Question 1

Events that affect all foreign firms doing business in a country or region are called ________.

Accepted Answer

A)  macropolitical risk events 
B)  micropolitical risk events 
C)  country risk events 
D)  regional risk events 
A)  macropolitical risk events 
B)  micropolitical risk events 
C)  country risk events 
D)  regional risk events

Question 2

An international agreement which regulates international business by spelling out the rights and obligations of the seller and buyer is known as ________.

Accepted Answer

A)  WTO 
B)  HCN 
C)  TNC 
D)  CISG 
A)  WTO 
B)  HCN 
C)  TNC 
D)  CISG

Question 3

What is political risk? Give an example of how political risk can affect an MNC.

Accepted Answer

Political risks are any government actio

Question 4

The situation faced by Mr. David Ji, the Chinese-American electronics entrepreneur, in his dispute with China's largest television manufacturer illustrates ________.

Accepted Answer

A)  the sophistication of the Chinese legal system 
B)  how the Chinese government protects its largest firms 
C)  the effectiveness of guanxi in resolving a complex problem 
D)  how special protections are offered to American companies in China 
A)  the sophistication of the Chinese legal system 
B)  how the Chinese government protects its largest firms 
C)  the effectiveness of guanxi in resolving a complex problem 
D)  how special protections are offered to American companies in China

Question 5

What are the two most common forms of economic risk to a company?

Accepted Answer

The two forms of economic risk to a subs

Question 6

Japan and about 70 countries in Europe are ruled by ________ law.

Accepted Answer

A)  common 
B)  Islamic 
C)  civil 
D)  judicial 
A)  common 
B)  Islamic 
C)  civil 
D)  judicial

Question 7

Dell most likely offshores product support service jobs to India because of the ________.

Accepted Answer

A)  superior technical knowledge of Indian workers 
B)  extensive call center experience of Indian workers 
C)  lower payroll costs associated with Indian workers 
D)  customer preference for interacting with Indian workers 
A)  superior technical knowledge of Indian workers 
B)  extensive call center experience of Indian workers 
C)  lower payroll costs associated with Indian workers 
D)  customer preference for interacting with Indian workers

Question 8

In order for a contract to be enforced in a country ruled by ________ law, the details of the promises must be specified in the contract.

Accepted Answer

A)  common 
B)  policy 
C)  civil 
D)  international 
A)  common 
B)  policy 
C)  civil 
D)  international

Question 9

Which of the following is a method of dependency?

Accepted Answer

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

Question 10

Gayle Warwick Fine Linen owes its success as a global business primarily to the firm's ________.

Accepted Answer

A)  large staff in England 
B)  labor outsourcing in Vietnam 
C)  management by a French retail expert 
D)  marketing message in the United States 
A)  large staff in England 
B)  labor outsourcing in Vietnam 
C)  management by a French retail expert 
D)  marketing message in the United States

Question 11

Expropriation is most likely to occur in a country that has ________.

Accepted Answer

A)  numerous MNCs in operation 
B)  constant political upheaval and change 
C)  poor education and economic development 
D)  stable economic growth and political consistency 
A)  numerous MNCs in operation 
B)  constant political upheaval and change 
C)  poor education and economic development 
D)  stable economic growth and political consistency

Question 12

Which of the following best explains China's success in exporting?

Accepted Answer

A)  low costs and steady stream of capital 
B)  geographic location in the world 
C)  high educational standards 
D)  close ties with Japan 
A)  low costs and steady stream of capital 
B)  geographic location in the world 
C)  high educational standards 
D)  close ties with Japan

Question 13

________ is based on a comprehensive set of laws organized into a code.

Accepted Answer

A)  Islamic law 
B)  Civil law 
C)  Common law 
D)  Contract law 
A)  Islamic law 
B)  Civil law 
C)  Common law 
D)  Contract law

Question 14

An MNC located in Taiwan only fills key subsidiary management jobs with expatriates or home-office managers. The MNC is exercising ________.

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 15

All of the following are typical political risk events common today EXCEPT ________.

Accepted Answer

A)  loss of technology or intellectual property rights 
B)  violence against foreign firms for political purposes 
C)  discriminatory treatment in the application of laws 
D)  interference in managerial decision making 
A)  loss of technology or intellectual property rights 
B)  violence against foreign firms for political purposes 
C)  discriminatory treatment in the application of laws 
D)  interference in managerial decision making

Question 16

Suppose GE initiates a joint venture with a local company in Mexico as a way of adapting to risk. Which of the following strategies is GE most likely using?

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 17

Which of the following developments in global business has had the greatest effect on international managers in recent years?

Accepted Answer

A)  information technology 
B)  political unrest 
C)  increased nationalism 
D)  ethnic strife 
A)  information technology 
B)  political unrest 
C)  increased nationalism 
D)  ethnic strife

Question 18

What is the difference between common law, Islamic law, and civil law?

Accepted Answer

In common law, past court decisions act

Question 19

The countries of Costa Rica, Guatemala, and Honduras belong to ________.

Accepted Answer

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

Question 20

What methods are used by international managers to minimize political risks for the firm? How do managers determine which method is the best choice?

Accepted Answer

After assessing the potential political

Events that affect all foreign firms doing business in a country or region are called ________.

An international agreement which regulates international business by spelling out the rights and obligations of the seller and buyer is known as ________.

What is political risk? Give an example of how political risk can affect an MNC.

The situation faced by Mr. David Ji, the Chinese-American electronics entrepreneur, in his dispute with China's largest television manufacturer illustrates ________.

What are the two most common forms of economic risk to a company?

Japan and about 70 countries in Europe are ruled by ________ law.

Dell most likely offshores product support service jobs to India because of the ________.

In order for a contract to be enforced in a country ruled by ________ law, the details of the promises must be specified in the contract.

Which of the following is a method of dependency?

Gayle Warwick Fine Linen owes its success as a global business primarily to the firm's ________.

Expropriation is most likely to occur in a country that has ________.

Which of the following best explains China's success in exporting?

________ is based on a comprehensive set of laws organized into a code.

An MNC located in Taiwan only fills key subsidiary management jobs with expatriates or home-office managers. The MNC is exercising ________.

All of the following are typical political risk events common today EXCEPT ________.

Suppose GE initiates a joint venture with a local company in Mexico as a way of adapting to risk. Which of the following strategies is GE most likely using?

Which of the following developments in global business has had the greatest effect on international managers in recent years?

What is the difference between common law, Islamic law, and civil law?

The countries of Costa Rica, Guatemala, and Honduras belong to ________.

What methods are used by international managers to minimize political risks for the firm? How do managers determine which method is the best choice?

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

Events that affect all foreign firms doing business in a country or region are called ________.

An international agreement which regulates international business by spelling out the rights and obligations of the seller and buyer is known as ________.

What is political risk? Give an example of how political risk can affect an MNC.

The situation faced by Mr. David Ji, the Chinese-American electronics entrepreneur, in his dispute with China's largest television manufacturer illustrates ________.

What are the two most common forms of economic risk to a company?

Japan and about 70 countries in Europe are ruled by ________ law.

Dell most likely offshores product support service jobs to India because of the ________.

In order for a contract to be enforced in a country ruled by ________ law, the details of the promises must be specified in the contract.

Which of the following is a method of dependency?

Gayle Warwick Fine Linen owes its success as a global business primarily to the firm's ________.

Expropriation is most likely to occur in a country that has ________.

Which of the following best explains China's success in exporting?

________ is based on a comprehensive set of laws organized into a code.

An MNC located in Taiwan only fills key subsidiary management jobs with expatriates or home-office managers. The MNC is exercising ________.

All of the following are typical political risk events common today EXCEPT ________.

Suppose GE initiates a joint venture with a local company in Mexico as a way of adapting to risk. Which of the following strategies is GE most likely using?

Which of the following developments in global business has had the greatest effect on international managers in recent years?

What is the difference between common law, Islamic law, and civil law?

The countries of Costa Rica, Guatemala, and Honduras belong to ________.

What methods are used by international managers to minimize political risks for the firm? How do managers determine which method is the best choice?

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