Question 1

The three major types of current political systems are ________.

Accepted Answer

A)  totalitarianism, socialism, and democracy 
B)  socialism, democracy, and monarchy 
C)  totalitarianism, liberalism, and fascism 
D)  democracy, republicanism, and oligarchy 
A)  totalitarianism, socialism, and democracy 
B)  socialism, democracy, and monarchy 
C)  totalitarianism, liberalism, and fascism 
D)  democracy, republicanism, and oligarchy

Question 2

What has been the impact of social democracy on international business relations in some European countries?

Accepted Answer

A)  Regulations have forced foreign firms to invest elsewhere. 
B)  Politically conscious foreign firms have begun investing in socialist nations. 
C)  Low income tax rates have encouraged an influx of FDI. 
D)  Political stability has decreased the country risk of socialist nations. 
A)  Regulations have forced foreign firms to invest elsewhere. 
B)  Politically conscious foreign firms have begun investing in socialist nations. 
C)  Low income tax rates have encouraged an influx of FDI. 
D)  Political stability has decreased the country risk of socialist nations.

Question 3

Which of the following would be the best way for a manager to learn about country risks in a host country?

Accepted Answer

A)  analysis of records of competitor firms 
B)  employees working in the host country 
C)  host country nationals working abroad 
D)  employees working in the home country 
A)  analysis of records of competitor firms 
B)  employees working in the host country 
C)  host country nationals working abroad 
D)  employees working in the home country

Question 4

Which of the following is characteristic of an effective legal system?

Accepted Answer

A)  a stable and rigid framework of rules and norms across nations 
B)  systematically enforced laws and regulations 
C)  political involvement in business transactions 
D)  universal emphasis on religious law over common and civil law 
A)  a stable and rigid framework of rules and norms across nations 
B)  systematically enforced laws and regulations 
C)  political involvement in business transactions 
D)  universal emphasis on religious law over common and civil law

Question 5

Democracy is characterized by limited governmental interference.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true about managing country risk?

Accepted Answer

A)  Scanning allows a firm to assess the potential country risk. 
B)  Firms can reduce country risk by entering markets in collaboration with a foreign partner. 
C)  Country risk can seldom be anticipated by advance research. 
D)  Home-country employees are the best source for anticipating country risk in host-countries. 
A)  Scanning allows a firm to assess the potential country risk. 
B)  Firms can reduce country risk by entering markets in collaboration with a foreign partner. 
C)  Country risk can seldom be anticipated by advance research. 
D)  Home-country employees are the best source for anticipating country risk in host-countries.

Question 7

A(n) ________ is a voluntary refusal to engage in commercial dealings with a nation or a company.

Accepted Answer

A)  expropriation 
B)  sanction 
C)  boycott 
D)  confiscation 
A)  expropriation 
B)  sanction 
C)  boycott 
D)  confiscation

Question 8

Which form of government is characterized by private property rights and limited government?

Accepted Answer

A)  autocratic 
B)  democratic 
C)  socialist 
D)  totalitarian 
A)  autocratic 
B)  democratic 
C)  socialist 
D)  totalitarian

Question 9

Which of the following terms refers to the existence of a legal system based on clear rules and fair enforcement?

Accepted Answer

A)  conciliation 
B)  arbitration 
C)  culture of law 
D)  rule of law 
A)  conciliation 
B)  arbitration 
C)  culture of law 
D)  rule of law

Question 10

Which of the following terms indicates a company's potential loss of profitability caused by a nation's political or legal setting?

Accepted Answer

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

Question 11

Describe the two elements which contribute to country risk. Provide examples of countries with high and low country risk, and explain the reasons for these two distinctions.

Accepted Answer

The two elements which determine a natio

Question 12

Which of the following legal systems is based on legal precedents and past practices set by the nation's courts through interpretation of statutes, legislation, and past rulings?

Accepted Answer

A)  common 
B)  religious 
C)  socialist 
D)  civil 
A)  common 
B)  religious 
C)  socialist 
D)  civil

Question 13

Common law is primarily judicial in origin and based on court decisions.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Accepted Answer

A)  trial 
B)  arbitration 
C)  litigation 
D)  conciliation 
A)  trial 
B)  arbitration 
C)  litigation 
D)  conciliation

Question 15

Explain command economies. Provide examples of nations that exhibit characteristics of command economies and why command economies are no longer common today.

Accepted Answer

Command economies are also known as cent

Question 16

Manufacturers face legal penalties and lawsuits under product safety and liability laws if they are responsible for damage, injury, or death caused by defective products.

Accepted Answer

A) True 
 B)False

Question 17

Confiscation is the seizure of assets with compensation.

Accepted Answer

A) True 
 B)False

Question 18

Government agencies, institutions, and public officials influence the manner in which foreign firms conduct business.

Accepted Answer

A) True 
 B)False

Question 19

A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.

Accepted Answer

A) True 
 B)False

Question 20

Like most legal systems, Islamic law evolves with changing times to better meet the needs of the Islamic society.

Accepted Answer

A) True 
 B)False

The three major types of current political systems are ________.

What has been the impact of social democracy on international business relations in some European countries?

Which of the following would be the best way for a manager to learn about country risks in a host country?

Which of the following is characteristic of an effective legal system?

Democracy is characterized by limited governmental interference.

Which of the following statements is true about managing country risk?

A(n) ________ is a voluntary refusal to engage in commercial dealings with a nation or a company.

Which form of government is characterized by private property rights and limited government?

Which of the following terms refers to the existence of a legal system based on clear rules and fair enforcement?

Which of the following terms indicates a company's potential loss of profitability caused by a nation's political or legal setting?

Describe the two elements which contribute to country risk. Provide examples of countries with high and low country risk, and explain the reasons for these two distinctions.

Which of the following legal systems is based on legal precedents and past practices set by the nation's courts through interpretation of statutes, legislation, and past rulings?

Common law is primarily judicial in origin and based on court decisions.

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Explain command economies. Provide examples of nations that exhibit characteristics of command economies and why command economies are no longer common today.

Manufacturers face legal penalties and lawsuits under product safety and liability laws if they are responsible for damage, injury, or death caused by defective products.

Confiscation is the seizure of assets with compensation.

Government agencies, institutions, and public officials influence the manner in which foreign firms conduct business.

A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.

Like most legal systems, Islamic law evolves with changing times to better meet the needs of the Islamic society.

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

The three major types of current political systems are ________.

What has been the impact of social democracy on international business relations in some European countries?

Which of the following would be the best way for a manager to learn about country risks in a host country?

Which of the following is characteristic of an effective legal system?

Democracy is characterized by limited governmental interference.

Which of the following statements is true about managing country risk?

A(n) ________ is a voluntary refusal to engage in commercial dealings with a nation or a company.

Which form of government is characterized by private property rights and limited government?

Which of the following terms refers to the existence of a legal system based on clear rules and fair enforcement?

Which of the following terms indicates a company's potential loss of profitability caused by a nation's political or legal setting?

Describe the two elements which contribute to country risk. Provide examples of countries with high and low country risk, and explain the reasons for these two distinctions.

Which of the following legal systems is based on legal precedents and past practices set by the nation's courts through interpretation of statutes, legislation, and past rulings?

Common law is primarily judicial in origin and based on court decisions.

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Explain command economies. Provide examples of nations that exhibit characteristics of command economies and why command economies are no longer common today.

Manufacturers face legal penalties and lawsuits under product safety and liability laws if they are responsible for damage, injury, or death caused by defective products.

Confiscation is the seizure of assets with compensation.

Government agencies, institutions, and public officials influence the manner in which foreign firms conduct business.

A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.

Like most legal systems, Islamic law evolves with changing times to better meet the needs of the Islamic society.

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