A firm injured by unfair foreign competition can file a petition for relief under the U.S.
trade law.
Answer:
Bribes are expected to indirectly benefit the least advantaged persons.
Answer:
Unrestricted FDI was allowed in most industries but was restricted to minority
ownership in several industries, including insurance, print media, and air transportation.
Answer:
With regard to trade disputes, the European Union maintains a set of preferences for the
overseas territories and former colonies of its member states.
Answer:
Trade policy consists of agreements among countries, domestic laws pertaining to
international trade, and procedures for administering those laws and resolving disputes.
Answer:
In formulating nonmarket strategies, managers may draw on the expertise of lawyers,
communications specialists, Washington representatives, and community relations
specialists.
Answer:
Firms that are financially weaker face lesser social pressure, which is inconsistent with
the soft-target hypothesis.
Answer:
The fair trade system attempts to intervene directly on both market and nonmarket
issues by coordinating the flow of consumer revenue to participating producers.
Answer:
The market imperfection perspective is grounded in political economy theory.
Answer:
The Council of Ministers consists of two ministers from each state and the nations have
equal voting weight.
Answer:
When credit card issuers cancel the cards of high-risk cardholders, more people have
access to credit.
Answer:
Intervention involves turning the crisis into a manageable nonmarket issue.
Answer:
The responsibility for addressing nonmarket issues should reside with operating
managers and not with a separate staff unit.
Answer:
In client politics, firms prefer to adopt a high-profile strategy that includes public
advocacy to counter the opposition.
Answer:
Merger review by the European Commission is based solely on the extent of inflation.
Answer:
Government exercises relatively little control over pharmaceutical firms and their
activities.
Answer:
The Senate’s confirmation is not required for the appointment of the members of the
board of governors of the Federal Reserve.
Answer:
Implementation of nonmarket strategies pertains to the selection of specific actions and
the assignment of tasks to organizational units and individual managers.
Answer:
An emissions tax is favored by some economists because it is transparent and easy to
implement compared to having to develop a market.
Answer:
Price discrimination practice is a vertical practice under antitrust laws.
Answer:
Most news organizations in the United States are owned by for-profit companies.
Answer:
In a nonmarket analysis, motivation and the nature of the politics are important factors
to the development of effective strategies.
Answer:
The nonmarket power of business is controlled because it is naturally divided.
Answer:
Effective management in the market environment is sufficient for superior performance
of the firm over its competitors.
Answer:
Both the Department of Justice (DOJ) and the Federal Trade Commission (FTC) have
the authority to enforce the Sherman Act and the Clayton Act, but only the FTC can
enforce the Federal Trade Commission Act.
Answer:
For Kant, freedom and rationality are the foundations of a theory of morality.
Answer:
The performance of firms or its policies remain unaffected by boycotts and campaigns.
Answer:
The nonmarket risk to demand-side subsidization stemmed both from government
budget concerns and imported solar panels that hindered achieving the political
objective of creating jobs.
Answer:
Kant argued that because individuals are rational and each individual deduces maxims
from a conception of freedom and autonomy that resides in everyone, all individuals
will deduce different maxims.
Answer:
Crisis escalation includes actions to resolve the crisis, deal with the root cause, and
communicate with stakeholders, the public, and government.
Answer:
The theory of news media coverage and treatment uses the news organization as the
unit of analysis.
Answer:
Indian patent law allowed patents on both the products and the methods of production.
Answer:
Managers do not participate in the implementation of nonmarket strategies.
Answer:
A conglomerate merger involves two firms that do not operate in the same industries
either as competitors or as part of a channel of distribution or supply.
Answer:
Formulating integrated strategies requires consideration of the market and nonmarket
environments as well as attention to moral concerns and social responsibilities.
Answer:
Ethics involves an inquiry into whether a proposition has legal status.
Answer:
________ are the basic unit of analysis and the focus of nonmarket action.
a) Interests
b) Institutions
c) Issues
d) Information
Answer:
One is acting paternalistically toward a person if and only if ________.
a) one’s action does not benefit that person
b) one’s action has that person’s past consent
c) one’s action involves violating a moral rule with regard to that person
d) that person is incompetent to give consent (simple or valid) to the violation
Answer:
________ justice is concerned with the distribution of the rewards and burdens of social
interactions.
a) Distributive
b) Compensatory
c) Retributive
d) Punitive
Answer:
One4All is a software company that provides classroom management tools as well as
computer management software tools to schools and universities in Massachusetts. It
reacts to the government’s decision to increase taxes on software companies by shutting
business in the region. Which of the following responses to crisis management is
applicable to this situation?
a) conciliatory
b) agreeable
c) hardball
d) denial
Answer:
Which of the following is the final stage in the nonmarket issue life cycle?
a) interest group formation
b) legislation
c) administration
d) enforcement
Answer:
________ is a framework for analyzing political and nonmarket action on issues
addressed in government institutions.
a) Organizational learning
b) Structured pluralism
c) Confrontational private politics
d) Cooperative private politics
Answer:
Critics of the American Recovery and Reinvestment Act were of the opinion that
________.
a) the government provided companies with low-cost loans from government supported
banks
b) the Department of Energy did not administer the loan guaranties based on
applications by companies
c) the subsidies offered by the government were fairly inadequate
d) the government was trying to pick winners rather than allowing the market to
determine the winners
Answer:
Export industries have focused on supplying ________.
a) developed countries
b) emerging markets countries
c) commonwealth countries
d) the global market
Answer:
A firm could be a soft target for social pressure because ________.
a) it has, in the past, been largely unresponsive to social pressure
b) it has, in the past, formed strategic alliance with several peak organizations
c) it is financially strong
d) it is vulnerable to brand or reputation damage
Answer:
Which of the following is a nonmarket strategy implementation activity?
a) account-based marketing
b) product pricing
c) brand management
d) lobbying
Answer:
Which of the following is true about NIMBY?
a) The primary objective of the NIMBY movement is to eradicate unemployment in the
United States.
b) The NIMBY movement focuses on local environmental concerns, particularly as
they involve possible risks to person or property.
c) The primary objective of the NIMBY movement is to lobby for greater subsidization
for renewable energy.
d) The NIMBY movement focuses on eradicating poverty in developing countries.
Answer:
What has been China’s principal environmental concern?
a) global warming
b) domestic pollution
c) changes in sea-water levels
d) soil erosion
Answer:
The ________ yields the greatest aggregate well-being when everyone follows it.
a) moral rule
b) social rule
c) rule of law
d) rule of religious orders
Answer:
Which of the following is true with regard to the costs of subsidization?
a) Subsidization in the form of high feed-in tariffs lowers electricity prices.
b) U.S. consumers had benefited from the cost-efficient location of production in China
even though it meant the loss of high-paying jobs in the United States.
c) The demand-side subsidies increased the negative externalities from emissions.
d) Renewable energy production such as solar and wind power was cost competitive
and hence was not dependent on subsidies.
Answer:
Write a short note on the war with Japan and the civil war that resulted in the founding
of the People’s Republic of China.
Answer:
In ________, or judge-made law, the decisions made by judges serve as precedents for
future cases, and the set of precedents establishes a body of law.
a) civil law
b) common law
c) statutory law
d) canon law
Answer:
Which of the following is true with regard to strict liability?
a) The rationale for strict liability is “to insure the manufacturers against unfair
competition.”
b) Under strict liability the concept of fault is irrelevant and negligence is not required.
c) A defense that a firm used state-of-the-art design is likely to prevail when a standard
of strict liability is applied.
d) Strict liability does not apply to manufacturing defects.
Answer:
A(n) ________ is an experiment with a specific context and set of instructions.
a) treatment
b) maxim
c) ethical dilemma
d) intrinsic right
Answer:
Strategy formulation in the nonmarket environment ________.
a) does not require collective action
b) attracts a broader set of participants than those involved in markets
c) implements important components in private
d) resolves issues through voluntary agreements
Answer:
Ethics is the discipline concerned with judgments based on ________ and the reasoning
therefrom.
a) political correctness
b) constitutional provisions
c) moral standards
d) cultural taboos
Answer:
Which of the following is true with regard to the Republican era in China?
a) While many credit Sun Yat-sen with the founding of the Republic of China in 1911,
China at the time was hardly a coherent political entity.
b) Despite the military offensives launched in the 1920s, Chiang Kai-shek failed to
bring most of China under GMD rule.
c) The Revolutionary Alliance, led by Mao Zedong, had the backing of a strong armed
force.
d) By the first decade of the twentieth century, the activities of the Revolutionary
Alliance steadily dwindled in China’s major urban centers.
Answer:
The Coase Theorem pertains to ________.
a) distributive objectives and social justice
b) energy, forests, and the environment more generally
c) ecosystems, climate change, pollution, and habitats
d) market imperfections, including externalities and public goods
Answer:
Utilitarianism is a moral philosophy that holds that ________.
a) the morally justified action has no bearing on aggregate well-being
b) the rightness of an action is judged by an individual’s willingness to perform that
action
c) human well-being is evaluated in terms of individuals’ capabilities.
d) moral good is judged in terms of consequences
Answer:
Which of the following statements is applicable to the approach to nonmarket strategy
formulation in interest group politics?
a) Strategies should increase the benefits to those with aligned interests and reduce their
costs of taking nonmarket action.
b) Strategies should increase the opposing side’s incentives to take nonmarket action.
c) It is a linear process and does not involve taking into account other interests.
d) Nonmarket strategies for firms are often more wider than the set of strategies used by
other interests.
Answer:
Foreign companies have not used India as a source of low-cost supplies for the
developed economies. This is due to ________.
a) poor infrastructure
b) stagnant domestic markets
c) the unavailability of raw material
d) the recession
Answer:
In constructing CDOs, the mortgage loans are sliced into tranches with the cash flowing
first to the _____.
a) most senior tranche
b) mezzanine tranche
c) equity tranche
d) non-investment grade tranche
Answer:
Collective nonmarket action, such as joint lobbying to influence government ________.
a) violates antitrust laws
b) is considered as manipulation
c) cannot be associated with corporations
d) does not violate antitrust laws
Answer:
Firms typically deal with nonmarket issues in proportion to their potential impacts on
________.
a) human resources
b) inventory control
c) public relations
d) performance
Answer:
The Fair Labor Association (FLA) is a government-administered institution that aims at
eliminating corruption.
Answer:
________ focuses on individual actions and does not explain what the overall
consequences would be for society if everyone were to act in that manner.
a) Casuistry
b) Political philosophy
c) Rule utilitarianism
d) Act utilitarianism
Answer:
________ monitor the activities of firms and call those activities to the attention of the
media, government, and public.
a) Advocacy groups
b) Activist groups
c) Special interest groups
d) Watchdog groups
Answer:
Which of the following statements is applicable to the use of substitutes to obtain
benefits from nonmarket action?
a) It is available only in the nonmarket environment.
b) It creates higher benefits for nonmarket action by providing an alternative.
c) The incentives for nonmarket action are smaller if the substitutes are closer to
replicating the benefits.
d) It creates lower per capita benefits but high aggregate benefits.
Answer:
Article(s) XX and XXI of the GATT ________.
a) set a framework for the elimination of quantitative restrictions on trade
b) provide exceptions to the free trade provisions of the other articles
c) are the subsidies code
d) cover antidumping and countervailing duties
Answer: