Question 1

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

Accepted Answer

Private corruption involves corruption within the private sector or between the public and private sectors. The act of paying protection money or giving sales kickbacks to an organized crime group would fall under private corruption.

Question 2

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?"

Accepted Answer

The Terrorism Risk Insurance Act (TRIA) provides for U.S. government insurance coverage for the risk of a U.S. business or property being attacked by a "foreign person or foreign interest" after a certain deductible. The other choices do not relate to this specific type of insurance coverage.

Question 3

Unlawful acts of violence threatening the physical safety of others is called _____.

Accepted Answer

Unlawful acts of violence threatening the physical safety of others is the definition of terrorism.

Question 4

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

Accepted Answer

Private corruption involves only private businesses, individuals, or groups, whereas public corruption involves government officials or agencies. Open and closed corruption are not common terms used to describe types of corruption, and external corruption could refer to corruption involving foreign entities.

Question 5

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.

Accepted Answer

A common law legal system is one where judges have considerable authority in interpreting laws based on precedent and other factors. This is in contrast to a civil law system where laws are generally codified and judges have less flexibility in their interpretation. A theocratic legal system would be based on religious law, while a representative legal system would refer to a government that represents its citizens. Family law would refer to laws specifically related to marriage, divorce, and children in a given jurisdiction.

Question 6

A 2013 survey asked individuals whether they or someone in their household had paid a bribe in the past 12 months. The survey found the bribery rate in the United States was between ______.

Accepted Answer

The answer of A 2013 survey asked individuals whether they...

Question 7

A recent survey found this nation to be the most dangerous in the world.

Accepted Answer

According to the Global Peace Index 2021, Somalia was ranked as the most dangerous country in the world due to ongoing conflicts, terrorism, and lawlessness.

Question 8

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.

Accepted Answer

The answer of A country that has particularly militant labor...

Question 9

According to the text regarding a study of corporate bribery in developed countries conducted by Transparency International, which of the following nations had the most corporate bribery?

Accepted Answer

According to the text, the study conducted by Transparency International found that Russia had the most corporate bribery out of the developed countries analyzed.

Question 10

Which of the following is an example of corruption?

Accepted Answer

Paying a bribe to a company executive in order to be awarded a contract is an example of corruption as it involves using illegal or dishonest means to gain an advantage or benefit.

Question 11

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.

Accepted Answer

A legal system based on a comprehensive listing of legal rules in sets of written codes of law is known as a civil law legal system. In a civil law legal system, legal rules are typically codified in written statutes or codes, as opposed to being derived from prior court decisions (which is characteristic of a common law legal system). Theocratic legal systems are based on religious law, representative legal systems involve elected representatives, and family law is a specialized area of law that pertains to issues such as marriage, divorce, and child custody.

Question 12

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

Accepted Answer

The answer of A country's potential nationalization of companies in...

Question 13

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

Accepted Answer

Socialism involves government ownership or control of certain industries and services, with the goal of promoting greater social and economic equality. While private enterprise and markets may still exist, the state often intervenes to regulate and direct economic activity in ways that are believed to serve the collective good.

Question 14

In a civil law country, the real power lies with

Accepted Answer

The answer of In a civil law country, the real...

Question 15

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?

Accepted Answer

The agency that sells political risk insurance to U.S. businesses operating in countries with which the U.S. has a bilateral investment treaty is the Overseas Private Investment Corporation (OPIC). Therefore, option B is the correct answer. The other options listed are not relevant to political risk insurance or do not exist as U.S. government agencies.

Question 16

_____ 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.

Accepted Answer

Political risks refer to risks that arise due to political forces, such as political instability, government policies, civil unrest, wars, and terrorism, and have a significant negative impact on a country's business operations. Environmental risks refer to risks associated with the natural environment, such as climate change, natural disasters, and pollution. Individual risks refer to risks associated with individual behavior, such as fraud, theft, and embezzlement. Economic risks refer to risks associated with economic conditions, such as recession, inflation, and interest rates. Financial risks refer to risks associated with financial transactions, such as credit risk and market risk.

Question 17

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.

Accepted Answer

The Foreign Corrupt Practices Act 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. The other options listed are laws related to different aspects of business and are not relevant to the description provided.

Question 18

Which of the following is NOT true about capitalism?

Accepted Answer

The passage of the Patient Protection and Affordable Care Act (commonly known as Obamacare) does not indicate a movement away from capitalism as it does not fundamentally change the private ownership of businesses or the profit orientation of the economy. The other choices are true about capitalism, including the role of individual incentives, the potential for large gains and losses, and the limited role of government in a free market system.

Question 19

Which of the following is NOT true about socialism?

Accepted Answer

While socialism does involve a goal of reducing social class distinctions, it does not necessarily aim to create a "classless" society. Socialism recognizes that there will continue to be differences in abilities and contributions, but seeks to provide equal opportunities and reduce exploitation.

Question 20

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.

Accepted Answer

Public corruption involves government officials using their authority for personal gain or to benefit specific groups or individuals. This includes accepting bribes or engaging in other illegal activities to influence decisions related to government contracts or approvals for business activities. Private corruption, on the other hand, involves illegal activities within private companies or organizations. Open, closed, and external corruption are not relevant terms for describing this type of corruption.

Quiz 6: The Legal, Economic and Political Environment of Global Business