Question 1

How do companies manage terrorism risk?

Accepted Answer

Some companies such as IBM and Exxon try

Question 2

Representatives of a MNC seek an interview with local government leaders in the Department of Commerce in India with a view to assess the types of policies likely to be implemented. According to Mathis, this is an example of ________.

Accepted Answer

A)  qualitative approach 
B)  quantitative approach 
C)  checklist approach 
D)  a combination of all of the above 
A)  qualitative approach 
B)  quantitative approach 
C)  checklist approach 
D)  a combination of all of the above

Question 3

Identify seven of the most typical political risk events that occur today.

Accepted Answer

Expropriation of corporate assets; force

Question 4

Identify and describe four means of political risk adaptation.

Accepted Answer

The four means of political risk adaptat

Question 5

In 2008, India joined a free-trade agreement known as ________.

Accepted Answer

A)  SAARC 
B)  ASEAN 
C)  NAFTA 
D)  MERCOSUR 
A)  SAARC 
B)  ASEAN 
C)  NAFTA 
D)  MERCOSUR

Question 6

Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located in five different continents. Emerson manufactures a wide range of products including air conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the U.S. Which of the following, if true, supports the argument to build a new Emerson facility in China?

Accepted Answer

A)  The Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit. 
B)  The Chinese Commonwealth network is investing large amounts of capital into China. 
C)  China has increased Internet controls and blocked most international search sites. 
D)  China is revoking its membership from the World Trade Organization. 
A)  The Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit. 
B)  The Chinese Commonwealth network is investing large amounts of capital into China. 
C)  China has increased Internet controls and blocked most international search sites. 
D)  China is revoking its membership from the World Trade Organization.

Question 7

John Mathis' four recommended methods of analyzing economic risk include all of the following EXCEPT the ________ approach.

Accepted Answer

A)  quantitative 
B)  automatic 
C)  qualitative 
D)  checklist 
A)  quantitative 
B)  automatic 
C)  qualitative 
D)  checklist

Question 8

Which of the following is NOT a true statement about India?

Accepted Answer

A)  India's biggest contributor to growth is its excellent infrastructure. 
B)  India is the world's leader for outsourced high-tech services. 
C)  India is the fastest-growing free-market democracy. 
D)  India's middle class spurs the country's growth. 
A)  India's biggest contributor to growth is its excellent infrastructure. 
B)  India is the world's leader for outsourced high-tech services. 
C)  India is the fastest-growing free-market democracy. 
D)  India's middle class spurs the country's growth.

Question 9

Zagreb Inc., negotiates a multi-million dollar contract with the government to provide electricity to country X. The government is voted out of power shortly after. The new government changes the contracts it has with all oil companies but not contracts with firms in other industries. This is an example of ________.

Accepted Answer

A)  barriers to repatriation 
B)  expropriation 
C)  macropolitical risk 
D)  micro political risk 
A)  barriers to repatriation 
B)  expropriation 
C)  macropolitical risk 
D)  micro political risk

Question 10

Which of the following is the most highly globalized in regards to economic integration, technological connectivity, personal contact, and political engagement?

Accepted Answer

A)  Singapore 
B)  Denmark 
C)  New Zealand 
D)  United States 
A)  Singapore 
B)  Denmark 
C)  New Zealand 
D)  United States

Question 11

The appropriability of technology is best defined as ________.

Accepted Answer

A)  any technology that has been illegally confiscated from a firm by a foreign government 
B)  the likelihood that a firm's technology will generate long-term profits 
C)  how easily new technology can be learned and used by host nation employees 
D)  the ability of a firm to protect its technology from competitors and to profit from that technology 
A)  any technology that has been illegally confiscated from a firm by a foreign government 
B)  the likelihood that a firm's technology will generate long-term profits 
C)  how easily new technology can be learned and used by host nation employees 
D)  the ability of a firm to protect its technology from competitors and to profit from that technology

Question 12

Which of the following terms refers to adopting business strategies that meet the current needs of the firm and also protect and enhance the human and natural resources that will be needed in the future?

Accepted Answer

A)  globalization 
B)  sustainability 
C)  protectionism 
D)  nationalization 
A)  globalization 
B)  sustainability 
C)  protectionism 
D)  nationalization

Question 13

Micro political risk events are those that affect ________.

Accepted Answer

A)  multiple industries and companies 
B)  several other nations in the same region 
C)  one industry or company or a few companies 
D)  managers and employees who are nationals 
A)  multiple industries and companies 
B)  several other nations in the same region 
C)  one industry or company or a few companies 
D)  managers and employees who are nationals

Question 14

Which of the following is NOT one of the Four Tigers?

Accepted Answer

A)  South Korea 
B)  Hong Kong 
C)  Taiwan 
D)  Thailand 
A)  South Korea 
B)  Hong Kong 
C)  Taiwan 
D)  Thailand

Question 15

A country's ability or intention to meet its financial obligations determines its ________ risk.

Accepted Answer

A)  economic 
B)  legal 
C)  political 
D)  country 
A)  economic 
B)  legal 
C)  political 
D)  country

Question 16

What is the primary concern among citizens in developed economies regarding the outsourcing of non-manufacturing jobs?

Accepted Answer

A)  tax processing 
B)  supply chains 
C)  quality control 
D)  job retention 
A)  tax processing 
B)  supply chains 
C)  quality control 
D)  job retention

Question 17

Briefly explain the difference macro and micro political risks.

Accepted Answer

Macropolitical risk events affect all fo

Question 18

What is currency translation exposure? Provide an example to illustrate your answer.

Accepted Answer

Currency translation exposure occurs whe

Question 19

Which of the following is NOT one of the primary methods of managing political risk?

Accepted Answer

A)  dependency 
B)  adaptation 
C)  gainsharing 
D)  hedging 
A)  dependency 
B)  adaptation 
C)  gainsharing 
D)  hedging

Question 20

If the Mexican peso is devalued, then an MNC operating in Mexico will most likely have to ________.

Accepted Answer

A)  repatriate less profits in dollars 
B)  pay more local and federal taxes 
C)  shut down operations in Mexico 
D)  hire fewer locals and more expatriates 
A)  repatriate less profits in dollars 
B)  pay more local and federal taxes 
C)  shut down operations in Mexico 
D)  hire fewer locals and more expatriates

How do companies manage terrorism risk?

Representatives of a MNC seek an interview with local government leaders in the Department of Commerce in India with a view to assess the types of policies likely to be implemented. According to Mathis, this is an example of ________.

Identify seven of the most typical political risk events that occur today.

Identify and describe four means of political risk adaptation.

In 2008, India joined a free-trade agreement known as ________.

John Mathis' four recommended methods of analyzing economic risk include all of the following EXCEPT the ________ approach.

Which of the following is NOT a true statement about India?

Which of the following is the most highly globalized in regards to economic integration, technological connectivity, personal contact, and political engagement?

The appropriability of technology is best defined as ________.

Which of the following terms refers to adopting business strategies that meet the current needs of the firm and also protect and enhance the human and natural resources that will be needed in the future?

Micro political risk events are those that affect ________.

Which of the following is NOT one of the Four Tigers?

A country's ability or intention to meet its financial obligations determines its ________ risk.

What is the primary concern among citizens in developed economies regarding the outsourcing of non-manufacturing jobs?

Briefly explain the difference macro and micro political risks.

What is currency translation exposure? Provide an example to illustrate your answer.

Which of the following is NOT one of the primary methods of managing political risk?

If the Mexican peso is devalued, then an MNC operating in Mexico will most likely have to ________.

Managing Interdependence Social Responsibility and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross Cultural Negotiation and Decision Making

Formulating Strategy

Global Alliances and Strategy Implementation

Organization Structure and Control Systems

Staffing Training and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters

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

How do companies manage terrorism risk?

Representatives of a MNC seek an interview with local government leaders in the Department of Commerce in India with a view to assess the types of policies likely to be implemented. According to Mathis, this is an example of ________.

Identify seven of the most typical political risk events that occur today.

Identify and describe four means of political risk adaptation.

In 2008, India joined a free-trade agreement known as ________.

John Mathis' four recommended methods of analyzing economic risk include all of the following EXCEPT the ________ approach.

Which of the following is NOT a true statement about India?

Which of the following is the most highly globalized in regards to economic integration, technological connectivity, personal contact, and political engagement?

The appropriability of technology is best defined as ________.

Which of the following terms refers to adopting business strategies that meet the current needs of the firm and also protect and enhance the human and natural resources that will be needed in the future?

Micro political risk events are those that affect ________.

Which of the following is NOT one of the Four Tigers?

A country's ability or intention to meet its financial obligations determines its ________ risk.

What is the primary concern among citizens in developed economies regarding the outsourcing of non-manufacturing jobs?

Briefly explain the difference macro and micro political risks.

What is currency translation exposure? Provide an example to illustrate your answer.

Which of the following is NOT one of the primary methods of managing political risk?

If the Mexican peso is devalued, then an MNC operating in Mexico will most likely have to ________.

Managing Interdependence Social Responsibility and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross Cultural Negotiation and Decision Making

Formulating Strategy

Global Alliances and Strategy Implementation

Organization Structure and Control Systems

Staffing Training and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters