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International Business, 12e (Hill)
1) The central message of collectivism is that individual economic and political freedoms are the
ground rules on which a society should be based.
2) The communists believed that socialism could be achieved by democratic means and turned
their backs on violent revolution and dictatorship.
3) Some believe the Cold War was simply about nuclear proliferation, but in many respects, it was
a war between collectivism and individualism.
4) Most modern democratic states practice representative democracy.
5) Democracy is a form of government that prohibits opposing political parties.
6) In a totalitarian country, there are safeguards to protect an individual's right to freedom of
expression, opinion, and organization.
7) The number of command economies has fallen dramatically since the demise of communism in
the late 1980s.
8) The Republic of Elbow has a command economy, and as such, its objective is to encourage free
and fair competition between private producers.
9) In mixed economies, governments tend to take into state ownership troubled firms whose
continued operation is thought to be vital to national interests.
10) A nation's legal system is usually of very little interest to international business managers,
because international businesses are headquartered in different countries.
11) Judge Michaels operates in a country with a civil law system. This system has more flexibility
than a common law system.
12) A theocratic law system is one in which the law is based on religious teachings.
13) 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.
14) Contracts under a civil law system tend to be very detailed with all contingencies spelled out.
15) Many of the world's larger trading nations, including India and the United Kingdom, have not
ratified the United Nations Convention on Contracts for the International Sale of Goods (CISG).
16) To facilitate international business, property rights are defined in a consistent way across
countries.
17) Property rights can be violated in two ways—through private action and through public action.
18) The Foreign Corrupt Practices Act does not allow for grease payments.
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written consent of McGraw-Hill Education.
19) Fred wanted to protect his novel from piracy, so he copyrighted it. Patents, copyrights, and
trademarks establish ownership rights over intellectual property.
20) Patents discourage companies from committing themselves to extensive basic research.
21) The Trade-Related Aspects of Intellectual Property Rights agreement attempts to reduce
intellectual property protections to enhance trade.
22) Product liability sets certain safety standards to which a product must adhere.
23) Product liability can be much lower if a product does not conform to required safety standards.
24) The political systems of a country raise ethical issues that have implications for the practice of
international business.
25) When Penelope returned home from vacation, she found her store had been robbed and her
most valuable merchandise was gone. This violation of property rights is considered private
action.
26) ________ occurs when a political party that represents the interests of a particular tribe (and
not always the majority tribe) monopolizes power.
A) Tribal dictatorship
B) Communist totalitarianism
C) Tribal totalitarianism
D) Privatization
27) Who was the author of The Wealth of Nations in which he stated that "an individual who
intends his own gain is led by an invisible hand to promote an end that was no part of his
intention..."?
A) David Hume
B) Adam Smith
C) Karl Marx
D) John Stuart Mill
28) The term ________ stresses that the political, economic, and legal systems of a country are
interdependent.
A) political economy
B) common law
C) socialism
D) collectivism
