The explanation for the uneven sex ratio in India is the preference for girls that resulted
in sex selection through the abortion of male fetuses.
Answer:
Casuist reasoning argues that an unethical action is justified by the benefits it provides
to stakeholders.
Answer:
The FLA code does not provide for a “living wage.”
Answer:
The law of torts is an institution that is inconsistent with utilitarianism.
Answer:
A central feature of China’s First Five Year Plan was the collectivization of agriculture.
Answer:
Slander pertains to statements that are spoken.
Answer:
Media and public attention are high-profile strategies and play an important role in
nonmarket issues.
Answer:
Ethics issues can arise from the policies of governments.
Answer:
The institutions of private property and markets provide one means of alignment, since
a voluntary transaction, such as a supply contract between two firms, makes both the
buyer and seller better off.
Answer:
The executive branch can influence regulatory commissions through the policy
expertise of cabinet agencies.
Answer:
According to the intrinsic audience interest, predicting which issues the media will
cover requires determining which issues are of societal value to readers and viewers.
Answer:
Social activities could be undertaken as a perquisite for management, and if so, social
performance should be greater the greater are the slack resources available to managers.
Answer:
The theory of media coverage and treatment gives extensive coverage to business
matters and moderate coverage to environmental issues and individual rights.
Answer:
Business groups as well as individual companies have weaker incentives to interact
with government when it controls markets, lets contracts, and regulates business
activity.
Answer:
In a situation in which payments are either demanded or likely to be required to obtain a
sale, ethics is not a source of guidance for firms and their managers.
Answer:
The structural school of thought to reasoning about antitrust believes that markets are
resilient and imperfections can be addressed through incentives.
Answer:
Corporate social performance (CSP) cannot be rewarded.
Answer:
Many smart grid applications were driven more by opportunities for efficiency than by
government support.
Answer:
According to the Kantian approach, it would be unethical for an employer to dismiss an
employee solely based on race or some other arbitrary reason other than performance.
Answer:
Private interests affect regulatory agencies directly through their participation in
hearings and other regulatory proceedings and indirectly through pressure on Congress
and the executive branch.
Answer:
Nonmarket issues attract a fewer set of participants than those involved in markets.
Answer:
The Labor Contract Law took effect in 2005 and provided for rights that are as
extensive as those found in Europe and the United States.
Answer:
Due to the very high transaction costs, automobile emissions are controlled through
private regulations.
Answer:
A design is defective if a “reasonable alternative design” is available to reduce or avoid
a foreseeable risk.
Answer:
Independent regulatory commissions are immune from Congressional oversight or
interference in their affairs.
Answer:
The dissenting members of the Financial Crisis Inquiry Commission identified the
housing bubble as one of the essential causes of the crisis.
Answer:
Activists and interest groups implement confrontational strategies to influence the
behavior of economic agents.
Answer:
Firms need to provide training and guidance to employees to deal with antitrust
concerns.
Answer:
Indira Gandhi’s socialist policies were a success and lead to a significant reduction in
the country’s levels of poverty.
Answer:
One purpose of contracts is to reduce transactions costs associated with circumstances
that develop during the fulfillment of the agreement.
Answer:
Due to the minimal damage of crises on a firm’s operating performance and reputation,
the management of a firm sdoes not need to react to a crisis with a sense of urgency.
Answer:
Vertical merger involves two firms in the same industry.
Answer:
Trade associations emphasize issues that affect more than one industry.
Answer:
The study of the nonmarket environment of an emerging market country involves
assessment of labor market, demand and supply relations, and investigation of the
competitiveness of incumbent companies.
Answer:
High dependence on foreign finance and a move toward external debt denominated in
foreign currencies explains the breakdown of emerging market economies during the
recent global financial and economic crisis.
Answer:
Which of the following statements is true of regulation?
a) It is implemented through judicial institutions.
b) It is based on legislatively enacted statutes.
c) It is not implemented by independent commissions.
d) It takes place through a private process.
Answer:
Which of the following represents strategy implementation in a nonmarket issue for a
tire manufacturer?
a) It hires a law firm to provide advice on emission taxes and subsidies on industrial
waste disposal.
b) It analyzes and concludes that other manufacturing companies have similar interests.
c) It decides to obtain access to members of the Congress by hiring former government
officials for lobbying.
d) It identifies that petitions can be filed under the sections of U.S. manufacturing laws.
Answer:
The European Commission is responsible for ________.
a) trade negotiations and managing the EU budget
b) negotiating informal agreements between member states prior to council
deliberations
c) appointing ad hoc working parties composed of government officials from the
member states
d) hearing cases related to the various treaties of the European Union
Answer:
Confucianism laid emphasis on ________.
a) chauvinism
b) hedonic living
c) deference
d) individualism
Answer:
Regulation in the mobile phone industry was sought in part to serve the interests of
incumbent firms and increase the profit margin by regulating prices and entry of new
firms. This is an example of ________.
a) deadweight loss
b) moral hazard
c) capture theory
d) rent-seeking theory
Answer:
________ is the strategic communication of politically relevant information to
government officeholders.
a) Public advocacy
b) Judicial strategy
c) Lobbying
d) Coalition building
Answer:
The Federal Trade Commission Act ________.
a) addresses monopolization and restraints in their incipiency
b) prohibits unfair methods of competition and unfair or deceptive acts
c) focuses on unilateral conduct
d) pertains to unreasonable restraints of trade with a focus on joint conduct
Answer:
Only the ________ can bring criminal charges under the antitrust laws.
a) Federal Trade Commission
b) Department of Justice
c) Interstate Commerce Act
d) The Clayton Act
Answer:
Multi-brand retailers were ________.
a) encouraged to set up outlets across the country
b) prohibited from advertising their merchandise
c) barred from owning and operating their own stores
d) ordered to employ only locals in their firms
Answer:
The ________ generated demand for products similar to those in developed countries,
providing opportunities for foreign companies to step in.
a) government
b) middle class
c) retailers
d) franchises
Answer:
Which of the following is applicable to agenda-setting in nonmarket strategies?
a) It focuses first on recruiting the agenda setter and then on building support for the
alternative on the agenda.
b) It is suitable for a relatively open legislative process that does not require vote
recruiting.
c) It focuses first on building support for the alternative on the agenda and then on
recruiting an agenda setter.
d) It is most effective in interest group politics.
Answer:
Which of the following is true with regard to intrinsic rights?
a) Intrinsic rights are frequently negative rights in the sense that respecting autonomy
precludes others from infringing that autonomy.
b) Intrinsic rights are to be respected because they contribute to achieving better
consequences.
c) Intrinsic rights require extensive justification in terms of consequences.
d) Intrinsic rights do not impose duties on individuals to respect those rights.
Answer:
________ refers to a liability rule that permits the state to take a home for a public
purpose and requires the state to compensate the owner for its objectively assessed
value.
a) Entitlement domain
b) Eminent domain
c) Punitive damage
d) Compensatory damage
Answer:
The progressive era of major regulatory change focused on the ________.
a) introduction of social regulation
b) introduction of economic deregulation to several industries
c) extension of regulation to labor markets and industries
d) regulatory bodies at the state level and extension to federal level
Answer:
In a situation in which payments are either demanded or likely to be required to obtain a
sale, managers should first consider ________.
a) national trade policies
b) corporate codes of conduct
c) international laws
d) ethics
Answer:
________ prohibits other parties from infringing the entitlement without the consent of
the party holding it.
a) The Environmental Protection Agency rule
b) The Clean Air Interstate Rule (CAIR)
c) A property rule
d) A liability rule
Answer:
Which of the following is true of Friedman’s conception of a corporation?
a) The corporation engages in involuntary transactions with both resource providers and
customers.
b) In an inefficient capital market, shareholders will unanimously prefer that the firm be
operated to maximize its market value.
c) The corporation is managed by shareholders who act as agents.
d) A corporation is a voluntary association of individuals who have joined together for a
mutual purpose.
Answer:
Due to its importance for managerial and organizational performance, nonmarket
strategy is the responsibility of _____.
a) managers
b) clerks
c) lobbyists
d) the board of directors
Answer:
Which of the following scenarios represents intervention in crisis management?
a) government shuts an emission management company
b) a media report publishes malpractices in a company
c) company officials are informed about wide-spread defaults by employees in certain
branches
d) company officials communicate that actions are being taken to ensure stakeholder
safety
Answer:
According to the audience interest/societal significance continuum, which of the
following would get moderate coverage with factual treatment and interpretation?
a) issues on sports
b) issues on economic deregulation
c) issues on international trade
d) issues on corruption
Answer:
Which of the following can enhance the effectiveness of communication in crisis
management?
a) releasing incomplete information immediately
b) communicating with stakeholders
c) communicating with employees
d) government approved messages
Answer:
Which of the following is not included in the distributive politics spreadsheet?
a) costs of organizing for nonmarket action
b) institutional officeholders
c) available substitutes
d) demand for nonmarket action
Answer:
Which of the following is an example of cooperative engagement in private politics?
a) Advertisement campaign by an NGO that shows a company official melting polar
ice.
b) An NGO uses lobby correspondents for their global-warming propaganda.
c) An NGO pressures consumers to switch to a different brand of gas due to the
company’s high emission level.
d) An NGO appoints a group to provide external legitimacy to a company’s
environmental practice.
Answer:
Which of the following statements is NOT true of activist groups?
a) They alert a corporation to issues about which it is unaware.
b) They can affect the organization of interests by forming watchdog and advocacy
groups.
c) They are often appointed to a firm’s board of directors.
d) They provide information to the public as well as public office holders.
Answer:
Informal personal ties in Chinese society are referred to as ________.
a) li
b) ren
c) guanxi
d) danwei
Answer:
Foreign retailers were banned from ________.
a) making franchise arrangements with local retailers
b) using FDI for direct sales to individuals
c) advertising their merchandise to the public
d) exporting their goods to other countries
Answer:
The market environment of business includes ________.
a) social, political, and legal arrangements that structure interactions in conjunction
with markets and contracts
b) interactions between firms, suppliers, and customers that are governed by markets
and contracts
c) interactions between the firm and individuals, and interest groups that are
intermediated by private institutions
d) interactions between the firm and government entities, and the public that are
intermediated by public institutions
Answer:
In the United States, under which of the following political spectra would journalists be
categorized?
a) liberal
b) moderate
c) socialist
d) right-wing
Answer:
In response to the government’s decision to increase the taxes on the food industry,
companies involved in the food services industry decide to form a coalition. It works
together and launches advertisements to reveal the effect of the legislation on people’s
monthly expenditure and future savings. Which of the following is applicable here?
a) lobbying
b) peak associations
c) electoral support
d) public advocacy
Answer:
Which of the following defines market capitalism?
a) the reliance on markets to increase the aggregate social welfare
b) the reliance on markets to direct the allocation of resources
c) the reliance on managers to direct market growth
d) the reliance on managers to increase market efficiencies
Answer:
Which of the following statements is true of lobbying?
a) It is always aimed at the top level, therefore, does not require access to the member’s
personal staff or staff of relevant communities.
b) Its timing is independent of the stages of the legislative process because focus is on
committee members.
c) Activities involving a firm’s own managers are not considered lobbying under the
Lobbying Act of 1946.
d) It does not require a firm to have bargaining power because nonmarket issues need
only political information.
Answer:
The growing market share of Chinese wind tower and turbine producers generated
complaints that ________.
a) the quality of material used for producing wind towers and turbines by American
companies was inferior and resulted in loss of market share
b) the subsidies provided to U.S. wind power companies were being used to purchase
equipment from abroad rather than to create jobs in the United States
c) importing turbines from China violated the terms and conditions of trade set down by
the International Trade Centre
d) the subsidies provided to U.S. wind power companies were fairly inadequate
compared to that provided to Chinese companies by the Chinese government
Answer:
Which of the following is true of TARP?
a) TARP was created by the Obama administration to stimulate the economy.
b) TARP was successful in preventing a collapse of the financial system.
c) TARP was authorized with funding up to $350 billion.
d) Most of the TARP funds provided to banks were not repaid.
Answer:
Which of the following stages in the framework for the analysis of nonmarket issues is
based on the methods of economics, political science, and other social sciences and
focuses on predicting the actions of interests and the consequences of alternative
strategies?
a) identification
b) analysis
c) choice
d) screening
Answer:
One of the rules used by the court for awarding damages is to put the promisee in the
same position she had been in prior to signing the contract. This rule corresponds to
________.
a) consequential damages
b) reliance damages
c) liquidated damages
d) primary damages
Answer:
Give an account of the concept of newsworthiness.
Answer:
Describe, with examples, the characteristics of a nonmarket environment.
Answer:
Discuss the roles of regulation.
Answer:
Write a short note on the Coase theorem.
Answer:
What are the two basic types of opportunities in emerging markets?
Answer:
Discuss the sources and types of risks in emerging market countries.
Answer:
Describe the principal forms of protection for intellectual assets.
Answer:
What are the allowable defenses under strict liability?
Answer:
Discuss the political economy theory of regulation.
Answer:
What are the two theories to explain where regulation is and is not imposed?
Answer:
What role do company codes play in ensuring compliance with the FCPA and
international conventions and in clarifying when foreign payments can be made and
how they are to be accounted for?
Answer:
What is an SOE? What is its importance in China?
Answer:
Describe the nonmarket environment. Why has the nonmarket environment grown in
importance and complexity over time?
Answer:
Discuss paternalism.
Answer:
Write short notes on The Regional Greenhouse Gas Initiative (RGGI).
Answer: