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Q:
The primary purpose of deregulation is to
A.decrease competition in the affected industries.
B.remove certain industries from old-line economic regulations.
C.protect the natural environment.
D.allow natural monopolies to form.
Q:
Which of the following is not considered a part of the induced costs of regulation?
A.the effect on innovation
B.the effect on investments in plant and equipment
C.the effect on small business
D.the effect on consumers
Q:
The dilemma of regulation is the tradeoff between
A.cost and efficiency.
B.effective control and the burden placed on firms.
C.private gain and public good.
D.individualistic and collectivistic goals.
Q:
The newest type of social regulations is concerned primarily with
A.environmental protection.
B.corporate welfare.
C.security.
D.educational reform.
Q:
Social regulation's focus on people encompasses their roles as all of the following except
A.employees.
B.consumers.
C.citizens.
D.business owners.
Q:
Governmental regulations that seek to further societal objectives are examples of
A.social regulation.
B.economic regulation.
C.environmental control.
D.central planning.
Q:
Government regulation of business through the control of economic or market variables is a form of
A.negative externality.
B.social cost.
C.economic regulation.
D.indirect cost.
Q:
Negative externalities are often referred to as
A.full absorption costs.
B.social costs.
C.allocated costs.
D.environmental costs.
Q:
Government intervention in monopolistic industries is often brought about by
A.requests from smaller competitors.
B.class-action lawsuits.
C.anticompetitive practices.
D.frequent bankruptcies within the industries.
Q:
A market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitors is called a(n)
A.natural monopoly.
B.market failure.
C.externality.
D.deregulated industry.
Q:
Which of the following is not a major reason given for governmental regulation?
A.controlling natural monopolies
B.controlling negative externalities
C.achieving social goals
D.maintaining a trade surplus with foreign countries
Q:
The primary reason for government regulation of business is
A.hypercompetition.
B.central planning of the economy.
C.market failure.
D.lobbying efforts by business.
Q:
The act of governing or bringing under the control of law or constituted authority is called
A.regulation.
B.despotism.
C.central planning.
D.dictatorship.
Q:
Government regulations have been criticized for all the following reasons except
A.being too extensive.
B.being too costly.
C.being burdensome to business.
D.being ineffective.
Q:
All of the following are reasons that government regulation of business is needed except
A.to ensure that customers and employees are treated fairly.
B.maintain competitive markets.
C.to protect the environment.
D.to ensure that customers and employees are not exposed to unreasonable hazards.
Q:
Government attempts to persuade business to act in the public interest are called
A.monetary policies.
B.moral suasion.
C.standard setting.
D.transfer payments.
Q:
Government payments to industries or groups with special qualifications are called
A.transfer payments.
B.subsidies.
C.loan guarantees.
D.moral suasion.
Q:
Government influences business through all of the following nonregulatory methods except
A.being a major employer.
B.being a standard setter.
C.requiring equal employment opportunities be granted to job applicants.
D.providing transfer payments.
Q:
The opposite of privatization could be considered
A.creeping expropriation.
B.industrial policy.
C.subsidization.
D.federalization.
Q:
Which of the following is not a valid argument against forming an industrial policy?
A.It reduces the market's efficiency.
B.The success of existing industrial policies has been variable.
C.Existing attempts to form industrial policies have generally been irrational and uncoordinated.
D.Industrial policies violate anti-trust legislation.
Q:
Industrial policy is:
A.by default.
B.a powerful nonregulating approach by government to influence business.
C.non debatable.
D.consistent in each government administration.
Q:
A strong industrial policy:
A.is present in most developing countries.
B.is a term heard continuously.
C.is government intervention.
D.helps firms compete in a fast-moving global economy.
Q:
Arguments against industrial policy include all of the following except
A.reduces market efficiency
B.The need to rescue "sunset" industries.
C.the need to promote "sunrise" industries.
D.foreign industrial policy success has been variable.
Q:
Arguments for industrial policy include all of the following except
A.for economic reform.
B.making government more efficient.
C.making government more effective.
D.stifling innovation.
Q:
The question of whether current public functions should be performed by the government or private sector is addressed by
A.industrial policy.
B.privatization.
C.central planning.
D.moral suasion.
Q:
Every form of state intervention that affects industry as a distinct part of the economy is called
A.internationalization.
B.globalization.
C.industrial policy.
D.privatization.
Q:
The public and government use all of the following methods of influencing each other except
A.politicking.
B.voting.
C.forming special-interest groups.
D.coercion.
Q:
Which of the following is not a method that government uses to influence business?
A.lobbying
B.taxation
C.regulation
D.industrial policy
Q:
Which of the following is not mentioned as a frustration executives have with government officials, according to the 2010 McKinsey survey?
A.Concerns that regulators do not understand the economics of their industry
B.Concerned that government often blames business for society's problems
C.Difficulty in determining the best way to work with government
D.Concerned that government aims to redistribute the balance of wealth
Q:
Government is generally thought to follow the ethic of
A.deontology.
B.collectivism.
C.individualism.
D.socialism.
Q:
Business generally follows the ethic of
A.deontology.
B.collectivism.
C.individualism.
D.socialism.
Q:
The clash of ethical systems between government and business is centered around
A.growth and sustainability.
B.economic goals and social welfare.
C.individualist and collectivist ethics.
D.privatization and federalization.
Q:
Modern goals for business include all of the following except
A.safe working environments.
B.fair pay.
C.promoting the social welfare.
D.equal employment opportunities.
Q:
After the 1950s, most Congressional legislation that affected business was
A.economic in nature.
B.concerned largely with the quality of life.
C.supportive of business.
D.aimed at promoting competition.
Q:
Most Congressional legislation before the 1950s that affected business was
A.economic in nature.
B.social regulation.
C.aimed at protecting individuals' rights.
D.to protect consumers' privacy.
Q:
Government's new role in its relationship with business during the New Deal era was one of
A.partner.
B.servant.
C.master.
D.restoring prosperity and promoting economic growth.
Q:
The reason that the United States government passed anti-trust legislation was
A.to conform to Adam Smith's economic theory from Wealth of Nations.
B.due to lobbying efforts by private citizens' groups.
C.due to the anti-competitive practices of some large trusts.
D.to restrict competition.
Q:
Strong government intervention in business began with
A.opening of settlements.
B.a push for tariffs.
C.governments giving of land grants.
D.the creation of the Interstate Commerce Commission.
Q:
One of the recurring problems in industries that have been deregulated is that they tend to become dominated by a few firms.
Q:
Deregulation has provided uniform benefits for all parties affected.
Q:
Newer social regulations covers business practices in all industries.
Q:
The new social regulation focuses on business's impacts on other businesses.
Q:
Early economic regulations and the government bodies that administered them were usually formed along industry lines.
Q:
Keeping people informed is an important social goal of government.
Q:
Negative externalities are the additional costs incurred by business due to the outside regulations placed by government.
Q:
Many government regulations over business have been created by the efforts of special interest groups.
Q:
Government regulation generally arises out of some type of market failure.
Q:
In many ways the most controversial aspect of the government/business relationship is regulation.
Q:
The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of government.
Q:
When providing loan guarantees for business, the government actually transfers the money to the business.
Q:
One of the most direct ways in which government influences business is through transfer payments.
Q:
Advocates of privatization base their positions on the need for efficiency and overall performance.
Q:
Proponents of privatization want government to be a producer of services.
Q:
The relationship between government and business is limited to government's influence over business.
Q:
The relationship between government and business has become adversarial, but is improving.
Q:
Our goals for business focus solely on the production and distribution of goods and services.
Q:
Regulating the way business operates is only one of several roles the government has in its relationship with business.
Q:
Public interest in the relationship between government and business has always been low.
Q:
The position that advocates that an MNC should continue to follow its home country's ethical standards even while operating in another country is known as
A.ethical relativism.
B.ethical egoism.
C.ethical imperialism.
D.ethical hegemony.
Q:
Globalization is expected to expand despite
A.the economic meltdown.
B.deglobalization.
C.positive views.
D.executive opinion.
Q:
The United States' rank in the Corruption Perception Index is
A.worse than that of Haiti.
B.at the very bottom.
C.above that of Sweden.
D.somewhere in the middle.
Q:
Which of the following is not part of the anticorruption movement?
A.Transparency International
B.OECD antibribery initiatives
C.individual country initiatives
D.World Trade Organization
Q:
Payment of a bribe implies some type of
A.extortion.
B.quid pro quo.
C.gambling.
D.physical harm to the payee.
Q:
The Foreign Corrupt Practices Act allows
A.bribes under $10,000.
B.bribes, as long as the firm does not deduct them on its tax return.
C.bribes, as long as they are disclosed to shareholders.
D.grease payments.
Q:
The Foreign Corrupt Practices Act
A.governs the operations of foreign MNCs in the United States.
B.makes it illegal to make any type of payment to a foreign citizen for the purpose of doing business.
C.makes it illegal for the representative of an American corporation to offer or pay officials of foreign governments for the purpose of getting or maintaining business.
D.makes it illegal for American government officials to accept bribes from foreign nationals.
Q:
Which of the following is not an argument commonly used against bribery?
A.Bribes are inherently wrong.
B.Bribes create dependence on corrupt individuals.
C.Bribes are unfair because foreigners can get them, while U.S. citizens cannot.
D.Once bribes start, they never stop.
Q:
All of the following are arguments in support of bribery except
A.everybody does it.
B.it is normal practice in many countries.
C.it is a form of commission, tax, or compensation for doing business between cultures.
D.it is a way of providing needy foreigners with money they need.
Q:
Which of the following is not an example of corruption?
A.bribery
B.paying for political favors
C.negotiating for the lowest price on a contract
D.paying protection money to the police
Q:
U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because
A.they could allow the firm to recoup some costs of incorporating overseas.
B.they could allow the firm to sue foreign firms on a reciprocal basis.
C.they provide an insight in the customs of the host country.
D.they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.
Q:
The Alien Tort Claims Act allows
A.foreign individuals to sue U.S. firms in American courts for their actions abroad.
B.foreign companies to sue U.S. firms in American courts for their actions abroad.
C.foreign individuals to sue U.S. firms in foreign courts for their actions abroad.
D.foreign companies to sue U.S. firms in foreign courts for their actions abroad.
Q:
All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except
A.allowing workers to form unions.
B.prohibiting corporal punishment.
C.providing retirement benefits.
D.limiting work to a maximum of 48 hours per week.
Q:
Which of the following is not an SA8000 standard proposed to improve sweatshop conditions?
A.prohibition on employing workers under a certain age
B.provision of a safe and healthy working environment
C.provision of educational opportunities for workers
D.prohibition of discriminatory practices
Q:
All of the following groups have criticized MNC labor practices except
A.social activist groups.
B.church groups.
C.labor unions.
D.grassroots organizations.
Q:
Which of the following is not a characteristic of sweatshops?
A.child labor
B.low pay
C.poor working conditions
D.forced prostitution
Q:
To resolve the infant formula controversy, Nestlé agreed to do all of the following except
A.restricting the distribution of free samples.
B.providing purified water with the formula.
C.identifying the benefits of breast-feeding and the hazards of bottle-feeding.
D.dropping its policy of giving gifts to health professionals to encourage them to promote infant formula.
Q:
There are three levels of sensitivity that MNCs should exhibit for the long-run national interests of less-developed countries. All of the following are levels of sensitivity except
A.the need to modify or redesign products.
B.the impacts of products on the host country.
C.the need to modify marketing efforts to conform to local custom.
D.the extent to which the firm's products are politically vulnerable.
Q:
The main two factors of concern in management and control of global operations are
A.organizational structure/design and human resource management.
B.tax laws and currency exchange rates.
C.manufacturing processes and marketing plans.
D.political parties and economic systems.
Q:
Which of the following is not one the broad issues facing MNCs in their relationships with host countries?
A.cultural aspects
B.business/government interactions
C.exploration of global markets
D.religious and other traditional holidays
Q:
The requirement for an MNC to take on local partners is referred to as
A.legitimation.
B.local partnering.
C.creeping expropriation.
D.localization.
Q:
Which of the following is not a factor in a host country's perception of the legitimacy of an MNC?
A.size of the firm
B.profitability of the firm
C.similarities and differences between the cultures of the home and host countries
D.values and lifestyles of the firm's managers