Chapter 3 Quiz Questions

1.)In November 2002, China joined the

a)NAFTA

b)WTO

c)Mercosur

d)NCAA

Correct Answer: B

2.)The primacy of the rights and role of the community is:

a)individualism

b)totalitarianism

c)pluralism

d)collectivism

Correct Answer: D

3.)Democratic governments can be:

a)Conservative

b)Fascist

c)Communist

d)Authoritarian

Correct Answer: A

4.)The following are free countries except for:

a)Australia

b)Canada

c)Egypt

d)Belgium

Correct Answer: C

5.)A legal system that follows the wisdom of daily experience is

a)common law system

b)mixed legal system

c)theocratic law system

d)customary legal system

Correct Answer: D

1)A non-democratic government may be:

  1. Conservative
  2. Authoritarian
  3. Radical
  4. Reactionary

Answer: B

2)An example of Theocratic totalitarianism:

  1. Taliban party in Afghanistan
  2. Benito Mussolini’s dictatorship in Italy
  3. Sadam Hussein’s type of government in Iraq
  4. Israel’s parliamentary government

Answer: A

3)Which one is not a type of political risk?

  1. Systemic
  2. Procedural
  3. Arbitrational
  4. Catastrophic

Answer: C

4)What country does not use a common law system?

  1. Canada
  2. England
  3. Germany
  4. New Zealand

Answer: C

5) What country requires the most bureaucracy considering starting up a business?

  1. Belarus
  2. Chad
  3. Ukraine
  4. China

Answer: B

Q1. Intellectual property is ______?

  1. The general term for tangible property rights that are a result of intellectual effort.
  2. The general term for intangible property rights that are a result of intellectual effort.
  3. A term meaning thoughts can be protected by the government.
  4. Strictly enforced world wide and no one breaks the laws anymore.

Answer: B

Q2. Which of the following is not an impact of laws on international business?

  1. National laws affect all local business activities.
  2. National laws affect cross-border activities.
  3. National laws affect business done in another country.
  4. International treaties and conventions may govern some cross-border transactions.

Answer: C

Q3. Types of political risk, from least to most disruptive are?

  1. Systemic, Procedural, Distributive, Catastrophic
  2. Procedural, Systemic, Distributive, Catastrophic
  3. Catastrophic, Distributive, Procedural, Systemic
  4. Distributive, Procedural, Systemic, Catastrophic

Answer: A

Q4. The trend toward democracy is increasing. Key drivers include?

1)Breakdown of totalitarian regimes

2)Improved communication technology

3)Tax breaks for the rich

4)High standards of living

  1. 1 and 2
  2. 2 and 3
  3. 1, 2, and 4
  4. 1, 2, and 3

Answer: C

Q5. Political officials and agencies have a(n) ______role in a collectivist society.

  1. absolute
  2. extensive
  3. non-existent
  4. minimal

Answer: B

1.)What type of law system relies heavily on tradition and precedent?

a.)A civil law system

b.)A common law system

c.)A customary law system

d.)A theocratic law system

2.)What type of risk is it when such events happen such as war or civil/ethnic discord.

a.)Systemic political risks

b.)Procedural Political risks

c.)Distributive Political risks

d.)Catastrophic political risks

3.)What type of Totalitarian government is Benito Mussolini famous for?

a.)Authoritarianism

b.)Fascism

c.)Secular totalitarianism

d.)Theocratic Totalitarianism

4.)According to the book what is the one country that is pre dominantly customary law

a.)India

b.)Norway

c.)Bhutan

d.)Vietnam

5.)Which country has recently surpassed the United States in the most FDI’s?

a.)Japan

b.)China

c.)Great Britain

d.)India

Answers: 1…B

2…D

3…B

4…C

5…B