Exam 1: Assessing the Environment Political, Economic, Legal, Technological

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Robert is an employee for a U.S. firm, and he manages the firm's operations at its facility in Ecuador. Robert is considering the idea of installing new technology to the facility that would significantly improve productivity and reduce labor costs. Which of the following undermines the argument that Robert should install the new technology?

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C

Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent global economy?

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D

Identify and describe four means of maintaining dependency between corporations and host nations.

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The four means are:input control - firm maintains control over key inputs, market control - firm maintains control over key markets, position control - firm controls key management positions in the subsidiary operation, and staged contribution strategies - firm announces plans to increase in successive years its contributions to the host government.

All of the following are methods of managing terrorism risks by MNCs located in high-risk countries EXCEPT ________.

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Which of the following is a form of hedging?

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In 1998, what occurred as a result of the Russian ruble being devalued?

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All of the following are considered the primary political risks for global manufacturing firms EXCEPT ________.

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Which of the following is considered the most important resource for an MNC's political risk assessment?

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Which of the following methods is NOT a form of adaptation to the political regulatory environment?

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Which of the following is NOT a true statement about the Mexican trading environment?

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Which of the following is NOT a generally accepted method of assessing the credit worthiness of a country?

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Which two factors are primarily assessed when using the qualitative approach to measure a country's economic risk?

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Intel is attempting to do business in Brazil, but the Brazilian government purposely delays granting Intel the necessary licenses and permissions required to do business in the country. Which of the following best describes this situation?

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Which of the following is a true statement regarding economic risk?

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Political risks are best described as any governmental actions or politically motivated events that ________.

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Which of the following is a true statement about Canada?

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What is SAARC?

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For autonomous international subsidiaries, most of the impact from political risks will be in which of the following areas?

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How does the phenomenon of ethnicity affect the international manager?

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Which of the following questions is LEAST relevant to a global manager who is considering what technology is appropriate for the firm's business operations in a less developed country?

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