Exam 3: The Political and Legal Environments Facing Business

All of the following are reasons piracy has occurred EXCEPT ________.

What are the differences between democratic and totalitarian political systems? What does current research suggest about the spread of democracy and totalitarianism in the world?

Which of the following would most likely be used in a totalitarian system to promote unconditional support for the official ideology?

Intellectual property refers to the creative ideas, innovative expertise, or intangible insights that give an individual, company, or country a competitive advantage.

Elite Manufacturing seeks a foreign location with a highly favorable business environment and a comprehensive legal code.Which of the following countries would be most suitable for Elite?

________ is the chance that political forces may change a country's business environment in ways that lead investors to lose some or all of the value of their investment or be forced to accept a lower-than-projected rate of return.

All of the following countries have a totalitarian political system EXCEPT ________.

Although there are different views about the purpose of a political system, most analysts agree that an essential task of a political system is to ________.

Skinner Electronics plans to expand into foreign markets.Top executives want the firm to focus only on locations where the rule of law prevails.Which of the following should most likely be considered by Skinner?

A common law system is based on tradition, judge-made precedent, and usage in which the courts assign a preeminent position to existing case law to guide dispute resolution.

Rockwall Enterprises is planning to expand the firm by establishing operations outside of the United States.In which of the following countries would Rockwall most likely be able to establish operations most quickly?

Which of the following is most likely a true statement regarding the rule of law? The rule of law is a hallmark of ________.

Civil conflict, tax discrimination, weak legal systems, and terrorist actions are political risks faced by MNEs operating in foreign countries.

Premium Manufacturing is planning to expand operations overseas.Executives at the firm are considering a number of different countries.Which of the following countries would most likely have the lowest start-up costs?

In a practical sense, the term political system is meant to signify the ________.

The pushback against democracy has powered a rise in totalitarianism, a situation that is likely to include which of the following?

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 questions is most relevant to the decision?

Managers who take an active approach to political risk management are likely to rely on statistical modeling to quantify the precise degree of political risk.

Research indicates that democracy is declining around the world and that totalitarian regimes are increasing.

A U.S.firm with manufacturing facilities in Nigeria will most likely be faced with a ________ legal system.