Question 1

Common law can best be described as a system ________.

Accepted Answer

A)  designed from political and legislative regulations 
B)  derived from religious beliefs and moral values 
C)  based on an all-inclusive system of laws that have been codified 
D)  based on legal precedents set by the nation's courts 
A)  designed from political and legislative regulations 
B)  derived from religious beliefs and moral values 
C)  based on an all-inclusive system of laws that have been codified 
D)  based on legal precedents set by the nation's courts

Question 2

The United States restricts foreign investments that might affect ________.

Accepted Answer

A)  immigration reforms 
B)  labor negotiations 
C)  national security 
D)  manufacturing technologies 
A)  immigration reforms 
B)  labor negotiations 
C)  national security 
D)  manufacturing technologies

Question 3

Which of the following is the underlying principle of socialism?

Accepted Answer

A)  The welfare of individuals far outweighs the welfare of society. 
B)  The well-being of the group supersedes the well-being of individuals. 
C)  Capital and wealth should be vested in the hands of few and used primarily as a means of profit. 
D)  The state should protect itself from individual and group interests. 
A)  The welfare of individuals far outweighs the welfare of society. 
B)  The well-being of the group supersedes the well-being of individuals. 
C)  Capital and wealth should be vested in the hands of few and used primarily as a means of profit. 
D)  The state should protect itself from individual and group interests.

Question 4

Special interest groups serve the interests of particular countries, industries, or causes.

Accepted Answer

A) True 
 B)False

Question 5

Trade unions are part of a country's legal system.

Accepted Answer

A) True 
 B)False

Question 6

Explain why contract laws can represent a country risk arising from the host-country legal environment, and explain the three approaches firms typically employ to settle international contractual disputes.

Accepted Answer

Governments in host countries can impose

Question 7

Which of the following statements is true of country risk?

Accepted Answer

A)  Its nature remains constant over time and across nations. 
B)  Its intensity seldom varies over time and across nations. 
C)  It is present only in poor nations. 
D)  It is present in all nations. 
A)  Its nature remains constant over time and across nations. 
B)  Its intensity seldom varies over time and across nations. 
C)  It is present only in poor nations. 
D)  It is present in all nations.

Question 8

The U.S. Securities and Exchange Act encourages confidence in business transactions by ________.

Accepted Answer

A)  protecting public companies from government scrutiny 
B)  evaluating the inner workings of privately owned firms 
C)  requiring public companies to frequently disclose their financial status 
D)  shielding investors from bankruptcy and excessive taxation 
A)  protecting public companies from government scrutiny 
B)  evaluating the inner workings of privately owned firms 
C)  requiring public companies to frequently disclose their financial status 
D)  shielding investors from bankruptcy and excessive taxation

Question 9

The protection of intellectual property rights is guaranteed and enforceable in every country in the world.

Accepted Answer

A) True 
 B)False

Question 10

An individual from a country with a low degree of political risk would most likely be from ________.

Accepted Answer

A)  Venezuela 
B)  Canada 
C)  Zimbabwe 
D)  Iraq 
A)  Venezuela 
B)  Canada 
C)  Zimbabwe 
D)  Iraq

Question 11

Common law originated in the United States.

Accepted Answer

A) True 
 B)False

Question 12

The European Union impacts international trade and business because of its ability to enact and enforce laws and regulations.

Accepted Answer

A) True 
 B)False

Question 13

Country risk is considered similar to ________.

Accepted Answer

A)  political risk 
B)  commercial risk 
C)  currency risk 
D)  cross-cultural risk 
A)  political risk 
B)  commercial risk 
C)  currency risk 
D)  cross-cultural risk

Question 14

What is transparency? Explain how transparency varies around the world.

Accepted Answer

Transparency is the degree to which firm

Question 15

Most democracies include elements of socialism.

Accepted Answer

A) True 
 B)False

Question 16

The immediate cause of country risk is a legal or political factor.

Accepted Answer

A) True 
 B)False

Question 17

Religion-based totalitarian states are called ________.

Accepted Answer

A)  theocratic 
B)  secular 
C)  socialistic 
D)  atheistic 
A)  theocratic 
B)  secular 
C)  socialistic 
D)  atheistic

Question 18

Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long-term.
-Which of the following supports Country A over Country B?

Accepted Answer

A)  contractual noncompliance provisions are broader in scope 
B)  contracts are so detailed that they are expensive to draft 
C)  higher flexibility compared to other legal systems 
D)  judges confer with legislators on international business issues 
A)  contractual noncompliance provisions are broader in scope 
B)  contracts are so detailed that they are expensive to draft 
C)  higher flexibility compared to other legal systems 
D)  judges confer with legislators on international business issues

Question 19

Both common law and civil law systems originated in ________.

Accepted Answer

A)  eastern Europe 
B)  western Europe 
C)  western Asia 
D)  eastern Asia 
A)  eastern Europe 
B)  western Europe 
C)  western Asia 
D)  eastern Asia

Question 20

Provide an overview of totalitarianism, socialism and democracy. Provide examples of nations which adhere to each system.

Accepted Answer

a. Under totalitarianism, the state atte

Common law can best be described as a system ________.

The United States restricts foreign investments that might affect ________.

Which of the following is the underlying principle of socialism?

Special interest groups serve the interests of particular countries, industries, or causes.

Trade unions are part of a country's legal system.

Explain why contract laws can represent a country risk arising from the host-country legal environment, and explain the three approaches firms typically employ to settle international contractual disputes.

Which of the following statements is true of country risk?

The U.S. Securities and Exchange Act encourages confidence in business transactions by ________.

The protection of intellectual property rights is guaranteed and enforceable in every country in the world.

An individual from a country with a low degree of political risk would most likely be from ________.

Common law originated in the United States.

The European Union impacts international trade and business because of its ability to enact and enforce laws and regulations.

Country risk is considered similar to ________.

What is transparency? Explain how transparency varies around the world.

Most democracies include elements of socialism.

The immediate cause of country risk is a legal or political factor.

Religion-based totalitarian states are called ________.

Both common law and civil law systems originated in ________.

Provide an overview of totalitarianism, socialism and democracy. Provide examples of nations which adhere to each system.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters

Exam 7: Political and Legal Systems in National Environments

Common law can best be described as a system ________.

The United States restricts foreign investments that might affect ________.

Which of the following is the underlying principle of socialism?

Special interest groups serve the interests of particular countries, industries, or causes.

Trade unions are part of a country's legal system.

Explain why contract laws can represent a country risk arising from the host-country legal environment, and explain the three approaches firms typically employ to settle international contractual disputes.

Which of the following statements is true of country risk?

The U.S. Securities and Exchange Act encourages confidence in business transactions by ________.

The protection of intellectual property rights is guaranteed and enforceable in every country in the world.

An individual from a country with a low degree of political risk would most likely be from ________.

Common law originated in the United States.

The European Union impacts international trade and business because of its ability to enact and enforce laws and regulations.

Country risk is considered similar to ________.

What is transparency? Explain how transparency varies around the world.

Most democracies include elements of socialism.

The immediate cause of country risk is a legal or political factor.

Religion-based totalitarian states are called ________.

Both common law and civil law systems originated in ________.

Provide an overview of totalitarianism, socialism and democracy. Provide examples of nations which adhere to each system.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Global Sourcing

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters