denmark near the top of the list, meaning that companies engaging in business in these countries face the least number of potential political risks.

True

_____ government is a system of government in which individuals govern without the support or consent of the citizenry.

Totalitarianism

"Coca-Cola," the Nike "swoosh" logo, and McDonald's "golden arches" are examples of _____.

Trademarks

Currency devaluation and conversion restrictions are two of the many economic risks companies take when engaging in international business.

True

In the world today, Islamic law, as followed in countries such as Iran and Saudi Arabia, is the primary example of theocratic law in operation.

True

Patent rights generally remain enforcable for 5-20 years, depending on the invention and the country.

True

The openness of democratic countries like Finland, and the protections such countries tend to generally provide for property rights and freedom of expression, usually make those countries more hospitable places to conduct global business than countries with totalitarian or semi-totalitarian political regimes.

True

There are essentially two kinds of business corruption: private corruption and public corruption.

True

Very little role for government exists in a purely capitalistic or "free market" economic system.

True