Exam 4: Economic Development of Nations

The Foreign Corrupt Practices Act forbids U.S.companies from bribing government officials or political candidates in other nations.

Guanxi,in the Chinese business context,means ________.

________ refers to governmental action to dispossess a company or investor.

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

Which of the following measures the extent to which a government equitably provides its people with a long and healthy life,an education,and a decent standard of living?

Expropriation involves the forced transfer of assets from a company to the government with compensation.

Scenario: Cleanshot USA in Russia When Cleanshot USA, a photography products company, decided to enter the international arena, it chose Russia as its main market. Although Russia has been in transition for years, Cleanshot managers believe their company has tremendous opportunities there. -Which of the following challenges is Cleanshot most likely to face in Russia?

The GDP per capita of a country is higher than that of Thailand.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is lower than that of Thailand.Which of the following is most likely true about the country?

CADE International has foreign operations in Taiwan,India,and China.The firm pays an annual insurance premium to the Overseas Private Investment Corporation.The firm is most likely protecting itself from ________.

Economic transition is the process of moving from ________.

Does greater economic freedom guarantee a higher standard of living? Provide examples of two specific countries to support your answer.

Which of the following is a major obstacle to economic transition?

Political risk tends to be higher in developing countries compared to industrialized countries.

Which results in a loss of assets,without compensation?

________ is the forced transfer of assets from a company to the government with compensation.

Describe the Foreign Corrupt Practices Act,and explain how it relates to corporate social responsibility.

How does economic development in countries affect international business?

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

Gross national income (GNI),the broadest measure of economic activity for a country,is defined as the ________.

Briefly explain each of the three main methods companies use to manage political risk.