Question 1

Political risk insurance is more likely to be purchased by MNEs that apply an active approach to political risk management.

Accepted Answer

A) True 
 B)False  False

Question 2

A(n)________ ideology is the system of ideas that expresses the goals, theories, and aims of how society should work.

Accepted Answer

A) technological 
B) economic 
C) legal 
D) political 
A) technological 
B) economic 
C) legal 
D) political D

Question 3

Compare and contrast the rule of law and the rule of man.

Accepted Answer

The rule of man has been around for millennia, in the sense that for much of history, the ruler and the rule were synonymous.The law was the will of the ruler, whether in the person of the king, czar, raj, caliph, or emperor.Regardless of the title used today, such as chairman, general, or supreme leader, the principle places ultimate power in the hands of one person, making his (or her)word and will (and whim)law, no matter how unfair, unjust, or nonsensical.Because it grants inherent authority for the ruling party to act without being subject to checks and balances, the rule of man principle is a keystone of totalitarian government.
The rule of law, in contrast, rejects the notion of an omnipotent leader arbitrarily ruling society.Instead, the rule of law, a hallmark of democracy, holds that governmental authority is legitimately exercised in accordance with written, publicly disclosed laws that have been appropriately adopted and are enforced in keeping with established procedure.Ideally, the rule of law institutes a just political and social environment, guarantees the enforceability of commercial contracts and business transactions, and safeguards personal property and individual freedom.Everyone who lives under it expects every legitimately enacted law, code, and statute to be grounded in and validated by the principles of the rule of law.No individual-whether public official or private citizen-stands above the law.

Question 4

________ political risks arise from political actions, such as public corruption or a partisan judicial system, that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done.

Accepted Answer

A) Systemic 
B) Procedural 
C) Catastrophic 
D) Distributive 
A) Systemic 
B) Procedural 
C) Catastrophic 
D) Distributive

Question 5

In which of the following countries would business activity, given its status as a "not free" marketplace, be under the greatest government control?

Accepted Answer

A) Vietnam 
B) Pakistan 
C) India 
D) Brazil 
A) Vietnam 
B) Pakistan 
C) India 
D) Brazil

Question 6

Wharton Enterprises, a U.S.firm, manufactures small kitchen appliances.The firm has recently developed an innovative blender design that Wharton executives anticipate being very profitable.Currently, Wharton has production facilities in the United States and China.Wharton executives are trying to determine where the new product should be manufactured.Which of the following best supports a decision to manufacture the new product in the United States instead of China?

Accepted Answer

A) Intellectual property rights are strongly protected by U.S. patent laws. 
B) A strategic marketing plan can be quickly developed in the United States. 
C) Contract enforcement is a simple process in the United States. 
D) The United States is experiencing an economic recession. 
A) Intellectual property rights are strongly protected by U.S. patent laws. 
B) A strategic marketing plan can be quickly developed in the United States. 
C) Contract enforcement is a simple process in the United States. 
D) The United States is experiencing an economic recession.

Question 7

The rule of law holds that governmental authority is legitimately exercised only in accordance with written, publicly disclosed laws that have been appropriately adopted and which are enforced in keeping with established procedure.

Accepted Answer

A) True 
 B)False

Question 8

International law takes precedence over national laws in determining permissible practices in pricing, distribution, advertising, and promotion of products and services in a particular country.

Accepted Answer

A) True 
 B)False

Question 9

Under the ________ form of totalitarianism, the regime confines itself to political control of the state.It does not regulate the economic and social structure of society.

Accepted Answer

A) fascist 
B) communist 
C) theocratic 
D) authoritarian 
A) fascist 
B) communist 
C) theocratic 
D) authoritarian

Question 10

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail.Which of the following legal conventions does ION most likely have?

Accepted Answer

A) intellectual property right 
B) trademark credential 
C) patent certificate 
D) TRIPS permit 
A) intellectual property right 
B) trademark credential 
C) patent certificate 
D) TRIPS permit

Question 11

Which of the following statements best describes a pluralistic society?

Accepted Answer

A) Multiple segments of society adhere to the same political philosophy. 
B) Two dominant political parties rule local and federal governments. 
C) Different ideologies are held by different segments of society. 
D) Various ethnic groups belong to the official political party. 
A) Multiple segments of society adhere to the same political philosophy. 
B) Two dominant political parties rule local and federal governments. 
C) Different ideologies are held by different segments of society. 
D) Various ethnic groups belong to the official political party.

Question 12

The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.

Accepted Answer

A) True 
 B)False

Question 13

________ refer(s)to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.

Accepted Answer

A) Proprietary goods 
B) Exclusive ownership 
C) Restrictive goods 
D) Intellectual property 
A) Proprietary goods 
B) Exclusive ownership 
C) Restrictive goods 
D) Intellectual property

Question 14

The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.

Accepted Answer

A) capitalism 
B) socialism 
C) freedom 
D) liberalism 
A) capitalism 
B) socialism 
C) freedom 
D) liberalism

Question 15

Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to ________.

Accepted Answer

A) maximize product safety 
B) ensure a cultural fit 
C) favor domestic companies 
D) relieve production pressures on local companies 
A) maximize product safety 
B) ensure a cultural fit 
C) favor domestic companies 
D) relieve production pressures on local companies

Question 16

Which of the following statements about approaches to political risk management is NOT true?

Accepted Answer

A) Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards. 
B) Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. 
C) Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. 
D) Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect. 
A) Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards. 
B) Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. 
C) Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. 
D) Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.

Question 17

A civil law system anchors itself in the wisdom of daily experience or, more intellectually, great spiritual or philosophical traditions.

Accepted Answer

A) True 
 B)False

Question 18

How has intellectual property theft affected China's economy? What is the relationship between China's legal environment and intellectual property theft?

Accepted Answer

MNEs complain that the relentless, wides

Question 19

Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office.Which type of legal system will Ian most likely have to deal with in Germany?

Accepted Answer

A) mixed 
B) common 
C) civil 
D) theocratic 
A) mixed 
B) common 
C) civil 
D) theocratic

Question 20

Laws on local business activities directly influence the operations of domestic and foreign companies in areas such as hiring and firing workers.

Accepted Answer

A) True 
 B)False

Political risk insurance is more likely to be purchased by MNEs that apply an active approach to political risk management.

A(n)________ ideology is the system of ideas that expresses the goals, theories, and aims of how society should work.

Compare and contrast the rule of law and the rule of man.

________ political risks arise from political actions, such as public corruption or a partisan judicial system, that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done.

In which of the following countries would business activity, given its status as a "not free" marketplace, be under the greatest government control?

The rule of law holds that governmental authority is legitimately exercised only in accordance with written, publicly disclosed laws that have been appropriately adopted and which are enforced in keeping with established procedure.

International law takes precedence over national laws in determining permissible practices in pricing, distribution, advertising, and promotion of products and services in a particular country.

Under the ________ form of totalitarianism, the regime confines itself to political control of the state.It does not regulate the economic and social structure of society.

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail.Which of the following legal conventions does ION most likely have?

Which of the following statements best describes a pluralistic society?

The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.

________ refer(s)to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.

The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.

Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to ________.

Which of the following statements about approaches to political risk management is NOT true?

A civil law system anchors itself in the wisdom of daily experience or, more intellectually, great spiritual or philosophical traditions.

How has intellectual property theft affected China's economy? What is the relationship between China's legal environment and intellectual property theft?

Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office.Which type of legal system will Ian most likely have to deal with in Germany?

Laws on local business activities directly influence the operations of domestic and foreign companies in areas such as hiring and firing workers.

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 3: The Political and Legal Environments Facing Business

Political risk insurance is more likely to be purchased by MNEs that apply an active approach to political risk management.

A(n)________ ideology is the system of ideas that expresses the goals, theories, and aims of how society should work.

Compare and contrast the rule of law and the rule of man.

________ political risks arise from political actions, such as public corruption or a partisan judicial system, that interfere with transactions between sellers and buyers and that can significantly raise the costs of getting things done.

In which of the following countries would business activity, given its status as a "not free" marketplace, be under the greatest government control?

The rule of law holds that governmental authority is legitimately exercised only in accordance with written, publicly disclosed laws that have been appropriately adopted and which are enforced in keeping with established procedure.

International law takes precedence over national laws in determining permissible practices in pricing, distribution, advertising, and promotion of products and services in a particular country.

Under the ________ form of totalitarianism, the regime confines itself to political control of the state.It does not regulate the economic and social structure of society.

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail.Which of the following legal conventions does ION most likely have?

Which of the following statements best describes a pluralistic society?

The term collectivism refers to a system that stresses the primacy of societal goals over individual goals.

________ refer(s)to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.

The distinguishing feature of political ideologies along the political spectrum is ________, with some emphasizing its primacy and others opposing it.

Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to ________.

Which of the following statements about approaches to political risk management is NOT true?

A civil law system anchors itself in the wisdom of daily experience or, more intellectually, great spiritual or philosophical traditions.

How has intellectual property theft affected China's economy? What is the relationship between China's legal environment and intellectual property theft?

Ian, a financial manager, is preparing to transfer to Germany where he will serve as an expatriate manager of his employer's European office.Which type of legal system will Ian most likely have to deal with in Germany?

Laws on local business activities directly influence the operations of domestic and foreign companies in areas such as hiring and firing workers.

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters