Question 1

How does the government regulate business in Canada? How do these regulations affect foreign subsidiaries?

Accepted Answer

The Canadian government partly or wholly

Question 2

What is the European Union (EU)? Discuss how the EU affects both Europe and international managers working in Europe.

Accepted Answer

The E.U now comprises a 27-nation unifie

Question 3

Which of the following requires that a firm keep control of the means of distribution?

Accepted Answer

A)  input control 
B)  market control 
C)  position control 
D)  bureaucratic control 
A)  input control 
B)  market control 
C)  position control 
D)  bureaucratic control

Question 4

Expropriation of corporate assets without prompt and adequate compensation is an example of ________.

Accepted Answer

A)  economic risk 
B)  political risk 
C)  legal risk 
D)  cultural risk 
A)  economic risk 
B)  political risk 
C)  legal risk 
D)  cultural risk

Question 5

All of the following are obstacles to e-commerce EXCEPT ________.

Accepted Answer

A)  language differences 
B)  varying tax systems 
C)  disinterested consumers 
D)  inadequate technical capabilities 
A)  language differences 
B)  varying tax systems 
C)  disinterested consumers 
D)  inadequate technical capabilities

Question 6

Suppose the government of Karakozia seizes all assets of Pepsi in Karakozia without offering any compensation to the company. This action on the part of the government is an example of ________.

Accepted Answer

A)  nationalization 
B)  repatriation 
C)  expropriation 
D)  confiscation 
A)  nationalization 
B)  repatriation 
C)  expropriation 
D)  confiscation

Question 7

For global corporations, the primary impact of political risks is likely to be on the firm's ________.

Accepted Answer

A)  ownership and control 
B)  marketing and sales 
C)  transfers and exchanges 
D)  managerial strategy and policy making 
A)  ownership and control 
B)  marketing and sales 
C)  transfers and exchanges 
D)  managerial strategy and policy making

Question 8

Why have foreign investors recently become wary of Russia?

Accepted Answer

Until recently, Russia has been regarded

Question 9

The European Union currently consists of how many nations?

Accepted Answer

A)  12 
B)  27 
C)  34 
D)  46 
A)  12 
B)  27 
C)  34 
D)  46

Question 10

Tariffs and quotas are examples of what types of policies?

Accepted Answer

A)  economic development 
B)  protectionist 
C)  free market 
D)  globalization 
A)  economic development 
B)  protectionist 
C)  free market 
D)  globalization

Question 11

What are the two most common methods of hedging political risks?

Accepted Answer

Political risk insurance and local debt

Question 12

If a U.S. firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firms is managing political risk with ________.

Accepted Answer

A)  local debt financing 
B)  position control 
C)  development assistance 
D)  adaptation 
A)  local debt financing 
B)  position control 
C)  development assistance 
D)  adaptation

Question 13

The selling of goods or services over the Internet is known as ________.

Accepted Answer

A)  e-commerce 
B)  international business 
C)  information technology 
D)  electronic franchising 
A)  e-commerce 
B)  international business 
C)  information technology 
D)  electronic franchising

Question 14

The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation.

Accepted Answer

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

Question 15

Which of the following requires that the firm actively involve nationals in the management of the subsidiary?

Accepted Answer

A)  equity sharing 
B)  participative management 
C)  localization of the operation 
D)  development assistance 
A)  equity sharing 
B)  participative management 
C)  localization of the operation 
D)  development assistance

Question 16

Which of the following best explains why many foreign companies in China experience significant financial losses?

Accepted Answer

A)  China lacks the financial and legal systems needed to support the country's foreign trade. 
B)  China's local market is not large enough to support its extensive exporting to the U.S. 
C)  China's government mandates that workers receive high wages and benefits. 
D)  China's exchange rate changes too frequently for U.S. businesses to compete. 
A)  China lacks the financial and legal systems needed to support the country's foreign trade. 
B)  China's local market is not large enough to support its extensive exporting to the U.S. 
C)  China's government mandates that workers receive high wages and benefits. 
D)  China's exchange rate changes too frequently for U.S. businesses to compete.

Question 17

Companies often reduce risk in foreign countries by creating dependency of a subsidiary on the host country. Which of the following is NOT a means of maintaining dependency?

Accepted Answer

A)  market control 
B)  equity sharing 
C)  staged contribution strategies 
D)  position control 
A)  market control 
B)  equity sharing 
C)  staged contribution strategies 
D)  position control

Question 18

When GM does not allow its subsidiary manufacturing company in China to sell the Chinese-made cars outside of China, GM is exercising ________.

Accepted Answer

A)  input control 
B)  position control 
C)  hedging 
D)  market control 
A)  input control 
B)  position control 
C)  hedging 
D)  market control

Question 19

Which of the following terms refers to the integration of systems, processes, organizations, value chains, and entire markets using Internet-based technologies?

Accepted Answer

A)  globalization 
B)  e-business 
C)  integration 
D)  geocentrism 
A)  globalization 
B)  e-business 
C)  integration 
D)  geocentrism

Question 20

What is the purpose of the North American Free Trade Agreement (NAFTA)? Do you think it has been effective? Why or why not?

Accepted Answer

The goal of the NAFTA was to bring faste

How does the government regulate business in Canada? How do these regulations affect foreign subsidiaries?

What is the European Union (EU)? Discuss how the EU affects both Europe and international managers working in Europe.

Which of the following requires that a firm keep control of the means of distribution?

Expropriation of corporate assets without prompt and adequate compensation is an example of ________.

All of the following are obstacles to e-commerce EXCEPT ________.

Suppose the government of Karakozia seizes all assets of Pepsi in Karakozia without offering any compensation to the company. This action on the part of the government is an example of ________.

For global corporations, the primary impact of political risks is likely to be on the firm's ________.

Why have foreign investors recently become wary of Russia?

The European Union currently consists of how many nations?

Tariffs and quotas are examples of what types of policies?

What are the two most common methods of hedging political risks?

If a U.S. firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firms is managing political risk with ________.

The selling of goods or services over the Internet is known as ________.

The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation.

Which of the following requires that the firm actively involve nationals in the management of the subsidiary?

Which of the following best explains why many foreign companies in China experience significant financial losses?

Companies often reduce risk in foreign countries by creating dependency of a subsidiary on the host country. Which of the following is NOT a means of maintaining dependency?

When GM does not allow its subsidiary manufacturing company in China to sell the Chinese-made cars outside of China, GM is exercising ________.

Which of the following terms refers to the integration of systems, processes, organizations, value chains, and entire markets using Internet-based technologies?

What is the purpose of the North American Free Trade Agreement (NAFTA)? Do you think it has been effective? Why or why not?

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 does the government regulate business in Canada? How do these regulations affect foreign subsidiaries?

What is the European Union (EU)? Discuss how the EU affects both Europe and international managers working in Europe.

Which of the following requires that a firm keep control of the means of distribution?

Expropriation of corporate assets without prompt and adequate compensation is an example of ________.

All of the following are obstacles to e-commerce EXCEPT ________.

Suppose the government of Karakozia seizes all assets of Pepsi in Karakozia without offering any compensation to the company. This action on the part of the government is an example of ________.

For global corporations, the primary impact of political risks is likely to be on the firm's ________.

Why have foreign investors recently become wary of Russia?

The European Union currently consists of how many nations?

Tariffs and quotas are examples of what types of policies?

What are the two most common methods of hedging political risks?

If a U.S. firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firms is managing political risk with ________.

The selling of goods or services over the Internet is known as ________.

The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation.

Which of the following requires that the firm actively involve nationals in the management of the subsidiary?

Which of the following best explains why many foreign companies in China experience significant financial losses?

Companies often reduce risk in foreign countries by creating dependency of a subsidiary on the host country. Which of the following is NOT a means of maintaining dependency?

When GM does not allow its subsidiary manufacturing company in China to sell the Chinese-made cars outside of China, GM is exercising ________.

Which of the following terms refers to the integration of systems, processes, organizations, value chains, and entire markets using Internet-based technologies?

What is the purpose of the North American Free Trade Agreement (NAFTA)? Do you think it has been effective? Why or why not?

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