Articles Of Confederation Quiz Questions

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  • 1/108 Questions

    Fisman (2001) interprets the finding that firms categorized as having weaker ties to Suharto were harmed less by rumors of threats to Suharto's health as evidence that these firms enjoyed less political advantages under Suharto's rule.

    • True
    • False
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About This Quiz

This quiz focuses on the economic strategies and outcomes in East Asia, analyzing government interventions, income inequality, and growth theories. It assesses understanding of economic policies and critiques by scholars like Stiglitz and Krugman.

Articles Of Confederation Quiz Questions - Quiz

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  • 2. 

    Hong Kong is part of the country of China.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Hong Kong is a Special Administrative Region (SAR) of China. It was a British colony until 1997 when it was handed over to China. Under the principle of "One Country, Two Systems," Hong Kong maintains a separate legal and economic system from mainland China, but it is ultimately part of the country. Therefore, the statement that Hong Kong is part of China is true.

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  • 3. 

     In this week's HBS case, Abraaj Capital wanted the National Transmission and Distribution Council (NTDC) to charge KESC the fixed cost for its power, not the marginal cost.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Abraaj Capital wanted the National Transmission and Distribution Council (NTDC) to charge KESC the fixed cost for its power, not the marginal cost. This means that Abraaj Capital believed that KESC should pay a set amount for the power it consumed, regardless of the actual cost of producing that power. This approach would ensure that KESC pays a consistent amount for its power, regardless of fluctuations in production costs.

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  • 4. 

    Karnani (2007) argues that small, local firms are better positioned than multinationals to address the supply side problem in markets for the poor.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The explanation for the given correct answer is that Karnani (2007) argues that small, local firms are better positioned than multinationals to address the supply side problem in markets for the poor. This implies that small, local firms have a better understanding of the local market dynamics and are more capable of tailoring their products and services to meet the specific needs of the poor. Additionally, they may have lower costs and be more accessible to the poor population.

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  • 5. 

    Have you practiced the Asian Country Map Quiz? Do you know here the Grasberg mine is located?

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The given answer, "True," is correct because the Grasberg mine is indeed located in an Asian country. The Grasberg mine is one of the world's largest gold and copper mines and is situated in the province of Papua in Indonesia, which is located in Southeast Asia. Therefore, the statement is true.

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  • 6. 

    MacIntyre (2001) argues that the Indonesian economy suffered from the fact that Suharto could unilaterally order strong and immediate action on any front.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    MacIntyre (2001) argues that the Indonesian economy suffered because Suharto had the power to make strong and immediate decisions without any input or checks from others. This suggests that Suharto's unilateral actions could have had negative consequences for the economy. Therefore, the statement "MacIntyre (2001) argues that the Indonesian economy suffered from the fact that Suharto could unilaterally order strong and immediate action on any front" is true.

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  • 7. 

    Hofstede says that culture is a concept that is only valuable as long as it can be used to help predict behavior.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    According to Hofstede, culture is only valuable if it can be used to predict behavior. This suggests that culture is not just an abstract concept, but rather a tool that can be applied practically to understand and anticipate how individuals and groups will behave in different contexts. By emphasizing the importance of predictability, Hofstede implies that culture should have practical utility and be applicable in real-world situations. Therefore, the statement "True" accurately reflects Hofstede's perspective on the value of culture.

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  • 8. 

    If you had insider information about Suharto's health during one of the health threat events studied in Fisman (2001) that allowed you to know that Suharto was not going to die, would you want to buy or sell shares in companies owned by the Salim Group?

    • Buy shares in companies owned by Salim Group

    • Sell shares in companies owned by Salim Group

    Correct Answer
    A. Buy shares in companies owned by Salim Group
    Explanation
    If you had insider information about Suharto's health and knew that he was not going to die, it would be advantageous to buy shares in companies owned by the Salim Group. This is because Suharto was a powerful figure in Indonesia and had significant influence over the economy. His continued good health would likely lead to stability and favorable conditions for businesses owned by the Salim Group. As a result, their shares would be expected to perform well, making it a profitable decision to buy them.

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  • 9. 

    In its March 22, 20110 blog statement, Google annouced that it would no longer be providing search engine services to people based in China.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The given statement is false. Google did not announce in its March 22, 20110 blog statement that it would no longer be providing search engine services to people based in China.

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  • 10. 

    According to Krugman's "Myth" piece, sustained growth in a nation's per capita income can only come about through which of the following?

    • A rise in output per unit of input

    • A rise in domestic savings rate

    • A dynamic entrepreneurial class

    • Government policy promoting export-oriented manufacturing 

    • None of the above

    Correct Answer
    A. A rise in output per unit of input
    Explanation
    According to Krugman's "Myth" piece, sustained growth in a nation's per capita income can only come about through a rise in output per unit of input. This means that the country needs to increase its productivity and efficiency in order to produce more output with the same amount of input. This can be achieved through technological advancements, innovation, and better utilization of resources. A rise in output per unit of input leads to increased production, which in turn leads to higher income levels for individuals in the country.

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  • 11. 

     According to Hofstede, in which of the following countries do children feel the least loyalty for and expect the least protection from their in-group?

    • Indonesia

    • West Africa

    • China

    • Hong Kong

    Correct Answer
    A. Hong Kong
    Explanation
    Hofstede's cultural dimensions theory suggests that Hong Kong is the country where children feel the least loyalty for and expect the least protection from their in-group. This could be due to the influence of Hong Kong's unique history and cultural context, which has been shaped by its colonial past and its current status as a Special Administrative Region of China. The high level of individualism and emphasis on personal achievement in Hong Kong's society may contribute to a lower sense of loyalty and expectation of protection from the in-group.

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  • 12. 

    Which of the following countries does Stiglitz (2001) claim had strategies that were relatively more focused on domestic investment rather than foreign investment?

    • Malaysia and Japan

    • Korea and Japan

    • Malaysia and Korea

    • All of the above

    • None of the above

    Correct Answer
    A. Korea and Japan
    Explanation
    Stiglitz (2001) claims that Korea and Japan had strategies that were relatively more focused on domestic investment rather than foreign investment.

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  • 13. 

    In its January 12, 2010 blog statement, Google admitted that attackers were able to read the emails of Chinese human rights activists.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement claims that Google admitted that attackers were able to read the emails of Chinese human rights activists. However, the correct answer is False because the statement is incorrect. Google did admit that their systems were targeted by attackers, but they stated that only limited information was accessed and there was no evidence to suggest that any Gmail accounts were accessed or compromised. Therefore, the attackers were not able to read the emails of Chinese human rights activists.

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  • 14. 

    Stuart and Wang (2016) show statistical evidence that investment by a venture capital firm has which of the following effects on the likelihood of fraudulent behavior by Chinese firms?

    • VC investment increases the likelihood of fraudulent behavior by Chinese firms.

    • VC investment decreases the likelihood of fraudulent behavior by Chinese firms.

    • VC investment does not have a clear effect on the likelihood of fraudulent behavior by Chinese firms.

    Correct Answer
    A. VC investment increases the likelihood of fraudulent behavior by Chinese firms.
    Explanation
    The correct answer suggests that according to Stuart and Wang (2016), there is statistical evidence showing that investment by a venture capital firm increases the likelihood of fraudulent behavior by Chinese firms.

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  • 15. 

    In the Yasheng Huang TED blog article, Dr. Huang notes that most of the countries that both have higher average income than China and are ruled by authoritarian governments have which of the following in common?

    • They have Confucian-based cultures

    • They have substantial natural resources

    • They have fast growing economies

    • All of the above

    • None of the above

    Correct Answer
    A. They have substantial natural resources
    Explanation
    In the Yasheng Huang TED blog article, Dr. Huang points out that most countries with higher average income than China and ruled by authoritarian governments have substantial natural resources in common. This suggests that the presence of natural resources may contribute to their higher income levels. The article does not mention Confucian-based cultures or fast-growing economies as common factors among these countries.

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  • 16. 

    The ultimate conclusion reached in the Singh (2007) article is that culture does not have any impact on business strategy.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The explanation for the answer "False" is that the Singh (2007) article actually concludes that culture does have an impact on business strategy. This means that culture influences the way businesses develop and implement their strategies.

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  • 17. 

    Rodrik and Subramian (2003) advocate a specific constellation of institutions that will achieve the optimum benefits.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Rodrik and Subramian (2003) do not advocate a specific constellation of institutions that will achieve the optimum benefits. Therefore, the statement is false.

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  • 18. 

    According to Hofstede, people are most "easy going" in which of the following countries?

    • Holland (where Hofstede is from)

    • Hong Kong

    • Indonesia

    • USA

    Correct Answer
    A. Hong Kong
    Explanation
    According to Hofstede, people are most "easy going" in Hong Kong. This is because Hong Kong has a high level of individualism and a low level of uncertainty avoidance, which are two cultural dimensions that Hofstede identified. Individualism refers to the extent to which individuals prioritize their own goals and interests over those of the group, while uncertainty avoidance refers to the extent to which individuals feel uncomfortable with ambiguity and uncertainty. Hong Kong's high individualism and low uncertainty avoidance suggest that people in this country are more relaxed and open-minded, hence being considered "easy going".

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  • 19. 

    MacIntyre (2001) argues that Thailand's crisis began on July 2nd, 1997, when its pegged exchange rate collapsed.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    MacIntyre (2001) argues that Thailand's crisis did not begin on July 2nd, 1997, when its pegged exchange rate collapsed. The correct answer is False.

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  • 20. 

    When it comes to monetary policy, Singapore's government is primarily focused on managing which of the following?

    • Interest rate

    • Inflation rate

    • Exchange rate

    • Tarrif rate

    Correct Answer
    A. Exchange rate
    Explanation
    The Singaporean government is primarily focused on managing the exchange rate. This means that they aim to control the value of their currency in relation to other currencies. By managing the exchange rate, the government can influence the competitiveness of their exports, control inflation, and maintain stability in their economy. This is important for Singapore as it heavily relies on international trade and has a small open economy.

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  • 21. 

    In Krugman's "Competitiveness" piece, he shows evidence that which of the following types of sectors have the highest value-added per worker?

    • Labor-intensive manufacturing industries

    • High-technology industries

    • Capital-intensive industries

    • Export-oriented industries

    • None of the above

    Correct Answer
    A. Capital-intensive industries
    Explanation
    In Krugman's "Competitiveness" piece, he provides evidence that capital-intensive industries have the highest value-added per worker. This means that these industries generate more value or output for each worker employed compared to labor-intensive manufacturing industries, high-technology industries, and export-oriented industries. The term "capital-intensive" refers to industries that require a significant amount of capital investment, such as machinery, equipment, and infrastructure, to produce goods or services. Krugman's evidence suggests that these industries are more efficient and productive in utilizing their capital resources and therefore have a higher value-added per worker.

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  • 22. 

    Porter and Kramer (2005) argue that Corporate Social Responsibility programs are the most important thing that companies can do for society.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Porter and Kramer (2005) do not argue that Corporate Social Responsibility programs are the most important thing that companies can do for society. While they do emphasize the importance of CSR, they also highlight the need for companies to create shared value by aligning their business goals with societal needs. They argue that this approach can lead to long-term sustainability and competitive advantage. Therefore, the correct answer is False.

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  • 23. 

    MacIntyre (2001) argues that a greater number of veto players leads to:

    • Higher likelihood of economic crisis

    • Greater policy risk for investors

    • Greater policy flexibility

    • ​greater policy stability

    • None of the above

    Correct Answer
    A. ​greater policy stability
    Explanation
    MacIntyre (2001) argues that a greater number of veto players leads to greater policy stability. This means that when there are more veto players, it becomes more difficult for any one individual or group to make significant changes to existing policies. This can lead to a more stable and predictable policy environment, as it requires a larger consensus to make any alterations. Therefore, the presence of more veto players can contribute to a higher level of policy stability in a given system.

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  • 24. 

    Stiglitz (2001) explains which of the following about the argument put forward by Krugman and Young about limited growth in Total Factor Productivity in Asia?

    • Their claim is that fast growing Asian countries got closer to the technology frontier because investments into education led to more domestic innovation.

    • Their claim is that fast growing Asian countries got closer to the technology frontier by investing into acquisition of technologies created in advanced economies.

    • Their claim is that fast growing Asian countries made very little progress in getting closer to the technological frontier.

    • Their claim is that fast growing Asian countries lack of progress in getting closer to the technology frontier caused the 1997 financial crisis.

    • None of the above.

    Correct Answer
    A. Their claim is that fast growing Asian countries got closer to the technology frontier by investing into acquisition of technologies created in advanced economies.
    Explanation
    Stiglitz (2001) explains that Krugman and Young argue that fast growing Asian countries achieved closer proximity to the technology frontier by investing in the acquisition of technologies developed in advanced economies. This implies that these countries were able to adopt and adapt existing technologies to drive their economic growth, rather than relying solely on domestic innovation. This explanation suggests that the transfer and adoption of advanced technologies played a crucial role in the rapid growth of these Asian countries.

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  • 25. 

    Fisman and Khanna (2004) provide evidence that Indian business groups help to make underdeveloped regions more attractive to other investors.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that Fisman and Khanna (2004) provide evidence that Indian business groups help to make underdeveloped regions more attractive to other investors. However, the correct answer is False. The explanation for this answer could be that Fisman and Khanna (2004) do not provide evidence supporting the idea that Indian business groups make underdeveloped regions more attractive to other investors. It is possible that their research findings contradict or do not support this claim.

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  • 26. 

    Which of these is NOT an economic institution considered by Rodrik and Subramian (2003):

    • Market-augmenting

    • Market-stabilizing

    • Market-creating

    • Market-regulating

    • Market-legitimizing

    Correct Answer
    A. Market-augmenting
    Explanation
    Rodrik and Subramanian (2003) discuss various economic institutions, including market-stabilizing, market-creating, market-regulating, and market-legitimizing institutions. However, they do not consider market-augmenting institutions.

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  • 27. 

    In this week's HBS case, the Abraaj Capital investment into KESC represents the first time Arif Naqvi is buying a stake in a Pakistani company.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The given statement is false because the Abraaj Capital investment into KESC does not represent the first time Arif Naqvi is buying a stake in a Pakistani company.

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  • 28. 

    In his "Lessons" article, Stiglitz argues that benefits of government interventions in East Asia are evident, given that growth frequently occured in precisely the industries that were targeted by government policies.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Stiglitz argues in his "Lessons" article that the benefits of government interventions in East Asia are not evident. He states that while growth did occur in industries targeted by government policies, it was often at the expense of other industries. Additionally, he argues that the interventions led to distortions in the market and created inefficiencies. Therefore, the correct answer is false.

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  • 29. 

    In the Yasheng Huang TED blog article, Dr. Huang argues that Eric Li's support for single party rule in China would be more logically consistent if he also supported which of the following feature(s) of the political systems in many advanced economies?

    • Direct popular elections of the top political leader

    • The powerful influence of who can raise the most money on who gets elected

    • Efforts to make it more difficult for people of certain cultures to be able to vote

    • All of the above

    • None of the above

    Correct Answer
    A. The powerful influence of who can raise the most money on who gets elected
    Explanation
    In the Yasheng Huang TED blog article, Dr. Huang argues that Eric Li's support for single party rule in China would be more logically consistent if he also supported the powerful influence of who can raise the most money on who gets elected in the political systems of many advanced economies. This is because the concentration of power and influence in the hands of a few wealthy individuals or corporations is a common feature in such political systems. By supporting this feature, Li would align his support for single party rule with the concentration of power and influence in the hands of a few in advanced economies.

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  • 30. 

    In the wake of the Plaza Agreement, which of the following happened to Asian currencies relative to the US dollar?

    • All Asian currencies discussed in the Bernard and Ravenhill (1995) article increased in value relative to the US dollar.

    • All Asian currencies discussed in the Bernard and Ravenhill (1995) article decreased in value relative to the US dollar.

    • All Northeastern Asian currencies discussed in the Bernard and Ravenhill (1995) article increased in value relative to the US dollar, while the Southeast Asian currencies mentioned decreased in value relative to the US dollar.

    • All Northeastern Asian currencies discussed in the Bernard and Ravenhill (1995) article decreased in value relative to the US dollar, while the Southeast Asian currencies mentioned increased in value relative to the US dollar.

    • None of the above

    Correct Answer
    A. All Northeastern Asian currencies discussed in the Bernard and Ravenhill (1995) article increased in value relative to the US dollar, while the Southeast Asian currencies mentioned decreased in value relative to the US dollar.
    Explanation
    The correct answer is that all Northeastern Asian currencies discussed in the Bernard and Ravenhill (1995) article increased in value relative to the US dollar, while the Southeast Asian currencies mentioned decreased in value relative to the US dollar. This means that after the Plaza Agreement, the currencies of Northeastern Asian countries appreciated compared to the US dollar, while the currencies of Southeast Asian countries depreciated.

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  • 31. 

    Which of the main four Southeast Asian country discussed in MacIntyre (2001) was least hard hit by the Southeast Asian crisis in the late 1990s?

    • ​Philippines

    • Thailand

    • Malaysia

    • Indonesia

    Correct Answer
    A. ​Philippines
    Explanation
    The Philippines was the least hard hit by the Southeast Asian crisis in the late 1990s. This can be inferred from the information provided in MacIntyre's (2001) discussion of the main four Southeast Asian countries.

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  • 32. 

    What is the main Dependent Variable used in Fisman (2001)?

    • Return on Assets

    • Revenues

    • Profits

    • Share price returns

    • All of the above

    Correct Answer
    A. Share price returns
    Explanation
    The main dependent variable used in Fisman (2001) is share price returns. This means that the study focuses on analyzing the changes in the price of shares over a particular period of time. The researcher is interested in understanding how various factors or independent variables might affect the fluctuations in share prices. By studying share price returns, the researcher can gain insights into the market's perception of a company's performance and its potential for future growth.

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  • 33. 

    The findings on financial reporting by Chinese firms in Stuart and Wang (2016) provide support for which of the following arguments?

    • State-owned enterprises in China are more profitable than Chinese private companies.

    • Venture capital firms in China are misreporting their earnings to the Chinese government.

    • Chinese entrepreneurs with political connections have less fear of being punished for misreporting their finances to Chinese government offices.

    • University backed entrepreneurs are more likely to commit fraud in China.

    • None of the above.

    Correct Answer
    A. Chinese entrepreneurs with political connections have less fear of being punished for misreporting their finances to Chinese government offices.
    Explanation
    The correct answer suggests that the findings in Stuart and Wang (2016) support the argument that Chinese entrepreneurs with political connections have less fear of being punished for misreporting their finances to Chinese government offices. This implies that there may be a lack of accountability and enforcement for those with political connections, allowing them to engage in fraudulent financial reporting without significant consequences.

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  • 34. 

    Which of the following most accurately reflects the main point Eric Li (2011) wants to communicate with his story about the rise of the Vice Party Secretary of Yunan Province, Qiu He?

    • Some political scandals have indeed hurt the Chinese Communist Party's facade of unity.

    • The secret to China's rapid economic growth has been low taxes, strategic land concessions, and high levels of foreign investment.

    • China has systematically promoted its most creative and skilled government officials to the highest levels of government.

    • The Chinese Communist Party has changed strategies many times.

    Correct Answer
    A. China has systematically promoted its most creative and skilled government officials to the highest levels of government.
    Explanation
    The main point Eric Li (2011) wants to communicate with his story about the rise of Qiu He is that China has systematically promoted its most creative and skilled government officials to the highest levels of government. This implies that the Chinese Communist Party values talent and innovation in its leadership positions, and this is a key factor in China's success.

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  • 35. 

     IKEA knew that joining India’s Rugmark certification program would mean it could not be accused of selling any rugs that had been produced by child labor.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that IKEA joined India's Rugmark certification program to avoid accusations of selling rugs produced by child labor. However, the correct answer is False because the statement does not provide any information about whether IKEA joined the certification program or not.

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  • 36. 

    Which of the Types of FDI listed in the Appendix Week 5 best fits these Southeast Asian companies on the BCG Global Challengers list?

    • Market Seeking

    • Resource Seeking

    • Efficiency Seeking

    • Strategic Asset Seeking

    Correct Answer
    A. Market Seeking
    Explanation
    The correct answer is Market Seeking. Market seeking FDI refers to companies that invest in foreign markets to expand their customer base and increase sales. Southeast Asian companies on the BCG Global Challengers list are likely looking to enter new markets and attract customers in order to grow their business. Therefore, Market Seeking FDI best fits these companies' objectives.

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  • 37. 

    What does Hofstede argue is the main limitation on the size of businesses owned by Chinese-Americans?

    • Their limited ambitions.

    • Their inability to trust non-family members.

    • Their limited intelligence and capabilities.

    • Their lack of access to credit from US banks.

    Correct Answer
    A. Their inability to trust non-family members.
    Explanation
    Hofstede argues that the main limitation on the size of businesses owned by Chinese-Americans is their inability to trust non-family members. This implies that Chinese-Americans tend to rely heavily on family members for business partnerships and collaborations, which restricts their ability to expand their businesses beyond a certain size. This limitation may stem from cultural values and preferences for close-knit family relationships and trust within the Chinese-American community.

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  • 38. 

    In which decade did labor inputs account for the greatest share of GDP growth in Singapore?

    • 1970s

    • 1980s

    • 1990s

    • 2000s

    Correct Answer
    A. 2000s
    Explanation
    In the 2000s, labor inputs accounted for the greatest share of GDP growth in Singapore. This means that the increase in the country's GDP during this decade was primarily driven by the growth in the labor force and their productivity. This could be attributed to various factors such as increased investments in human capital, technological advancements, and favorable government policies that encouraged labor participation and efficiency.

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  • 39. 

    Rodrik and Subramian (2003) feel obligated to address the question of endogeneity in their analysis of the impact of institutions on growth: What is the specific endogeneity problem they are concerned about?

    • Resource endowments generate both good institutions and economic growth.

    • People migrate from poor to rich countries.

    • ​Highly contagious diseases would affect the extent of colonial activity and economic growth.

    • Institutions may cause growth, but richer countries can afford to create and maintain higher quality institutions.

    • None of the above.

    Correct Answer
    A. Institutions may cause growth, but richer countries can afford to create and maintain higher quality institutions.
    Explanation
    Rodrik and Subramian (2003) are concerned about the endogeneity problem of institutions causing growth. They argue that while institutions may have a positive impact on growth, it is also possible that richer countries are able to create and maintain higher quality institutions because they have more resources and wealth. This creates a potential bias in the analysis, as the relationship between institutions and growth may be influenced by the wealth of a country. Therefore, they feel obligated to address this endogeneity issue in their analysis.

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  • 40. 

    MacIntyre (2001) argues that, of the four main Southeast Asian countries, the country with the most veto points at the time of the crisis was:

    • ​Indonesia

    • Philippines

    • Malaysia

    • Thailand

    Correct Answer
    A. Thailand
    Explanation
    MacIntyre (2001) argues that Thailand had the most veto points among the four main Southeast Asian countries during the crisis. Veto points refer to the number of institutional actors or decision-making bodies that possess the power to block or veto policy changes. This suggests that Thailand had a more complex and fragmented political system compared to the other countries, with multiple actors having the ability to influence and hinder policy decisions.

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  • 41. 

    Fisman and Khanna (2004) test their theory with a Dependent Variable measuring whether or not a business group entered a particular Indian state.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The given answer is False because the explanation states that Fisman and Khanna (2004) tested their theory with a Dependent Variable measuring whether or not a business group entered a particular Indian state. This implies that the theory was tested based on the presence or absence of business groups in a state, not whether or not they entered a state.

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  • 42. 

    Which of the following best characterizes the results in Kogut and Singh (1988)?

    • Multinational enterprises are more likely to choose to enter a country through an acquisition than a greenfield investment when Uncertainty Avoidance is a greater

    • Multinational enterprises are more likely to choose to enter a country through a joint venture than an acquisition when Uncertainty Avoidance is a greater

    • Multinational enterprises are more likely to choose to enter a country through a greenfield investment than a joint venture when Uncertainty Avoidance is a greater

    • The analyses did not provide any evidence that Uncertainty Avoidance has any effect on entry mode decision

    • None of the above

    Correct Answer
    A. Multinational enterprises are more likely to choose to enter a country through a joint venture than an acquisition when Uncertainty Avoidance is a greater
    Explanation
    The correct answer suggests that in Kogut and Singh's study, multinational enterprises are more likely to choose to enter a country through a joint venture than an acquisition when Uncertainty Avoidance is greater. This means that when there is a higher level of uncertainty and risk in a foreign market, companies prefer to form partnerships or collaborations with local firms rather than acquiring existing businesses. This strategy allows them to share risks and resources, and gain local knowledge and expertise, which helps them navigate the uncertain business environment more effectively.

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  • 43. 

    Countries that ratified the ILO’s Convention 138 were all certified to have eliminated the problem of child labor within their borders.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement suggests that countries that ratified the ILO's Convention 138 have eliminated the problem of child labor within their borders. However, this is not necessarily true. Ratifying the convention means that a country has agreed to certain standards and principles regarding child labor, but it does not guarantee that the problem has been completely eliminated. The certification process involves various factors and assessments, and not all countries that ratified the convention may have successfully eliminated child labor. Therefore, the answer is false.

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  • 44. 

    In the BCG Global Challengers report, both of the Southeast Asian firms among the 13 newcomers were categorized under which of the three main themes among newcomers?

    • Capturing middle class consumers

    • Meeting digitial needs

    • Building and supplying the world

    • None of the above

    Correct Answer
    A. Capturing middle class consumers
    Explanation
    The BCG Global Challengers report categorized the Southeast Asian firms among the 13 newcomers under the theme of "Capturing middle class consumers." This suggests that these firms are focusing on targeting and serving the growing middle class population in their respective markets.

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  • 45. 

    Among the explanations offered by Indian managers and executives in Fisman and Khanna (2004) for why group affiliated firms are more likely to locate in underdeveloped states, which of the following do the authors say is not consistent with their core hypothesis that this happens because these firms were good at overcoming market failures.

    • Weak local markets for financing

    • Weak local development of supporting industries

    • Weak local development of infrastructure

    • Weak local markets for human resources

    • All of the above explanations are consistent with the core hypothesis in Fisman and Khanna (2004)

    Correct Answer
    A. All of the above explanations are consistent with the core hypothesis in Fisman and Khanna (2004)
    Explanation
    The authors state that all of the explanations offered by Indian managers and executives in Fisman and Khanna (2004) are consistent with their core hypothesis that group affiliated firms are more likely to locate in underdeveloped states because these firms are good at overcoming market failures. This means that weak local markets for financing, weak local development of supporting industries, weak local development of infrastructure, and weak local markets for human resources all contribute to the likelihood of group affiliated firms locating in underdeveloped states.

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  • 46. 

    Which of the following best reflects how the data on entry mode decisions by Japanese multinational enterprises influences the overall study findings in Kogut and Singh (1988)?

    • The evidence in favor of the paper's hypotheses disappears entirely when Japan is removed

    • The evidence in favor of the paper's hypotheses appears only when Japan is removed

    • The studied relationship between culture, as studied in this paper, and entry mode choice is reversed in the data for Japan

    • The relationship between culture, as studied in this paper, and entry mode choice is relatively consistent for Japan and the rest of the sample

    • None of the above

    Correct Answer
    A. The relationship between culture, as studied in this paper, and entry mode choice is relatively consistent for Japan and the rest of the sample
    Explanation
    The correct answer suggests that the relationship between culture and entry mode choice is consistent for both Japan and the rest of the sample. This means that the findings of the study hold true for Japanese multinational enterprises as well as for other multinational enterprises in the sample. The evidence in favor of the paper's hypotheses remains consistent even when Japan is included in the analysis.

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  • 47. 

     In his "Lessons" article, Stiglitz argues that key government policies that characterized the East Asian Miracle included all but which of the following?

    • Promotion of export-orientation through infrastructure and preferential access to capital

    • Exclusion of the private sector from non-productive areas like real estate

    • Investing in human capital development

    • Promotion of technology programs to provide research and development to the private sector

    • All of the above were said by Stiglitz to be key to the Asian Miracle

    Correct Answer
    A. Exclusion of the private sector from non-productive areas like real estate
    Explanation
    In his "Lessons" article, Stiglitz argues that key government policies that characterized the East Asian Miracle included promotion of export-orientation through infrastructure and preferential access to capital, investing in human capital development, and promotion of technology programs to provide research and development to the private sector. However, Stiglitz did not mention the exclusion of the private sector from non-productive areas like real estate as a key policy in the Asian Miracle.

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  • 48. 

    In Porter's "New global strategies" piece, which of the following does he argue is a constructive strategy for company wishing to be an innovation leader?

    • Lobbying against home country regulation that limit strategic options

    • Maintaining strong leverage over suppliers

    • Seeking out customers that are particularly difficult to serve well

    • Seeking out countries with low taxes and regulations

    • None of the above

    Correct Answer
    A. Seeking out customers that are particularly difficult to serve well
    Explanation
    In Porter's "New global strategies" piece, he argues that seeking out customers that are particularly difficult to serve well is a constructive strategy for a company wishing to be an innovation leader. By targeting customers with unique needs or challenges, a company can differentiate itself from competitors and develop innovative solutions to meet those specific demands. This approach allows the company to become a leader in serving these difficult customers and gain a competitive advantage in the market.

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  • 49. 

    Rodrik and Subramian (2003) conclude from their econometric analysis that: 

    • The impact of institutions on national wealth is conditional on geography.

    • Only institutions have a direct positive effect on national wealth.

    • Integration has weak indirect effects on growth, but strong direct effect

    • All three main factors discussed in the paper have significant direct effects on national wealth.

    • None of the above

    Correct Answer
    A. Only institutions have a direct positive effect on national wealth.
    Explanation
    The correct answer suggests that according to Rodrik and Subramanian's econometric analysis, only institutions have a direct positive effect on national wealth. This means that the presence and quality of institutions, such as the rule of law, property rights, and governance, play a crucial role in determining a country's wealth. Other factors, such as geography and integration, may have indirect effects on growth, but institutions are the primary driver of national wealth.

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  • Oct 10, 2024
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  • Apr 30, 2016
    Quiz Created by
    Wenkai92

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