Case Study

International Business, 14e (Daniels et al.) Chapter 3 The Political and Legal Environments Facing Business 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. Answer: C Diff: 3 Learning Outcome: Describe how differences in political economy influence economic development Skill: Concept Objective: 2 AACSB: Dynamics of the global economy 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 Answer: A Diff: 2 Learning Outcome: Explain the implications of foreign direct investment for both host and home country Skill: Concept Objective: 6 3) Which of the following countries has an individualistic orientation? A) Venezuela B) Japan C) Egypt D) Canada Answer: D Diff: 2 Skill: Concept Objective: 1 AACSB: Multicultural and diversity understanding 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 Answer: B Diff: 1 Skill: Concept Objective: 1

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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 Answer: C Diff: 1 Skill: Concept Objective: 1 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 Answer: C Diff: 1 Skill: Concept Objective: 1 7) In a country that...