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Terms in this set (35)Romila ensures that she pays taxes out of fear that she might be caught and sent to prison for evading taxes. The given example shows the influence of ____ on people's behavior The regulatory pillar One fundamental economic function that a legal system serves is to protect ____. Property rights An institution-based view of global business focuses on: The dynamic interaction between institutions and firm's. The institution-based view has emerged as a leading perspective on global business. True An important source of transaction costs is___, defined as the act of seeking self-interest with guile. Opportunism Institutions influence the decision-making process of both individuals and firm's by: Signaling what conduct is legitimate and acceptable and what is not. According to Richard Scott, which if the following statements is true,of the normative pillar? It is a primary support for all informal institutions. Which of the following is a guideline for managers doing business around the globe? Managers should follow the advice of the second proposition of the institution-based view. India is a democracy as its citizens electrepresentatives to govern the country on their behalf. True Examples of opportunism include misleading, cheating, and confusing other parties in transactions that will increase transaction costs. True Dana lives in a country that follows right-wing totalitarianism. Therefore, it is most likely that: One party, backed by the military, restricts political freedom. When the formal regimine in the country of Zoalia collapsed, the growth of many entrepreneurial firm's was facilitated by informal constraints based on personal relationships and connections among manages and officials. This is an example of___. Informal constraints providing forconstancy for managers and firm's in situations where formal constraints are unclear. Arcadia is a country that follows a democratic system of government. Therefore, it can be inferred that: Citizens elect representatives to govern the country in their behalf. If a company is doing business in a country with a strong propensity for informal relational exchanges, it may not be a good idea to insist on formalizing that contract right away. Because such countries often have relatively weak legal systems, personal relationship building is often used to substitute for the lack of strong legal protection. True The cognitive pillar refers to the internalized values and beliefs that guide individual and firm behavior True Which if the following statements is true of institutions? They are not static Which if the following statements is true of piracy? It is the unauthorized used of intellectual property rights. Relative to civil law, common law has more flexibility because judges____. Have to resolve specific disputes based on their interpretation of the law. Which if the following statements is true of trademarks? They are the exclusive legal rights of firm's to use specific brands to differentiate their products from others. Unlike a command economy, a market economy: In one in which all the factors of production are supposed to be privately owned. Relying on informal connections is relevant only to firm's in emerging economies, and firm's in developed economies pursue only market-based strategies False Which of the following statements is true of political uncerntainty? It renders long-range planning obsolete. According to the institution-based view of global business, which if the following statements is true? It is the growth of the firm that, in the aggregate, leads to the growth of the economy. According to Richard Scott, the ____ refers to the internalized values and beliefs that guide individual and firm behavior. Cognitive pillar Which if the following forms part of an institution-based view of global business? Firm's rationally pursue their interests and make choices within institutional contraints. Which if the following statements is true of institutional transitions? They are comprehensive changes introduced to the formal and informal rules aid the game that affect firm's as players. Overall the economic system if most countries is a Mixed economy In a command economy, all factors of production should be state owned and state controlled, and all supply, demand, and pricing are planned by the government. True ___are the exlusive rights of authors and publishers to publish and disseminate their work. Copyrights Which if the following best defined a political system? It refers to the rules of the game in how a country is governed constitutionally. A(n) ___ refers to the rules of the game in how a country's laws are enacted and enforced Legal system In a market economy, all factors of production should be state owned and state controlled and all supply, demand, and pricing are planned by the government False Which if the following is an example of opportunism? Confusing other parties in transactions that will increase transaction cost. Which if the following statements is true of political risk? It can lead to nationalization of foreign assets China is a totalitarian country, so it suffers from a high level of political fish. 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Which of the following is an implication for action for managers doing business around the globe quizlet?
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