Question 1

Which of the following is not a critical business issue for successful termination of international alliances?

Accepted Answer

A)  The basic decision to exit 
B)  People-related issues 
C)  Rights over sales territories and obligations to customers 
D)  Relations with the host government 
A)  The basic decision to exit 
B)  People-related issues 
C)  Rights over sales territories and obligations to customers 
D)  Relations with the host government C

Question 2

Over the past two decades,political risk has become:

Accepted Answer

A)  an area closely watched by developing countries, but virtually ignored by developed countries. 
B)  a vital area for multinational companies (MNCs) to manage. 
C)  a less pervasive, minor threat faced by international management. 
D)  virtually obsolete for international firms as a result of controls imposed by the United Nations. 
A)  an area closely watched by developing countries, but virtually ignored by developed countries. 
B)  a vital area for multinational companies (MNCs) to manage. 
C)  a less pervasive, minor threat faced by international management. 
D)  virtually obsolete for international firms as a result of controls imposed by the United Nations. B

Question 3

The economies of China,Russia,India,and Vietnam present _____ political risk for multinational companies.

Accepted Answer

A)  macro 
B)  micro 
C)  proactive 
D)  relative 
A)  macro 
B)  micro 
C)  proactive 
D)  relative A

Question 4

The service sector of economic activity includes agriculture,forestry,and mineral exploration and extraction.

Accepted Answer

A) True 
 B)False

Question 5

The theory behind _____ is quite simple.A multinational company works to maintain a stronger bargaining power position than that of the host country.

Accepted Answer

A)  analogous negotiating power 
B)  pertinent bargaining power 
C)  proportionate negotiating power 
D)  relative bargaining power 
A)  analogous negotiating power 
B)  pertinent bargaining power 
C)  proportionate negotiating power 
D)  relative bargaining power

Question 6

Micro political risk analysis is directed toward government policies and actions that influence selected sectors of the economy or specific foreign businesses.

Accepted Answer

A) True 
 B)False

Question 7

Explain the special nature of foreign direct investment (FDI).

Accepted Answer

The special nature of foreign direct inv

Question 8

China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all multinational companies.

Accepted Answer

A)  micro 
B)  standard 
C)  macro 
D)  multidimensional 
A)  micro 
B)  standard 
C)  macro 
D)  multidimensional

Question 9

Collaboration facilitates rapid market entry by allowing firms to share costs and risks,combine product and market complementarities,and reduce the time-to-market.

Accepted Answer

A) True 
 B)False

Question 10

Macro risk has been losing importance in the recent years because a growing number of countries are able to successfully transition to a market-driven economy.

Accepted Answer

A) True 
 B)False

Question 11

The industrial sector of economic activity includes _____.

Accepted Answer

A)  transportation 
B)  agriculture 
C)  mineral exploration and extraction 
D)  manufacturing operations 
A)  transportation 
B)  agriculture 
C)  mineral exploration and extraction 
D)  manufacturing operations

Question 12

Which of the following is not a critical legal issue for successful termination of international alliances?

Accepted Answer

A)  Conditions of termination 
B)  Disposition of assets and liabilities 
C)  Distributorship arrangements 
D)  People-related issues 
A)  Conditions of termination 
B)  Disposition of assets and liabilities 
C)  Distributorship arrangements 
D)  People-related issues

Question 13

Local knowledge can be internalized primarily as a result of a multinational company (MNC)operating in that market.

Accepted Answer

A) True 
 B)False

Question 14

_____ techniques are designed to help the overseas operation become part of the host country's infrastructure.

Accepted Answer

A)  Protective 
B)  Defensive 
C)  Integrative 
D)  Statutory 
A)  Protective 
B)  Defensive 
C)  Integrative 
D)  Statutory

Question 15

Examples of proactive political strategies include all of the following except _____.

Accepted Answer

A)  formal lobbying 
B)  campaign financing 
C)  seeking advocacy through embassies and consulates of the home country 
D)  downsizing and transferring business elsewhere 
A)  formal lobbying 
B)  campaign financing 
C)  seeking advocacy through embassies and consulates of the home country 
D)  downsizing and transferring business elsewhere

Question 16

What are proactive political strategies? How do they help multinational companies (MNCs)to respond to political risks?

Accepted Answer

Because government policies can have a s

Question 17

International political developments have a major impact on multinational companies' (MNCs)strategic plans,and domestic political developments have a minor impact on those plans.

Accepted Answer

A) True 
 B)False

Question 18

Some multinational corporations attempt to manage political risk by simultaneously analyzing a range of variables to derive an overall rating of the degree of political risk in a given jurisdiction.This is referred to as a _____.

Accepted Answer

A)  quantification process 
B)  quantification circle 
C)  quantity risk analysis 
D)  quantity management 
A)  quantification process 
B)  quantification circle 
C)  quantity risk analysis 
D)  quantity management

Question 19

Political risks can be broken down into three basic categories.These are:

Accepted Answer

A)  transfer risks, ownership risks, and labor risks. 
B)  ownership risks, operational risks, and economic risks. 
C)  operational risks, bureaucratic risks, and transfer risks. 
D)  transfer risks, operational risks, and ownership-control risks. 
A)  transfer risks, ownership risks, and labor risks. 
B)  ownership risks, operational risks, and economic risks. 
C)  operational risks, bureaucratic risks, and transfer risks. 
D)  transfer risks, operational risks, and ownership-control risks.

Question 20

Which of the following is an example of an integrative technique for responding to political risk?

Accepted Answer

A)  Diversifying production of a product among a number of countries 
B)  Creating joint ventures and hiring local people to manage and run operations 
C)  Raising capital from local banks and the host government as well as outside sources 
D)  Limiting the responsibility of local personnel and hiring only those who are vital to the operation 
A)  Diversifying production of a product among a number of countries 
B)  Creating joint ventures and hiring local people to manage and run operations 
C)  Raising capital from local banks and the host government as well as outside sources 
D)  Limiting the responsibility of local personnel and hiring only those who are vital to the operation

Which of the following is not a critical business issue for successful termination of international alliances?

Over the past two decades,political risk has become:

The economies of China,Russia,India,and Vietnam present _____ political risk for multinational companies.

The service sector of economic activity includes agriculture,forestry,and mineral exploration and extraction.

The theory behind _____ is quite simple.A multinational company works to maintain a stronger bargaining power position than that of the host country.

Micro political risk analysis is directed toward government policies and actions that influence selected sectors of the economy or specific foreign businesses.

Explain the special nature of foreign direct investment (FDI).

China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all multinational companies.

Collaboration facilitates rapid market entry by allowing firms to share costs and risks,combine product and market complementarities,and reduce the time-to-market.

Macro risk has been losing importance in the recent years because a growing number of countries are able to successfully transition to a market-driven economy.

The industrial sector of economic activity includes _____.

Which of the following is not a critical legal issue for successful termination of international alliances?

Local knowledge can be internalized primarily as a result of a multinational company (MNC)operating in that market.

_____ techniques are designed to help the overseas operation become part of the host country's infrastructure.

Examples of proactive political strategies include all of the following except _____.

What are proactive political strategies? How do they help multinational companies (MNCs)to respond to political risks?

International political developments have a major impact on multinational companies' (MNCs)strategic plans,and domestic political developments have a minor impact on those plans.

Some multinational corporations attempt to manage political risk by simultaneously analyzing a range of variables to derive an overall rating of the degree of political risk in a given jurisdiction.This is referred to as a _____.

Political risks can be broken down into three basic categories.These are:

Which of the following is an example of an integrative technique for responding to political risk?

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics, Social Responsibility, and Sustainability

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Entry Strategies and Organizational Structures

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters

Exam 10: Managing Political Risk, Government Relations, and Alliances

Which of the following is not a critical business issue for successful termination of international alliances?

Over the past two decades,political risk has become:

The economies of China,Russia,India,and Vietnam present _____ political risk for multinational companies.

The service sector of economic activity includes agriculture,forestry,and mineral exploration and extraction.

The theory behind _____ is quite simple.A multinational company works to maintain a stronger bargaining power position than that of the host country.

Micro political risk analysis is directed toward government policies and actions that influence selected sectors of the economy or specific foreign businesses.

Explain the special nature of foreign direct investment (FDI).

China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all multinational companies.

Collaboration facilitates rapid market entry by allowing firms to share costs and risks,combine product and market complementarities,and reduce the time-to-market.

Macro risk has been losing importance in the recent years because a growing number of countries are able to successfully transition to a market-driven economy.

The industrial sector of economic activity includes _____.

Which of the following is not a critical legal issue for successful termination of international alliances?

Local knowledge can be internalized primarily as a result of a multinational company (MNC)operating in that market.

_____ techniques are designed to help the overseas operation become part of the host country's infrastructure.

Examples of proactive political strategies include all of the following except _____.

What are proactive political strategies? How do they help multinational companies (MNCs)to respond to political risks?

International political developments have a major impact on multinational companies' (MNCs)strategic plans,and domestic political developments have a minor impact on those plans.

Some multinational corporations attempt to manage political risk by simultaneously analyzing a range of variables to derive an overall rating of the degree of political risk in a given jurisdiction.This is referred to as a _____.

Political risks can be broken down into three basic categories.These are:

Which of the following is an example of an integrative technique for responding to political risk?

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics, Social Responsibility, and Sustainability

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Entry Strategies and Organizational Structures

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters