Question 1

Which of the following statements is TRUE about managing country risk?

Accepted Answer

A)  Scanning allows a firm to assess the potential country risk. 
B)  Firms can reduce country risk by entering markets in collaboration with a foreign partner. 
C)  Country risk can seldom be anticipated by advance research. 
D)  Home-country employees are the best source for anticipating country risk in host countries. 
A)  Scanning allows a firm to assess the potential country risk. 
B)  Firms can reduce country risk by entering markets in collaboration with a foreign partner. 
C)  Country risk can seldom be anticipated by advance research. 
D)  Home-country employees are the best source for anticipating country risk in host countries.

Question 2

Which of the following is a typical complaint of host-country competitors against foreign firms?

Accepted Answer

A)  Foreign firms burden the host country with infrastructure requirements. 
B)  Foreign firms do not have to obey host-country laws and regulations. 
C)  Foreign firms receive financial support from host-country governments. 
D)  Foreign firms lure host-country workers to the home-country businesses. 
A)  Foreign firms burden the host country with infrastructure requirements. 
B)  Foreign firms do not have to obey host-country laws and regulations. 
C)  Foreign firms receive financial support from host-country governments. 
D)  Foreign firms lure host-country workers to the home-country businesses.

Question 3

The U.S. legal system is largely based on ________.

Accepted Answer

A)  common law 
B)  social law 
C)  civil law 
D)  theocratic law 
A)  common law 
B)  social law 
C)  civil law 
D)  theocratic law

Question 4

Describe country risk and discuss how political and legal systems contribute to country risk. Explain the differences between political systems and legal systems in your answer.

Accepted Answer

Country risk is exposure to potential lo

Question 5

Trade unions are not a part of a country's legal system.

Accepted Answer

A) True 
 B)False

Question 6

Common law is primarily judicial in origin and based on court decisions.

Accepted Answer

A) True 
 B)False

Question 7

Democracy is closely associated with openness.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is characteristic of an effective legal system?

Accepted Answer

A)  a stable and rigid framework of rules and norms across nations 
B)  systematically enforced laws and regulations 
C)  political involvement in business transactions 
D)  universal emphasis on religious law over common and civil law 
A)  a stable and rigid framework of rules and norms across nations 
B)  systematically enforced laws and regulations 
C)  political involvement in business transactions 
D)  universal emphasis on religious law over common and civil law

Question 9

Country risk is considered similar to ________.

Accepted Answer

A)  political risk 
B)  commercial risk 
C)  currency risk 
D)  cross-cultural risk 
A)  political risk 
B)  commercial risk 
C)  currency risk 
D)  cross-cultural risk

Question 10

One of the best sources of intelligence in the scanning process is employees working in foreign countries targeted for market entry

Accepted Answer

A) True 
 B)False

Question 11

Boycotts and protests have the potential to harm businesses by ________.

Accepted Answer

A)  preventing businesses from shipping their products to foreign markets 
B)  lost sales and increased costs for public relations activities 
C)  destroying the ability of all local firms to carry on normal business operations 
D)  raising concerns about a firm's foreign operations by initiating lawsuits 
A)  preventing businesses from shipping their products to foreign markets 
B)  lost sales and increased costs for public relations activities 
C)  destroying the ability of all local firms to carry on normal business operations 
D)  raising concerns about a firm's foreign operations by initiating lawsuits

Question 12

The Organization for Economic Co-operation and Development (OECD) is classified as a(n) ________.

Accepted Answer

A)  international organization 
B)  regional trade organization 
C)  special interest group 
D)  competing firm 
A)  international organization 
B)  regional trade organization 
C)  special interest group 
D)  competing firm

Question 13

Most democracies include elements of socialism.

Accepted Answer

A) True 
 B)False

Question 14

________ is seizure of corporate assets with compensation.

Accepted Answer

A)  Confiscation 
B)  Expropriation 
C)  Embargo 
D)  Sanction 
A)  Confiscation 
B)  Expropriation 
C)  Embargo 
D)  Sanction

Question 15

The most widespread form of religious law is ________ law.

Accepted Answer

A)  Hindu 
B)  Jewish 
C)  Islamic 
D)  Catholic 
A)  Hindu 
B)  Jewish 
C)  Islamic 
D)  Catholic

Question 16

What are some of the risks for firms involved with international e-commerce?

Accepted Answer

Firms that undertake e-commerce in count

Question 17

Host-Country Legal System (Scenario)
Super Sports, a large sporting goods chain based in Australia, wants to open a store in Norway. With stores around the world, Super Sports executives realize that legal systems vary from country to country. Having never opened a store in Norway, the Super Sports legal team is investigating Norwegian laws to determine how they would impact the corporation and its ability to do business in Norway.
-Which of the following supports a decision in favor of Super Sports opening a store in Norway?

Accepted Answer

A)  MNEs may transfer profits back to the home country without restriction. 
B)  The opening of warehouse-style stores requires the approval of local retailers. 
C)  Product injury cases generally rule in favor of plaintiffs regardless of evidence. 
D)  Advertising and marketing of particular products are banned under local distribution laws. 
A)  MNEs may transfer profits back to the home country without restriction. 
B)  The opening of warehouse-style stores requires the approval of local retailers. 
C)  Product injury cases generally rule in favor of plaintiffs regardless of evidence. 
D)  Advertising and marketing of particular products are banned under local distribution laws.

Question 18

Which form of government is characterized by private property rights and limited government?

Accepted Answer

A)  autocratic 
B)  democratic 
C)  socialist 
D)  authoritarian 
A)  autocratic 
B)  democratic 
C)  socialist 
D)  authoritarian

Question 19

Common law can best be described as a system ________.

Accepted Answer

A)  designed from political and legislative regulations 
B)  derived from religious beliefs and moral values 
C)  based on an all-inclusive system of laws that have been codified 
D)  based on legal precedents set by the nation's courts 
A)  designed from political and legislative regulations 
B)  derived from religious beliefs and moral values 
C)  based on an all-inclusive system of laws that have been codified 
D)  based on legal precedents set by the nation's courts

Question 20

Special interest groups serve the interests of particular countries, industries, or causes.

Accepted Answer

A) True 
 B)False

Which of the following statements is TRUE about managing country risk?

Which of the following is a typical complaint of host-country competitors against foreign firms?

The U.S. legal system is largely based on ________.

Describe country risk and discuss how political and legal systems contribute to country risk. Explain the differences between political systems and legal systems in your answer.

Trade unions are not a part of a country's legal system.

Common law is primarily judicial in origin and based on court decisions.

Democracy is closely associated with openness.

Which of the following is characteristic of an effective legal system?

Country risk is considered similar to ________.

One of the best sources of intelligence in the scanning process is employees working in foreign countries targeted for market entry

Boycotts and protests have the potential to harm businesses by ________.

The Organization for Economic Co-operation and Development (OECD) is classified as a(n) ________.

Most democracies include elements of socialism.

________ is seizure of corporate assets with compensation.

The most widespread form of religious law is ________ law.

What are some of the risks for firms involved with international e-commerce?

Which form of government is characterized by private property rights and limited government?

Common law can best be described as a system ________.

Special interest groups serve the interests of particular countries, industries, or causes.

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

Which of the following statements is TRUE about managing country risk?

Which of the following is a typical complaint of host-country competitors against foreign firms?

The U.S. legal system is largely based on ________.

Describe country risk and discuss how political and legal systems contribute to country risk. Explain the differences between political systems and legal systems in your answer.

Trade unions are not a part of a country's legal system.

Common law is primarily judicial in origin and based on court decisions.

Democracy is closely associated with openness.

Which of the following is characteristic of an effective legal system?

Country risk is considered similar to ________.

One of the best sources of intelligence in the scanning process is employees working in foreign countries targeted for market entry

Boycotts and protests have the potential to harm businesses by ________.

The Organization for Economic Co-operation and Development (OECD) is classified as a(n) ________.

Most democracies include elements of socialism.

________ is seizure of corporate assets with compensation.

The most widespread form of religious law is ________ law.

What are some of the risks for firms involved with international e-commerce?

Which form of government is characterized by private property rights and limited government?

Common law can best be described as a system ________.

Special interest groups serve the interests of particular countries, industries, or causes.

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