Question 1

Identify the three common components of modern legal systems and explain their relevance to managers.

Accepted Answer

Unquestionably, legal systems differ fro

Question 2

Harmon Clothing has a production facility located in Venezuela.Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government.Which type of political risk is Harmon most likely experiencing?

Accepted Answer

A) catastrophic 
B) distributive 
C) procedural 
D) systemic 
A) catastrophic 
B) distributive 
C) procedural 
D) systemic

Question 3

The protection of intellectual property rights is very similar from country to country.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

Accepted Answer

A) intellectual property violations 
B) environmental hazards 
C) child labor violations 
D) embezzlement 
A) intellectual property violations 
B) environmental hazards 
C) child labor violations 
D) embezzlement

Question 5

Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent.

Accepted Answer

A) True 
 B)False

Question 6

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation?

Accepted Answer

The doctrine of individualism emphasizes

Question 7

The Third Wave of Democratization was partially triggered by improved communication systems.

Accepted Answer

A) True 
 B)False

Question 8

Political systems based on the ________ paradigm, such as those of Japan and China, accept the principle that government may intervene to ensure that business practices benefit society.

Accepted Answer

A) individualistic 
B) collectivistic 
C) pluralistic 
D) laissez-faire 
A) individualistic 
B) collectivistic 
C) pluralistic 
D) laissez-faire

Question 9

The principle that an individual has the freedom to pursue his or her interests is called ________.

Accepted Answer

A) socialism 
B) totalitarianism 
C) individualism 
D) collectivism 
A) socialism 
B) totalitarianism 
C) individualism 
D) collectivism

Question 10

Countries with a theocratic legal system encourage precise, detailed contracts whereas countries with a common legal system encourage shorter and less specific contracts.

Accepted Answer

A) True 
 B)False

Question 11

Contrast common law, civil law, customary law, and theocratic law.

Accepted Answer

a.Common law-The United States and the U

Question 12

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs?

Accepted Answer

Procedural risk is associated with movin

Question 13

Garnet Footwear suffered significant financial losses and had to close its foreign operations.The dissolution process took six months and cost four percent of the firm's value.Where were Garnet's foreign operations most likely located?

Accepted Answer

A) Ecuador 
B) France 
C) Japan 
D) China 
A) Ecuador 
B) France 
C) Japan 
D) China

Question 14

A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution.

Accepted Answer

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

Question 15

Which of the following statements referring to intellectual property rights and violations is INCORRECT?

Accepted Answer

A) Richer countries claim looser regulation of intellectual property rights will hinder innovation. 
B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO). 
C) The International Anti-Counterfeiting Coalition estimates international trade in counterfeit products at $600 billion a year. 
D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their economic development. 
A) Richer countries claim looser regulation of intellectual property rights will hinder innovation. 
B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO). 
C) The International Anti-Counterfeiting Coalition estimates international trade in counterfeit products at $600 billion a year. 
D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their economic development.

Question 16

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

Accepted Answer

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

Question 17

A political ideology is the collection of ideas that expresses the goals, theories, and aims that constitute a sociopolitical program.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a true statement about China?

Accepted Answer

A) The Chinese government's shift from communism to capitalism has led to an increase in FDI. 
B) China attracts FDI because the government has eliminated elaborate bureaucracies. 
C) The Chinese government manipulates market activities for political purposes. 
D) China lacks an educated pool of employees due to slowly developing industrialization. 
A) The Chinese government's shift from communism to capitalism has led to an increase in FDI. 
B) China attracts FDI because the government has eliminated elaborate bureaucracies. 
C) The Chinese government manipulates market activities for political purposes. 
D) China lacks an educated pool of employees due to slowly developing industrialization.

Question 19

The vigor of IPR protection is highly related to a country's stage of ________.

Accepted Answer

A) economic development 
B) cultural heterogeneity 
C) natural resource development 
D) standardization of patent regulations 
A) economic development 
B) cultural heterogeneity 
C) natural resource development 
D) standardization of patent regulations

Question 20

Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Pakistan, or Tanzania?

Accepted Answer

A) strict religious constraints 
B) fair election procedures 
C) respect for civil liberties 
D) weak rule of law 
A) strict religious constraints 
B) fair election procedures 
C) respect for civil liberties 
D) weak rule of law

Identify the three common components of modern legal systems and explain their relevance to managers.

Harmon Clothing has a production facility located in Venezuela.Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government.Which type of political risk is Harmon most likely experiencing?

The protection of intellectual property rights is very similar from country to country.

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent.

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation?

The Third Wave of Democratization was partially triggered by improved communication systems.

Political systems based on the ________ paradigm, such as those of Japan and China, accept the principle that government may intervene to ensure that business practices benefit society.

The principle that an individual has the freedom to pursue his or her interests is called ________.

Countries with a theocratic legal system encourage precise, detailed contracts whereas countries with a common legal system encourage shorter and less specific contracts.

Contrast common law, civil law, customary law, and theocratic law.

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs?

Garnet Footwear suffered significant financial losses and had to close its foreign operations.The dissolution process took six months and cost four percent of the firm's value.Where were Garnet's foreign operations most likely located?

A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution.

Which of the following statements referring to intellectual property rights and violations is INCORRECT?

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

A political ideology is the collection of ideas that expresses the goals, theories, and aims that constitute a sociopolitical program.

Which of the following is a true statement about China?

The vigor of IPR protection is highly related to a country's stage of ________.

Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Pakistan, or Tanzania?

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

Identify the three common components of modern legal systems and explain their relevance to managers.

Harmon Clothing has a production facility located in Venezuela.Recently, Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government.Which type of political risk is Harmon most likely experiencing?

The protection of intellectual property rights is very similar from country to country.

Which of the following problems in China is blamed for the annual loss of $250 billion by American MNEs?

Totalitarianism is a political ideology that typically involves constant indoctrination of the population by agents of the government to eliminate dissent.

What is the difference between individualism and collectivism? What is the relationship between government and business under each orientation?

The Third Wave of Democratization was partially triggered by improved communication systems.

Political systems based on the ________ paradigm, such as those of Japan and China, accept the principle that government may intervene to ensure that business practices benefit society.

The principle that an individual has the freedom to pursue his or her interests is called ________.

Countries with a theocratic legal system encourage precise, detailed contracts whereas countries with a common legal system encourage shorter and less specific contracts.

Contrast common law, civil law, customary law, and theocratic law.

What is procedural political risk? How does a nation's political and legal environment influence procedural risk for MNEs?

Garnet Footwear suffered significant financial losses and had to close its foreign operations.The dissolution process took six months and cost four percent of the firm's value.Where were Garnet's foreign operations most likely located?

A ________ law system is based on tradition, judge-made precedent, and usage and assigns a preeminent position to existing case law as a guide to dispute resolution.

Which of the following statements referring to intellectual property rights and violations is INCORRECT?

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

A political ideology is the collection of ideas that expresses the goals, theories, and aims that constitute a sociopolitical program.

Which of the following is a true statement about China?

The vigor of IPR protection is highly related to a country's stage of ________.

Which of the following is most likely a characteristic of a "partly free" country, such as Guatemala, Pakistan, or Tanzania?

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