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Chapter 4 Test

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1.
3 points
The more taxes there are on a business, the higher the price the business charges consumers.
2.
4 points
Tariffs, quotas, and boycotts are examples of
3.
3 points
An excise tax is a tax on
4.
4 points
Which of the following is not a law that protects workers and consumers?
5.
3 points
In a democracy, people have equal rights and freedoms.
6.
3 points
A multinational company does not usually hire citizens from the host country.
7.
3 points
A tax holiday releases foreign investors from paying corporate income taxes.
8.
3 points
Personal income taxes are progressive taxes because they are set up so that the more one earns, the higher percentage of income taxes that person pays.
9.
3 points
NAFTA is an example of a free-trade agreement
10.
3 points
An outbreak of civil war within a country is an example of political risk.
11.
3 points
A quota is a limit on how many products can be imported.
12.
4 points
A political system in which one political party holds all the power is a
13.
3 points
A host country is a country in which the multinational enterprise is a guest.
14.
3 points
Governments try to discourage other countries from investing and locating plants in their countries by using tax incentives.
15.
3 points
North Korea is an example of a totalitarian system.
16.
3 points
A tariff is a tax placed on
17.
3 points
A totalitarian system has a dictatorship in which the military makes all the decisions.
18.
4 points
Protectionism policies such as tariffs and quotas are used because
19.
4 points
Which of the following is not a payroll tax
20.
4 points
Political risks in international business include all of the following except
21.
4 points
Which of the following is required by the Consumer Protection Law
22.
3 points
The main reason for a common market is to allow workers to move freely across borders.
23.
4 points
When two countries agree to eliminate duties & trade barriers on products traded between them.
24.
3 points
A multinational enterprise in a host country must operate within the host country’s economic, social, and legal constraints.
25.
3 points
A democracy is a political system which all citizens take part in making the rules.
26.
3 points
Most countries have a pure democratic system or totalitarian system; mixed systems are rare.
27.
3 points
Trade barriers make it easier to trade across borders.
28.
4 points
Social Responsibility is
29.
4 points
Of the following characteristics, the one that is not typical of a democratic system is that of which
30.
3 points
In a totalitarian system, people are allowed to travel freely and express their own religion.
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