Test Bank for International Business Competing in the Global Marketplace 9th Edition-
Hill
Chapter 02
National Differences in Political Economy
True / False Questions
1. The two dimensions, according to which the political systems can be
assessed, collectivism-individualism and democratic-totalitarian are
independent of each other.
True False
2. It is possible to have a democratic political system that emphasizes a
mix of collectivism and individualism.
True False
3. When collectivism is emphasized, an individual's right to do something
may be restricted on the grounds that it runs counter to "the good of
society."
True False
4. Plato, to whom the advocacy of collectivism is traced back, did not
equate collectivism with equality.
True False
5. The central message of collectivism is that individual economic and
political freedoms are the ground rules on which a society should be
based.
True False
, Test Bank for International Business Competing in the Global Marketplace 9th Edition-
Hill
6. The communists believed that socialism could be achieved by
democratic means, and turned their backs on violent revolution and
dictatorship.
True False
7. The social democrats believed that socialism could be achieved only
through violent revolution and totalitarian dictatorship.
True False
8. Modern socialists trace their intellectual roots to Karl Marx (1818-83),
although socialist thought clearly predates Marx.
True False
9. In an individualist society, the welfare of society is best served by
letting people pursue their own economic self-interest.
True False
10 Aristotle argued that individual diversity and private ownership are
. undesirable.
True False
11 In practical terms, individualism translates into an advocacy for
. democratic political systems and market economics.
True False
12 Most modern democratic states practice representative democracy.
.
True False
13 In a totalitarian country, there are safeguards to protect an individual's
. right to freedom of expression, opinion, and organization.
True False
, Test Bank for International Business Competing in the Global Marketplace 9th Edition-
Hill
14 It is possible to have a totalitarian state that is hostile to collectivism
. and where some degree of individualism is encouraged.
True False
15 In a market economy, if demand for a product exceeds supply, prices
. will rise, signaling to producers to produce more.
True False
16 The number of command economies has fallen dramatically since the
. demise of communism in the late 1980s.
True False
17 The objective of the government in a command economy is to
. encourage free and fair competition between private producers.
True False
18 In a command economy, enterprises have little incentive to control
. costs and be efficient, because they cannot go out of business.
True False
19 In mixed economies, governments also tend to take into state
. ownership troubled firms whose continued operation is thought to be
vital to national interests.
True False
20 A nation's legal system is usually of very little interest to international
. business managers, because international businesses are
headquartered in different countries.
True False
21 When law courts interpret common law, they do so with regard to
. tradition, precedent, and custom.
True False
, Test Bank for International Business Competing in the Global Marketplace 9th Edition-
Hill
22 Judges under a civil law system have more flexibility than those under a
. common law system.
True False
23 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
24 Common law is primarily a moral rather than a commercial law and is
. intended to govern all aspects of life.
True False
25 A theocratic law system is one in which the law is based on religious
. teachings.
True False
26 The parties to an agreement normally resort to contract law when one
. party feels the other has violated either the letter or the spirit of an
agreement.
True False
27 Contracts under a civil law system tend to be very detailed with all
. contingencies spelled out.
True False
28 Many of the world's larger trading nations, including Japan and the
. United Kingdom, have not ratified the United Nations Convention on
Contracts for the International Sale of Goods (CIGS).
True False
29 Property rights refer to the legal rights over the use to which a resource
. is put and over the use made of any income that may be derived from
that resource.
True False
Hill
Chapter 02
National Differences in Political Economy
True / False Questions
1. The two dimensions, according to which the political systems can be
assessed, collectivism-individualism and democratic-totalitarian are
independent of each other.
True False
2. It is possible to have a democratic political system that emphasizes a
mix of collectivism and individualism.
True False
3. When collectivism is emphasized, an individual's right to do something
may be restricted on the grounds that it runs counter to "the good of
society."
True False
4. Plato, to whom the advocacy of collectivism is traced back, did not
equate collectivism with equality.
True False
5. The central message of collectivism is that individual economic and
political freedoms are the ground rules on which a society should be
based.
True False
, Test Bank for International Business Competing in the Global Marketplace 9th Edition-
Hill
6. The communists believed that socialism could be achieved by
democratic means, and turned their backs on violent revolution and
dictatorship.
True False
7. The social democrats believed that socialism could be achieved only
through violent revolution and totalitarian dictatorship.
True False
8. Modern socialists trace their intellectual roots to Karl Marx (1818-83),
although socialist thought clearly predates Marx.
True False
9. In an individualist society, the welfare of society is best served by
letting people pursue their own economic self-interest.
True False
10 Aristotle argued that individual diversity and private ownership are
. undesirable.
True False
11 In practical terms, individualism translates into an advocacy for
. democratic political systems and market economics.
True False
12 Most modern democratic states practice representative democracy.
.
True False
13 In a totalitarian country, there are safeguards to protect an individual's
. right to freedom of expression, opinion, and organization.
True False
, Test Bank for International Business Competing in the Global Marketplace 9th Edition-
Hill
14 It is possible to have a totalitarian state that is hostile to collectivism
. and where some degree of individualism is encouraged.
True False
15 In a market economy, if demand for a product exceeds supply, prices
. will rise, signaling to producers to produce more.
True False
16 The number of command economies has fallen dramatically since the
. demise of communism in the late 1980s.
True False
17 The objective of the government in a command economy is to
. encourage free and fair competition between private producers.
True False
18 In a command economy, enterprises have little incentive to control
. costs and be efficient, because they cannot go out of business.
True False
19 In mixed economies, governments also tend to take into state
. ownership troubled firms whose continued operation is thought to be
vital to national interests.
True False
20 A nation's legal system is usually of very little interest to international
. business managers, because international businesses are
headquartered in different countries.
True False
21 When law courts interpret common law, they do so with regard to
. tradition, precedent, and custom.
True False
, Test Bank for International Business Competing in the Global Marketplace 9th Edition-
Hill
22 Judges under a civil law system have more flexibility than those under a
. common law system.
True False
23 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
24 Common law is primarily a moral rather than a commercial law and is
. intended to govern all aspects of life.
True False
25 A theocratic law system is one in which the law is based on religious
. teachings.
True False
26 The parties to an agreement normally resort to contract law when one
. party feels the other has violated either the letter or the spirit of an
agreement.
True False
27 Contracts under a civil law system tend to be very detailed with all
. contingencies spelled out.
True False
28 Many of the world's larger trading nations, including Japan and the
. United Kingdom, have not ratified the United Nations Convention on
Contracts for the International Sale of Goods (CIGS).
True False
29 Property rights refer to the legal rights over the use to which a resource
. is put and over the use made of any income that may be derived from
that resource.
True False
