Question 1

Discuss the significance of legal systems in the context of shifting toward a market-based economic system.

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Question 2

Briefly describe the three significant changes that have occurred in the political economy of some of the world's nation-states since the late 1980s.

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Question 3

Generally, the costs and risks associated with doing business in a foreign country are typically lower in
A) less developed countries.
B) economically advanced countries.
C) totalitarian states.
D) countries with high inflation and falling living standards.
E) countries that lack intellectual property rights.

Accepted Answer

Economically advanced countries usually have stable political environments, strong legal systems, and well-established infrastructure, which reduce the costs and risks of doing business.

Question 4

Land and Sea Incorporated would like your opinion about various countries as potential markets and investment sites. What general information can you share with them about assessing the overall attractiveness of a potential country as a market?

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Question 5

Describe some of the risks associated with the changing political economy.

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Question 6

Explain the broad categories of political freedom established by Freedom House and discuss how these categories are represented in the world today.

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Question 7

Describe how the privatization movement began and discuss some of the most dramatic privatization programs that have taken place.

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Question 8

A(n) ________ risk occurs when a trading partner opportunistically breaks a contract or expropriates property rights.
A) political
B) legal
C) economic
D) sociological
E) cultural

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Question 9

Describe how author Francis Fukuyama's vision of the new world differs from that of the late influential political scientist Samuel Huntington.

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Question 10

Discuss Jeffrey Sachs's conception of geography, education, and economic development.

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Question 11

Validate the argument made by economists that innovation and entrepreneurial activity are the basis for long-term economic growth.

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Question 12

Describe Amartya Sen's conceptions of development.

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Question 13

The risks of doing business are most likely to be the highest in a country that
A) has low inflation rates.
B) supports high living standards.
C) has only one ethnic nationality.
D) protects intellectual property.
E) faces frequent changes in government and government policy.

Accepted Answer

Frequent changes in government and government policy can lead to instability and unpredictability, increasing the risks for businesses operating in that country.

Question 14

Wood Source Corp. is considering doing business in Central America but is concerned that some governments have been accused of corrupt practices. What aspect of the overall attractiveness of doing business in Central America does this represent?
A) benefits
B) costs
C) norms
D) risks
E) values

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Question 15

Diabetic Daily Inc., based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. Diabetic Daily Inc. is trying to avoid what type of risk?
A) political
B) legal
C) ethical
D) economic
E) ethnographic

Accepted Answer

Diabetic Daily Inc. is concerned about the protection of intellectual property rights, which is a legal issue. They are trying to avoid legal risk associated with inadequate intellectual property protection in Sri Lanka.

Question 16

Discuss the concept of deregulation and its role in a market-based economic system.

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Question 17

Discuss Samuel Huntington's idea of the new world order. What are its implications for international business?

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Quiz 3: National Differences in Economic Development