Exam 3: Legal, Technological, Accounting, and Political Environments

What are cybersquatters? How do firms resolve problems with cybersquatters?

________ operates under bureaucratic law.

Which law was passed to address perceived public accounting problems?

When a dispute occurs in international commerce, what questions typically need to be answered to resolve the problem? Why do some firms often avoid litigation? What alternatives to litigation are available?

________ is based on a codification of what is and is not permissible.

The U.S. Freedom of Information Act is an example of ________.

Martin, a manager at an international firm located in China, is required to monitor political risks for his employer. Which of the following would LEAST likely provide Martin with useful information?

Laws regarding ________ are the primary reason the manufacturers in Germany and France compete on quality rather than price.

What are some reasons that one country might impose sanctions on another country? Illustrate your answer with an example.

Extraterritoriality refers to ________.

Which of the following would LEAST likely help a country change its technological environment?

As a result of the Sarbanes-Oxley Act, more foreign firms are choosing to list their shares on U.S. stock exchanges.

What is the purpose of the principle of comity? What conditions are required under the principle of comity?

The foundation of the legal system in India is ________.

Hawkins Tire is an international chain of discount tire stores. The firm has recently opened a store in Frankfurt, Germany, where there are already a number of local tire stores. Which of the following is the most likely negative effect of Hawkins Tire on Frankfurt?

What is the difference between macropolitical risk and micropolitical risk?

Countries that attempt to regulate business activities conducted outside their borders are practicing expropriation.

________ is a systematic analysis of the political risks possible in foreign countries.

The Multilateral Investment Guarantee Agency provides insurance to firms to protect against privatization risk.

The price-to-earnings ratio for Japanese firms is frequently higher than it is for U.S. firms because Japanese accounting procedures reduce reported profits.