Question 1

Foreign properties expropriated by a government cannot be reclaimed.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

Accepted Answer

A)  fiat money 
B)  letter of credit 
C)  barter 
D)  guanxi 
A)  fiat money 
B)  letter of credit 
C)  barter 
D)  guanxi

Question 3

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Accepted Answer

A) True 
 B)False

Question 4

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.
-Given the lack of available hard currency,Russian businesses often use goods and services as payment for other products they buy from abroad.This practice is referred to as ________.

Accepted Answer

A)  letter of credit 
B)  fiat money 
C)  barter 
D)  guanxi 
A)  letter of credit 
B)  fiat money 
C)  barter 
D)  guanxi

Question 5

Which of the following statements about approaches to political risk management is NOT true?

Accepted Answer

A)  Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards. 
B)  Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. 
C)  Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. 
D)  Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect. 
A)  Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards. 
B)  Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. 
C)  Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. 
D)  Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.

Question 6

A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n)________.

Accepted Answer

A)  newly industrialized country (NI
C)  
B)  developing country 
C)  emerging market 
D)  developed country 
A)  newly industrialized country (NI
C)  
B)  developing country 
C)  emerging market 
D)  developed country

Question 7

Which of the following statements is true about the political risks in a global marketing environment?

Accepted Answer

A)  The political risk of low-income countries is lesser than high-income countries. 
B)  The more a country is developed, the greater is the political risk. 
C)  Political risk is a major deterrent for companies that want to invest abroad. 
D)  A country with high political risks attracts more investors. 
A)  The political risk of low-income countries is lesser than high-income countries. 
B)  The more a country is developed, the greater is the political risk. 
C)  Political risk is a major deterrent for companies that want to invest abroad. 
D)  A country with high political risks attracts more investors.

Question 8

If a foreign company is taken over by the host-country government and some form of compensation is paid,confiscation is said to have occurred.

Accepted Answer

A) True 
 B)False

Question 9

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.
-Russia is in transition from ________.

Accepted Answer

A)  a capitalist economy to a mixed economy 
B)  a centrally planned economy to a free-market economy 
C)  a market economy to a centrally planned economy 
D)  a mixed economy to a centrally planned economy 
A)  a capitalist economy to a mixed economy 
B)  a centrally planned economy to a free-market economy 
C)  a market economy to a centrally planned economy 
D)  a mixed economy to a centrally planned economy

Question 10

The concept of purchasing power parity (PPP)must be applied to understand the true value of a currency in its home country.

Accepted Answer

A) True 
 B)False

Question 11

Explain the risk-management method of "adaptation." Why would it most likely be less costly and time-consuming to pursue this method in a nation that practices civil law rather than in a nation that practices common law?

Accepted Answer

Adaptation means incorporating risk into

Question 12

________ is the process by which a nation changes its fundamental economic organization and creates new free-market institutions.

Accepted Answer

A)  Central planning 
B)  Economic transition 
C)  Industrialization 
D)  Economic liberalism 
A)  Central planning 
B)  Economic transition 
C)  Industrialization 
D)  Economic liberalism

Question 13

Volunteer work and unpaid household work are not included in GNP.

Accepted Answer

A) True 
 B)False

Question 14

Expropriation is said to have occurred when a foreign national company dispossesses a home-country company through uncompetitive practices.

Accepted Answer

A) True 
 B)False

Question 15

________ is the value of goods and services that can be purchased with one unit of a country's currency.

Accepted Answer

A)  Potential output 
B)  Gross national product 
C)  Purchasing power 
D)  Gross domestic product 
A)  Potential output 
B)  Gross national product 
C)  Purchasing power 
D)  Gross domestic product

Question 16

Nations having the poorest infrastructures and lowest personal incomes are called ________.

Accepted Answer

A)  developed countries 
B)  newly industrialized countries 
C)  emerging markets 
D)  developing countries 
A)  developed countries 
B)  newly industrialized countries 
C)  emerging markets 
D)  developing countries

Question 17

How are countries classified? Explain with examples.

Accepted Answer

Nations are commonly classified as being

Question 18

U.S.individuals are exempt from being prosecuted for bribery under the Foreign Corrupt Practices Act.

Accepted Answer

A) True 
 B)False

Question 19

An individual from a country with a high degree of political risk would most likely be from ________.

Accepted Answer

A)  Canada 
B)  Singapore 
C)  Syria 
D)  Japan 
A)  Canada 
B)  Singapore 
C)  Syria 
D)  Japan

Question 20

________ occurs if ownership of a property or assets of a company is transferred to the host government.

Accepted Answer

A)  Internalization 
B)  Nationalization 
C)  Deportation 
D)  Deracination 
A)  Internalization 
B)  Nationalization 
C)  Deportation 
D)  Deracination

Foreign properties expropriated by a government cannot be reclaimed.

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Which of the following statements about approaches to political risk management is NOT true?

A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n)________.

Which of the following statements is true about the political risks in a global marketing environment?

If a foreign company is taken over by the host-country government and some form of compensation is paid,confiscation is said to have occurred.

The concept of purchasing power parity (PPP)must be applied to understand the true value of a currency in its home country.

Explain the risk-management method of "adaptation." Why would it most likely be less costly and time-consuming to pursue this method in a nation that practices civil law rather than in a nation that practices common law?

________ is the process by which a nation changes its fundamental economic organization and creates new free-market institutions.

Volunteer work and unpaid household work are not included in GNP.

Expropriation is said to have occurred when a foreign national company dispossesses a home-country company through uncompetitive practices.

________ is the value of goods and services that can be purchased with one unit of a country's currency.

Nations having the poorest infrastructures and lowest personal incomes are called ________.

How are countries classified? Explain with examples.

U.S.individuals are exempt from being prosecuted for bribery under the Foreign Corrupt Practices Act.

An individual from a country with a high degree of political risk would most likely be from ________.

________ occurs if ownership of a property or assets of a company is transferred to the host government.

Globalization

Cross-Cultural Business

Political Economy and Ethics

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters

Exam 4: Economic Development of Nations

Foreign properties expropriated by a government cannot be reclaimed.

Which of the following terms is used to refer to the exchange of goods and services for other goods and services instead of money?

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Which of the following statements about approaches to political risk management is NOT true?

A country that has recently increased the portion of its national production and exports derived from industrial operations is called a(n)________.

Which of the following statements is true about the political risks in a global marketing environment?

If a foreign company is taken over by the host-country government and some form of compensation is paid,confiscation is said to have occurred.

The concept of purchasing power parity (PPP)must be applied to understand the true value of a currency in its home country.

Explain the risk-management method of "adaptation." Why would it most likely be less costly and time-consuming to pursue this method in a nation that practices civil law rather than in a nation that practices common law?

________ is the process by which a nation changes its fundamental economic organization and creates new free-market institutions.

Volunteer work and unpaid household work are not included in GNP.

Expropriation is said to have occurred when a foreign national company dispossesses a home-country company through uncompetitive practices.

________ is the value of goods and services that can be purchased with one unit of a country's currency.

Nations having the poorest infrastructures and lowest personal incomes are called ________.

How are countries classified? Explain with examples.

U.S.individuals are exempt from being prosecuted for bribery under the Foreign Corrupt Practices Act.

An individual from a country with a high degree of political risk would most likely be from ________.

________ occurs if ownership of a property or assets of a company is transferred to the host government.

Globalization

Cross-Cultural Business

Political Economy and Ethics

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Managing International Operations

Hiring and Managing Employees

Filters