International Business |

Student Center | Instructor Center | Information Center | Home

International Business : The Challenge of Global Competition, 8/e

Donald Ball
Wendell H. McCulloch, California State University Long Beach
Paul L. Frantz, California State University Long Beach
Michael Geringer, California Polytechnic State University
Michael S. Minor, University of Texas Pan American

Political Forces


1	In a number of ways, the political climate of the country in which a business operates is as important as a country's:
		A)	topography.
		B)	natural resources.
		C)	meteorological climate.
		D)	all of the above.


2	It is the ________________ doctrine that the government should own all the major factors of production.
		A)	communist
		B)	socialist
		C)	democratic
		D)	nazi


3	The government seizure of the property within its borders owned by foreigners, followed by prompt, adequate, and effective compensation paid to the former owners is called:
		A)	nationalization.
		B)	expropriation.
		C)	confiscation.
		D)	privatization.


4	Under ideal capitalism, government would be restricted to those functions that the private sector cannot perform such as:
		A)	national defense.
		B)	police, fire and other public services.
		C)	government-to-government international relations.
		D)	all of the above.


5	Socialism advocates government ownership or control of the basic means of production, distribution, and exchange. As actually practiced, socialism:
		A)	is present only in the European countries.
		B)	results in the nationalization of all businesses.
		C)	varies considerably from country to country.
		D)	is rapidly being replaced by capitalism.


6	Government ownership of the factors of production:
		A)	is present only in communist countries.
		B)	is present only in socialist countries.
		C)	varies widely from country to country.
		D)	both "a" and "b".


7	Where government owned companies compete with privately owned companies, the private companies sometimes complain that government owned companies:
		A)	operate under monopolistic conditions.
		B)	are able to get interest-free financing.
		C)	are always awarded government contracts.
		D)	get export assistance.


8	The acknowledged leader of the privatization movement was:
		A)	Margaret Thatcher.
		B)	Bill Clinton.
		C)	Ronald Reagan.
		D)	Tony Blair.


9	In the previously communist government-controlled economies of Central and Eastern Europe, the change to market economies is referred to as:
		A)	capitalism.
		B)	sociocapitalism.
		C)	transition.
		D)	reconstruction.


10	Nationalism is a devotion to:
		A)	one's own nation.
		B)	the political and economic interests or aspirations of one's nation.
		C)	the cultural and social traditions of one's nation.
		D)	all of the above.


11	A historic function of government has been the protection of the __________ within its geographic area of control.
		A)	economic activity
		B)	culture
		C)	legal structure
		D)	political power


12	A common denominator of terrorist groups has been the hatred of existing:
		A)	economic order.
		B)	social order.
		C)	political order.
		D)	all of the above.


13	Terrorists:
		A)	target both business and government leaders.
		B)	generally have very clear ideas about their desired government reforms.
		C)	are careful not to harm innocent bystanders.
		D)	are being effectively controlled by worldwide organizations.


14	Before leaving on a business trip to a foreign location one should:
		A)	give friends and family members all details about the trip.
		B)	make sure that he/she has plenty of business cards with the company logo.
		C)	carry all business documents in luggage.
		D)	make sure that the company has an established code for use by all personnel who are engaged in foreign business.


15	The nerve gas used in the Tokyo subway attack was:
		A)	Sarin
		B)	Sarom
		C)	Serum
		D)	Sorin


16	A government can be said to be stable:
		A)	if it maintains itself in power.
		B)	when its fiscal, monetary, and political policies do not change.
		C)	when its fiscal, monetary, and political policies are subject to sudden radical changes.
		D)	none of the above.


17	Bolivia is potentially a rich country whose resources have scarcely been touched because of:
		A)	government protection of the natural resources.
		B)	past political instability.
		C)	political stability.
		D)	extensive importing of natural resources.


18	Long-standing enmities between tribes, races, religions, ideologies, or countries are known as:
		A)	feuds.
		B)	inter-regional hostilities.
		C)	traditional hostilities.
		D)	faction hostilities.


19	The Tamils form a substantial minority of the _________ population.
		A)	Sri Lankan
		B)	Indian
		C)	Ugandan
		D)	Israeli


20	The United Nations:
		A)	is apolitical.
		B)	is highly politicized.
		C)	has a policy of not offering advice to lesser developed countries.
		D)	does not deal with laws affecting international trade.

2002 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.