Question 1

What is currency translation exposure? Provide an example to illustrate your answer.

Accepted Answer

The risk of exchange-rate volatility res

Question 2

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, supports the argument to build a new Emerson facility in China?

Accepted Answer

A) The Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit. 
B) The Chinese Commonwealth network is investing large amounts of capital in China. 
C) China has increased Internet controls and blocked most international search sites. 
D) China is revoking its membership from the World Trade Organization. 
A) The Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit. 
B) The Chinese Commonwealth network is investing large amounts of capital in China. 
C) China has increased Internet controls and blocked most international search sites. 
D) China is revoking its membership from the World Trade Organization.

Question 3

The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation by assigning different weights to economic variables.

Accepted Answer

A) quantitative 
B) qualitative 
C) checklist 
D) objective 
A) quantitative 
B) qualitative 
C) checklist 
D) objective

Question 4

Which is the fourth largest trading bloc after the EU, NAFTA, and ASEAN and established in 1991?

Accepted Answer

A) SAARC 
B) ASEAN 
C) NAFTA 
D) MERCOSUR 
A) SAARC 
B) ASEAN 
C) NAFTA 
D) MERCOSUR

Question 5

Under civil law, past court decisions act as precedents to the interpretation of the law and to common custom.

Accepted Answer

A) True 
 B)False

Question 6

Common law is based on a comprehensive set of laws organized into a code.

Accepted Answer

A) True 
 B)False

Question 7

Recently, the level of ________ in Europe, for example, was a great concern around the world, in particular regarding concerns in the eurozone brought about by debt problems in Greece.

Accepted Answer

A) legal risk events 
B) political risk events 
C) cultural risk events 
D) economic risk events 
A) legal risk events 
B) political risk events 
C) cultural risk events 
D) economic risk events

Question 8

What methods are used by MNCs to protect intellectual property rights?

Accepted Answer

The most common methods of protecting pr

Question 9

An event that affects one industry or company or only a few companies is called a macropolitical risk event.

Accepted Answer

A) True 
 B)False

Question 10

Firms use e-business to help build new relationships between businesses and retailers.

Accepted Answer

A) True 
 B)False

Question 11

The checklist approach relies on a few easily measurable and timely criteria believed to reflect or indicate changes in the creditworthiness of the country.

Accepted Answer

A) True 
 B)False

Question 12

For global corporations, the primary impact of political risks is likely to be on the firm's ________.

Accepted Answer

A) ownership and control 
B) hiring and recruiting policies 
C) transfers of money or products 
D) managerial strategy and policy-making 
A) ownership and control 
B) hiring and recruiting policies 
C) transfers of money or products 
D) managerial strategy and policy-making

Question 13

Robert is a technology officer in an Umerian firm and he manages the firm's operations at its facility in Elador.Robert is considering the idea of installing new technology in the facility that would significantly improve productivity and reduce labor costs.Which of the following undermines the argument that Robert should install the new technology?

Accepted Answer

A) Elador's government leaders encourage firms to install the most modern machinery available. 
B) The high school graduation rate in Elador is higher than in neighboring countries. 
C) Elador is currently experiencing a very high rate of unemployment. 
D) The firm's competitors recently installed the same technology. 
A) Elador's government leaders encourage firms to install the most modern machinery available. 
B) The high school graduation rate in Elador is higher than in neighboring countries. 
C) Elador is currently experiencing a very high rate of unemployment. 
D) The firm's competitors recently installed the same technology.

Question 14

Which of the following best describes nationalization?

Accepted Answer

A) outsourcing of governmental functions to private entities 
B) hiring preferences given to locals rather than expatriates 
C) government's gradual and subtle actions against a firm 
D) forced sale of an MNC's assets to local buyers 
A) outsourcing of governmental functions to private entities 
B) hiring preferences given to locals rather than expatriates 
C) government's gradual and subtle actions against a firm 
D) forced sale of an MNC's assets to local buyers

Question 15

________ is based on a comprehensive set of laws organized into a code.

Accepted Answer

A) Theocratic law 
B) Civil law 
C) Common law 
D) Contract law 
A) Theocratic law 
B) Civil law 
C) Common law 
D) Contract law

Question 16

An international agreement which regulates international business by spelling out the rights and obligations of the seller and buyer is known as ________.

Accepted Answer

A) Agreement to Technical Barriers to Trade 
B) International Standards on Accounting and Reporting 
C) General Agreement on Tariffs and Trade 
D) Contracts for International Sale of Goods 
A) Agreement to Technical Barriers to Trade 
B) International Standards on Accounting and Reporting 
C) General Agreement on Tariffs and Trade 
D) Contracts for International Sale of Goods

Question 17

Micropolitical risk events are those that affect ________.

Accepted Answer

A) multiple industries and companies 
B) several other nations in the same region 
C) one industry or company or a few companies 
D) domestic industries or companies 
A) multiple industries and companies 
B) several other nations in the same region 
C) one industry or company or a few companies 
D) domestic industries or companies

Question 18

The Paris Union was established for the purpose of ________.

Accepted Answer

A) enforcing contract laws 
B) reducing trade barriers 
C) protecting patents 
D) reducing pollution 
A) enforcing contract laws 
B) reducing trade barriers 
C) protecting patents 
D) reducing pollution

Question 19

To which of the following free-trade agreements do Mexico, Canada and the United States all belong?

Accepted Answer

A) NAFTA 
B) ASEAN 
C) CAFTA 
D) MERCOSUR 
A) NAFTA 
B) ASEAN 
C) CAFTA 
D) MERCOSUR

Question 20

Which two factors are primarily assessed when using the qualitative approach to measure a country's economic risk?

Accepted Answer

A) the country's natural resources and its long-term national debt 
B) the competence of the country's leader and the economic policy direction 
C) the probability of terrorism and the likelihood that the country's debts will be repaid 
D) the country's purchasing power overseas and the consistency of the country's leadership 
A) the country's natural resources and its long-term national debt 
B) the competence of the country's leader and the economic policy direction 
C) the probability of terrorism and the likelihood that the country's debts will be repaid 
D) the country's purchasing power overseas and the consistency of the country's leadership

What is currency translation exposure? Provide an example to illustrate your answer.

The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation by assigning different weights to economic variables.

Which is the fourth largest trading bloc after the EU, NAFTA, and ASEAN and established in 1991?

Under civil law, past court decisions act as precedents to the interpretation of the law and to common custom.

Common law is based on a comprehensive set of laws organized into a code.

Recently, the level of ________ in Europe, for example, was a great concern around the world, in particular regarding concerns in the eurozone brought about by debt problems in Greece.

What methods are used by MNCs to protect intellectual property rights?

An event that affects one industry or company or only a few companies is called a macropolitical risk event.

Firms use e-business to help build new relationships between businesses and retailers.

The checklist approach relies on a few easily measurable and timely criteria believed to reflect or indicate changes in the creditworthiness of the country.

For global corporations, the primary impact of political risks is likely to be on the firm's ________.

Which of the following best describes nationalization?

________ is based on a comprehensive set of laws organized into a code.

An international agreement which regulates international business by spelling out the rights and obligations of the seller and buyer is known as ________.

Micropolitical risk events are those that affect ________.

The Paris Union was established for the purpose of ________.

To which of the following free-trade agreements do Mexico, Canada and the United States all belong?

Which two factors are primarily assessed when using the qualitative approach to measure a country's economic risk?

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Formulating Strategy

Global Alliances and Strategy Implementation

Developing a Global Management Cadre

Staffing, Training, and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters

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

What is currency translation exposure? Provide an example to illustrate your answer.

The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation by assigning different weights to economic variables.

Which is the fourth largest trading bloc after the EU, NAFTA, and ASEAN and established in 1991?

Under civil law, past court decisions act as precedents to the interpretation of the law and to common custom.

Common law is based on a comprehensive set of laws organized into a code.

Recently, the level of ________ in Europe, for example, was a great concern around the world, in particular regarding concerns in the eurozone brought about by debt problems in Greece.

What methods are used by MNCs to protect intellectual property rights?

An event that affects one industry or company or only a few companies is called a macropolitical risk event.

Firms use e-business to help build new relationships between businesses and retailers.

The checklist approach relies on a few easily measurable and timely criteria believed to reflect or indicate changes in the creditworthiness of the country.

For global corporations, the primary impact of political risks is likely to be on the firm's ________.

Which of the following best describes nationalization?

________ is based on a comprehensive set of laws organized into a code.

An international agreement which regulates international business by spelling out the rights and obligations of the seller and buyer is known as ________.

Micropolitical risk events are those that affect ________.

The Paris Union was established for the purpose of ________.

To which of the following free-trade agreements do Mexico, Canada and the United States all belong?

Which two factors are primarily assessed when using the qualitative approach to measure a country's economic risk?

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Formulating Strategy

Global Alliances and Strategy Implementation

Developing a Global Management Cadre

Staffing, Training, and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters