Chapter 9 Multiple-choice questions

. Which of the following statements best describe systems of liberal democracy?

Liberal democratic political systems only occur in highly industrialized societies.

The same political party holds power continuously in liberal democratic regimes.

Liberal democratic governments prevent their citizens from travelling abroad.

Liberal democratic governments protect basic civil liberties.

. In which political system does one person or a small group of people hold absolute power?

Liberal democratic systems.

Authoritarian systems.

Theocratic systems.

Federal systems.

. Which of the following statements best describes the 'New Public Management'?

State ownership of businesses.

The separation of government from business.

The selling of state assets to business.

Businesses delivering services for government under contracts as a result of outsourcing.

. Why are governments often reluctant to embark on policies that would adversely affect big hi-tech MNCs? Is it because these MNCs could:

Cut employment by moving existing productive capacity abroad.

Locate new investment projects elsewhere.

Transfer R&D facilities abroad.

All of the options above.

. In countries with a federal system of government like the US, firms wanting public contracts:

Only ever need to negotiate with one department of central government to get a contract.

May have to persuade decision makers at different levels of the federation to award them contracts.

Can always adopt the same approach to selling as they do when dealing with a unitary system of government.

Only have to deal with sub-national government agencies to get contracts.

. What role does the executive branch play in liberal democracies?

It passes the laws affecting business.

It puts laws and regulations into effect and ensures that the desired outcomes are achieved.

It interprets and applies the law to business.

It imprisons business executives who break the law.

. Which of the following statements reflects most accurately what current research tells us?

Economies always perform better in democracies.

Authoritarian regimes provide the best environment for economic growth.

Economies tend to perform better in democracies, subject to the conditions in each country.

Unitary systems of growth are better for economic growth.

. Big multinational pharmaceutical firms try to exercise influence over the policy decisions made by government departments and regulatory agencies. Which of the following does not reflect how the companies try to exercise their influence?

Lobbying political representatives.

Ignoring their regulatory agencies.

Promising to increase their investment in R&D.

Appointing ex-Government Ministers and Officials to their Boards or as Advisors.

. The State performs various functions, many of which are important for international business. Which of the following functions, performed by the State, would be the most important for firms like Boeing and Airbus?

Passing laws on urban transport.

Increasing spending on renewable energy.

As a customer.

As a supplier of electricity.

. Tax rates on profits have been falling. Select one of the reasons below that help explain why governments are doing this.

To cut company production costs.

To reduce government borrowing.

To reduce budget deficits.

To retain and attract investment by multinational companies.

Chapter 9 Multiple-choice questions

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