Question 1

Which of the following is the top political issue concerning foreign businesses?

Accepted Answer

A)  Demographic profile of political leaders 
B)  Government policies on infrastructure 
C)  Economic awareness of political leaders 
D)  Stability of prevailing government policies 
E)  Membership of governments in trade treaties 
A)  Demographic profile of political leaders 
B)  Government policies on infrastructure 
C)  Economic awareness of political leaders 
D)  Stability of prevailing government policies 
E)  Membership of governments in trade treaties D

Question 2

Describe the characteristics of a sovereign state.

Accepted Answer

A sovereign state is independent and free from all external control; enjoys full legal equality with other states; governs it own territory; selects its own political, economic, and social systems; and has the power to enter into agreements with other nations. Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

Question 3

Expropriation and nationalization often lead to nationalized businesses that are efficient, technologically strong, and competitive in world markets.

Accepted Answer

A) True 
 B)False  False

Question 4

The principal agency that supports U.S. business abroad is the Department of Commerce (DOC).

Accepted Answer

A) True 
 B)False

Question 5

Discuss stability of governments and list the main political causes of instability in international markets.

Accepted Answer

The ideal political climate for a multin

Question 6

The proposed purchase of Unocal by the Chinese national oil company was opposed by the U.S. ___.

Accepted Answer

A)  because the offer was unrealistically low 
B)  as retaliation for not allowing similar purchases in China by American firms 
C)  because Germany had proposal a high offer 
D)  as a threat to United States' sovereignty 
E)  because China could divert oil from Unocal to China 
A)  because the offer was unrealistically low 
B)  as retaliation for not allowing similar purchases in China by American firms 
C)  because Germany had proposal a high offer 
D)  as a threat to United States' sovereignty 
E)  because China could divert oil from Unocal to China

Question 7

Which of the following is more likely to be subjected to price control?

Accepted Answer

A)  Leather garments 
B)  Mobile phone accessories 
C)  Aspirin and antacids 
D)  Handycams and lenses 
E)  Ceramic tiles 
A)  Leather garments 
B)  Mobile phone accessories 
C)  Aspirin and antacids 
D)  Handycams and lenses 
E)  Ceramic tiles

Question 8

Discuss and compare the terms confiscation, expropriation, and domestication.

Accepted Answer

Confiscation is the seizing of a company

Question 9

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

Accepted Answer

A)  Lender banks to host government 
B)  World Trade Organization 
C)  International Labour Organization 
D)  Regional trade blocs 
E)  Opposing political parties 
A)  Lender banks to host government 
B)  World Trade Organization 
C)  International Labour Organization 
D)  Regional trade blocs 
E)  Opposing political parties

Question 10

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following presents the most severe political risk?

Accepted Answer

A)  Confiscation 
B)  Expropriation 
C)  Domestication 
D)  Exchange controls 
E)  Local-content laws 
A)  Confiscation 
B)  Expropriation 
C)  Domestication 
D)  Exchange controls 
E)  Local-content laws

Question 11

When it comes to participation in international treaty regimes, the United States leads the list of the 72 countries included in Foreign Policy magazine rankings.

Accepted Answer

A) True 
 B)False

Question 12

One approach to dealing with political vulnerability is the _____ an attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company.

Accepted Answer

A)  subornation 
B)  protection money 
C)  political payoff 
D)  perjury 
E)  rake-off 
A)  subornation 
B)  protection money 
C)  political payoff 
D)  perjury 
E)  rake-off

Question 13

Which are the conditions under which relations between governments and MNCs are generally positive?

Accepted Answer

Relations between governments and MNCs a

Question 14

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

Accepted Answer

A) True 
 B)False

Question 15

What was the goal of the April 2009 agreement arrived at by the G20 nations which required them to cede some sovereignty?

Accepted Answer

A)  Include all G20 nations in the Security Council 
B)  Fix escalating oil prices 
C)  Increase infrastructure funding 
D)  Reject protectionism 
E)  Increase aid to South Africa 
A)  Include all G20 nations in the Security Council 
B)  Fix escalating oil prices 
C)  Increase infrastructure funding 
D)  Reject protectionism 
E)  Increase aid to South Africa

Question 16

The election of Vicente Fox as President of Mexico was an example of:

Accepted Answer

A)  overthrowing a corrupt regime. 
B)  peaceful political change. 
C)  U.S. interference in international politics. 
D)  cultural adjustment to global expectations. 
E)  corrupt national election. 
A)  overthrowing a corrupt regime. 
B)  peaceful political change. 
C)  U.S. interference in international politics. 
D)  cultural adjustment to global expectations. 
E)  corrupt national election.

Question 17

Which of the following statements most accurately describes the impact of boycotts?

Accepted Answer

A)  In general, these policies normally control and rectify situations that caused the boycotts. 
B)  Boycotts are generally not very successful. 
C)  Boycotts are illegal. 
D)  The United Nations encourages boycotts as a means of settling a dispute as opposed to armed conflict. 
E)  Boycotts are least effective against consumer goods. 
A)  In general, these policies normally control and rectify situations that caused the boycotts. 
B)  Boycotts are generally not very successful. 
C)  Boycotts are illegal. 
D)  The United Nations encourages boycotts as a means of settling a dispute as opposed to armed conflict. 
E)  Boycotts are least effective against consumer goods.

Question 18

Which of the following represents a new and powerful tool of PSAs?

Accepted Answer

A)  International funds 
B)  National governments backing their causes 
C)  The Internet 
D)  The United Nations and its affiliated bodies 
E)  Private companies providing technical support 
A)  International funds 
B)  National governments backing their causes 
C)  The Internet 
D)  The United Nations and its affiliated bodies 
E)  Private companies providing technical support

Question 19

Briefly discuss the role of PSAs and NGOs.

Accepted Answer

The impact of political and social activ

Question 20

Which of the following strategies minimizes political risks for the multinational corporation in situations in which the technology is unique and the risk is high?

Accepted Answer

A)  Joint ventures 
B)  Licensing 
C)  Expanding the investment base 
D)  Planned domestication 
E)  Multi-facilities 
A)  Joint ventures 
B)  Licensing 
C)  Expanding the investment base 
D)  Planned domestication 
E)  Multi-facilities

Which of the following is the top political issue concerning foreign businesses?

Describe the characteristics of a sovereign state.

Expropriation and nationalization often lead to nationalized businesses that are efficient, technologically strong, and competitive in world markets.

The principal agency that supports U.S. business abroad is the Department of Commerce (DOC).

Discuss stability of governments and list the main political causes of instability in international markets.

The proposed purchase of Unocal by the Chinese national oil company was opposed by the U.S. ___.

Which of the following is more likely to be subjected to price control?

Discuss and compare the terms confiscation, expropriation, and domestication.

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following presents the most severe political risk?

When it comes to participation in international treaty regimes, the United States leads the list of the 72 countries included in Foreign Policy magazine rankings.

One approach to dealing with political vulnerability is the _____ an attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company.

Which are the conditions under which relations between governments and MNCs are generally positive?

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

What was the goal of the April 2009 agreement arrived at by the G20 nations which required them to cede some sovereignty?

The election of Vicente Fox as President of Mexico was an example of:

Which of the following statements most accurately describes the impact of boycotts?

Which of the following represents a new and powerful tool of PSAs?

Briefly discuss the role of PSAs and NGOs.

Which of the following strategies minimizes political risks for the multinational corporation in situations in which the technology is unique and the risk is high?

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Negotiating With International Customers, Partners, and Regulators

Filters

Exam 6: The Political Environment: A Critical Concern

Which of the following is the top political issue concerning foreign businesses?

Describe the characteristics of a sovereign state.

Expropriation and nationalization often lead to nationalized businesses that are efficient, technologically strong, and competitive in world markets.

The principal agency that supports U.S. business abroad is the Department of Commerce (DOC).

Discuss stability of governments and list the main political causes of instability in international markets.

The proposed purchase of Unocal by the Chinese national oil company was opposed by the U.S. ___.

Which of the following is more likely to be subjected to price control?

Discuss and compare the terms confiscation, expropriation, and domestication.

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following presents the most severe political risk?

When it comes to participation in international treaty regimes, the United States leads the list of the 72 countries included in Foreign Policy magazine rankings.

One approach to dealing with political vulnerability is the _____ an attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company.

Which are the conditions under which relations between governments and MNCs are generally positive?

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

What was the goal of the April 2009 agreement arrived at by the G20 nations which required them to cede some sovereignty?

The election of Vicente Fox as President of Mexico was an example of:

Which of the following statements most accurately describes the impact of boycotts?

Which of the following represents a new and powerful tool of PSAs?

Briefly discuss the role of PSAs and NGOs.

Which of the following strategies minimizes political risks for the multinational corporation in situations in which the technology is unique and the risk is high?

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

The Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Negotiating With International Customers, Partners, and Regulators

Filters