Question 1

Barring Latin America, the risks of confiscation and expropriation have decreased over the last two decades.

Accepted Answer

A) True 
 B)False

Question 2

Describe the concept of nationalism and list some of the ways it manifests, particularly in today's political environment.

Accepted Answer

Nationalism can best be described as an

Question 3

Sovereignty may be threatened by foreign investment.

Accepted Answer

A) True 
 B)False

Question 4

You live in a nation that is considered to be a sovereign state. What does this mean?

Accepted Answer

A sovereign state is independent and fre

Question 5

Nationalism supports foreign business because it improves local economies.

Accepted Answer

A) True 
 B)False

Question 6

The government in Chile recently informed Mario's company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050 as it is a foreign company in Chile. Additionally, starting the following year, 50 percent of the board of directors of the Chilean operation of the company must be Chileans. What political risk action is Mario's company facing in Chile?

Accepted Answer

A)  confiscation 
B)  expropriation 
C)  domestication 
D)  patronization 
E)  nationalization 
A)  confiscation 
B)  expropriation 
C)  domestication 
D)  patronization 
E)  nationalization

Question 7

Foreign businesses no longer need to be concerned about the stability or instability of prevailing government policies.

Accepted Answer

A) True 
 B)False

Question 8

Which strategy to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

Accepted Answer

A)  joint ventures 
B)  licensing 
C)  expanding the investment base 
D)  sole proprietorship 
E)  political bargaining 
A)  joint ventures 
B)  licensing 
C)  expanding the investment base 
D)  sole proprietorship 
E)  political bargaining

Question 9

Discuss stability of governments and list the main political causes of instability in international markets.

Accepted Answer

The ideal political climate for a multin

Question 10

With which term would the phrase "Buy American" be most closely associated?

Accepted Answer

A)  socialism 
B)  communism 
C)  nationalism 
D)  abstractionism 
E)  polarism 
A)  socialism 
B)  communism 
C)  nationalism 
D)  abstractionism 
E)  polarism

Question 11

Which strategy can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

Accepted Answer

A)  confiscation 
B)  sole proprietorship 
C)  expanding the investment base 
D)  advertising 
E)  leasing 
A)  confiscation 
B)  sole proprietorship 
C)  expanding the investment base 
D)  advertising 
E)  leasing

Question 12

Planned domestication involves taking over an industry in a foreign country.

Accepted Answer

A) True 
 B)False

Question 13

Price controls are only targeted at nonessential products.

Accepted Answer

A) True 
 B)False

Question 14

Bao is attempting to forecast political instability and help his company's management identify and evaluate political events and their potential influence on current and future international business decisions. Bao is engaged in

Accepted Answer

A)  political risk assessment. 
B)  political confiscation. 
C)  democratization. 
D)  arbitration. 
E)  risk expropriation. 
A)  political risk assessment. 
B)  political confiscation. 
C)  democratization. 
D)  arbitration. 
E)  risk expropriation.

Question 15

What is the top political issue concerning foreign businesses?

Accepted Answer

A)  demographic profile of political leaders 
B)  government policies on infrastructure 
C)  economic awareness of political leaders 
D)  stability of prevailing government policies 
E)  membership of governments in trade treaties 
A)  demographic profile of political leaders 
B)  government policies on infrastructure 
C)  economic awareness of political leaders 
D)  stability of prevailing government policies 
E)  membership of governments in trade treaties

Question 16

Which of these items is most likely to be subjected to price control?

Accepted Answer

A)  leather garments 
B)  mobile phone accessories 
C)  aspirin and antacids 
D)  camcorders and lenses 
E)  ceramic tiles 
A)  leather garments 
B)  mobile phone accessories 
C)  aspirin and antacids 
D)  camcorders and lenses 
E)  ceramic tiles

Question 17

Taxes must be classified as a(n) ________ risk when used as a means of controlling foreign investments.

Accepted Answer

A)  political 
B)  social 
C)  ignorable 
D)  environmental 
E)  harmless 
A)  political 
B)  social 
C)  ignorable 
D)  environmental 
E)  harmless

Question 18

Political and social activists generally have no impact on the normal flow of trade.

Accepted Answer

A) True 
 B)False

Question 19

What is the most important reason for a country to encourage foreign investment?

Accepted Answer

A)  to improve the global image of a country 
B)  to accelerate the development of an economy 
C)  to evade political tensions between countries 
D)  to minimize negative political fallouts within the domestic economy 
E)  to improve ties between the investing country and the host country 
A)  to improve the global image of a country 
B)  to accelerate the development of an economy 
C)  to evade political tensions between countries 
D)  to minimize negative political fallouts within the domestic economy 
E)  to improve ties between the investing country and the host country

Question 20

Nongovernmental organizations can affect the policy decisions made by governments through lobbying.

Accepted Answer

A) True 
 B)False

Barring Latin America, the risks of confiscation and expropriation have decreased over the last two decades.

Describe the concept of nationalism and list some of the ways it manifests, particularly in today's political environment.

Sovereignty may be threatened by foreign investment.

You live in a nation that is considered to be a sovereign state. What does this mean?

Nationalism supports foreign business because it improves local economies.

Foreign businesses no longer need to be concerned about the stability or instability of prevailing government policies.

Which strategy to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

Discuss stability of governments and list the main political causes of instability in international markets.

With which term would the phrase "Buy American" be most closely associated?

Which strategy can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

Planned domestication involves taking over an industry in a foreign country.

Price controls are only targeted at nonessential products.

Bao is attempting to forecast political instability and help his company's management identify and evaluate political events and their potential influence on current and future international business decisions. Bao is engaged in

What is the top political issue concerning foreign businesses?

Which of these items is most likely to be subjected to price control?

Taxes must be classified as a(n) ________ risk when used as a means of controlling foreign investments.

Political and social activists generally have no impact on the normal flow of trade.

What is the most important reason for a country to encourage foreign investment?

Nongovernmental organizations can affect the policy decisions made by governments through lobbying.

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: the Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters

Exam 6: The Political Environment: a Critical Concern

Barring Latin America, the risks of confiscation and expropriation have decreased over the last two decades.

Describe the concept of nationalism and list some of the ways it manifests, particularly in today's political environment.

Sovereignty may be threatened by foreign investment.

You live in a nation that is considered to be a sovereign state. What does this mean?

Nationalism supports foreign business because it improves local economies.

Foreign businesses no longer need to be concerned about the stability or instability of prevailing government policies.

Which strategy to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

Discuss stability of governments and list the main political causes of instability in international markets.

With which term would the phrase "Buy American" be most closely associated?

Which strategy can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

Planned domestication involves taking over an industry in a foreign country.

Price controls are only targeted at nonessential products.

Bao is attempting to forecast political instability and help his company's management identify and evaluate political events and their potential influence on current and future international business decisions. Bao is engaged in

What is the top political issue concerning foreign businesses?

Which of these items is most likely to be subjected to price control?

Taxes must be classified as a(n) ________ risk when used as a means of controlling foreign investments.

Political and social activists generally have no impact on the normal flow of trade.

What is the most important reason for a country to encourage foreign investment?

Nongovernmental organizations can affect the policy decisions made by governments through lobbying.

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: the Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Inventive Negotiations With International Customers, Partners, and Regulators

Filters