Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Local knowledge can be internalized primarily as a result of an MNC operating in that market.

Accepted Answer

A) True 
 B)False

Question 3

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 4

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 5

In the context of international business, what is meant by the term political risk? In general, how do MNCs analyze this risk?

Accepted Answer

Political risk is the likelihood that th

Question 6

The following actions raise the political risk of doing business in China except:

Accepted Answer

A) Interpretation of rules and regulations by officials 
B) Industrial piracy 
C) Restrictions on foreign exchange transactions 
D) Concerns on safety and reliability of product quality 
A) Interpretation of rules and regulations by officials 
B) Industrial piracy 
C) Restrictions on foreign exchange transactions 
D) Concerns on safety and reliability of product quality

Question 7

The following is not an external factor used by MNCs for evaluating political risks:

Accepted Answer

A) Alliances with major and regional powers 
B) Anti-establishment movements 
C) Internal groupings 
D) Sources of key raw materials 
A) Alliances with major and regional powers 
B) Anti-establishment movements 
C) Internal groupings 
D) Sources of key raw materials

Question 8

Operational risks result from government policies and procedures that directly constrain the management and performance of local operations.

Accepted Answer

A) True 
 B)False

Question 9

Benefits of proactive political strategies include all of the following except:

Accepted Answer

A) Enhancing government relations in unstable and transitional policy environments 
B) Mitigating risk before it becomes unmanageable 
C) Providing support for national and sub-central governments in transitional economies 
D) Counteracting competitors' efforts to influence government policy 
A) Enhancing government relations in unstable and transitional policy environments 
B) Mitigating risk before it becomes unmanageable 
C) Providing support for national and sub-central governments in transitional economies 
D) Counteracting competitors' efforts to influence government policy

Question 10

Tariffs on exports and imports, restrictions on exports, dividend remittance, and capital repatriation are examples of:

Accepted Answer

A) Transfer risks 
B) Expropriation risks 
C) Operational risks 
D) Exchange risks 
A) Transfer risks 
B) Expropriation risks 
C) Operational risks 
D) Exchange risks

Question 11

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

Accepted Answer

A) Macro 
B) Micro 
C) Proactive 
D) Relative 
A) Macro 
B) Micro 
C) Proactive 
D) Relative

Question 12

Host government mandates that require foreign investors to partner with local state-owned firms or follow local-content rules may still have a positive impact on MNCs.

Accepted Answer

A) True 
 B)False

Question 13

Not all MNCs are confident about international investment in countries with:

Accepted Answer

A) Low labor costs 
B) Political unrest 
C) Emerging economies 
D) Cultural differences 
A) Low labor costs 
B) Political unrest 
C) Emerging economies 
D) Cultural differences

Question 14

The most difficult cultural differences to manage in international strategic alliances are power distance and uncertainty avoidance.

Accepted Answer

A) True 
 B)False

Question 15

Typically, terrorists target business areas or businesses that have high status or those that have great influence on initiating change.

Accepted Answer

A) True 
 B)False

Question 16

The special nature of foreign direct investment is not related to:

Accepted Answer

A) Sector of economic activity 
B) Technology sophistication 
C) Pattern of ownership 
D) Operations 
A) Sector of economic activity 
B) Technology sophistication 
C) Pattern of ownership 
D) Operations

Question 17

According to the 2012 Transparency International Corruption Perceptions Index, which of the following is the least corrupt nation?

Accepted Answer

A) India 
B) United States 
C) Spain 
D) New Zealand 
A) India 
B) United States 
C) Spain 
D) New Zealand

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Some multinational corporations attempt to manage political risk through 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 20

The ratings factors that are quantified in order for MNCs to manage political risk reflect all of the following except:

Accepted Answer

A) Political and economic environment 
B) Domestic economic conditions 
C) Social conditions 
D) External economic conditions 
A) Political and economic environment 
B) Domestic economic conditions 
C) Social conditions 
D) External economic conditions

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

Local knowledge can be internalized primarily as a result of an MNC operating in that market.

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

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

In the context of international business, what is meant by the term political risk? In general, how do MNCs analyze this risk?

The following actions raise the political risk of doing business in China except:

The following is not an external factor used by MNCs for evaluating political risks:

Operational risks result from government policies and procedures that directly constrain the management and performance of local operations.

Benefits of proactive political strategies include all of the following except:

Tariffs on exports and imports, restrictions on exports, dividend remittance, and capital repatriation are examples of:

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

Host government mandates that require foreign investors to partner with local state-owned firms or follow local-content rules may still have a positive impact on MNCs.

Not all MNCs are confident about international investment in countries with:

The most difficult cultural differences to manage in international strategic alliances are power distance and uncertainty avoidance.

Typically, terrorists target business areas or businesses that have high status or those that have great influence on initiating change.

The special nature of foreign direct investment is not related to:

According to the 2012 Transparency International Corruption Perceptions Index, which of the following is the least corrupt nation?

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

Some multinational corporations attempt to manage political risk through 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:

The ratings factors that are quantified in order for MNCs to manage political risk reflect all of the following except:

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 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

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

Local knowledge can be internalized primarily as a result of an MNC operating in that market.

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

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

In the context of international business, what is meant by the term political risk? In general, how do MNCs analyze this risk?

The following actions raise the political risk of doing business in China except:

The following is not an external factor used by MNCs for evaluating political risks:

Operational risks result from government policies and procedures that directly constrain the management and performance of local operations.

Benefits of proactive political strategies include all of the following except:

Tariffs on exports and imports, restrictions on exports, dividend remittance, and capital repatriation are examples of:

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

Host government mandates that require foreign investors to partner with local state-owned firms or follow local-content rules may still have a positive impact on MNCs.

Not all MNCs are confident about international investment in countries with:

The most difficult cultural differences to manage in international strategic alliances are power distance and uncertainty avoidance.

Typically, terrorists target business areas or businesses that have high status or those that have great influence on initiating change.

The special nature of foreign direct investment is not related to:

According to the 2012 Transparency International Corruption Perceptions Index, which of the following is the least corrupt nation?

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

Some multinational corporations attempt to manage political risk through 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:

The ratings factors that are quantified in order for MNCs to manage political risk reflect all of the following except:

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 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