Exam 6: The Political Environment: a Critical Concern

Expropriation and nationalization often lead to nationalized businesses that are efficient, technologically strong, and competitive in world markets.

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(True/False)

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Question 1

Correct Answer:

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False

Discuss stability of governments and list the main political causes of instability in international markets.

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Question 2

Correct Answer:

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The ideal political climate for a multinational firm is a stable, friendly government. Radical shifts in government philosophy when an opposing political party ascends to power, pressure from nationalist and self-interest groups, weakened economic conditions, bias against foreign investment, or conflicts among governments are all issues that can affect the stability of a government. At the top of the list of political issues concerning foreign businesses is the stability or instability of prevailing government policies.
There are five main political causes of instability in international markets: (1) some forms of government seem to be inherently unstable, (2) changes in political parties during elections can have major effects on trade conditions, (3) nationalism, (4) animosity targeted toward specific countries, and (5) trade disputes themselves.

As cultural and political scenario varies so widely across nations, there is absolutely no way to generalize tendencies for products to be politically sensitive.

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Question 3

Correct Answer:

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False

Political and social activists have no impact on the normal flow of trade.

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Question 4

Planned domestication can be profitable and operationally expedient for the foreign investor.

(True/False)

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Question 5

Products that have or are perceived to have an effect on the environment are more likely to be politically sensitive.

(True/False)

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Question 6

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

(True/False)

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Question 7

Since the government of Nigeria is strapped for cash, it has decided to tax all foreign investments (such as oil production equipment) by up to forty percent of the appraised value. The Nigerian government has found that this is the handiest and quickest means of finding operating funds. The economic risk in discussion here is:

(Multiple Choice)

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Question 8

The seizing of a company's assets without payment is called:

(Multiple Choice)

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Question 9

The Foreign Credit Insurance Association underwrites trade and investments for U.S. firms.

(True/False)

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Question 10

According to ancient Greeks which of the following refers to a fundamental government form ruled by many?

(Multiple Choice)

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Question 11

In terms of political risk, which of the following poses the greatest threat to international marketers?

(Multiple Choice)

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Question 12

Which of the following is a political cause of instability in international markets?

(Multiple Choice)

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Question 13

Which of the following statements is true of political sanctions?

(Multiple Choice)

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Question 14

Discuss the threats posed by cyberterrorism or cyberattacks with an example.

(Essay)

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Question 15

"Slammer," "Melissa," and "Goner worm" are all examples of:

(Multiple Choice)

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Question 16

The United States required that 50 percent of all parts used in an automobile constructed in the United States must contain parts that were manufactured in the United States. When Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with _____.

(Multiple Choice)

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Question 17

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

(Multiple Choice)

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Question 18

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

(Multiple Choice)

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Question 19

Which 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?

(Multiple Choice)

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Question 20

Showing 1 - 20 of 100

Expropriation and nationalization often lead to nationalized businesses that are efficient, technologically strong, and competitive in world markets.

Discuss stability of governments and list the main political causes of instability in international markets.

As cultural and political scenario varies so widely across nations, there is absolutely no way to generalize tendencies for products to be politically sensitive.

Political and social activists have no impact on the normal flow of trade.

Planned domestication can be profitable and operationally expedient for the foreign investor.

Products that have or are perceived to have an effect on the environment are more likely to be politically sensitive.

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

The seizing of a company's assets without payment is called:

The Foreign Credit Insurance Association underwrites trade and investments for U.S. firms.

According to ancient Greeks which of the following refers to a fundamental government form ruled by many?

In terms of political risk, which of the following poses the greatest threat to international marketers?

Which of the following is a political cause of instability in international markets?

Which of the following statements is true of political sanctions?

Discuss the threats posed by cyberterrorism or cyberattacks with an example.

"Slammer," "Melissa," and "Goner worm" are all examples of:

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

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

Which 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?

The Scope and Challenge of International Marketing

The Dynamic Environment of International Trade

History and Geography: The Foundations of Culture

Cultural Dynamics in Assessing Global Markets

Culture, Management Style, and Business Systems

The International Legal Environment: Playing by the Rules

Developing a Global Vision Through Marketing Research

Economic Development and the Americas

Europe, Africa, and the Middle East

Asia Pacific Region

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Negotiating With International Customers, Partners, and Regulators

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