BMAL 602 – B01 LUO Fall 2015 Quiz 2

In civil law, the adversarial system assumes that truth is most likely to result from the open competition between the prosecution and the defense.

Question 2 5 out of 5 points

Expropriation means to deprive of possession.

Question 3 5 out of 5 points

GNP does not take into account unpaid economic activity.

Question 4 5 out of 5 points

One challenge in promoting small businesses in third world nations is the lack of consideration of current models of entrepreneurship development.

Question 5 5 out of 5 points

Common law originally developed in historical England, is the result of judicial decisions that were based in tradition, custom, and precedent.

Question 6 5 out of 5 points

Developing nations typically have a human Development Index of less than 0.2 according to the Human Development Reports office.

Question 7 5 out of 5 points

Buyer’s credit is a loan in which the exporter is covered, but the value of the cover will be less than the value of the contract.

Question 8 5 out of 5 points

The Export-Import Bank (Ex-Im Bank) is the official export credit agency of the United States.

Question 9 5 out of 5 points

Corruption is the greatest single barrier to economic development worldwide.

Question 10 5 out of 5 points

The National Association of Foreign Trade Zones (NAFTZ) was created in 1972 to help ensure the prosperity of all parties involved in global trade.

Question 11 5 out of 5 points

The task of managing the capital account is primarily concerned with maintaining the surpluses and deficits owed to any nation for any commodity or currency that can be tracked.

Question 12 5 out of 5 points

The capital account entity records the purchase and sale of domestic and foreign assets.

Question 13 5 out of 5 points

Adam Smith’s theory of absolute advantage implies that an individual would not make anything that would cost him less to buy.

Question 14 5 out of 5 points

The U.S. Department of Commerce’s FDI ownership threshold is 10 percent.

Question 15 5 out of 5 points

Negative income from abroad corresponds to a debit in the current account.

Question 16 5 out of 5 points

The Factor Proportions Theory attempts to explain that nations will produce and import goods that use the highest proportion of those factors of production that are most abundant to a nation.

Question 17 5 out of 5 points

Successful FDI can be win-win situation for governments and business.

Question 18 5 out of 5 points

Greenfield investments are investment in new assets.

Question 19 5 out of 5 points

The concept of most-favored-nations (MFN) status discourages excessive import duties that act as trade barriers, though exceptions can be made to favour developing nations.

Question 20 5 out of 5 points

In the Factor Propulsions Theory, technology is the application of specialized knowledge to work.