Question 1

The march toward greater political freedoms and more expansive civil liberties,beginning in the 1970s,strongly fueled a sense of ________.

Accepted Answer

A)  less predictable operating conditions for companies 
B)  the inevitability of democracy 
C)  different rules for domestic versus international competition 
D)  weaker property rights 
A)  less predictable operating conditions for companies 
B)  the inevitability of democracy 
C)  different rules for domestic versus international competition 
D)  weaker property rights

Question 2

Intellectual property refers to the creative ideas,innovative expertise,or intangible insights that give an individual,company,or country a competitive advantage.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

Accepted Answer

A)  intellectual property violations 
B)  environmental hazards 
C)  child labor violations 
D)  embezzlement 
A)  intellectual property violations 
B)  environmental hazards 
C)  child labor violations 
D)  embezzlement

Question 4

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail. Which of the following legal conventions does ION most likely have?

Accepted Answer

A)  intellectual property right 
B)  trademark credential 
C)  patent certificate 
D)  TRIPS permit 
A)  intellectual property right 
B)  trademark credential 
C)  patent certificate 
D)  TRIPS permit

Question 5

Political systems based on the ________ paradigm,such as those of Japan and China,accept the principle that government may intervene to ensure that business practices benefit society.

Accepted Answer

A)  individualistic 
B)  collectivistic 
C)  pluralistic 
D)  laissez-faire 
A)  individualistic 
B)  collectivistic 
C)  pluralistic 
D)  laissez-faire

Question 6

Wharton Enterprises,a U.S. firm,manufactures small kitchen appliances. The firm has recently developed an innovative blender design that Wharton executives anticipate being very profitable. Currently,Wharton has production facilities in the U.S. and China. Wharton executives are trying to determine where the new product should be manufactured. Which of the following best supports a decision to manufacture the new product in the U.S. instead of China?

Accepted Answer

A)  Intellectual property rights are strongly protected by U.S. patent laws. 
B)  A strategic marketing plan can be quickly developed in the U.S. 
C)  Contract enforcement is a simple process in the U.S. 
D)  The U.S. is experiencing an economic recession. 
A)  Intellectual property rights are strongly protected by U.S. patent laws. 
B)  A strategic marketing plan can be quickly developed in the U.S. 
C)  Contract enforcement is a simple process in the U.S. 
D)  The U.S. is experiencing an economic recession.

Question 7

Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of ________.

Accepted Answer

A)  a totalitarian government 
B)  a democratic government 
C)  societies that place ultimate power in the hands of one person 
D)  countries that are considered "partly free" 
A)  a totalitarian government 
B)  a democratic government 
C)  societies that place ultimate power in the hands of one person 
D)  countries that are considered "partly free"

Question 9

Select the correct order,going from low to high total impact on an MNE,of the following types of political risk: (1)procedural political risks,(2)systemic political risks,(3)distributive political risks,(4)catastrophic political risks.

Accepted Answer

A)  3, 2, 1, 4 
B)  1, 2, 3, 4 
C)  2, 3, 4, 1 
D)  2, 1, 3, 4 
A)  3, 2, 1, 4 
B)  1, 2, 3, 4 
C)  2, 3, 4, 1 
D)  2, 1, 3, 4

Question 10

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

Accepted Answer

A)  Totalitarian regimes delivered acceptable economic progress to their populations. 
B)  Economic advances caused contentment among the working class and minimized the need to push for democratic reforms. 
C)  Many groups were able to successfully challenge the legitimacy of democratic systems. 
D)  Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources. 
A)  Totalitarian regimes delivered acceptable economic progress to their populations. 
B)  Economic advances caused contentment among the working class and minimized the need to push for democratic reforms. 
C)  Many groups were able to successfully challenge the legitimacy of democratic systems. 
D)  Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources.

Question 11

________ political risks arise from political actions,such as public corruption or a partisan judicial system,that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done.

Accepted Answer

A)  Systemic 
B)  Procedural 
C)  Catastrophic 
D)  Distributive 
A)  Systemic 
B)  Procedural 
C)  Catastrophic 
D)  Distributive

Question 12

Identify the three common components of modern legal systems and explain their relevance to managers.

Accepted Answer

Unquestionably,legal systems differ from

Question 13

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a component of modern legal systems?

Accepted Answer

A)  constitutional law 
B)  criminal law 
C)  commercial law 
D)  private law 
A)  constitutional law 
B)  criminal law 
C)  commercial law 
D)  private law

Question 15

A democracy grants the voting citizenry the power to alter the laws and structures of government.

Accepted Answer

A) True 
 B)False

Question 16

Democracy and totalitarianism fall on the same end of the political spectrum.

Accepted Answer

A) True 
 B)False

Question 17

The ________ of a country specifies the rules that regulate behavior,the processes by which laws are enforced,and the procedures used to resolve grievances.

Accepted Answer

A)  political system 
B)  political philosophy 
C)  philosophical orientation 
D)  legal system 
A)  political system 
B)  political philosophy 
C)  philosophical orientation 
D)  legal system

Question 18

In a brief essay,describe the political and legal systems in China and their effect on MNEs doing business in China.

Accepted Answer

China applies state capitalism whereby t

Question 19

The vigor of IPR protection is highly related to a country's stage of ________.

Accepted Answer

A)  economic development 
B)  cultural heterogeneity 
C)  natural resource development 
D)  standardization of patent regulations 
A)  economic development 
B)  cultural heterogeneity 
C)  natural resource development 
D)  standardization of patent regulations

Question 20

A U.S. firm with manufacturing facilities in Nigeria will most likely be faced with a ________ legal system.

Accepted Answer

A)  civil 
B)  common 
C)  customary 
D)  mixed 
A)  civil 
B)  common 
C)  customary 
D)  mixed

The march toward greater political freedoms and more expansive civil liberties,beginning in the 1970s,strongly fueled a sense of ________.

Intellectual property refers to the creative ideas,innovative expertise,or intangible insights that give an individual,company,or country a competitive advantage.

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail. Which of the following legal conventions does ION most likely have?

Political systems based on the ________ paradigm,such as those of Japan and China,accept the principle that government may intervene to ensure that business practices benefit society.

Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.

Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of ________.

Select the correct order,going from low to high total impact on an MNE,of the following types of political risk: (1)procedural political risks,(2)systemic political risks,(3)distributive political risks,(4)catastrophic political risks.

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

________ political risks arise from political actions,such as public corruption or a partisan judicial system,that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done.

Identify the three common components of modern legal systems and explain their relevance to managers.

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Which of the following is NOT a component of modern legal systems?

A democracy grants the voting citizenry the power to alter the laws and structures of government.

Democracy and totalitarianism fall on the same end of the political spectrum.

The ________ of a country specifies the rules that regulate behavior,the processes by which laws are enforced,and the procedures used to resolve grievances.

In a brief essay,describe the political and legal systems in China and their effect on MNEs doing business in China.

The vigor of IPR protection is highly related to a country's stage of ________.

A U.S. firm with manufacturing facilities in Nigeria will most likely be faced with a ________ legal system.

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters

Exam 3: The Political and Legal Environments Facing Business

The march toward greater political freedoms and more expansive civil liberties,beginning in the 1970s,strongly fueled a sense of ________.

Intellectual property refers to the creative ideas,innovative expertise,or intangible insights that give an individual,company,or country a competitive advantage.

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail. Which of the following legal conventions does ION most likely have?

Political systems based on the ________ paradigm,such as those of Japan and China,accept the principle that government may intervene to ensure that business practices benefit society.

Totalitarian countries are favored by MNEs because state governments typically favor foreign investors over local companies.

Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of ________.

Select the correct order,going from low to high total impact on an MNE,of the following types of political risk: (1)procedural political risks,(2)systemic political risks,(3)distributive political risks,(4)catastrophic political risks.

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

________ political risks arise from political actions,such as public corruption or a partisan judicial system,that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done.

Identify the three common components of modern legal systems and explain their relevance to managers.

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Which of the following is NOT a component of modern legal systems?

A democracy grants the voting citizenry the power to alter the laws and structures of government.

Democracy and totalitarianism fall on the same end of the political spectrum.

The ________ of a country specifies the rules that regulate behavior,the processes by which laws are enforced,and the procedures used to resolve grievances.

In a brief essay,describe the political and legal systems in China and their effect on MNEs doing business in China.

The vigor of IPR protection is highly related to a country's stage of ________.

A U.S. firm with manufacturing facilities in Nigeria will most likely be faced with a ________ legal system.

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting Issues

The Multinational Finance Function

International Human Resources

Filters