Question 1

On occasion, the international marketer may be caught between clashing home and host country laws.How should the marketer handle such a situation?

Accepted Answer

This is the essence of the legal and political problems facing the international marketer.What to do? The requirements of both governments need to be met - even if those requirements are not compatible! The international marketer may need to conduct a dialogue with each government in order to seek a compromise solution.Alternatively, managers can encourage their home government to engage in government-to-government negotiations to settle the dispute.The firm also can seek redress in court.
In any case, a good manager will understand the country in which the firm operates (as comprehensively as the home country)so that he or she is able to work within the existing parameters and can anticipate and plan for changes that may occur.

Question 2

Violations of intellectual property rights do not occur in developed economies.

Accepted Answer

A) True 
 B)False  False

Question 3

Three major types of political risk can be encountered: ________ risk, which exposes property and life; _________ risk, which refers to interference with the ongoing operations of a firm; and _______ risk, which is mainly encountered when attempts are made to shift funds between countries.

Accepted Answer

A) ownership; operating; transfer 
B) transfer; operating; ownership 
C) ownership; transfer; operating 
D) operating; ownership; transfer 
A) ownership; operating; transfer 
B) transfer; operating; ownership 
C) ownership; transfer; operating 
D) operating; ownership; transfer A

Question 4

There is no enforceable body of international law in existence.

Accepted Answer

A) True 
 B)False

Question 5

Export controls are primarily a US foreign policy instrument.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not a determinant for the US export control system?

Accepted Answer

A) National security 
B) Long-term demand 
C) Foreign policy 
D) Nuclear proliferation 
A) National security 
B) Long-term demand 
C) Foreign policy 
D) Nuclear proliferation

Question 7

Which of the following is not a difference between functional lubrication and individual greed?

Accepted Answer

A) The amount for individual greed is usually a substantial amount in US dollars. 
B) The express fee is small and standardised. 
C) The express service is available to everyone, with few exceptions. 
D) The express fee does not stay in the hands of the official who receives it but is passed on to others involved in the processing of the documents. 
A) The amount for individual greed is usually a substantial amount in US dollars. 
B) The express fee is small and standardised. 
C) The express service is available to everyone, with few exceptions. 
D) The express fee does not stay in the hands of the official who receives it but is passed on to others involved in the processing of the documents.

Question 8

An embargo and a trade sanction are two terms used interchangeably to mean a governmental action that distorts the free flow of trade in goods, services or ideas for decidedly adversarial and political, rather than strictly economic, purposes.

Accepted Answer

A) True 
 B)False

Question 9

When the United Nations approves trade sanctions for a particular country, all countries must abide by this decision although permanent members of the Security Council can veto efforts to impose sanctions.

Accepted Answer

A) True 
 B)False

Question 10

All of the following statements are correct, except:

Accepted Answer

A) A key legal perspective that survives today is that of theocracy, which has faith and belief as its key focus and is a mix of societal, legal and spiritual guidelines. 
B) Common law is based on tradition and depends less on written statutes and codes than on precedent and custom. 
C) Code law is based on a comprehensive set of written statutes.Countries with code law try to spell out all possible legal rules explicitly. 
D) Sanitary and phytosanitary regulations can be used as a non-technical trade barrier. 
A) A key legal perspective that survives today is that of theocracy, which has faith and belief as its key focus and is a mix of societal, legal and spiritual guidelines. 
B) Common law is based on tradition and depends less on written statutes and codes than on precedent and custom. 
C) Code law is based on a comprehensive set of written statutes.Countries with code law try to spell out all possible legal rules explicitly. 
D) Sanitary and phytosanitary regulations can be used as a non-technical trade barrier.

Question 11

Three major types of political risk can be encountered: ownership risk, tax risk and transfer risk.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following governmental activities are not of major concern to the international marketer?

Accepted Answer

A) National infrastructure programs 
B) Embargoes or trade sanctions 
C) Export and import controls 
D) The regulation of international business behaviour 
A) National infrastructure programs 
B) Embargoes or trade sanctions 
C) Export and import controls 
D) The regulation of international business behaviour

Question 13

Bribery can be seen as:

Accepted Answer

A) a reasonable way of doing business internationally. 
B) corruption. 
C) a crucial business pledge. 
D) a reasonable way of doing business internationally and a crucial business pledge. 
A) a reasonable way of doing business internationally. 
B) corruption. 
C) a crucial business pledge. 
D) a reasonable way of doing business internationally and a crucial business pledge.

Question 14

For the international marketer, which of the following restrictions may mean that the most efficient sources of supply are not available because government restrictions restrict importation from those sources?

Accepted Answer

A) Import licences 
B) Grey market activities 
C) Export controls 
D) Import controls 
A) Import licences 
B) Grey market activities 
C) Export controls 
D) Import controls

Question 15

'Grey market' is another term meaning 'parallel exporting'.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not considered a political risk?

Accepted Answer

A) Deflation 
B) Changes in tariffs 
C) Expropriation of assets 
D) Restriction in repatriation of profits 
A) Deflation 
B) Changes in tariffs 
C) Expropriation of assets 
D) Restriction in repatriation of profits

Question 17

One thorny issue that can cause difficulties for companies seeking to utilise FTAs is ___________.These are a crucial aspect of FTAs, because they determine what products are covered.

Accepted Answer

A) Rules of imports 
B) Rules of origin 
C) Rules of destination 
D) Rules of law 
A) Rules of imports 
B) Rules of origin 
C) Rules of destination 
D) Rules of law

Question 18

Where do violations of intellectual property rights occur?

Accepted Answer

A) Anywhere someone infringes upon the rights of companies and individuals 
B) In developing economies 
C) In Asia, South America and Africa 
D) Both B and C 
A) Anywhere someone infringes upon the rights of companies and individuals 
B) In developing economies 
C) In Asia, South America and Africa 
D) Both B and C

Question 19

Coups have occurred in all of the following countries except:

Accepted Answer

A) Armenia 
B) Ghana 
C) Ethiopia 
D) Venezuela 
A) Armenia 
B) Ghana 
C) Ethiopia 
D) Venezuela

Question 20

When a country transfers the ownership of the foreign firm from the firm to itself (the country), this is known as:

Accepted Answer

A) obfuscation. 
B) fraternalism. 
C) confiscation. 
D) asset seizure. 
A) obfuscation. 
B) fraternalism. 
C) confiscation. 
D) asset seizure.

On occasion, the international marketer may be caught between clashing home and host country laws.How should the marketer handle such a situation?

Violations of intellectual property rights do not occur in developed economies.

Three major types of political risk can be encountered: ____ risk, which exposes property and life; _ risk, which refers to interference with the ongoing operations of a firm; and ___ risk, which is mainly encountered when attempts are made to shift funds between countries.

There is no enforceable body of international law in existence.

Export controls are primarily a US foreign policy instrument.

Which of the following is not a determinant for the US export control system?

Which of the following is not a difference between functional lubrication and individual greed?

An embargo and a trade sanction are two terms used interchangeably to mean a governmental action that distorts the free flow of trade in goods, services or ideas for decidedly adversarial and political, rather than strictly economic, purposes.

When the United Nations approves trade sanctions for a particular country, all countries must abide by this decision although permanent members of the Security Council can veto efforts to impose sanctions.

All of the following statements are correct, except:

Three major types of political risk can be encountered: ownership risk, tax risk and transfer risk.

Which of the following governmental activities are not of major concern to the international marketer?

Bribery can be seen as:

For the international marketer, which of the following restrictions may mean that the most efficient sources of supply are not available because government restrictions restrict importation from those sources?

'Grey market' is another term meaning 'parallel exporting'.

Which of the following is not considered a political risk?

One thorny issue that can cause difficulties for companies seeking to utilise FTAs is ___________.These are a crucial aspect of FTAs, because they determine what products are covered.

Where do violations of intellectual property rights occur?

Coups have occurred in all of the following countries except:

When a country transfers the ownership of the foreign firm from the firm to itself (the country), this is known as:

Introduction to international marketing

The economic environment

Trade institutions and trade policy

The cultural environment

Building the knowledge base

Foreign market entry

Channels of distribution and logistics

Product policy and adaptation in international markets

Product and brand management in international markets

Services marketing

Pricing in international markets

International marketing communications

Social Networking and Communications

Filters

Exam 4: The political and legal environment

On occasion, the international marketer may be caught between clashing home and host country laws.How should the marketer handle such a situation?

Violations of intellectual property rights do not occur in developed economies.

Three major types of political risk can be encountered: ________ risk, which exposes property and life; _________ risk, which refers to interference with the ongoing operations of a firm; and _______ risk, which is mainly encountered when attempts are made to shift funds between countries.

There is no enforceable body of international law in existence.

Export controls are primarily a US foreign policy instrument.

Which of the following is not a determinant for the US export control system?

Which of the following is not a difference between functional lubrication and individual greed?

An embargo and a trade sanction are two terms used interchangeably to mean a governmental action that distorts the free flow of trade in goods, services or ideas for decidedly adversarial and political, rather than strictly economic, purposes.

When the United Nations approves trade sanctions for a particular country, all countries must abide by this decision although permanent members of the Security Council can veto efforts to impose sanctions.

All of the following statements are correct, except:

Three major types of political risk can be encountered: ownership risk, tax risk and transfer risk.

Which of the following governmental activities are not of major concern to the international marketer?

Bribery can be seen as:

For the international marketer, which of the following restrictions may mean that the most efficient sources of supply are not available because government restrictions restrict importation from those sources?

'Grey market' is another term meaning 'parallel exporting'.

Which of the following is not considered a political risk?

One thorny issue that can cause difficulties for companies seeking to utilise FTAs is ___________.These are a crucial aspect of FTAs, because they determine what products are covered.

Where do violations of intellectual property rights occur?

Coups have occurred in all of the following countries except:

When a country transfers the ownership of the foreign firm from the firm to itself (the country), this is known as:

Introduction to international marketing

The economic environment

Trade institutions and trade policy

The cultural environment

Building the knowledge base

Foreign market entry

Channels of distribution and logistics

Product policy and adaptation in international markets

Product and brand management in international markets

Services marketing

Pricing in international markets

International marketing communications

Social Networking and Communications

Filters

Three major types of political risk can be encountered: ____ risk, which exposes property and life; _ risk, which refers to interference with the ongoing operations of a firm; and ___ risk, which is mainly encountered when attempts are made to shift funds between countries.