Question 1

Compare and contrast the rule of law and the rule of man.

Accepted Answer

The rule of man has been around for mill

Question 2

The rule of man,a practice that has been in play for millennia,presumes that the law is the will of the ruler,whether the king,czar,raj,or emperor.

Accepted Answer

A) True 
 B)False

Question 3

________ refer(s)to the creative ideas,innovative expertise,or intangible insights that give an individual,company,or country a competitive advantage.

Accepted Answer

A)  Proprietary goods 
B)  Exclusive ownership 
C)  Restrictive goods 
D)  Intellectual property 
A)  Proprietary goods 
B)  Exclusive ownership 
C)  Restrictive goods 
D)  Intellectual property

Question 4

Which of the following countries has an individualistic orientation?

Accepted Answer

A)  Venezuela 
B)  Japan 
C)  Egypt 
D)  Canada 
A)  Venezuela 
B)  Japan 
C)  Egypt 
D)  Canada

Question 5

A(n)________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible,detailed,and written law that applies to all citizens.

Accepted Answer

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

Question 6

Ian,a financial manager,is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office. With which type of legal system will Ian most likely have to deal with in Germany?

Accepted Answer

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

Question 7

Proponents of ________ argue that individual interests are not as important as the welfare of the group.

Accepted Answer

A)  pluralism 
B)  capitalism 
C)  collectivism 
D)  individualism 
A)  pluralism 
B)  capitalism 
C)  collectivism 
D)  individualism

Question 8

Rockwall Enterprises is planning to expand the firm by establishing operations outside of the U.S. In which of the following countries would Rockwall most likely be able to establish operations most quickly?

Accepted Answer

A)  Japan 
B)  Brazil 
C)  Germany 
D)  Australia 
A)  Japan 
B)  Brazil 
C)  Germany 
D)  Australia

Question 9

Countries with a ________ legal system tend to encourage precise,detailed contracts,whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.

Accepted Answer

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

Question 10

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 questions is most relevant to the decision?

Accepted Answer

A)  What selection procedures would be best in China? 
B)  Should expatriates or locals manage the Chinese facility? 
C)  How can the firm guard against counterfeiting in China? 
D)  How would China's individualistic system affect the firm? 
A)  What selection procedures would be best in China? 
B)  Should expatriates or locals manage the Chinese facility? 
C)  How can the firm guard against counterfeiting in China? 
D)  How would China's individualistic system affect the firm?

Question 11

Which of the following was a notable trend in political systems during the second half of the 20th century and beginning of the 21st century?

Accepted Answer

A)  A wave of democratic transformations occurred as countries around the world moved away from totalitarian systems. 
B)  A wave of theocratic revolutions occurred as people around the world looked to spirituality to guide them. 
C)  Socialistic revolutions swept the world as countries aspired toward greater social justice. 
D)  A totalitarian revolution swept the world as people looked to strong state leadership in uncertain times. 
A)  A wave of democratic transformations occurred as countries around the world moved away from totalitarian systems. 
B)  A wave of theocratic revolutions occurred as people around the world looked to spirituality to guide them. 
C)  Socialistic revolutions swept the world as countries aspired toward greater social justice. 
D)  A totalitarian revolution swept the world as people looked to strong state leadership in uncertain times.

Question 12

In a totalitarian political system,________.

Accepted Answer

A)  political power resides with the citizens of the country 
B)  governments direct most economic activity but few social ones 
C)  an individualistic outlook shapes political debate and policy formation 
D)  one agent monopolizes political power 
A)  political power resides with the citizens of the country 
B)  governments direct most economic activity but few social ones 
C)  an individualistic outlook shapes political debate and policy formation 
D)  one agent monopolizes political power

Question 13

The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.

Accepted Answer

A) True 
 B)False

Question 14

________ refers to a political system in which government is organized by and accountable to the people.

Accepted Answer

A)  Totalitarianism 
B)  Fascism 
C)  Socialism 
D)  Democracy 
A)  Totalitarianism 
B)  Fascism 
C)  Socialism 
D)  Democracy

Question 15

In which of the following countries would business activity,given its status as a "not free" marketplace,be under the greatest government control?

Accepted Answer

A)  Vietnam 
B)  Pakistan 
C)  India 
D)  Brazil 
A)  Vietnam 
B)  Pakistan 
C)  India 
D)  Brazil

Question 16

Multilateral development banks encourage development in risky environments through financial incentives.

Accepted Answer

A) True 
 B)False

Question 17

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs?

Accepted Answer

Procedural risk is associated with movin

Question 18

Which of the following statements about approaches to political risk management is NOT true?

Accepted Answer

A)  Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards. 
B)  Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. 
C)  Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. 
D)  Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect. 
A)  Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards. 
B)  Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. 
C)  Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. 
D)  Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.

Question 19

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation?

Accepted Answer

The doctrine of individualism emphasizes

Question 20

What are the differences between democratic and totalitarian political systems? What does current research suggest about the spread of democracy and totalitarianism in the world?

Accepted Answer

Democracy basically involves wide partic

Compare and contrast the rule of law and the rule of man.

The rule of man,a practice that has been in play for millennia,presumes that the law is the will of the ruler,whether the king,czar,raj,or emperor.

________ refer(s)to the creative ideas,innovative expertise,or intangible insights that give an individual,company,or country a competitive advantage.

Which of the following countries has an individualistic orientation?

A(n)________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible,detailed,and written law that applies to all citizens.

Ian,a financial manager,is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office. With which type of legal system will Ian most likely have to deal with in Germany?

Proponents of ________ argue that individual interests are not as important as the welfare of the group.

Rockwall Enterprises is planning to expand the firm by establishing operations outside of the U.S. In which of the following countries would Rockwall most likely be able to establish operations most quickly?

Countries with a legal system tend to encourage precise,detailed contracts,whereas countries with a legal system tend to encourage shorter and less specific contracts.

Which of the following was a notable trend in political systems during the second half of the 20th century and beginning of the 21st century?

In a totalitarian political system,________.

The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.

________ refers to a political system in which government is organized by and accountable to the people.

In which of the following countries would business activity,given its status as a "not free" marketplace,be under the greatest government control?

Multilateral development banks encourage development in risky environments through financial incentives.

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs?

Which of the following statements about approaches to political risk management is NOT true?

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation?

What are the differences between democratic and totalitarian political systems? What does current research suggest about the spread of democracy and totalitarianism in the world?

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

Compare and contrast the rule of law and the rule of man.

The rule of man,a practice that has been in play for millennia,presumes that the law is the will of the ruler,whether the king,czar,raj,or emperor.

________ refer(s)to the creative ideas,innovative expertise,or intangible insights that give an individual,company,or country a competitive advantage.

Which of the following countries has an individualistic orientation?

A(n)________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible,detailed,and written law that applies to all citizens.

Ian,a financial manager,is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office. With which type of legal system will Ian most likely have to deal with in Germany?

Proponents of ________ argue that individual interests are not as important as the welfare of the group.

Rockwall Enterprises is planning to expand the firm by establishing operations outside of the U.S. In which of the following countries would Rockwall most likely be able to establish operations most quickly?

Countries with a ________ legal system tend to encourage precise,detailed contracts,whereas countries with a ________ legal system tend to encourage shorter and less specific contracts.

Which of the following was a notable trend in political systems during the second half of the 20th century and beginning of the 21st century?

In a totalitarian political system,________.

The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.

________ refers to a political system in which government is organized by and accountable to the people.

In which of the following countries would business activity,given its status as a "not free" marketplace,be under the greatest government control?

Multilateral development banks encourage development in risky environments through financial incentives.

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs?

Which of the following statements about approaches to political risk management is NOT true?

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation?

What are the differences between democratic and totalitarian political systems? What does current research suggest about the spread of democracy and totalitarianism in the world?

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

Countries with a legal system tend to encourage precise,detailed contracts,whereas countries with a legal system tend to encourage shorter and less specific contracts.