Exam (elaborations) TEST BANK Global Business Today 7th Edition by Hill, Charles W. L

True / False Questions 1. The term political economy is used to stress the fact that the political, economic, and legal systems of a country are interdependent. True False 2. Largely, political systems that emphasize collectivism tend to be democratic, while political systems that place a high value on individualism tend to be totalitarian. True False 3. Plato did not equate collectivism with equality. True False 4. In the early twentieth century, the socialist ideology split into two broad camps: communists and capitalists. True False 5. Social democrats believed that socialism could be achieved only through violent revolution and totalitarian dictatorship. True False 6. The American Declaration of Independence embodies the ideals of collectivism. True False 7. One of the tenets of collectivism is that the welfare of society is best served by letting people pursue their own economic self-interest. True False 2-1 Full file at 8. In practical terms, individualism translates into an advocacy for democratic political systems and free market economics. True False 9. The United States practices pure democracy. True False 10. China, Vietnam, Laos, North Korea, and Cuba are no longer totalitarian states. True False 11. The most common form of theocratic totalitarianism is based on Islam and is exemplified by states such as Iran and Saudi Arabia. True False 12. Tribal totalitarianism is found in states where political power is monopolized by a party, group, or individual that governs according to religious principles. True False 13. Right-wing totalitarianism generally permits some individual economic freedom but restricts individual political freedom. True False 14. The fascist regimes that ruled Germany and Italy in the 1930s and 1940s are examples of theocratic totalitarianism. True False 2-2 Full file at 15. Most right-wing dictatorships display an affinity for socialist or communist ideas. True False 16. In a pure market economy, all productive activities are privately owned, as opposed to being owned by the state. True False 17. In a pure command economy, the goods and services that a country produces, the quantity in which they are produced, and the prices at which they are sold are all dictated by the interaction of demand and supply. True False 18. Command economies are dynamic economic systems that encourage innovation. True False 19. Judges in a common law system have the power to interpret the law so that it applies to the unique circumstances of an individual case. True False 20. A common law system tends to be less adversarial than a civil law system. True False 21. Many Muslim countries have legal systems that are a blend of Islamic law and a common or civil law system. True False 2-3 Full file at 22. Contracts drafted under a common law framework tend to be very detailed with all contingencies spelled out. True False 23. It is more expensive to draw up contracts in a civil law jurisdiction. True False 24. Property refers to a resource over which an individual or business holds a legal title. True False 25. In the context of property rights, public action refers to theft, piracy, blackmail, and the like by private individuals or groups. True False 26. Public action to violate property rights can be done through legal and illegal mechanisms. True False 27. Economic evidence suggests that high levels of corruption indirectly have a positive effect on foreign direct investment, level of international trade, and economic growth rate in a country. True False 28. According to the Foreign Corrupt Practices Act, it is illegal to make grease payments to expedite or secure the performance of a routine governmental action. True False 2-4 Full file at 29. A copyright grants the inventor of a new product or process exclusive rights to the manufacture, use, or sale of that invention. True False 30. Protecting intellectual property has become increasingly problematic. True False 31. Both civil and criminal product liability laws exist. True False 32. Gross national income (GNI) measures the total annual income received by residents of a nation. True False 33. GNI per person figures consider differences in the cost of living and allow for a more direct comparison of living standards in different countries. True False 34. The Nobel Prize-winning economist Amartya Sen has argued that development should be viewed purely as an economic process and not as a political one. True False 35. Some totalitarian regimes have fostered a market economy and strong property rights protection and have experienced rapid economic growth. True False 2-5 Full file at 36. Economic freedom does not necessarily equate with political freedom. True False 37. Political risk is considered to be less in countries that contain more than one ethnic nationality. True False Multiple Choice Questions 38. Collectively, we refer to political, economic, and legal systems as constituting the _____ economy of a country, thus reflecting how these systems are interdependent. A. domestic B. civic C. administrative D. political 39. The system of government in a nation is referred to as its: A. common system. B. political system. C. domiciliary system. D. legal system. 40. Political systems can be assessed according to the degree to which they emphasize_____ and the degree to which they are _____. A. equal opportunity and adult franchise; open to free trade versus protectionism B. democratic versus individualistic; market oriented as opposed to being production oriented C. capitalism over socialism; collectivist or individualistic D. collectivism opposed to individualism; democratic versus totalitarian 2-6 Full file at 41. When _____ is practiced in a society, the needs of society as a whole are generally viewed as being more important than individual freedoms. A. totalitarianism B. collectivism C. individualism D. capitalism 42. In some cultures in Asia and the Middle East, it is considered appropriate to give precedence to "the common good" over what may benefit individuals. These cultures can be termed _____. A. individualist B. totalitarian C. collectivist D. absolutist 43. _____ is a political philosophy that advocates substantial public involvement, through government ownership, in the means of production and distribution. A. Socialism B. Capitalism C. Individualism D. Fascism 44. Modern socialism traces its intellectual roots to: A. Aristotle. B. David Hume. C. Karl Marx. D. Adam Smith. 2-7 Full file at