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Which of the following best exemplifies facilitating or expediting payments in business?


A) Making payments to government officials not to cancel the business license after violating local laws
B) Paying a lump sum amount in order to win a government tender for road construction in a foreign country
C) Making unsolicited payments to the concerned officers in return for employing child labor
D) Making payments to customs officials in order to ship pirated merchandise
E) Making small payments to government officials in order to speed up the work they are already obligated to perform

F) None of the above
G) A) and B)

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Which of the following is true about legal systems?


A) All countries have the same, uniform legal environment.
B) Unlike the economic system of a country, the legal system is independent of the country's political system.
C) The government of a country defines the legal framework within which firms do business.
D) The attractiveness of a country as an investment site or market is unaffected by its legal system.
E) Collectivist-inclined totalitarian states tend to enact laws that are pro-private enterprise.

F) C) and D)
G) D) and E)

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Intellectual property laws stimulate innovation and creative work.

A) True
B) False

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The benefits, costs, and risks associated with doing business in a country are independent of that country's political, economic, and legal systems.

A) True
B) False

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Which of the following best exemplifies public action?


A) The mafia in Cedia Republic demands "protection money" from successful domestic business owners.
B) Cedian proprietors in the hospitality industry often complain about protection rackets by criminal groups.
C) Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic.
D) The Cedian government has been criticized for its inability to curb theft of trade secrets of international businesses by private domestic owners.
E) To promote the Cedian culture, the government has made Cedian movies, which are based on Cedian history, tax-free.

F) D) and E)
G) B) and E)

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