Question 1

_____ techniques are designed to discourage the host government from interfering in operations.

Accepted Answer

A) Integrative and unifying 
B) Consolidating and defensive 
C) Protective and unifying 
D) Protective and defensive 
A) Integrative and unifying 
B) Consolidating and defensive 
C) Protective and unifying 
D) Protective and defensive

Question 2

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 3

_____ investments typically are made with an eye toward satisfying the host country's market demands.As a result, they are not very likely to be takeover targets.

Accepted Answer

A) Vertical 
B) Horizontal 
C) Conglomerate 
D) Hierarchical 
A) Vertical 
B) Horizontal 
C) Conglomerate 
D) Hierarchical

Question 4

According to the text, the following are all forms of terrorism except:

Accepted Answer

A) Classic terrorism 
B) Amateur terrorism 
C) Religious motivated terrorism 
D) Political terrorism 
A) Classic terrorism 
B) Amateur terrorism 
C) Religious motivated terrorism 
D) Political terrorism

Question 5

Foreign ownership limitations, pressure for local participation, confiscation, expropriation, and abrogation of property rights are examples of:

Accepted Answer

A) Transfer risks 
B) Functional risks 
C) Ownership-control risks 
D) Tactical risks 
A) Transfer risks 
B) Functional risks 
C) Ownership-control risks 
D) Tactical risks

Question 6

Broadly, ________ strategies may include leveraging bilateral, regional, and international trade and investment agreements, drawing on bilateral and multilateral financial support, and using project finance structures to separate project exposure from overall firm risk.

Accepted Answer

A) protective and defensive 
B) vertical investment 
C) integrative 
D) proactive political strategies 
A) protective and defensive 
B) vertical investment 
C) integrative 
D) proactive political strategies

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In a _____ investment, the goods or services produced are not similar to those produced at home.

Accepted Answer

A) Horizontal 
B) Vertical 
C) Network 
D) Conglomerate 
A) Horizontal 
B) Vertical 
C) Network 
D) Conglomerate

Question 9

Expropriation is more likely to occur in:

Accepted Answer

A) Non-Western governments that are poor, relatively unstable, and suspicious of foreign multinationals 
B) Western governments that are rich, relatively stable, and are experienced in dealing with foreign multinationals 
C) Non-Western governments that are neither rich nor poor, relatively stable, and are unsure about the presence of foreign multinationals 
D) Western governments that are moderately wealthy, relatively stable, and are new at dealing with foreign multinationals 
A) Non-Western governments that are poor, relatively unstable, and suspicious of foreign multinationals 
B) Western governments that are rich, relatively stable, and are experienced in dealing with foreign multinationals 
C) Non-Western governments that are neither rich nor poor, relatively stable, and are unsure about the presence of foreign multinationals 
D) Western governments that are moderately wealthy, relatively stable, and are new at dealing with foreign multinationals

Question 10

When host governments do not require alliances as a condition for entry, many MNCs:

Accepted Answer

A) Are advised not to voluntarily pursue alliances as they tend to be problematic 
B) Are usually indifferent about establishing alliances 
C) Find that having an alliance is advantageous to their entry and expansion 
D) Are likely to consider alliances, except in emerging markets and highly regulated industries 
A) Are advised not to voluntarily pursue alliances as they tend to be problematic 
B) Are usually indifferent about establishing alliances 
C) Find that having an alliance is advantageous to their entry and expansion 
D) Are likely to consider alliances, except in emerging markets and highly regulated industries

Question 11

Comprehensive political strategies are most important in stable policy environments.

Accepted Answer

A) True 
 B)False

Question 12

_____ 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 13

In the context of international strategic alliances, value-claiming activities are competitive and distributive.

Accepted Answer

A) True 
 B)False

Question 14

MNCs can take a wide variety of strategies to minimize their chances of expropriation.Those strategies do not include:

Accepted Answer

A) bringing in local partners 
B) avoiding countries that have experienced a terrorist incident 
C) limiting the use of high technology so that if the firm is expropriated, the country cannot duplicate the technology 
D) acquiring an affiliate that depends on the parent company for key areas of the operation 
A) bringing in local partners 
B) avoiding countries that have experienced a terrorist incident 
C) limiting the use of high technology so that if the firm is expropriated, the country cannot duplicate the technology 
D) acquiring an affiliate that depends on the parent company for key areas of the operation

Question 15

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

Accepted Answer

A) True 
 B)False

_____ techniques are designed to discourage the host government from interfering in operations.

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

_____ investments typically are made with an eye toward satisfying the host country's market demands.As a result, they are not very likely to be takeover targets.

According to the text, the following are all forms of terrorism except:

Foreign ownership limitations, pressure for local participation, confiscation, expropriation, and abrogation of property rights are examples of:

Broadly, ________ strategies may include leveraging bilateral, regional, and international trade and investment agreements, drawing on bilateral and multilateral financial support, and using project finance structures to separate project exposure from overall firm risk.

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

In a _____ investment, the goods or services produced are not similar to those produced at home.

Expropriation is more likely to occur in:

When host governments do not require alliances as a condition for entry, many MNCs:

Comprehensive political strategies are most important in stable policy environments.

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

In the context of international strategic alliances, value-claiming activities are competitive and distributive.

MNCs can take a wide variety of strategies to minimize their chances of expropriation.Those strategies do not include:

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

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

_____ techniques are designed to discourage the host government from interfering in operations.

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

_____ investments typically are made with an eye toward satisfying the host country's market demands.As a result, they are not very likely to be takeover targets.

According to the text, the following are all forms of terrorism except:

Foreign ownership limitations, pressure for local participation, confiscation, expropriation, and abrogation of property rights are examples of:

Broadly, ________ strategies may include leveraging bilateral, regional, and international trade and investment agreements, drawing on bilateral and multilateral financial support, and using project finance structures to separate project exposure from overall firm risk.

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

In a _____ investment, the goods or services produced are not similar to those produced at home.

Expropriation is more likely to occur in:

When host governments do not require alliances as a condition for entry, many MNCs:

Comprehensive political strategies are most important in stable policy environments.

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

In the context of international strategic alliances, value-claiming activities are competitive and distributive.

MNCs can take a wide variety of strategies to minimize their chances of expropriation.Those strategies do not include:

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

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