Question 1

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

Accepted Answer

A) True 
 B)False

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

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 4

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 5

Market forces and free trade are encouraged in democracies.

Accepted Answer

A) True 
 B)False

Question 6

A(n)________ is an official ban on exports to or imports from a particular country, in order to isolate it and punish its government.

Accepted Answer

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

Question 7

In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is most likely applicable to Country B?

Accepted Answer

A) local and national legislatures pass laws 
B) ethics and morality are the underlying tenets 
C) an all-inclusive system of law that has been codified 
D) detailed contracts that clearly state all potential contingencies 
A) local and national legislatures pass laws 
B) ethics and morality are the underlying tenets 
C) an all-inclusive system of law that has been codified 
D) detailed contracts that clearly state all potential contingencies

Question 9

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.

Accepted Answer

Country risk is exposure to potential lo

Question 10

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 11

Which of the following legal systems is largely practiced in the Middle East?

Accepted Answer

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

Question 12

________ is seizure of corporate assets with compensation.

Accepted Answer

A) Confiscation 
B) Expropriation 
C) Embargo 
D) Sanction 
A) Confiscation 
B) Expropriation 
C) Embargo 
D) Sanction

Question 13

Confiscation is the seizure of assets with compensation.

Accepted Answer

A) True 
 B)False

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

Which of the following terms indicates potential loss or adverse effects on company operations and profitability caused by developments in a country's political and/or legal environments.

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 17

Unlike other legal systems, Islamic law evolves very little over time .

Accepted Answer

A) True 
 B)False

Question 18

________ fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

Accepted Answer

A) Socialism's 
B) Democracy's 
C) Totalitarianism's 
D) Theocracy's 
A) Socialism's 
B) Democracy's 
C) Totalitarianism's 
D) Theocracy's

Question 19

The Organisation for Economic Co-operation and Development (OECD)is classified as a(n)________.

Accepted Answer

A) international organization 
B) regional trade organization 
C) special interest group 
D) competing firm 
A) international organization 
B) regional trade organization 
C) special interest group 
D) competing firm

Question 20

Common law is also known as code law.

Accepted Answer

A) True 
 B)False

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

The United States restricts foreign investments that might affect ________.

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.

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

Market forces and free trade are encouraged in democracies.

A(n)________ is an official ban on exports to or imports from a particular country, in order to isolate it and punish its government.

In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.

Which of the following statements is most likely applicable to Country B?

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.

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

Which of the following legal systems is largely practiced in the Middle East?

________ is seizure of corporate assets with compensation.

Confiscation is the seizure of assets with compensation.

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

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

Which of the following terms indicates potential loss or adverse effects on company operations and profitability caused by developments in a country's political and/or legal environments.

Unlike other legal systems, Islamic law evolves very little over time .

________ fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

The Organisation for Economic Co-operation and Development (OECD)is classified as a(n)________.

Common law is also known as code law.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 6: Political and Legal Systems in National Environments

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

The United States restricts foreign investments that might affect ________.

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.

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

Market forces and free trade are encouraged in democracies.

A(n)________ is an official ban on exports to or imports from a particular country, in order to isolate it and punish its government.

In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.

Which of the following statements is most likely applicable to Country B?

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.

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

Which of the following legal systems is largely practiced in the Middle East?

________ is seizure of corporate assets with compensation.

Confiscation is the seizure of assets with compensation.

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

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

Which of the following terms indicates potential loss or adverse effects on company operations and profitability caused by developments in a country's political and/or legal environments.

Unlike other legal systems, Islamic law evolves very little over time .

________ fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

The Organisation for Economic Co-operation and Development (OECD)is classified as a(n)________.

Common law is also known as code law.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters