Question 1

A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries.

Accepted Answer

A)  confiscation 
B)  expropriation 
C)  subsidy 
D)  sanction 
A)  confiscation 
B)  expropriation 
C)  subsidy 
D)  sanction

Question 2

Which of the following best explains why India was once characterized by high country risk?

Accepted Answer

A)  Taxes and financial incentives benefited Indian businesses over foreign firms. 
B)  Indian business leaders distrusted most European corporations. 
C)  The government of India imposes many restrictions on imports and inward foreign investment. 
D)  Indian leaders feared the modern influences of American firms. 
A)  Taxes and financial incentives benefited Indian businesses over foreign firms. 
B)  Indian business leaders distrusted most European corporations. 
C)  The government of India imposes many restrictions on imports and inward foreign investment. 
D)  Indian leaders feared the modern influences of American firms.

Question 3

Which of the following countries is considered a mixed economy?

Accepted Answer

A)  Norway 
B)  Russia 
C)  Vietnam 
D)  China 
A)  Norway 
B)  Russia 
C)  Vietnam 
D)  China

Question 4

Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long term.
-Which of the following supports Country A over Country B?

Accepted Answer

A)  Contractual noncompliance provisions are broader in scope. 
B)  Contracts are so detailed that they are expensive to draft. 
C)  higher flexibility compared to other legal systems 
D)  Judges confer with legislators on international business issues. 
A)  Contractual noncompliance provisions are broader in scope. 
B)  Contracts are so detailed that they are expensive to draft. 
C)  higher flexibility compared to other legal systems 
D)  Judges confer with legislators on international business issues.

Question 5

A authoritarian government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

Accepted Answer

A) True 
 B)False

Question 6

________ fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

Accepted Answer

A)  Socialism's 
B)  Democracy's 
C)  Authoritarianism's 
D)  Theocracy's 
A)  Socialism's 
B)  Democracy's 
C)  Authoritarianism's 
D)  Theocracy's

Question 7

A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is TRUE of country risk?

Accepted Answer

A)  Its nature remains constant over time and across nations. 
B)  Its intensity seldom varies over time and across nations. 
C)  It is present only in poor nations. 
D)  It is always present. 
A)  Its nature remains constant over time and across nations. 
B)  Its intensity seldom varies over time and across nations. 
C)  It is present only in poor nations. 
D)  It is always present.

Question 9

Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long term.
-Which of the following statements supports Country B over Country A?

Accepted Answer

A)  Rules and principles form the starting point for legal reasoning and administering justice. 
B)  The flexibility of common law allows for judicial interpretation in unique cases. 
C)  Common law nations administer justice based on a structured set of rules. 
D)  Laws are primarily legislative in origin and based on laws passed by national and local legislatures. 
A)  Rules and principles form the starting point for legal reasoning and administering justice. 
B)  The flexibility of common law allows for judicial interpretation in unique cases. 
C)  Common law nations administer justice based on a structured set of rules. 
D)  Laws are primarily legislative in origin and based on laws passed by national and local legislatures.

Question 10

Governments regulate international business activity through a complex system of institutions, agencies, and public officials. Agencies that possess such powers in the United States include the U.S. Trade Representative and the International Trade Administration (www.ita.doc.gov). In Canada these functions are handled by ________.

Accepted Answer

A)  Canada's Ministry of Foreign Affairs 
B)  World Trade Organization 
C)  North American Free Trade Agreement 
D)  Public Works and Government Services Canada 
A)  Canada's Ministry of Foreign Affairs 
B)  World Trade Organization 
C)  North American Free Trade Agreement 
D)  Public Works and Government Services Canada

Question 11

The United States restricts foreign investments that might affect ________.

Accepted Answer

A)  immigration reforms 
B)  labor negotiations 
C)  national security 
D)  manufacturing technologies 
A)  immigration reforms 
B)  labor negotiations 
C)  national security 
D)  manufacturing technologies

Question 12

Income repatriation laws affect MNEs that earn profits in foreign countries by ________.

Accepted Answer

A)  enforcing strict stipulations on cross-border transactions and joint ventures 
B)  limiting the amount of net income or dividends that can be transferred to the home-country headquarters 
C)  restricting the amount of earned income being reinvested in the foreign facility 
D)  imposing restrictions on the distribution of products from the foreign facility 
A)  enforcing strict stipulations on cross-border transactions and joint ventures 
B)  limiting the amount of net income or dividends that can be transferred to the home-country headquarters 
C)  restricting the amount of earned income being reinvested in the foreign facility 
D)  imposing restrictions on the distribution of products from the foreign facility

Question 13

Which of the following characterizes country risk?

Accepted Answer

A)  The political and legal systems of adjacent nations greatly impact the country risk of nations that host foreign firms. 
B)  Country risk will change only after the creation of laws and regulations that affect foreign firms. 
C)  A nation's country risk level remains fairly constant until the election and installation of a new political leader. 
D)  Country risk is always present, but its nature and intensity vary over time and from country to country. 
A)  The political and legal systems of adjacent nations greatly impact the country risk of nations that host foreign firms. 
B)  Country risk will change only after the creation of laws and regulations that affect foreign firms. 
C)  A nation's country risk level remains fairly constant until the election and installation of a new political leader. 
D)  Country risk is always present, but its nature and intensity vary over time and from country to country.

Question 14

Of the five types of participants that are active in transforming political and legal systems, the private sector is the most important.

Accepted Answer

A) True 
 B)False

Question 15

Confiscation is the seizure of assets with compensation.

Accepted Answer

A) True 
 B)False

Question 16

Explain the purpose of special interest groups. How do these organizations affect international business? Provide examples to support your answer.

Accepted Answer

Special interest groups engage in politi

Question 17

Which of the following is the underlying principle of socialism?

Accepted Answer

A)  The welfare of individuals far outweighs the welfare of society. 
B)  Collective welfare of people outweighs the welfare of the individual. 
C)  Capital and wealth should be vested in the hands of few and used primarily as a means of profit. 
D)  The state should protect itself from individual and group interests. 
A)  The welfare of individuals far outweighs the welfare of society. 
B)  Collective welfare of people outweighs the welfare of the individual. 
C)  Capital and wealth should be vested in the hands of few and used primarily as a means of profit. 
D)  The state should protect itself from individual and group interests.

Question 18

Islamic law is based on the ________.

Accepted Answer

A)  Bible 
B)  Bhagavad Gita 
C)  Tanakh 
D)  Qur'an 
A)  Bible 
B)  Bhagavad Gita 
C)  Tanakh 
D)  Qur'an

Question 19

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

Accepted Answer

A) True 
 B)False

Question 20

The U.S. Securities and Exchange Act encourages confidence in business transactions by ________.

Accepted Answer

A)  protecting public companies from government scrutiny 
B)  evaluating the inner workings of privately owned firms 
C)  requiring public companies to frequently disclose their financial indicators to investors 
D)  shielding investors from bankruptcy and excessive taxation 
A)  protecting public companies from government scrutiny 
B)  evaluating the inner workings of privately owned firms 
C)  requiring public companies to frequently disclose their financial indicators to investors 
D)  shielding investors from bankruptcy and excessive taxation

A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries.

Which of the following best explains why India was once characterized by high country risk?

Which of the following countries is considered a mixed economy?

A authoritarian government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

________ fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.

Which of the following statements is TRUE of country risk?

The United States restricts foreign investments that might affect ________.

Income repatriation laws affect MNEs that earn profits in foreign countries by ________.

Which of the following characterizes country risk?

Of the five types of participants that are active in transforming political and legal systems, the private sector is the most important.

Confiscation is the seizure of assets with compensation.

Explain the purpose of special interest groups. How do these organizations affect international business? Provide examples to support your answer.

Which of the following is the underlying principle of socialism?

Islamic law is based on the ________.

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

The U.S. Securities and Exchange Act encourages confidence in business transactions by ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 6: Political and Legal Systems in National Environments

A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries.

Which of the following best explains why India was once characterized by high country risk?

Which of the following countries is considered a mixed economy?

A authoritarian government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

________ fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.

Which of the following statements is TRUE of country risk?

The United States restricts foreign investments that might affect ________.

Income repatriation laws affect MNEs that earn profits in foreign countries by ________.

Which of the following characterizes country risk?

Of the five types of participants that are active in transforming political and legal systems, the private sector is the most important.

Confiscation is the seizure of assets with compensation.

Explain the purpose of special interest groups. How do these organizations affect international business? Provide examples to support your answer.

Which of the following is the underlying principle of socialism?

Islamic law is based on the ________.

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

The U.S. Securities and Exchange Act encourages confidence in business transactions by ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters