Lebanon is a nation that tolerates and respects multiple cultures, religions, and ethnicities while its economy today tries to follow its past preferences of favoring strong fiscal and monetary freedoms as well as developing a labor market that is highly flexible. Prior to the Lebanese Civil War between 1975 and 1990, the country had enjoyed relative calm and prosperity. Tourism, agriculture, small- and medium-sized manufacturers, education, and banking all promoted a successful economy. Lebanon became known as the finance and banking capital of the Arab world and the Paris of the Middle East. Before the war, Lebanon had a competitive and free market environment and a strong laissez-faire commercial tradition. There were no restrictions on foreign exchange or capital movement. Bank secrecy was strictly enforced, and there were practically no restrictions on foreign investment. Corporate tax rates and inflation were relatively low. The financial sector was well developed prior to the civil war and has since developed again into a system aligned to fit the demands of the region, including a range of private banks and services. The civil war seriously damaged Lebanons economic infrastructure, cut national output by half, and ruined a wide range of businesses in service and manufacturing sectors. It ultimately ended Lebanons position as a Middle Eastern banking hub. The subsequent period of relative peace enabled the central government to restore control in Beirut, but how was this achieved? Steps were taken to reestablish its taxation system and to regain access to key port and government facilities. Furthermore, economic recovery had been helped by a financially sound banking system and resilient small- and medium-sized enterprises, with family remittances, banking services, manufactured and farm exports, and international aid as the main sources of foreign exchange. Immediately following the end of the civil war, there were extensive efforts to revive the economy and rebuild the national infrastructure. By early 2006, a considerable degree of stability had been achieved throughout most parts of the country, Beiruts reconstruction was almost complete, and an increasing number of foreign tourists from all around the world were beginning to head toward Lebanons resorts. As a result, GDP increased from $2.838 billion in 1990 to $22438 billion in 2006 (an increase of nearly 700 percent in 16 years), and unemployment dropped to 8.1percent in 2004. But a new shock to the countrys economy occurred in 2006. After only a month of fighting with Israel in July 2006, Lebanon suffered significant damage to businesses and infrastructure. Many countries struggled to get as many of their citizens as possible out of the country safely and quickly. The tourism industry faced a massive loss. Lebanon was in crisis again. In September 2006, Rafiq Hariri International Airport in Beirut reopened, and efforts to revive the Lebanese economy were to begin once more. Major investors to the reconstruction of Lebanon included the European Union and Saudi Arabia as well as many other countries across the world. Lebanons recent economic history has been a series of taking one step forward and two steps back, yet there is still promise for a bright future if peace can be maintained. Toward achieving its targets, Lebanon has received external support as well. International support in humanitarian programs and victims assistance programs have been significant. Moreover, there are external contributions and involvements in the reconstruction of Lebanon. A program of relief, rehabilitation, and recovery has been in force from 1975 to 2005 and has totaled more than $400 million in aid to Lebanon by the United States. For relief, recovery, rebuilding, and security in the wake of the 2006 war, the U.S. government substantially stepped up this program, pledging well over $1 billion in additional assistance for the 2006 and 2007 fiscal years. From an internal perspective, liberalization of the economy, investment, and business activities are confronted by other challenges. Intrusive bureaucracy and chaotic regulatory regimes slow down local businesses and discourage foreign investment. Besides, fair adjudication of property rights is not guaranteed because the Lebanese courts are subject to significant influence from the Lebanese security services, government, or even the police. More importantly, in order to create a productive and stable business environment, it is essential for Lebanon to work diligently on improving its ability to stamp out fraudfor example, Lebanon has recently adopted new laws to combat money laundering. Support your answers to the following questions with specific information from the case and text or with other information you get from the Web or other sources. Support your answers to the following questions with specific information from the case and text or with other information you get from the Web or other sources. Total marks awarded in this exam are 25 points

Question 1 Not yet answered Marked out of 7.00 p Flag question Why do you think Lebanon is in need of foreign direct investment (FDI)? Discuss enablers and barriers to foreign direct investment in Lebanon Question 2 Not yet answered Marked out of 3.00 Flag question The Lebanese government prohibited all imports from Israel. Discuss the socioeconomic aspects of this decision. Question 3 Not yet answered Marked out of 1.00 Flag question A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality. These components are then assembled in another country where productivity in assembly is high. This process resembles the theory of Select one: a. comparative advantage b. mercantilism c. the international product life cycle d. factor proportions Question 9 Not yet answered Marked out of 1.00 Flag question In Oman, the value-added tax will be levied in April 2021 on each party that adds value to a product throughout its production and distribution. Select one: a. True b. False Question 7 Not yet answered Marked out of 1.00 P Flag question Developed nations have the toughest product liability laws, while developed countries have more relaxed laws. Select one: a. True b. False Question 11 Not yet answered Marked out of 1.00 Flag question Tax breaks on profits earned abroad, and political pressures are used by Select one: a. Host countries to promote FDI b. Host countries to restrict FDI c. Home countries to promote FDI d. Home countries to restrict FDI Question 16 Not yet answered Marked out of 1.00 p Flag question Which of the following actions can be adopted by developed nations to lessen the negative effects of globalization? Select one: a restrict the import of goods from developing countries b. slash agricultural subsidies that hurt the exports of developing nations c. discontinue foreign-aid programs to developing countries d. pressurize developing nations to fend for themselves in matters of health and education Question 15 Not yet answered Marked out of 1.00 P Flag question The theory of absolute advantage destroys the mercantilist idea that international trade is a zero-sum game. Select one: a. True b. False Question 17 Not yet answered Marked out of 1.00 Flag question Which type of investment involves the acquisition of foreign assets for the purpose of controlling them? Select one: a. Foreign direct investment b. Capital investment c. Foreign portfolio investment d. Controlling ownership Question 5 Not yet answered Marked out of 1.00 Remove flag Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following? Select one: a rely on stereotypes, which are based on averages, to gain an understanding of the culture b. avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors c. memorize the cultural variations that are typically encountered in a specific cultural environment Question 6 Not yet answered Marked out of 1.00 Flag question Critics of globalization say that global consumer-goods companies destroy Select one: O a. the homogenization of markets b. societal conformity c. free trade areas d. cultural diversity Question 3 Not yet answered Marked out of 1.00 Flag question A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality. These components are then assembled in another country where productivity in assembly is high. This process resembles the theory of Select one: a. comparative advantage b. mercantilism c. the international product life cycle d. factor proportions Question 8 Not yet answered Marked out of 1.00 P Flag question Factor Proportions Theory can be defined as countries produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply. Select one: a. True b. False Question 12 Not yet answered Marked out of 1.00 Flag question The global business environment consists of four distinct elements: the forces of globalization, national business environments, the international business environment, and Select one: a. domestic investment opportunities b. technological innovation c. international firm management d. multinational corporations Question 1 Not yet answered Marked out of 7.00 p Flag question Why do you think Lebanon is in need of foreign direct investment (FDI)? Discuss enablers and barriers to foreign direct investment in Lebanon Question 2 Not yet answered Marked out of 3.00 Flag question The Lebanese government prohibited all imports from Israel. Discuss the socioeconomic aspects of this decision. Question 3 Not yet answered Marked out of 1.00 Flag question A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality. These components are then assembled in another country where productivity in assembly is high. This process resembles the theory of Select one: a. comparative advantage b. mercantilism c. the international product life cycle d. factor proportions Question 9 Not yet answered Marked out of 1.00 Flag question In Oman, the value-added tax will be levied in April 2021 on each party that adds value to a product throughout its production and distribution. Select one: a. True b. False Question 7 Not yet answered Marked out of 1.00 P Flag question Developed nations have the toughest product liability laws, while developed countries have more relaxed laws. Select one: a. True b. False Question 11 Not yet answered Marked out of 1.00 Flag question Tax breaks on profits earned abroad, and political pressures are used by Select one: a. Host countries to promote FDI b. Host countries to restrict FDI c. Home countries to promote FDI d. Home countries to restrict FDI Question 16 Not yet answered Marked out of 1.00 p Flag question Which of the following actions can be adopted by developed nations to lessen the negative effects of globalization? Select one: a restrict the import of goods from developing countries b. slash agricultural subsidies that hurt the exports of developing nations c. discontinue foreign-aid programs to developing countries d. pressurize developing nations to fend for themselves in matters of health and education Question 15 Not yet answered Marked out of 1.00 P Flag question The theory of absolute advantage destroys the mercantilist idea that international trade is a zero-sum game. Select one: a. True b. False Question 17 Not yet answered Marked out of 1.00 Flag question Which type of investment involves the acquisition of foreign assets for the purpose of controlling them? Select one: a. Foreign direct investment b. Capital investment c. Foreign portfolio investment d. Controlling ownership Question 5 Not yet answered Marked out of 1.00 Remove flag Businesspeople seeking to understand more about another culture in order to successfully conduct business within that culture would be best advised to do which of the following? Select one: a rely on stereotypes, which are based on averages, to gain an understanding of the culture b. avoid cultural research studies because they perpetuate unjustified stereotypes and behaviors c. memorize the cultural variations that are typically encountered in a specific cultural environment Question 6 Not yet answered Marked out of 1.00 Flag question Critics of globalization say that global consumer-goods companies destroy Select one: O a. the homogenization of markets b. societal conformity c. free trade areas d. cultural diversity Question 3 Not yet answered Marked out of 1.00 Flag question A product's components are manufactured in a country that can produce them at a very low cost while maintaining its quality. These components are then assembled in another country where productivity in assembly is high. This process resembles the theory of Select one: a. comparative advantage b. mercantilism c. the international product life cycle d. factor proportions Question 8 Not yet answered Marked out of 1.00 P Flag question Factor Proportions Theory can be defined as countries produce and export goods that require resources (factors) that are abundant and import goods that require resources in short supply. Select one: a. True b. False Question 12 Not yet answered Marked out of 1.00 Flag question The global business environment consists of four distinct elements: the forces of globalization, national business environments, the international business environment, and Select one: a. domestic investment opportunities b. technological innovation c. international firm management d. multinational corporations