Question 1

With the collapse of the Communist Party rule in the former Soviet Union and its satellites in Eastern Europe, only a few real central state control systems remain,

Accepted Answer

This statement is true. The collapse of the Communist Party rule in the former Soviet Union and its satellites in Eastern Europe led to the weakening or dismantling of central state control systems in those countries. However, there are still some countries that maintain strong central state control, such as China and North Korea.

Question 2

Competitive advantage of nations means that a country has a cluster of similar companies in industries that give the country a special advantage over other countries.

Accepted Answer

This described competitive advantage of nations.

Question 3

Supporters of tariffs claim they help save jobs at home; however, others disagree.

Accepted Answer

Supporters of tariffs argue that by raising the cost of imported goods, domestic industries will be more competitive and able to create jobs. However, opponents of tariffs argue that they ultimately hurt consumers by increasing prices and reducing consumer choice, and that they can also lead to retaliatory tariffs from other countries, which can harm exports and ultimately lead to job losses.

Question 4

Protectionism works in the long-run.

Accepted Answer

Protectionism may bring short-term benefits to domestic industries, but it ultimately leads to inefficiencies, higher prices for consumers, and retaliation from foreign countries. Free trade, on the other hand, has been shown to promote economic growth and increase overall welfare in the long-run.

Question 5

The International Trade Administration of the Department of Commerce and the International Trade Commission administer certain aspects of trade law.

Accepted Answer

The International Trade Administration of the Department of Commerce and the International Trade Commission are both agencies that administer various aspects of trade law, including investigations and determinations related to anti-dumping and countervailing duties.

Question 6

The Trade Adjustment Assistance Act provides help for those injured by imports by providing retraining programs to find new jobs, but it is not awarded very often.

Accepted Answer

The statement is true. The Trade Adjustment Assistance Act does provide retraining programs to help workers who have been negatively affected by imports, but it is not awarded very often as it requires meeting specific criteria and going through a complex application process.

Question 7

The International Monetary Fund (IMF) keeps track of the global economy and the economies of member countries but does not lend to countries with balance of payments difficulties nor give economic and financial policy advice.

Accepted Answer

The IMF does all these.

Question 8

Piracy in China, and other developing countries, has been a big problem for U.S. business.

Accepted Answer

Piracy in developing countries, including China, has had a significant impact on the intellectual property rights and profits of U.S. businesses.

Question 9

Europe has changed over the years to become more like the United States by having independent state/countries join together as one market, which is similar to the U.S. system of free trade between its states.

Accepted Answer

The European Union is an example of independent state/countries joining together to form a single market with free movement of goods, services, and people, which is similar to the U.S. system of free trade between its states.

Question 10

NAFTA is a trade agreement between the United States, and countries of Central and South America that links millions of people producing trillions of dollars worth of goods and services.

Accepted Answer

NAFTA is between the U.S., Canada, and Mexico.

Question 11

Bribes are commonly given to high-level officials to buy products, but they are also given to avoid taxes, to stop unfavorable government intervention, and to gain favorable treatment.

Accepted Answer

Bribes are commonly given to high-level officials for various reasons, including buying products, avoiding taxes, stopping unfavorable government intervention, and gaining favorable treatment.

Question 12

Transparency International has a vision of a world in which government, politics, business, civil society, and the daily lives of people are free of corruption.

Accepted Answer

This is the vision statement of Transparency International, as stated on their official website.

Question 13

A ________ company conducts business in one country.
A) homegrown
B) international
C) domestic
D) multinational
E) semi-private

Accepted Answer

A domestic company operates within the borders of one country.

Question 14

Three primary political systems include democracy, single-party, and ______.
A) republican
B) non-partisan
C) laisser-faire
D) military dictatorship
E) up-front party

Accepted Answer

The third primary political system is a military dictatorship, where power is concentrated in the hands of military leaders who govern the country through force and coercion. This system is typically characterized by a lack of political freedoms and civil liberties for citizens.

Question 15

Which of the following is not true of a democracy?
A) Powers of legislative, executive, and judicial branches of government are combined within one office.
B) Fair elections with multiple party candidates
C) Independent media with freedom of political speech without fear of censorship or punishment
D) Separation of powers among the legislative, executive, and judicial government branches
E) Open society with independent organizations pursuing social, religious, and cultural goals

Accepted Answer

Powers of legislative, executive, and judicial branches of government are not combined within one office in a democracy. Separation of powers is an important principle in democracies to prevent abuse of power and ensure checks and balances.

Question 16

Which of the following is true of the business-government connection?
A) Democracies are generally open to capitalism with free enterprise.
B) North America, Japan, EU countries, and India have little free enterprise.
C) Most of the Scandinavian countries' governments and businesses do not tend to intermingle.
D) The governments of Japan and China, the government has no ownership in business.
E) Fannie Mae and Freddie Mac are mixed government and private ownership.

Accepted Answer

Fannie Mae and Freddie Mac are mixed government and private ownership.

Question 17

Discuss ethical imperialism as opposed to cultural relativism.

Accepted Answer

The answer of Discuss ethical imperialism as opposed to cultural...

Quiz 11: Competing in the Global Environment