Exam 6: The Political Environment: a Critical Concern

Relations between governments and MNCs are generally negative, even if the investment improves the balance of payments by increasing exports or reducing imports.

Pressure from nationalist and self-interest groups affect the stability of a government.

Which of the following represents a new and powerful tool of PSAs?

Stopping or refusing to trade with another nation for political reasons is called:

In North Korea, foreign investors or producers are required to sell products at prices stated by the North Korean government rather than letting market value and demand, determine the prices. This implies that there is severe application of _____.

Which of the following countries is the only country to preclude women from voting and appears to be still completely in the dark ages with regard to suffrage?

The most severe political risk is domestication.

In the context of international law, a _____ state is independent and free from all external control.

Nongovernmental organizations affect the policy decisions made by governments.

Due to advancements in technology, it is easy to determine if a cyberattack has been launched by a rogue state, a terrorist, or a hacker as a prank.

Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

A single company can directly control or alter the political environment of the country within which it operates.

Which of the following agencies underwrites trade and investments for U.S. firms?

Political sanctions are the most effective means of achieving the desired goal of forcing a country to accept demands of the boycotting country.

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following is most severe?

Barring Latin America, the risks of confiscation and expropriation have lessened over the last two decades.

Nationalistic feelings are directly proportional to growth of domestic economy.

Describe the concept of nationalism and list some of the ways it manifests.

In Thailand, it is required that any milk products sold in the country must contain at least 50 percent milk from Thai dairy farmers. Which of the following economic risks faced by international producers of milk is illustrated in this situation?

Which of the following is an instance of how nationalism can be manifested?