Exam 6: The Political Environment: a Critical Concern

________ refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government follows a process called

In terms of political risk, what poses the greatest threat to international marketers?

Which government form can be most accurately described as rule by few?

Relations between governments and MNCs are generally positive if the investment

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she is most likely to consider using ________ to enter the market.

The most effective long-range solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is

The most severe political risk of global business is the government action of domestication.

With respect to the political risk that can be faced by a company seeking to invest abroad, which action is most severe?

Discuss the threats posed by cyberterrorism or cyberattacks. Give an example of a recent occurrence of these.

The seizing of a company's assets without payment is called

Through expropriation and nationalization, nationalized businesses have become more efficient, technologically strong, and competitive in world markets.

What are effective tools that political and social activists (PSAs) use to spread word about their causes?

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What factor explains this difference?

Relations between governments and MNCs are generally negative, particularly if the investment made by the MNCs increases exports or reduces imports.

Waldo's company was expanding into some underdeveloped countries, and needed to acquire risk insurance to cover potential fallout from political unrest that was occurring in those countries. What organization might be able to provide this for Waldo?

The Agency for International Development underwrites trade and investments for U.S. firms.

The principal agency that supports U.S. business abroad is the Global Chamber of Commerce (GCC).

________ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees.

Ranzan Inc. has invested in a country showing signs that it will use domestication in the near future to force foreign investors to share more of the profits with the government. Cite and describe a strategy to deal with this potential of domestication that Ranzan could follow to ensure that its business remains profitable.