Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

________ are the people and organizations that support the political system and receive government resources.

Accepted Answer

A) Subsidiaries 
B) Regional trade blocs 
C) Constituents 
D) Shell corporations 
A) Subsidiaries 
B) Regional trade blocs 
C) Constituents 
D) Shell corporations

Question 3

Which of the following would most likely oppose the opening of a Super Sports store in Norway?

Accepted Answer

A) labor unions 
B) local sports retailers 
C) international banks 
D) local sports enthusiasts 
A) labor unions 
B) local sports retailers 
C) international banks 
D) local sports enthusiasts

Question 4

Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.

Accepted Answer

A) True 
 B)False

Question 5

Democracy is characterized by limited governmental interference.

Accepted Answer

A) True 
 B)False

Question 6

Describe the methods used by governments to seize the assets of foreign firms. How would proactive environmental scanning mitigate this risk?

Accepted Answer

Governments seize corporate assets in th

Question 7

Which of the following pairs of nations are on opposite ends of the political freedom scale?

Accepted Answer

A) New Zealand and Chile 
B) China and Vietnam 
C) Japan and South Korea 
D) Cuba and Sweden 
A) New Zealand and Chile 
B) China and Vietnam 
C) Japan and South Korea 
D) Cuba and Sweden

Question 8

Of the five types of participants that are active in transforming political and legal systems, the public sector is the most important.

Accepted Answer

A) True 
 B)False

Question 9

What are some of the risks for firms involved with international e-commerce?

Accepted Answer

Firms that undertake e-commerce in count

Question 10

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 11

Which of the following countries is considered primarily socialist?

Accepted Answer

A) Germany 
B) Canada 
C) India 
D) Libya 
A) Germany 
B) Canada 
C) India 
D) Libya

Question 12

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 13

Representative B is most likely from ________.

Accepted Answer

A) New Zealand 
B) North Korea 
C) Russia 
D) Canada 
A) New Zealand 
B) North Korea 
C) Russia 
D) Canada

Question 14

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 15

A ________ government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

Accepted Answer

A) democratic 
B) socialistic 
C) mixed 
D) totalitarian 
A) democratic 
B) socialistic 
C) mixed 
D) totalitarian

Question 16

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 17

Most democracies include elements of socialism.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Explain extraterritoriality. Provide examples to illustrate how extraterritoriality affects international business.

Accepted Answer

Extraterritoriality refers to the applic

Question 20

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

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

________ are the people and organizations that support the political system and receive government resources.

Which of the following would most likely oppose the opening of a Super Sports store in Norway?

Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.

Democracy is characterized by limited governmental interference.

Describe the methods used by governments to seize the assets of foreign firms. How would proactive environmental scanning mitigate this risk?

Which of the following pairs of nations are on opposite ends of the political freedom scale?

Of the five types of participants that are active in transforming political and legal systems, the public sector is the most important.

What are some of the risks for firms involved with international e-commerce?

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?

Which of the following countries is considered primarily socialist?

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.

Representative B is most likely from ________.

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.

A ________ government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

Religion-based totalitarian states are called ________.

Most democracies include elements of socialism.

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

Explain extraterritoriality. Provide examples to illustrate how extraterritoriality affects international business.

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

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

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

________ are the people and organizations that support the political system and receive government resources.

Which of the following would most likely oppose the opening of a Super Sports store in Norway?

Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.

Democracy is characterized by limited governmental interference.

Describe the methods used by governments to seize the assets of foreign firms. How would proactive environmental scanning mitigate this risk?

Which of the following pairs of nations are on opposite ends of the political freedom scale?

Of the five types of participants that are active in transforming political and legal systems, the public sector is the most important.

What are some of the risks for firms involved with international e-commerce?

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?

Which of the following countries is considered primarily socialist?

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.

Representative B is most likely from ________.

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.

A ________ government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.

Religion-based totalitarian states are called ________.

Most democracies include elements of socialism.

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

Explain extraterritoriality. Provide examples to illustrate how extraterritoriality affects international business.

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

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