Question 1

Which of the following forms of terrorism uses the Internet to inflict damage?

Accepted Answer

A)  Germterrorism 
B)  Bioterrorism 
C)  Cyberterrorism 
D)  Ecoterrorism 
E)  Narcoterrorism 
A)  Germterrorism 
B)  Bioterrorism 
C)  Cyberterrorism 
D)  Ecoterrorism 
E)  Narcoterrorism

Question 2

Discuss and compare the terms confiscation, expropriation, and domestication.

Accepted Answer

Confiscation is the seizing of a company

Question 3

Foreign investment can be perceived as a threat to sovereignty.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

Accepted Answer

A)  A bribe may be paid as long as it is not a domestic situation. 
B)  It is justified if it is a documented traditional practice in a country. 
C)  A bribe can be paid in a foreign country if it is tied to national security. 
D)  It is illegal for a U.S. citizen to pay a bribe. 
E)  The issue revolves around the customs of the country and each issue is decided separately. 
A)  A bribe may be paid as long as it is not a domestic situation. 
B)  It is justified if it is a documented traditional practice in a country. 
C)  A bribe can be paid in a foreign country if it is tied to national security. 
D)  It is illegal for a U.S. citizen to pay a bribe. 
E)  The issue revolves around the customs of the country and each issue is decided separately.

Question 5

Adherence to World Trade Organization (WTO) rules means a loss of some degree of national sovereignty.

Accepted Answer

A) True 
 B)False

Question 6

Price controls are normally targeted at nonessential products.

Accepted Answer

A) True 
 B)False

Question 7

Economically prosperous countries do not display strong nationalistic feelings.

Accepted Answer

A) True 
 B)False

Question 8

The ultimate goal of domestication is to force foreign investors to share more of the ownership, management, and profits with nationals than was the case before domestication.

Accepted Answer

A) True 
 B)False

Question 9

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

Accepted Answer

A)  Banks lending to the host government 
B)  World Trade Organization 
C)  International Labor Organization 
D)  Regional trade blocs 
E)  Opposing political parties 
A)  Banks lending to the host government 
B)  World Trade Organization 
C)  International Labor Organization 
D)  Regional trade blocs 
E)  Opposing political parties

Question 10

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

Accepted Answer

The text lists six economic risks: Excha

Question 11

If there is a substantial amount of capital leaving a country, which of the following is the country likely to implement to control the situation?

Accepted Answer

A)  Exchange controls 
B)  Local-content laws 
C)  Import restrictions 
D)  Tax controls 
E)  Price controls 
A)  Exchange controls 
B)  Local-content laws 
C)  Import restrictions 
D)  Tax controls 
E)  Price controls

Question 12

______ is an intense feeling of state pride, unity, and an awakening of a country's people to pride in their country.

Accepted Answer

A)  Socialism 
B)  Communism 
C)  Fascism 
D)  Nationalism 
E)  Polarism 
A)  Socialism 
B)  Communism 
C)  Fascism 
D)  Nationalism 
E)  Polarism

Question 13

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she will consider using _____ to enter the market.

Accepted Answer

A)  externally produced products 
B)  a smaller investment base 
C)  foreign technology 
D)  joint ventures 
E)  sole-proprietorships 
A)  externally produced products 
B)  a smaller investment base 
C)  foreign technology 
D)  joint ventures 
E)  sole-proprietorships

Question 14

_____ stem from shortages of foreign currency held by a country.

Accepted Answer

A)  Exchange controls 
B)  Local-content laws 
C)  Price controls 
D)  Tax controls 
E)  Production costs 
A)  Exchange controls 
B)  Local-content laws 
C)  Price controls 
D)  Tax controls 
E)  Production costs

Question 15

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

Accepted Answer

A)  subornation 
B)  protectionism 
C)  political payoff 
D)  buy out 
E)  rake-off 
A)  subornation 
B)  protectionism 
C)  political payoff 
D)  buy out 
E)  rake-off

Question 16

Adherence to the WTO means:

Accepted Answer

A)  more avenues for outsourcing. 
B)  loss of national security to a large extent. 
C)  procurement of economies of scale. 
D)  loss of some degree of national sovereignty. 
E)  limited scope for foreign direct investments. 
A)  more avenues for outsourcing. 
B)  loss of national security to a large extent. 
C)  procurement of economies of scale. 
D)  loss of some degree of national sovereignty. 
E)  limited scope for foreign direct investments.

Question 17

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

Accepted Answer

A)  The level of domestication achieved. 
B)  The host nation's relations with the business' home country. 
C)  The cultural differences between the host nation and the business' home country. 
D)  The amount of funds invested in the business. 
E)  The evaluation of a company's contribution to the nation's interest. 
A)  The level of domestication achieved. 
B)  The host nation's relations with the business' home country. 
C)  The cultural differences between the host nation and the business' home country. 
D)  The amount of funds invested in the business. 
E)  The evaluation of a company's contribution to the nation's interest.

Question 18

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Accepted Answer

A)  Meteora Inc. using their manufacturing unit as an export base. 
B)  Meteora Inc. importing phone components from China. 
C)  Meteora having an R&D center in California and have all technology patented there. 
D)  Having most of Meteora Inc.'s middle and upper management be expatriates. 
E)  Meteora bargaining for a tax holiday for the next five financial years. 
A)  Meteora Inc. using their manufacturing unit as an export base. 
B)  Meteora Inc. importing phone components from China. 
C)  Meteora having an R&D center in California and have all technology patented there. 
D)  Having most of Meteora Inc.'s middle and upper management be expatriates. 
E)  Meteora bargaining for a tax holiday for the next five financial years.

Question 19

Ranzania, as a country, would like to increase its control and ownership of foreign investments in its country. However, Ranzania does not want to cut off or discourage foreign investment. Cite and describe a political risk strategy that Ranzania could follow that would meet the aforementioned objective.

Accepted Answer

Ranzania could choose domestication (pla

Question 20

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

Accepted Answer

A) True 
 B)False

Which of the following forms of terrorism uses the Internet to inflict damage?

Discuss and compare the terms confiscation, expropriation, and domestication.

Foreign investment can be perceived as a threat to sovereignty.

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

Adherence to World Trade Organization (WTO) rules means a loss of some degree of national sovereignty.

Price controls are normally targeted at nonessential products.

Economically prosperous countries do not display strong nationalistic feelings.

The ultimate goal of domestication is to force foreign investors to share more of the ownership, management, and profits with nationals than was the case before domestication.

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

If there is a substantial amount of capital leaving a country, which of the following is the country likely to implement to control the situation?

______ is an intense feeling of state pride, unity, and an awakening of a country's people to pride in their country.

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she will consider using _____ to enter the market.

_____ stem from shortages of foreign currency held by a country.

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

Adherence to the WTO means:

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

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

Filters

Exam 6: The Political Environment: a Critical Concern

Which of the following forms of terrorism uses the Internet to inflict damage?

Discuss and compare the terms confiscation, expropriation, and domestication.

Foreign investment can be perceived as a threat to sovereignty.

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

Adherence to World Trade Organization (WTO) rules means a loss of some degree of national sovereignty.

Price controls are normally targeted at nonessential products.

Economically prosperous countries do not display strong nationalistic feelings.

The ultimate goal of domestication is to force foreign investors to share more of the ownership, management, and profits with nationals than was the case before domestication.

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

If there is a substantial amount of capital leaving a country, which of the following is the country likely to implement to control the situation?

______ is an intense feeling of state pride, unity, and an awakening of a country's people to pride in their country.

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she will consider using _____ to enter the market.

_____ stem from shortages of foreign currency held by a country.

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

Adherence to the WTO means:

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

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

Filters