Exam 4: Political and Regulatory Climate

Private-sector projects in developing countries may qualify for loans from the World Bank.

Under socialist law,

The Nigerian government decided to host the All-Africa Games in 2003,despite the fact that building costs for a new stadium exceeded $340 million,twice what the government planned to spend on health care for one year.This action was motivated by the Nigerian government's interest in ____.

In July 2005,the U.S.Congress blocked China's plans to acquire the U.S.oil and gas company,Unocal.Congress argued that crucial raw materials,such as oil,should not be controlled by an economic rival.This action is motivated by the American government's interest in ____.

Confiscation is expropriation with compensation.

By deciding to adopt an "ally" strategy,a company can attempt to avoid some risks of government actions by seeking strategic alliances.

Multilateral embargoes have been aimed at

When Pepsi first entered into the Indian market,the Indian government had strict foreign exchange regulations that would stop Pepsi from taking profits out of the country.Pepsi believed that any attempt to convince the Indian government to alter this policy on its behalf would prove futile.The firm decided to reinvest all Indian profits in the local market for the foreseeable future.In this example,Pepsi chose to employ the ____ strategy for managing regulatory change.

In Australia,foreign ownership of television stations is limited to no more than 20 percent.It is feared that if a foreign country controlled the media,it could influence public opinion and national sovereignty.This regulation is motivated by the Australian government's interest in ____.

A firm's need to invest in redundant capacity is one of the costs of terrorism.

Borrowing locally helps companies to

Computermatix,a small Canadian exporter operating in Romania,was unhappy with the Romanian government's decision to revoke its five-year tax holiday for export-oriented foreign investors.The regulation was very important to the firm,but they knew that their bargaining power was low relative to the Romanian government since they were such a small company.The best strategies for Computermatix to employ to manage this regulatory change would either be to ____ or ____.

____________________ are more dangerous to a firm than other host government actions such as subsidies or ownership restrictions because they completely shut out companies from a market.

In Germany,rules are strictly applied because of its

A major goal of the European Union government is to provide full employment and increasing standard of living for its citizens by encouraging foreign investment in the EU and promoting EU exports in foreign markets.These actions are motivated by the EU government's interest in ____.

A company would adopt the "alter" strategy to a regulatory change when the issue is of

Regulatory changes include

For many years,Coca-Cola was boycotted in

The poor state of the Soviet Union and North Korea governments was a consequence of their government's ideology of attaining self-reliance.

International companies may come under attack from home country pressure groups because of their