Question 1

Risk of violence is not a consideration in assessing the political vulnerability of a multinational company's activities.

Accepted Answer

A) True 
 B)False

Question 2

When does an expropriated investment become a government-run entity?

Accepted Answer

A)  On democratization 
B)  On domestication 
C)  On nationalization 
D)  On prioritization 
E)  On socialization 
A)  On democratization 
B)  On domestication 
C)  On nationalization 
D)  On prioritization 
E)  On socialization

Question 3

With which of the following would the phrase "Buy American" be most closely associated?

Accepted Answer

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

Question 4

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government is following a process called:

Accepted Answer

A)  confiscation. 
B)  expropriation. 
C)  domestication. 
D)  exchange controls. 
E)  local-content laws. 
A)  confiscation. 
B)  expropriation. 
C)  domestication. 
D)  exchange controls. 
E)  local-content laws.

Question 5

Nationalism can take an anti-foreign business bias.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is the principle U.S. agency that supports U.S. business abroad?

Accepted Answer

A)  State Department of Entrepreneurship 
B)  Better Business Bureau 
C)  Department of Commerce 
D)  Department of Foreign Relations 
E)  Department of Defense 
A)  State Department of Entrepreneurship 
B)  Better Business Bureau 
C)  Department of Commerce 
D)  Department of Foreign Relations 
E)  Department of Defense

Question 7

_____ 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)  Sovereignty 
B)  Self-governance 
C)  Ethnocentrism 
D)  Autocracy 
E)  Non-interventionism 
A)  Sovereignty 
B)  Self-governance 
C)  Ethnocentrism 
D)  Autocracy 
E)  Non-interventionism

Question 8

The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050. Additionally, starting next year fifty percent of the board of directors of the Chilean operation of the company must be Chileans. Which of the following political risk actions is Mr. Travis' company facing in Chile?

Accepted Answer

A)  Confiscation 
B)  Expropriation 
C)  Domestication 
D)  Patronization 
E)  Socialization 
A)  Confiscation 
B)  Expropriation 
C)  Domestication 
D)  Patronization 
E)  Socialization

Question 9

The ideal political climate for a multinational firm is:

Accepted Answer

A)  a country where international laws do not apply. 
B)  a country where favors can be purchased cheaply. 
C)  a country with a stable and friendly government. 
D)  a government where absolute power is a reality. 
E)  an authoritarian government that can be dealt with through non-legal channels. 
A)  a country where international laws do not apply. 
B)  a country where favors can be purchased cheaply. 
C)  a country with a stable and friendly government. 
D)  a government where absolute power is a reality. 
E)  an authoritarian government that can be dealt with through non-legal channels.

Question 10

Briefly discuss the role of PSAs and NGOs.

Accepted Answer

The impact of political and social activ

Question 11

What was the goal of the April 2009 agreement arrived at by the G20 nations, which required them to cede some sovereignty?

Accepted Answer

A)  Include all G20 nations in the Security Council. 
B)  Fix escalating oil prices. 
C)  Increase infrastructure funding. 
D)  Reject protectionism. 
E)  Increase aid to South Africa. 
A)  Include all G20 nations in the Security Council. 
B)  Fix escalating oil prices. 
C)  Increase infrastructure funding. 
D)  Reject protectionism. 
E)  Increase aid to South Africa.

Question 12

International warfare is fast gaining popularity among nations.

Accepted Answer

A) True 
 B)False

Question 13

Price controls are used during inflationary periods to:

Accepted Answer

A)  control the cost of living. 
B)  restrict exports to foreign countries. 
C)  negotiate trade contracts favoring the host country. 
D)  encourage imports. 
E)  collect taxes on foreign investments. 
A)  control the cost of living. 
B)  restrict exports to foreign countries. 
C)  negotiate trade contracts favoring the host country. 
D)  encourage imports. 
E)  collect taxes on foreign investments.

Question 14

Taxes must be classified as a _____ risk when used as a means of controlling foreign investments.

Accepted Answer

A)  political 
B)  social 
C)  financial 
D)  environmental 
E)  legal 
A)  political 
B)  social 
C)  financial 
D)  environmental 
E)  legal

Question 15

The ancient Greeks conceived three fundamental forms of government. Which of the following refers to a government ruled by one?

Accepted Answer

A)  Aristocracy 
B)  Monarchy 
C)  Democracy 
D)  Monopoly 
E)  Oligarchy 
A)  Aristocracy 
B)  Monarchy 
C)  Democracy 
D)  Monopoly 
E)  Oligarchy

Question 16

Relations between governments and MNCs are generally positive if the investment:

Accepted Answer

A)  increases the volume of imports. 
B)  uses globally produced resources. 
C)  brings capital, technology, and/or skills. 
D)  brings in more number of foreign nationals. 
E)  outsources work back to its home country. 
A)  increases the volume of imports. 
B)  uses globally produced resources. 
C)  brings capital, technology, and/or skills. 
D)  brings in more number of foreign nationals. 
E)  outsources work back to its home country.

Question 17

Describe the characteristics of a sovereign state.

Accepted Answer

A sovereign state is independent and fre

Question 18

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

Accepted Answer

A)  joint ventures. 
B)  licensing. 
C)  expanding the investment base. 
D)  planned domestication. 
E)  political payoffs. 
A)  joint ventures. 
B)  licensing. 
C)  expanding the investment base. 
D)  planned domestication. 
E)  political payoffs.

Question 19

Many countries have domestication as a condition for investment.

Accepted Answer

A) True 
 B)False

Question 20

Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:

Accepted Answer

A)  political risk assessment. 
B)  political securitization. 
C)  democratization. 
D)  risk conditioning. 
E)  quantification of risk. 
A)  political risk assessment. 
B)  political securitization. 
C)  democratization. 
D)  risk conditioning. 
E)  quantification of risk.

Risk of violence is not a consideration in assessing the political vulnerability of a multinational company's activities.

When does an expropriated investment become a government-run entity?

With which of the following would the phrase "Buy American" be most closely associated?

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government is following a process called:

Nationalism can take an anti-foreign business bias.

Which of the following is the principle U.S. agency that supports U.S. business abroad?

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

The ideal political climate for a multinational firm is:

Briefly discuss the role of PSAs and NGOs.

What was the goal of the April 2009 agreement arrived at by the G20 nations, which required them to cede some sovereignty?

International warfare is fast gaining popularity among nations.

Price controls are used during inflationary periods to:

Taxes must be classified as a _____ risk when used as a means of controlling foreign investments.

The ancient Greeks conceived three fundamental forms of government. Which of the following refers to a government ruled by one?

Relations between governments and MNCs are generally positive if the investment:

Describe the characteristics of a sovereign state.

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

Many countries have domestication as a condition for investment.

Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:

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

Risk of violence is not a consideration in assessing the political vulnerability of a multinational company's activities.

When does an expropriated investment become a government-run entity?

With which of the following would the phrase "Buy American" be most closely associated?

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government is following a process called:

Nationalism can take an anti-foreign business bias.

Which of the following is the principle U.S. agency that supports U.S. business abroad?

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

The ideal political climate for a multinational firm is:

Briefly discuss the role of PSAs and NGOs.

What was the goal of the April 2009 agreement arrived at by the G20 nations, which required them to cede some sovereignty?

International warfare is fast gaining popularity among nations.

Price controls are used during inflationary periods to:

Taxes must be classified as a _____ risk when used as a means of controlling foreign investments.

The ancient Greeks conceived three fundamental forms of government. Which of the following refers to a government ruled by one?

Relations between governments and MNCs are generally positive if the investment:

Describe the characteristics of a sovereign state.

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

Many countries have domestication as a condition for investment.

Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:

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