Question 1

Disputes between international companies and host governments is difficult to resolve because

Accepted Answer

A)  They speak different languages 
B)  There is no single body of codes or laws that applies across all countries 
C)  They have different forms of government 
D)  They come from different cultures 
A)  They speak different languages 
B)  There is no single body of codes or laws that applies across all countries 
C)  They have different forms of government 
D)  They come from different cultures B

Question 2

Identify and explain the three major judicial systems.

Accepted Answer

The three major judicial systems are the following: civil law, common law, and theocratic law. The civil law is based on how the law is applied to the given facts and is based on the application of preset codes; the common law is based on the courts' interpretation of events, and the theocratic law is based on what is acceptable within the religious precepts.

Question 3

Define political system.

Accepted Answer

Political systems are a set of institutions that set standards, rules, and policies to govern a society. These institutions include political parties, political organizations, interest groups, and the members of the leading industry groups.

Question 4

Tax incentives are bonuses given to tax collectors to expedite the tax collection process.

Accepted Answer

A) True 
 B)False

Question 5

Expatriates are foreign workers employed by the government to gather information on foreign companies.

Accepted Answer

A) True 
 B)False

Question 6

The political system of a country is made up of political parties and government agencies.

Accepted Answer

A) True 
 B)False

Question 7

A models to analyze international companies' relationship with host governments is

Accepted Answer

A)  Sovereignty at bay model 
B)  Keynesian economic model 
C)  Political Risk Services model 
D)  Corruption perception index model 
A)  Sovereignty at bay model 
B)  Keynesian economic model 
C)  Political Risk Services model 
D)  Corruption perception index model

Question 8

Political systems are a set of institutions that

Accepted Answer

A)  Set standards 
B)  Establish policies 
C)  Govern a society 
D)  All of the above 
A)  Set standards 
B)  Establish policies 
C)  Govern a society 
D)  All of the above

Question 9

The International Court of Justice is established to settle

Accepted Answer

A)  Corruption cases 
B)  Product liability cases 
C)  Disputes between countries 
D)  Differences between competing companies 
A)  Corruption cases 
B)  Product liability cases 
C)  Disputes between countries 
D)  Differences between competing companies

Question 10

Low literacy levels are one of the main causes of corruption.

Accepted Answer

A) True 
 B)False

Question 11

The three major legal structures are

Accepted Answer

A)  Lower court, Appeals court, and the Supreme Court 
B)  The defense, the prosecution, and the judge 
C)  Civil law, common law, and the theocratic law 
D)  The American law, the English law, and the German law 
A)  Lower court, Appeals court, and the Supreme Court 
B)  The defense, the prosecution, and the judge 
C)  Civil law, common law, and the theocratic law 
D)  The American law, the English law, and the German law

Question 12

One approach to deal with political risk is

Accepted Answer

A)  Bribing the political leaders 
B)  Offering free education to the members of the family in control of the country 
C)  Identifying the specific political actions facing the company, analyzing the issues, and then formulating a viable strategy based on company's goals and resources. 
D)  Do nothing 
A)  Bribing the political leaders 
B)  Offering free education to the members of the family in control of the country 
C)  Identifying the specific political actions facing the company, analyzing the issues, and then formulating a viable strategy based on company's goals and resources. 
D)  Do nothing

Question 13

Under democracy, people are not allowed to complain against police brutality.

Accepted Answer

A) True 
 B)False

Question 14

Democracy implies that it is the rule of the people, by the people, for the people.

Accepted Answer

A) True 
 B)False

Question 15

Countries enact labor laws to protect workers' rights.

Accepted Answer

A) True 
 B)False

Question 16

Countries with one-party states are

Accepted Answer

A)  Kuwait, Saudi Arabia, and United Arab Emirates 
B)  France, Germany, and Italy 
C)  China, Cuba, and North Korea 
D)  Denmark, Norway, and Sweden 
A)  Kuwait, Saudi Arabia, and United Arab Emirates 
B)  France, Germany, and Italy 
C)  China, Cuba, and North Korea 
D)  Denmark, Norway, and Sweden

Question 17

Theocracy is a form of government in which

Accepted Answer

A)  Socialistic principles are followed 
B)  Religion plays a key role 
C)  Democratic principles are followed 
D)  President of the country plays a key role 
A)  Socialistic principles are followed 
B)  Religion plays a key role 
C)  Democratic principles are followed 
D)  President of the country plays a key role

Question 18

Terrorism consists of strikes by workers that cause undue delays in production of goods and services.

Accepted Answer

A) True 
 B)False

Question 19

Stable political systems result in stable governments.

Accepted Answer

A) True 
 B)False

Question 20

A country's legal system affects many aspects of businesses, including ownership and currency controls.

Accepted Answer

A) True 
 B)False

Disputes between international companies and host governments is difficult to resolve because

Identify and explain the three major judicial systems.

Define political system.

Tax incentives are bonuses given to tax collectors to expedite the tax collection process.

Expatriates are foreign workers employed by the government to gather information on foreign companies.

The political system of a country is made up of political parties and government agencies.

A models to analyze international companies' relationship with host governments is

Political systems are a set of institutions that

The International Court of Justice is established to settle

Low literacy levels are one of the main causes of corruption.

The three major legal structures are

One approach to deal with political risk is

Under democracy, people are not allowed to complain against police brutality.

Democracy implies that it is the rule of the people, by the people, for the people.

Countries enact labor laws to protect workers' rights.

Countries with one-party states are

Theocracy is a form of government in which

Terrorism consists of strikes by workers that cause undue delays in production of goods and services.

Stable political systems result in stable governments.

A country's legal system affects many aspects of businesses, including ownership and currency controls.

Introduction and Overview

International Business Environment-Culture

Economic and Other Related Environmental Variables

International Trade and Foreign Direct Investments

Entry Strategies

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Financial Management

International Accounting

Filters

Exam 4: The Political and Legal Environment

Disputes between international companies and host governments is difficult to resolve because

Identify and explain the three major judicial systems.

Define political system.

Tax incentives are bonuses given to tax collectors to expedite the tax collection process.

Expatriates are foreign workers employed by the government to gather information on foreign companies.

The political system of a country is made up of political parties and government agencies.

A models to analyze international companies' relationship with host governments is

Political systems are a set of institutions that

The International Court of Justice is established to settle

Low literacy levels are one of the main causes of corruption.

The three major legal structures are

One approach to deal with political risk is

Under democracy, people are not allowed to complain against police brutality.

Democracy implies that it is the rule of the people, by the people, for the people.

Countries enact labor laws to protect workers' rights.

Countries with one-party states are

Theocracy is a form of government in which

Terrorism consists of strikes by workers that cause undue delays in production of goods and services.

Stable political systems result in stable governments.

A country's legal system affects many aspects of businesses, including ownership and currency controls.

Introduction and Overview

International Business Environment-Culture

Economic and Other Related Environmental Variables

International Trade and Foreign Direct Investments

Entry Strategies

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Financial Management

International Accounting

Filters