AGB 302 Final Exam with 100%
Correct Solutions
Interdependent political, economic, and legal systems of a country make up its: -
ANSWER-political economy.
Modern socialism has been popularized largely through the work of ________. -
ANSWER-Karl Marx
1) In several Western democracies, the poor performance of state-owned enterprises,
because of protection from competition and guaranteed government financial support,
led to ________. - ANSWER-privatization
1) The tenet of ________ is that the welfare of society is best served by letting people
pursue their own economic self-interest. - ANSWER-) individualism
In a pure market economy - ANSWER-production is determined by the interaction of
supply and demand
1) In a ________ economy, certain sectors of the economy are left to private ownership
and free market mechanisms while other sectors have significant state ownership and
government planning. - ANSWER-mixed
Which of the following statements about the legal systems of countries is true? -
ANSWER-They can affect the attractiveness of a country as an investment site or
market
1) Under the ________, cases are judged with reference to three characteristics:
tradition, precedent, and custom. - ANSWER-) common law system
1) Which of the following areas of international trade is regulated by the Foreign Corrupt
Practices Act? - ANSWER-Preventing bribery and unethical acts in the conduct of
international business.
1) Design and names by which merchants or manufacturers designate and differentiate
their products are known as ________. - ANSWER-) trademarks
1) One of the reasons for the spread of democracy is the emergence of ________ who
have pushed for democratic reforms. - ANSWER-A) increasingly prosperous middle and
working classes
, 1) Anecdotal comparisons suggest that the assertion that nations that invest more in
________ will have higher growth rates is true. - ANSWER-B) education
1) Several of the fastest-growing Asian economies adopted more ________
governments during the past three decades, including South Korea and Taiwan. -
ANSWER-D) democratic
1) A Japanese car manufacturer acquires an Italian producer of car tires. This is an
example of a(n) ________. - ANSWER-B) acquisition
2) Developing nations currently account for ________ of FDI in the form of cross-border
mergers and acquisitions. - ANSWER-C) about one-third or less
3) The largest source country for FDI has been ________. - ANSWER-A) the United
States
4) ________ gives a firm tight control over manufacturing, marketing, and strategy in a
foreign country that may be required to maximize its profitability. - ANSWER-A) Foreign
direct investment
5) ________ argues that FDI is a benefit to both the source country and to the host
country. - ANSWER-A) The free market view
6) An aspect of ________ is the tendency to aggressively court FDI believed to be in
the national interest by, for example, offering subsidies to foreign MNEs in the form of
tax breaks or grants. - ANSWER-A) pragmatic nationalism
7) Recent years have seen a ________ in the number of countries that adhere to a
radical ideology regarding FDI. - ANSWER-D) marked decline
8) The two most common methods of restricting inward FDI are ownership restraints
and __ - ANSWER-D) performance requirements
9) Which of the following is an example of a greenfield investment? - ANSWER-C) A
Chinese sugar maker setting up a sugar crushing facility in Cuba.
10) Which of the following factors has made the United States an attractive target for
foreign direct investment? - ANSWER-B) Its wealthy domestic markets
11) ________ perform a direct connection function in capital markets. - ANSWER-D)
Investment banks
12) A(n) ________ requires a corporation to repay a predetermined portion of the loan
amount at regular intervals regardless of how much profit it is making. - ANSWER-D)
debt loan
Correct Solutions
Interdependent political, economic, and legal systems of a country make up its: -
ANSWER-political economy.
Modern socialism has been popularized largely through the work of ________. -
ANSWER-Karl Marx
1) In several Western democracies, the poor performance of state-owned enterprises,
because of protection from competition and guaranteed government financial support,
led to ________. - ANSWER-privatization
1) The tenet of ________ is that the welfare of society is best served by letting people
pursue their own economic self-interest. - ANSWER-) individualism
In a pure market economy - ANSWER-production is determined by the interaction of
supply and demand
1) In a ________ economy, certain sectors of the economy are left to private ownership
and free market mechanisms while other sectors have significant state ownership and
government planning. - ANSWER-mixed
Which of the following statements about the legal systems of countries is true? -
ANSWER-They can affect the attractiveness of a country as an investment site or
market
1) Under the ________, cases are judged with reference to three characteristics:
tradition, precedent, and custom. - ANSWER-) common law system
1) Which of the following areas of international trade is regulated by the Foreign Corrupt
Practices Act? - ANSWER-Preventing bribery and unethical acts in the conduct of
international business.
1) Design and names by which merchants or manufacturers designate and differentiate
their products are known as ________. - ANSWER-) trademarks
1) One of the reasons for the spread of democracy is the emergence of ________ who
have pushed for democratic reforms. - ANSWER-A) increasingly prosperous middle and
working classes
, 1) Anecdotal comparisons suggest that the assertion that nations that invest more in
________ will have higher growth rates is true. - ANSWER-B) education
1) Several of the fastest-growing Asian economies adopted more ________
governments during the past three decades, including South Korea and Taiwan. -
ANSWER-D) democratic
1) A Japanese car manufacturer acquires an Italian producer of car tires. This is an
example of a(n) ________. - ANSWER-B) acquisition
2) Developing nations currently account for ________ of FDI in the form of cross-border
mergers and acquisitions. - ANSWER-C) about one-third or less
3) The largest source country for FDI has been ________. - ANSWER-A) the United
States
4) ________ gives a firm tight control over manufacturing, marketing, and strategy in a
foreign country that may be required to maximize its profitability. - ANSWER-A) Foreign
direct investment
5) ________ argues that FDI is a benefit to both the source country and to the host
country. - ANSWER-A) The free market view
6) An aspect of ________ is the tendency to aggressively court FDI believed to be in
the national interest by, for example, offering subsidies to foreign MNEs in the form of
tax breaks or grants. - ANSWER-A) pragmatic nationalism
7) Recent years have seen a ________ in the number of countries that adhere to a
radical ideology regarding FDI. - ANSWER-D) marked decline
8) The two most common methods of restricting inward FDI are ownership restraints
and __ - ANSWER-D) performance requirements
9) Which of the following is an example of a greenfield investment? - ANSWER-C) A
Chinese sugar maker setting up a sugar crushing facility in Cuba.
10) Which of the following factors has made the United States an attractive target for
foreign direct investment? - ANSWER-B) Its wealthy domestic markets
11) ________ perform a direct connection function in capital markets. - ANSWER-D)
Investment banks
12) A(n) ________ requires a corporation to repay a predetermined portion of the loan
amount at regular intervals regardless of how much profit it is making. - ANSWER-D)
debt loan
