1. Which of the following is most focused on currency diversification? a. Currency hedging b….

1. Which of the following is most focused on currency diversification?
a. Currency hedging
b. Spot transactions
c. Strategic hedging
d. Trading risk

2. The government taking a “hands-off approach” is known as:
a. Laissez faire
b. Command economy
c. Mixed economy
d. Liberal approach

3. More than 80 countries practice:
a. Common law
b. Civil law
c. Theocratic law
d. Social democracy

4. A pure market economy characterized by the “invisible hand” of market forces is noted by:
a. John Stuart Mill
b. Adam Smith
c. Aristotle
d. Amatya Zen

5. The main supportive pillar(s) for informal institutions is/are:
a. Normative and cognitive
b. Regulatory (coercive)
c. Regulatory, normative, and cognitive
d. Cognitive

6. A pure command economy is:
a. Characterized by the “invisible hand” of market forces.
b. Defined by a government taking the “commanding height” in the economy.
c. Characterized by a government that only performs functions the private sector cannot perform.
d. Characterized by innovation and entrepreneurial activities.

7. ____ are defined as “fundamental and comprehensive changes introduced to the formal and informal rules of the game that affect organizations as players.”
a. Opportunities
b. Transaction costs
c. Institutional transitions
d. Costs of doing business

8. ____ had been embraced throughout Central and Eastern Europe and the former Soviet Union until the late 1980s.
a. Communist totalitarianism
b. Theocratic totalitarianism
c. Tribal totalitarianism
d. Right-wing totalitarianism

9. A(n) ____ is a set of guidelines for helping a firm make ethical decisions:
a. Control audit
b. Corporate policy
c. Employee relation book
d. Code of conduct

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