Exam 6: The Political Environment: A Critical Concern

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment she will consider using _____ to enter the market.

Brazil would like to increase its control and ownership of foreign investments in its country. However, Brazil does not want to cut off or discourage foreign investment. Cite and describe a political risk strategy that Brazil could follow that would meet the aforementioned objective.

All of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government EXCEPT:

In North Korea there is little foreign investment. One of the reasons is the severe application of ___. Any foreign investor or producer is required to sell its products at prices stated by the North Korean government rather than letting market value and demand determine prices.

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity).

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

All of the following agencies provide assistance to U.S. companies EXCEPT:

Licensing, while being effective in other situations, is least effective when the technology is unique.

Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

Businesses become increasingly attractive to terrorists, both because they are less well defended than government targets and because of what they symbolize.

Relations between governments and MNCs are generally positive if the investment leads to all of the following EXCEPT:

Saudi Arabia permits women to vote if they are at least 18 years old and married or 21 years old, if single.

Price controls are used during inflationary periods to: