As Discussed in the Text, Which of the Following Is

question 20

Multiple Choice

As discussed in the text, which of the following is true in China when fraud is involved?

• A) Because of the governmental interest in increasing international business, it is very difficult to prove fraud when an international business is involved.
• B) Because of the governmental interest in increasing international business, few penalties are imposed on international businesses that are guilty of fraud.
• C) Because of the governmental interest in increasing international business, it is very difficult to prove fraud when an international business is involved; and few penalties are imposed on international businesses that are guilty of fraud.
• D) Chinese law does not recognize the concept of fraud.
• E) Fraudulent misrepresentations have resulted in heavy fines and refusals to allow any more agreements with Chinese firms.

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Definitions:

Allocative Efficiency

an optimal distribution of resources in an economy, ensuring that goods and services are distributed according to consumer preferences.

Per-Capita Output

The average production of goods or services per person within a geographical area or country.

Developing Countries

Nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Modernize Economies

The process of adopting new technologies, implementing policy reforms, and updating infrastructures to improve a country's economic performance and productivity.