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International Business, 12e (Hill)
1) GDP allows a more direct comparison of living standards in different countries than other
measures.
2) In Sen's view, development is an economic process that should be assessed primarily by
material output measures such as GNI per capita.
3) GDP is one of the measures used by the Human Development Index (HDI) to measure the
quality of human life in different nations.
4) Political freedom is one of the measures used by the Human Development Index (HDI) to
measure the quality of human life in different nations.
5) If a country's economy is to sustain long-term economic growth, the business environment must
be conducive to innovations and entrepreneurial activity.
6) The state of Illinois was having budget difficulties, so it hired several private management
consultancy firms to manage some state-owned enterprises. This is an example of privatization.
7) Peruvian development economist Hernando de Soto has argued that the chronic inability of
property owners to establish legal title to the property they own is a key problem for innovation
and entrepreneurial activity in developing nations.
8) Most property in poor countries is owned legally by investors.
9) Totalitarian states promote human freedom and human development, which facilitates
economic progress.
10) Since the late 1980s, there has been a strong move away from a more free market economic
model and toward more centrally planned and mixed economies.
11) Many totalitarian regimes were able to deliver economic progress to the vast bulk of their
populations, which curbed the spread of democracy during the late 1980s.
12) New information and communication technologies have enabled the spread of democratic
ideals.
13) Transformation from centrally planned command economies to market-based economies can
be attributed to the fact that command and mixed economies failed to deliver the sustained
economic performance achieved by countries adopting market-based systems.
14) Hong Kong has economic freedom, so it follows that it also has political freedom.
15) In a command economy, the prices are determined by the free interplay of demand and supply.
16) In mixed economies, in certain sectors the state sets prices, owns businesses, limits private
enterprise, restricts investment by foreigners, and restricts international trade.
17) Studies of privatization in central Europe have shown that the process often fails to deliver
predicted benefits if the newly privatized firms continue to receive subsidies from the state and if
they are protected from foreign competition.
18) For privatization to work, it must also be accompanied by a more general deregulation and
opening of the economy.
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19) To improve airport security following a major terrorist attack, the government of a country
takes over the airport security industries This is an example of privatization.
20) A country with a well-functioning market economy does not need laws protecting private
property rights and providing mechanisms for contract enforcement.
21) When communism collapsed, many of the communist countries lacked the legal structure
required to protect property rights because all the property was earlier held by the state.
22) A market with a large number of consumers with low living standards will have a relatively
large market when measured in economic terms.
23) The long-run monetary benefits of doing business in a country are a function of the size of the
market, the present wealth of consumers in that market, and the likely future wealth of consumers.
24) A country's economic system and property rights regime are reasonably good predictors of
economic prospects.
25) Economic risks are independent of political risk.
