Exam 1: Assessing the Environment: Political, Economic, Legal, Technological

Emerson is a global manufacturing company headquartered in St.Louis, Missouri.The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents.Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts.Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia.Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit.Emerson executives are considering whether to build the new facility in China or in the United States.Which of the following, if true, undermines the argument to build a new Emerson facility in China?

What is SAARC?

Which of the following terms refers to the integration of systems, processes, organizations, value chains, and entire markets using Internet-based technologies?

Under which law system must the details of the promises be written into a contract in order for it to be enforced?

The appropriability of technology is best defined as ________.

For autonomous international subsidiaries, most of the impact from political risks will be in which of the following areas?

Privatization refers to the forced sale of an MNC's assets to local buyers with some compensation to the firm, perhaps leaving a minority ownership with the MNC.

Representatives of a multinational firm seek an interview with local government leaders in the Department of Commerce in Argonia with a view to assess the types of policies likely to be implemented.According to Mathis, this is an example of ________.

Which of the following strategies is a firm most likely to use, if it initiates a joint venture with a local company in a foreign country, as a way of adapting to risk?

What is the difference between common law, Islamic law, and civil law?

Internet is a completely open platform and it does not have to abide by any laws.

Which of the following is a form of hedging?

Which of the following best explains why many foreign companies find operating in China a difficult experience from a business perspective?

An event that affects all foreign firms doing business in a country or region is called a micropolitical risk event.

Which type of country is most likely to use its investment laws to acquire appropriate technology?

Expropriation is most likely to occur in a country that has ________.

In addition to avoidance and adaptation, two other means of risk reduction available to managers are ________ and ________.

Differences in laws and regulations from country to country are very few and simple.

Expropriation occurs when a local government seizes and provides inadequate compensation for the foreign-owned assets of an MNC; when no compensation is provided, it is ________.

Which of the following is a form of protectionist policies?