Chapter 3 Political and Legal Environments in Multinational Business and
Their Impact on Global Firms Worldwide
1. Which of the following is a true statement about China?
A) The Chinese government's shift from communism to capitalism has led to an increase in FDI.
B) China attracts FDI because the government has eliminated elaborate bureaucracies.
C) The Chinese government manipulates market activities for political purposes.
D) China lacks an educated pool of employees due to slowly developing industrialization.
2. Which of the following problems in China is blamed for the annual loss of $250 billion by
American MNEs?
A) intellectual property violations
B) environmental hazards
C) child labor violations
D) embezzlement
3. Which of the following countries has an individualistic orientation?
A) Venezuela
B) Japan
C) Egypt
D) Canada
4. Which of the following ideas holds that a government should NOT interfere in business affairs?
A) collectivism
B) laissez-faire
C) the rule of man
D) pluralism
5. The principle that an individual has the freedom to pursue his or her interests is called ________.
A) socialism
B) totalitarianism
C) individualism
, D) collectivism
6. Proponents of ________ argue that individual interests are not as important as the welfare of the
group.
A) pluralism
B) capitalism
C) collectivism
D) individualism
7. In a country that emphasizes collectivism, ________.
A) the interests of the individual are more important than the interests of the state
B) one person or political party exercises absolute control over the political and economic systems
C) the needs of society and the needs of individuals are treated as equally important
D) the needs of society take precedence over individual freedoms
8. Which of the following countries has a collectivist orientation?
A) Canada
B) Australia
C) Japan
D) Netherlands
9. Political systems based on the ________ paradigm, such as those of Japan and China, accept the
principle that government may intervene to ensure that business practices benefit society.
A) individualistic
B) collectivistic
C) pluralistic
D) laissez-faire
10. Although there are different views about the purpose of a political system, most analysts agree
that an essential task of a political system is to ________.
A) integrate the different elements of a society into a functioning unit
B) allocate scarce resources among competing users
C) develop reasonable attitudes and outlooks within the population
D) protect individuals within the country from foreign threats
, 11. In a practical sense, the term political system is meant to signify the ________.
A) organization of military power in a country
B) working government in a country
C) philosophical orientations in a country
D) cultural values in a country
12. The distinguishing feature of political ideologies along the political spectrum is ________, with
some emphasizing its primacy and others opposing it.
A) capitalism
B) socialism
C) freedom
D) liberalism
13. A(n) ________ ideology is the system of ideas that expresses the goals, theories, and aims of how
society should work.
A) technological
B) economic
C) legal
D) political
14. Which of the following statements best describes a pluralistic society?
A) Multiple segments of society adhere to the same political philosophy.
B) Two dominant political parties rule local and federal governments.
C) Different ideologies are held by different segments of society.
D) Various ethnic groups belong to the official political party.
15. ________ refers to a political system in which government is organized by and accountable to the
people.
A) Totalitarianism
B) Fascism
C) Socialism
D) Democracy
16. In a democracy, ________.
Their Impact on Global Firms Worldwide
1. Which of the following is a true statement about China?
A) The Chinese government's shift from communism to capitalism has led to an increase in FDI.
B) China attracts FDI because the government has eliminated elaborate bureaucracies.
C) The Chinese government manipulates market activities for political purposes.
D) China lacks an educated pool of employees due to slowly developing industrialization.
2. Which of the following problems in China is blamed for the annual loss of $250 billion by
American MNEs?
A) intellectual property violations
B) environmental hazards
C) child labor violations
D) embezzlement
3. Which of the following countries has an individualistic orientation?
A) Venezuela
B) Japan
C) Egypt
D) Canada
4. Which of the following ideas holds that a government should NOT interfere in business affairs?
A) collectivism
B) laissez-faire
C) the rule of man
D) pluralism
5. The principle that an individual has the freedom to pursue his or her interests is called ________.
A) socialism
B) totalitarianism
C) individualism
, D) collectivism
6. Proponents of ________ argue that individual interests are not as important as the welfare of the
group.
A) pluralism
B) capitalism
C) collectivism
D) individualism
7. In a country that emphasizes collectivism, ________.
A) the interests of the individual are more important than the interests of the state
B) one person or political party exercises absolute control over the political and economic systems
C) the needs of society and the needs of individuals are treated as equally important
D) the needs of society take precedence over individual freedoms
8. Which of the following countries has a collectivist orientation?
A) Canada
B) Australia
C) Japan
D) Netherlands
9. Political systems based on the ________ paradigm, such as those of Japan and China, accept the
principle that government may intervene to ensure that business practices benefit society.
A) individualistic
B) collectivistic
C) pluralistic
D) laissez-faire
10. Although there are different views about the purpose of a political system, most analysts agree
that an essential task of a political system is to ________.
A) integrate the different elements of a society into a functioning unit
B) allocate scarce resources among competing users
C) develop reasonable attitudes and outlooks within the population
D) protect individuals within the country from foreign threats
, 11. In a practical sense, the term political system is meant to signify the ________.
A) organization of military power in a country
B) working government in a country
C) philosophical orientations in a country
D) cultural values in a country
12. The distinguishing feature of political ideologies along the political spectrum is ________, with
some emphasizing its primacy and others opposing it.
A) capitalism
B) socialism
C) freedom
D) liberalism
13. A(n) ________ ideology is the system of ideas that expresses the goals, theories, and aims of how
society should work.
A) technological
B) economic
C) legal
D) political
14. Which of the following statements best describes a pluralistic society?
A) Multiple segments of society adhere to the same political philosophy.
B) Two dominant political parties rule local and federal governments.
C) Different ideologies are held by different segments of society.
D) Various ethnic groups belong to the official political party.
15. ________ refers to a political system in which government is organized by and accountable to the
people.
A) Totalitarianism
B) Fascism
C) Socialism
D) Democracy
16. In a democracy, ________.
