C211 COMPETENCY 2 QUIZ WITH 100%
CORRECT ANSWERS { GRADED A+}
How do institutions reduce uncertainty (3)? - ✔✔signal which conduct is legit and
which is not, curtail transaction costs, combat opportunism
is the focus on the coercive power of governments and supports the formal
institutions (laws, rules, regulations) - ✔✔regulatory pillar
The mechanism through which norms influence individual and firm behavior -
✔✔normative pillar
The internalized (or taken-for-granted) values and beliefs that guide individual and
firm behavior - ✔✔cognitive pillar
_________ and _____________ support the informal institution which focus on
norms, cultures, and ethics - ✔✔normative and cognitive
, (2) propositions that lie at the root of the institution based view of global business -
✔✔-1. Managers and firms rationally pursue their interests and make choices
within the formal and informal constraints in a given institutional framework
2. In situations where formal constraints are unclear or fail, informal constraints
will play a larger role in reducing uncertainty and providing constancy to managers
and firms
A political system in which one person or party exercises absolute political control
over the population - ✔✔totalitarianism
(4) types of totalitarianism - ✔✔communist, theocratic, tribal, right-wing
characterized by intense hatred for communism. One party backed by military
restricts political freedom - ✔✔right-wing totalitarianism
refers to the monopolization of political power in the hands of one religious party
or group. Examples: Saudi & Iran - ✔✔theocratic totalitarianism
refers to one tribe or ethnic group (which may or may not be the majority of the
population) monopolizing political power and oppressing other tribes or ethnic
groups - ✔✔tribal totalitarianism
CORRECT ANSWERS { GRADED A+}
How do institutions reduce uncertainty (3)? - ✔✔signal which conduct is legit and
which is not, curtail transaction costs, combat opportunism
is the focus on the coercive power of governments and supports the formal
institutions (laws, rules, regulations) - ✔✔regulatory pillar
The mechanism through which norms influence individual and firm behavior -
✔✔normative pillar
The internalized (or taken-for-granted) values and beliefs that guide individual and
firm behavior - ✔✔cognitive pillar
_________ and _____________ support the informal institution which focus on
norms, cultures, and ethics - ✔✔normative and cognitive
, (2) propositions that lie at the root of the institution based view of global business -
✔✔-1. Managers and firms rationally pursue their interests and make choices
within the formal and informal constraints in a given institutional framework
2. In situations where formal constraints are unclear or fail, informal constraints
will play a larger role in reducing uncertainty and providing constancy to managers
and firms
A political system in which one person or party exercises absolute political control
over the population - ✔✔totalitarianism
(4) types of totalitarianism - ✔✔communist, theocratic, tribal, right-wing
characterized by intense hatred for communism. One party backed by military
restricts political freedom - ✔✔right-wing totalitarianism
refers to the monopolization of political power in the hands of one religious party
or group. Examples: Saudi & Iran - ✔✔theocratic totalitarianism
refers to one tribe or ethnic group (which may or may not be the majority of the
population) monopolizing political power and oppressing other tribes or ethnic
groups - ✔✔tribal totalitarianism
