Question 1

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 2

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?
A) The refugee crisis in Europe is likely to worsen.
B) The financial industry in Europe is likely to do business anywhere on the continent and move employees around without worrying about visas.
C) The British are likely to find it difficult to move money, people, and products across Europe.
D) London's position as a world financial center is likely to strengthen.

Accepted Answer

The British are likely to find it difficult to move money, people, and products across Europe, which directly supports Harold's assertion by highlighting potential challenges for international businesses in the context of Great Britain's exit from the European Union.

Question 3

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 _____.
A) joint venture firm
B) sole proprietorship company
C) partial state-owned enterprise
D) limited liability company

Accepted Answer

Olive Inc. is considered a partial state-owned enterprise because the government of Lekistan holds a significant percentage (58%) of the company, indicating partial government ownership.

Question 4

Poskelis, a country in Eastern Europe, has a relatively free market. Customers in Poskelis are:
A) more likely to have shorter life expectancy.
B) likely to have less discretionary income.
C) less likely to be discriminating in their choices.
D) likely to have more leisure time in which to spend income.

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 5

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 _____.
A) joint venture firm
B) partial state-owned enterprise
C) sole proprietorship company
D) state-supported company

Accepted Answer

Cerise Inc. is a state-supported company because it received financial support from the government but operates independently without direct government control over its operations, fitting the definition of a state-supported entity.

Question 6

In the context of government involvement in business, which of the following is true of state investment?
A) The state has partial ownership of a company.
B) The state provides incentives, grants, tax breaks, or subsidies to a company.
C) The government reinvests or spends the proceeds.
D) The government gets indirect benefits from job creation and growth.

Accepted Answer

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

Question 7

Unlike in a state-owned enterprise, in a state-supported company, _____.
A) the state operates the business of the company
B) the state gets indirect benefits from job creation and growth
C) the state buys stocks or bonds in the company
D) the profits made by the company are returned to the government

Accepted Answer

In a state-supported company, the government provides support such as subsidies or tax incentives, leading to indirect benefits like job creation and economic growth, rather than directly operating the business or receiving profits.

Question 8

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 9

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?
A) The tourism industry in Egypt has flourished ever since the uprisings.
B) In Morocco, leaders have cracked down on free speech in a preemptive attempt to keep the protesters from organizing within the country.
C) The Syrian government fell to the protests resulting from the Arab Spring and introduced political uncertainty in the country.
D) The Libyan government resisted the protests resulting from the Arab Spring, which plunged the country into a long and violent civil war.

Accepted Answer

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

Question 10

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 11

_____ is the primary process by which countries with a command economy change to a market economy.
A) Subsidization
B) Commodification
C) Privatization
D) Nationalization

Accepted Answer

Privatization is the process where government-owned businesses, operations, or assets are transferred to the private sector. This is a key step in moving from a command economy, where the government controls economic activities, to a market economy, where business operations are controlled by private individuals or companies.

Question 12

Emerald Inc. is a state-owned enterprise in Lobelis, a country in South America. It is likely that:
A) the government of Lobelis owns and operates the business of Emerald Inc.
B) Emerald Inc.'s goal is to serve environmental needs.
C) the government of Lobelis gets indirect benefits from the jobs created by Emerald Inc.
D) the government of Lobelis has bought stocks and bonds in Emerald Inc.

Accepted Answer

State-owned enterprises are typically owned and operated by the government, meaning the government of Lobelis likely owns and operates Emerald Inc.

Question 13

Which of the following is true of a state-supported company?
A) The state provides incentives, grants, tax breaks, or subsidies to the company.
B) The state has partial ownership of the company.
C) The state receives part of the profits made by the company.
D) The state buys stocks or bonds in the company.

Accepted Answer

State-supported companies often receive incentives, grants, tax breaks, or subsidies from the government to support their operations, which is what makes them state-supported.

Question 14

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 _____.
A) joint venture company
B) limited liability firm
C) sole proprietorship company
D) state-owned enterprise

Accepted Answer

Auburn Inc. is a state-owned enterprise because it is owned and operated by the government of Jermenia, and its profits are returned to the government.

Question 15

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 16

Brown Inc., a publishing company, is a partial state-owned enterprise in Descibelia, a country in South America. It is likely that:
A) the government of Descibelia gets indirect benefits from the jobs created by Emerald Inc.
B) Brown Inc. gives some of its profits to the government of Descibelia.
C) Brown Inc.'s goal is to serve environmental needs.
D) the government of Descibelia has bought stocks and bonds in Emerald Inc.

Accepted Answer

Since Brown Inc. is a partial state-owned enterprise, it is common for such companies to share a portion of their profits with the government.

Question 17

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?
A) Grexit
B) Brexit
C) The Great Depression
D) The refugee crisis

Accepted Answer

The scenario illustrates the refugee crisis, where individuals and families are displaced due to conflicts such as the Syrian civil war and seek asylum in other countries, facing challenges such as unemployment.

Question 18

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 _____.
A) subsidization
B) commodification
C) nationalization
D) deregulation

Accepted Answer

The transition described from government control to private ownership of the oil industry in Gintesia is an example of deregulation, where the government reduces its role and allows for more private sector control.

Question 19

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?
A) A thorough understanding of the level of freedom can help Cerise Inc. form positive relationships with local governments.
B) A thorough understanding of the level of freedom can help Cerise Inc. evade taxation in foreign markets.
C) A thorough understanding of the level of freedom can help Cerise Inc. suppress competitive pressures in politically unstable countries.
D) A thorough understanding of the level of freedom can help Cerise Inc. minimize its operations expenses.

Accepted Answer

Understanding the level of political freedom can aid in forming positive relationships with local governments, which is crucial for smooth operations and expansion in a new country.

Question 20

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...

Quiz 3: Political System

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

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?

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 _____.

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

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

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

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

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?

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

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

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

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

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 _____.

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.

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

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