Question 1

In some instances,it is not clear whether macro or micro political risk is at work.

Accepted Answer

A) True 
 B)False

Question 2

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

Accepted Answer

A)  Transfer 
B)  Functional 
C)  Operational 
D)  Ownership-control 
A)  Transfer 
B)  Functional 
C)  Operational 
D)  Ownership-control

Question 3

A salient feature of vertical investments is that they:

Accepted Answer

A)  include the production of raw materials or intermediate goods that are to be processed into final products. 
B)  are unlikely to be taken over by the government because they are import-oriented. 
C)  provide fewer benefits to the country and greater benefits to a multinational company (MN
C)  than other investments. 
D)  involve the production of goods or services that are the same as those produced at home. 
A)  include the production of raw materials or intermediate goods that are to be processed into final products. 
B)  are unlikely to be taken over by the government because they are import-oriented. 
C)  provide fewer benefits to the country and greater benefits to a multinational company (MN
C)  than other investments. 
D)  involve the production of goods or services that are the same as those produced at home.

Question 4

Macro risk issues often take such forms as industry regulations,taxes of specific types of business activity,and various restrictive local laws.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of transfer risks?

Accepted Answer

A)  Dividend remittance 
B)  Export commitments 
C)  Pressure for local participation 
D)  Abrogation of proprietary rights 
A)  Dividend remittance 
B)  Export commitments 
C)  Pressure for local participation 
D)  Abrogation of proprietary rights

Question 6

Which of the following statements is true about expropriation?

Accepted Answer

A)  Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation. 
B)  Small firms are more likely targets of expropriation than large firms because more is to be gained by expropriating small firms. 
C)  Expropriation is least likely to occur in non-Western countries that are poor, relatively unstable, and suspicious of foreign multinationals. 
D)  Expropriation of foreign enterprises by developing countries were rare in the old days. 
A)  Firms at the greatest risk of expropriation are in extractive, agricultural, or infrastructural industries such as utilities and transportation. 
B)  Small firms are more likely targets of expropriation than large firms because more is to be gained by expropriating small firms. 
C)  Expropriation is least likely to occur in non-Western countries that are poor, relatively unstable, and suspicious of foreign multinationals. 
D)  Expropriation of foreign enterprises by developing countries were rare in the old days.

Question 7

Alliances are an arena where both value-claiming activities and value-creating activities take place.

Accepted Answer

A) True 
 B)False

Question 8

Vertical investments run the risk of being taken over by the government because they are export-oriented,and governments like a business that helps them generate foreign capital.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an external economic relations factor that multinational companies may use to evaluate political risk?

Accepted Answer

A)  Per capita income 
B)  Inflation during the previous two years 
C)  Traffic system and communication 
D)  Freedom to set up or engage in partnerships 
A)  Per capita income 
B)  Inflation during the previous two years 
C)  Traffic system and communication 
D)  Freedom to set up or engage in partnerships

Question 10

Examples of ownership-control risks include tariffs on exports and imports,as well as restrictions on exports.

Accepted Answer

A) True 
 B)False

Question 11

_____ tends to occur once and often has poorly defined objectives,and therefore members are not as committed.

Accepted Answer

A)  Classic terrorism 
B)  Amateur terrorism 
C)  Religiously-motivated terrorism 
D)  Political terrorism 
A)  Classic terrorism 
B)  Amateur terrorism 
C)  Religiously-motivated terrorism 
D)  Political terrorism

Question 12

Which of the following is not an example of risk factors for a multinational company?

Accepted Answer

A)  Freezing the movement of assets out of the host country 
B)  Limiting the remittance of profits or capital 
C)  Devaluing the currency 
D)  Complying with contractual terms of agreements 
A)  Freezing the movement of assets out of the host country 
B)  Limiting the remittance of profits or capital 
C)  Devaluing the currency 
D)  Complying with contractual terms of agreements

Question 13

Which of the following statements is true of a conglomerate investment?

Accepted Answer

A)  It runs the risk of being taken over by the government because it is export-oriented. 
B)  It is typically made with an eye toward satisfying the host country's market demands. 
C)  It includes the production of raw materials or intermediate goods that are to be processed into final products. 
D)  It is a type of high-risk investment in which goods or services produced are different from those produced at home. 
A)  It runs the risk of being taken over by the government because it is export-oriented. 
B)  It is typically made with an eye toward satisfying the host country's market demands. 
C)  It includes the production of raw materials or intermediate goods that are to be processed into final products. 
D)  It is a type of high-risk investment in which goods or services produced are different from those produced at home.

Question 14

The difference between a science-based industry and a non-science-based industry is that a non-science-based industry requires the continuous introduction of new products or services.

Accepted Answer

A) True 
 B)False

Question 15

The primary sector of economic activity includes:

Accepted Answer

A)  manufacturing operations. 
B)  agriculture, forestry, and mineral exploration and extraction. 
C)  industry and service. 
D)  transportation, finance, insurance, and related industries. 
A)  manufacturing operations. 
B)  agriculture, forestry, and mineral exploration and extraction. 
C)  industry and service. 
D)  transportation, finance, insurance, and related industries.

In some instances,it is not clear whether macro or micro political risk is at work.

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

A salient feature of vertical investments is that they:

Macro risk issues often take such forms as industry regulations,taxes of specific types of business activity,and various restrictive local laws.

Which of the following is an example of transfer risks?

Which of the following statements is true about expropriation?

Alliances are an arena where both value-claiming activities and value-creating activities take place.

Vertical investments run the risk of being taken over by the government because they are export-oriented,and governments like a business that helps them generate foreign capital.

Which of the following is an external economic relations factor that multinational companies may use to evaluate political risk?

Examples of ownership-control risks include tariffs on exports and imports,as well as restrictions on exports.

_____ tends to occur once and often has poorly defined objectives,and therefore members are not as committed.

Which of the following is not an example of risk factors for a multinational company?

Which of the following statements is true of a conglomerate investment?

The difference between a science-based industry and a non-science-based industry is that a non-science-based industry requires the continuous introduction of new products or services.

The primary sector of economic activity includes:

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

In some instances,it is not clear whether macro or micro political risk is at work.

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

A salient feature of vertical investments is that they:

Macro risk issues often take such forms as industry regulations,taxes of specific types of business activity,and various restrictive local laws.

Which of the following is an example of transfer risks?

Which of the following statements is true about expropriation?

Alliances are an arena where both value-claiming activities and value-creating activities take place.

Vertical investments run the risk of being taken over by the government because they are export-oriented,and governments like a business that helps them generate foreign capital.

Which of the following is an external economic relations factor that multinational companies may use to evaluate political risk?

Examples of ownership-control risks include tariffs on exports and imports,as well as restrictions on exports.

_____ tends to occur once and often has poorly defined objectives,and therefore members are not as committed.

Which of the following is not an example of risk factors for a multinational company?

Which of the following statements is true of a conglomerate investment?

The difference between a science-based industry and a non-science-based industry is that a non-science-based industry requires the continuous introduction of new products or services.

The primary sector of economic activity includes:

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