International Business Chapter 2 Quiz
Chapter 2—Understanding Politics, Laws, & Economics
TRUE/FALSE
1. Formal and informal policies are popularly known as "the rules of the game."
ANS: T PTS: 1 DIF: Moderate REF: p. 20
OBJ: 2.1 NAT: AACSB: Tier 1 Communication | Tier 2 Legal Responsibilities
2. Two "pillars"—the regulatory and the normative pillar—support informal institutions.
ANS: F PTS: 1 DIF: Easy REF: p. 21
OBJ: 2.1 NAT: AACSB: Tier 1 Reflective Thinking | Tier 2 Legal Responsibilities
3. Informal institutions include laws, regulations, and rules.
ANS: F PTS: 1 DIF: Easy REF: p. 21
OBJ: 2.1 NAT: AACSB: Tier 1 Communication | Tier 2 Legal Responsibilities
4. An important source of transaction cost is opportunism, defined as seeking self-interest with guile.
ANS: T PTS: 1 DIF: Moderate REF: p. 22
OBJ: 2.2 NAT: AACSB: Tier 1 Analytic | Tier 2 Strategy
5. Institutional transactions in countries such as China, Poland, Russia, Brazil, India and South Africa create both huge challenges and tremendous opportunities for domestic and international firms.
ANS: T PTS: 1 DIF: Moderate REF: p. 22
OBJ: 2.2 NAT: AACSB: Tier 1 Diversity | Tier 2 Environmental Influences
6. In the IT industry in China and India, managers do not have to excel in the game of market responsiveness and innovation because the rules of the game are defined by the global heavyweights.
ANS: F PTS: 1 DIF: Difficult REF: p. 22
OBJ: 2.3 NAT: AACSB: Tier 1 Technology | Tier 2 Information Technology
7. Managers and firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework.
ANS: T PTS: 1 DIF: Moderate REF: p. 23
OBJ: 2.3 NAT: AACSB: Tier 1 Reflective Thinking | Tier 2 Legal Responsibilities
8. Democracy was pioneered by the Athenians in ancient Greece.
ANS: T PTS: 1 DIF: Easy REF: p. 24
OBJ: 2.4 NAT: AACSB: Tier 1 Communication | Tier 2 Environmental Influences
9. South Africa, South Korea, Taiwan,
TRUE/FALSE
1. Formal and informal policies are popularly known as "the rules of the game."
ANS: T PTS: 1 DIF: Moderate REF: p. 20
OBJ: 2.1 NAT: AACSB: Tier 1 Communication | Tier 2 Legal Responsibilities
2. Two "pillars"—the regulatory and the normative pillar—support informal institutions.
ANS: F PTS: 1 DIF: Easy REF: p. 21
OBJ: 2.1 NAT: AACSB: Tier 1 Reflective Thinking | Tier 2 Legal Responsibilities
3. Informal institutions include laws, regulations, and rules.
ANS: F PTS: 1 DIF: Easy REF: p. 21
OBJ: 2.1 NAT: AACSB: Tier 1 Communication | Tier 2 Legal Responsibilities
4. An important source of transaction cost is opportunism, defined as seeking self-interest with guile.
ANS: T PTS: 1 DIF: Moderate REF: p. 22
OBJ: 2.2 NAT: AACSB: Tier 1 Analytic | Tier 2 Strategy
5. Institutional transactions in countries such as China, Poland, Russia, Brazil, India and South Africa create both huge challenges and tremendous opportunities for domestic and international firms.
ANS: T PTS: 1 DIF: Moderate REF: p. 22
OBJ: 2.2 NAT: AACSB: Tier 1 Diversity | Tier 2 Environmental Influences
6. In the IT industry in China and India, managers do not have to excel in the game of market responsiveness and innovation because the rules of the game are defined by the global heavyweights.
ANS: F PTS: 1 DIF: Difficult REF: p. 22
OBJ: 2.3 NAT: AACSB: Tier 1 Technology | Tier 2 Information Technology
7. Managers and firms rationally pursue their interests and make choices within the formal and informal constraints in a given institutional framework.
ANS: T PTS: 1 DIF: Moderate REF: p. 23
OBJ: 2.3 NAT: AACSB: Tier 1 Reflective Thinking | Tier 2 Legal Responsibilities
8. Democracy was pioneered by the Athenians in ancient Greece.
ANS: T PTS: 1 DIF: Easy REF: p. 24
OBJ: 2.4 NAT: AACSB: Tier 1 Communication | Tier 2 Environmental Influences
9. South Africa, South Korea, Taiwan,