Question 1

Which of the following is an NGO (nongovernmental organization) group?

Accepted Answer

A)  Central Intelligence Agency 
B)  Peace Corps 
C)  Millennium Challenge Corporation 
D)  Oxfam 
E)  FedEx 
A)  Central Intelligence Agency 
B)  Peace Corps 
C)  Millennium Challenge Corporation 
D)  Oxfam 
E)  FedEx

Question 2

Which of the following government forms is ruled by a few?

Accepted Answer

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

Question 3

At the top of the list of political issues concerning foreign businesses is the issue of taxation and tariffs.

Accepted Answer

A) True 
 B)False

Question 4

It is illegal for U.S. citizens to pay bribe unless it is a common practice in the host country.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true of a sovereign state?

Accepted Answer

A)  It is obligated to be a member of the World Trade Organization. 
B)  Its political and economic systems are dependent on other nations. 
C)  It enjoys full legal equality with other states. 
D)  It has the power to enter into agreements with only select nations. 
E)  It is bounded by external control. 
A)  It is obligated to be a member of the World Trade Organization. 
B)  Its political and economic systems are dependent on other nations. 
C)  It enjoys full legal equality with other states. 
D)  It has the power to enter into agreements with only select nations. 
E)  It is bounded by external control.

Question 6

In _____, police and military are not allowed to vote.

Accepted Answer

A)  Croatia 
B)  Iran 
C)  Bolivia 
D)  Saudi Arabia 
E)  Peru 
A)  Croatia 
B)  Iran 
C)  Bolivia 
D)  Saudi Arabia 
E)  Peru

Question 7

Which of the following is the top political issue concerning foreign businesses?

Accepted Answer

A)  Demographic profile of political leaders 
B)  Government policies on infrastructure 
C)  Economic awareness of political leaders 
D)  Stability of prevailing government policies 
E)  Membership of governments in trade treaties 
A)  Demographic profile of political leaders 
B)  Government policies on infrastructure 
C)  Economic awareness of political leaders 
D)  Stability of prevailing government policies 
E)  Membership of governments in trade treaties

Question 8

Monarchy, like _____, is a form of government ruled by one.

Accepted Answer

A)  aristocracy 
B)  dictatorship 
C)  democracy 
D)  monopoly 
E)  oligarchy 
A)  aristocracy 
B)  dictatorship 
C)  democracy 
D)  monopoly 
E)  oligarchy

Question 9

_____ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating local ownership and greater national involvement in a company's management.

Accepted Answer

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

Question 10

Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high?

Accepted Answer

A)  Joint ventures 
B)  Licensing 
C)  Expanding the investment base 
D)  Planned domestication 
E)  Multi-facilities 
A)  Joint ventures 
B)  Licensing 
C)  Expanding the investment base 
D)  Planned domestication 
E)  Multi-facilities

Question 11

Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk?

Accepted Answer

A)  Expropriation 
B)  Sanctions 
C)  Buy outs 
D)  Confiscation 
E)  Licensing 
A)  Expropriation 
B)  Sanctions 
C)  Buy outs 
D)  Confiscation 
E)  Licensing

Question 12

List the government agencies that are involved in promoting foreign investment and international business.

Accepted Answer

The Department of Commerce (DOC) is the

Question 13

What are the conditions under which relations between governments and MNCs are generally positive?

Accepted Answer

Relations between governments and MNCs a

Question 14

Which of the following is more likely to be subjected to price control?

Accepted Answer

A)  Leather garments 
B)  Mobile phone accessories 
C)  Aspirin and antacids 
D)  Handycams and lenses 
E)  Ceramic tiles 
A)  Leather garments 
B)  Mobile phone accessories 
C)  Aspirin and antacids 
D)  Handycams and lenses 
E)  Ceramic tiles

Question 15

Which of the following is true of nationalism?

Accepted Answer

A)  The more a country feels threatened by some outside force the less nationalistic the country becomes. 
B)  A call to "buy our country's products only" is one form of manifestation of national feelings. 
C)  Nationalist feelings lead to loss of control over foreign investment. 
D)  The more a country's domestic economy declines, the less nationalistic it becomes. 
E)  Nationalistic feelings are not prevalent in economically prosperous countries. 
A)  The more a country feels threatened by some outside force the less nationalistic the country becomes. 
B)  A call to "buy our country's products only" is one form of manifestation of national feelings. 
C)  Nationalist feelings lead to loss of control over foreign investment. 
D)  The more a country's domestic economy declines, the less nationalistic it becomes. 
E)  Nationalistic feelings are not prevalent in economically prosperous countries.

Question 16

The principal agency that supports U.S. business abroad is the Department of Commerce (DOC).

Accepted Answer

A) True 
 B)False

Question 17

Licensing is least effective when the technology is unique.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is the most important reason to encourage foreign investment?

Accepted Answer

A)  Improve global image of the country. 
B)  Accelerate the development of an economy. 
C)  Evade political tensions between countries. 
D)  Minimize negative political fallouts within the domestic economy. 
E)  Improves ties between the investing country and the host country. 
A)  Improve global image of the country. 
B)  Accelerate the development of an economy. 
C)  Evade political tensions between countries. 
D)  Minimize negative political fallouts within the domestic economy. 
E)  Improves ties between the investing country and the host country.

Question 19

Which of the following is true of domestication?

Accepted Answer

A)  The ultimate goal of domestication is to force domestic investors to share more of the profits with the government. 
B)  The risk of domestication appears to have decreased over the last two decades. 
C)  Domestication has led to more technologically advanced and competitive businesses. 
D)  Nowadays, countries often require companies to become domesticated as a condition for investment. 
E)  It is the seizing of a company's assets without payment. 
A)  The ultimate goal of domestication is to force domestic investors to share more of the profits with the government. 
B)  The risk of domestication appears to have decreased over the last two decades. 
C)  Domestication has led to more technologically advanced and competitive businesses. 
D)  Nowadays, countries often require companies to become domesticated as a condition for investment. 
E)  It is the seizing of a company's assets without payment.

Question 20

Which of the following is a common term for a form of government in use today?

Accepted Answer

A)  Protectionism 
B)  Duopoly 
C)  Oligopoly 
D)  Capitalism 
E)  Oligarchy 
A)  Protectionism 
B)  Duopoly 
C)  Oligopoly 
D)  Capitalism 
E)  Oligarchy

Which of the following is an NGO (nongovernmental organization) group?

Which of the following government forms is ruled by a few?

At the top of the list of political issues concerning foreign businesses is the issue of taxation and tariffs.

It is illegal for U.S. citizens to pay bribe unless it is a common practice in the host country.

Which of the following is true of a sovereign state?

In _____, police and military are not allowed to vote.

Which of the following is the top political issue concerning foreign businesses?

Monarchy, like _____, is a form of government ruled by one.

_____ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating local ownership and greater national involvement in a company's management.

Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high?

Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk?

List the government agencies that are involved in promoting foreign investment and international business.

What are the conditions under which relations between governments and MNCs are generally positive?

Which of the following is more likely to be subjected to price control?

Which of the following is true of nationalism?

The principal agency that supports U.S. business abroad is the Department of Commerce (DOC).

Licensing is least effective when the technology is unique.

Which of the following is the most important reason to encourage foreign investment?

Which of the following is true of domestication?

Which of the following is a common term for a form of government in use today?

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 is an NGO (nongovernmental organization) group?

Which of the following government forms is ruled by a few?

At the top of the list of political issues concerning foreign businesses is the issue of taxation and tariffs.

It is illegal for U.S. citizens to pay bribe unless it is a common practice in the host country.

Which of the following is true of a sovereign state?

In _____, police and military are not allowed to vote.

Which of the following is the top political issue concerning foreign businesses?

Monarchy, like _____, is a form of government ruled by one.

_____ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating local ownership and greater national involvement in a company's management.

Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high?

Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk?

List the government agencies that are involved in promoting foreign investment and international business.

What are the conditions under which relations between governments and MNCs are generally positive?

Which of the following is more likely to be subjected to price control?

Which of the following is true of nationalism?

The principal agency that supports U.S. business abroad is the Department of Commerce (DOC).

Licensing is least effective when the technology is unique.

Which of the following is the most important reason to encourage foreign investment?

Which of the following is true of domestication?

Which of the following is a common term for a form of government in use today?

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