Question 1

_____ is the primary process by which countries with a command economy change to a market economy.

Accepted Answer

Privatization is the process by which the state-owned enterprises and assets are sold to private individuals or companies. This is often one of the primary ways that countries with a command economy transition to a market economy, as it allows for competition and free enterprise to emerge in the marketplace.

Question 2

Cerise Inc. ,an American textile company,received a grant of nearly $2 billion from the government.However,the government doesn't have direct control over the operations of Cerise Inc.The government does not get direct payment,rather it gets indirect benefits from job creation and growth.Given this information,it can be said that Cerise Inc.is a _____.

Accepted Answer

Cerise Inc. is not owned by the state, but it has received support from the government in the form of a grant. Therefore, it can be classified as a state-supported company.

Question 3

In the context of government involvement in business,which of the following is true of state investment?

Accepted Answer

The answer of In the context of government involvement in...

Question 4

Do you think that the communist and socialist political systems evolved out of the inequality inherent in individualistic systems? Give reasons to support your answer.

Accepted Answer

The answer of Do you think that the communist and...

Question 5

Cerise Inc. ,an American consumer electronics company,wants to expand its business internationally.Kiara,a manager at Cerise Inc. ,believes that the company should thoroughly understand the level of political freedom of a country before starting operations there.However,Dylan,another manager at Cerise Inc. ,thinks that conducting an analysis of the level of political freedom in a country might lead to unnecessary expenses for the company.Which of the following statements supports Kiara's belief?

Accepted Answer

A thorough understanding of the level of political freedom in a country can help Cerise Inc. form positive relationships with local governments, which can benefit the company in terms of obtaining necessary permits, licenses, and regulations to operate smoothly in that foreign market.

Question 6

Emerald Inc.is a state-owned enterprise in Lobelis,a country in South America.It is likely that:

Accepted Answer

The statement specifically mentions that Emerald Inc. is a state-owned enterprise, which indicates that the government of Lobelis owns and operates the business.

Question 7

It has been argued that indirect political risk is similar to collateral damage.Give your views.

Accepted Answer

The answer of It has been argued that indirect political...

Question 8

Do you think the level of privatization within a country affects international businesses? Give reasons to support your answer.

Accepted Answer

The answer of Do you think the level of privatization...

Question 9

Unlike in a state-owned enterprise,in a state-supported company,_____.

Accepted Answer

In a state-supported company, the state provides indirect benefits such as tax breaks, subsidies, and other incentives but does not directly operate the business or own stocks or bonds in the company. The profits made by the company are not necessarily returned to the government.

Question 10

Which of the following is true of a state-supported company?

Accepted Answer

A state-supported company is a business that receives support from the government, often in the form of financial assistance such as grants or tax breaks. This may be done to promote economic development or to provide important products or services. The other options listed (B, C, and D) describe scenarios in which the state has a more direct and active role in the company, which is not necessarily the case for all state-supported businesses.

Question 11

Poskelis,a country in Eastern Europe,has a relatively free market.Customers in Poskelis are:

Accepted Answer

In a relatively free market, consumers often have more options and potentially higher incomes, leading to more leisure time to enjoy and spend their income, unlike restrictive economies where choices and incomes might be limited.

Question 12

The government of Jermenia,a country in Eastern Europe,owns Auburn Inc. ,a mining company worth $200 billion.The government controls all the operations of the company.The profits of Auburn Inc.are returned to the government.Given this information,it can be said that Auburn Inc.is a _____.

Accepted Answer

Auburn Inc. is a state-owned enterprise because it is owned and controlled by the government of Jermenia.

Question 13

Justify the argument that collectivism is more often associated with governments that exert more centralized control over society.

Accepted Answer

The answer of Justify the argument that collectivism is more...

Question 14

Harold,an economist,asserts that international businesses are likely to be significantly affected by Great Britain's exit from the European Union.Which of the following statements supports Harold's assertion?

Accepted Answer

With Great Britain's exit from the European Union, there is likely to be increased difficulty in moving money, people, and products across Europe. This will certainly affect international businesses operating in Great Britain or in other parts of Europe who rely on the ease of movement across borders. The other options are not directly related to the impact on international businesses.

Question 15

Derek is a management professor at the University of California.He believes that the Arab Spring is a political event with global implications.Which of the following statements supports his belief?

Accepted Answer

The answer of Derek is a management professor at the...

Question 16

In 2015,Iqbal and his family were displaced from their home in Syria in the wake of civil war.They sought asylum in Germany.However,Iqbal could not find employment in Germany because of a difficult political situation there.Which of the following political events is illustrated in this scenario?

Accepted Answer

The scenario illustrates the refugee crisis, as Iqbal and his family were displaced from their home in Syria and sought asylum in Germany. The difficulty in finding employment for Iqbal due to the political situation in Germany is also a consequence of the refugee crisis, as many countries are grappling with how to integrate refugees and provide them with opportunities.

Question 17

Do you think Great Britain's exit from the European Union will significantly affect international businesses? Give reasons to support your answer.

Accepted Answer

The answer of Do you think Great Britain's exit from...

Question 18

The government of Lekistan,a country in West Asia,has 58% holdings of Olive Inc. ,an oil company.Olive Inc.gives some percentage of its profits to the government.Given this information,it can be said that Olive Inc.is a _____.

Accepted Answer

Olive Inc. is partially owned by the government of Lekistan, which means it is a partial state-owned enterprise. This ownership gives the government some control over the company's operations and a share of its profits. This is different from a joint venture, which would involve two or more companies forming a new entity together, a sole proprietorship, which is owned by one individual, or a limited liability company, which is a type of business structure that limits the owner's personal liability.

Question 19

From 1987 to 2001,the government of Gintesia,a country in West Asia,controlled the oil industry in the country.During that period,the government made all the decisions regarding the operations of the oil industry.However,in 2002,Gintesia began the process of removing government control from the industry.Now,the oil companies in Gintesia have private ownership.This scenario illustrates _____.

Accepted Answer

The scenario illustrates the process of deregulation, in which the government removes its control and allows private ownership of the industry.

Question 20

Brown Inc. ,a publishing company,is a partial state-owned enterprise in Descibelia,a country in South America.It is likely that:

Accepted Answer

Since Brown Inc. is a partial state-owned enterprise, it is likely that it gives some of its profits to the government of Descibelia. This is a common practice for state-owned enterprises. Option A may be true as well, but there is no information to support this in the given context. Option C and D are not relevant to the information provided.

Quiz 3: Political System