Exam 7: Political and Legal Systems in National Environments

Host-Country Legal System (Scenario) Super Sports, a large sporting goods chain based in Australia, wants to open a store in Norway. With stores around the world, Super Sports executives realize that legal systems vary from country to country. Having never opened a store in Norway, the Super Sports legal team is investigating Norwegian laws to determine how they would impact the corporation and its ability to do business in Norway. -Which of the following is the most important issue to consider when determining the best entry strategy for Super Sports?

Which of the following characterizes country risk?

Market forces and free trade are encouraged in democracies.

Which of the following best explains why India was once characterized by high country risk?

Host-Country Legal System (Scenario) Super Sports, a large sporting goods chain based in Australia, wants to open a store in Norway. With stores around the world, Super Sports executives realize that legal systems vary from country to country. Having never opened a store in Norway, the Super Sports legal team is investigating Norwegian laws to determine how they would impact the corporation and its ability to do business in Norway. -Which of the following supports a decision in favor of Super Sports opening a store in Norway?

An embargo is an official ban on exports to or imports from a particular country.

A ________ government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

Explain the purpose of special interest groups. How do these organizations affect international business? Provide examples to support your answer.

World Conference (Scenario) At a world conference to be conducted in Tokyo, representatives from nearly every country in the world will gather to discuss issues related to international trade. Representative A is from a totalitarian state. Representative B is from a socialist nation. Representative C hails from a democratic society. -Representative C is most likely from ________.

Which of the following countries is considered primarily socialist?

Explain the connection between democracy and economic freedom. What are some of the characteristics associated with political and economic freedom?

Which of the following is an element of socialism often found in democratic societies?

World Conference (Scenario) At a world conference to be conducted in Tokyo, representatives from nearly every country in the world will gather to discuss issues related to international trade. Representative A is from a totalitarian state. Representative B is from a socialist nation. Representative C hails from a democratic society. -Which of the following countries would Representative A most likely be from?

Income repatriation laws affect MNEs that earn profits in foreign countries by ________.

The European Union is classified as a(n) ________.

The most widespread form of religious law is ________ law.

Common law is also known as code law.

Describe country risk and discuss how political and legal systems contribute to country risk. Explain the differences between political systems and legal systems in your answer.

Explain extraterritoriality. Provide examples to illustrate how extraterritoriality affects international business.

What are some of the risks and benefits for firms involved with international e-commerce?