Question 1

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

Accepted Answer

A)  Political sanctions 
B)  Monetary barriers and trade embargoes 
C)  The Internet and cellphones 
D)  Local-content laws and questionnaires 
E)  Export controls 
A)  Political sanctions 
B)  Monetary barriers and trade embargoes 
C)  The Internet and cellphones 
D)  Local-content laws and questionnaires 
E)  Export controls C

Question 2

_____ 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 C

Question 3

The seizing of a company's assets without payment is 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. A

Question 4

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 5

Meteora Inc. is planning to enter the Kenyan market by establishing a mobile phone manufacturing operation in Kenya. Meteora is most likely to have a positive relationship with Kenyan government through its investment if it:

Accepted Answer

A)  uses locally produced resources. 
B)  imports phone components from China. 
C)  establishes an R&D center in California and has all its technology patented there. 
D)  ensures that its middle and upper management are made of expatriates. 
E)  bargains for a tax holiday for the next five financial years. 
A)  uses locally produced resources. 
B)  imports phone components from China. 
C)  establishes an R&D center in California and has all its technology patented there. 
D)  ensures that its middle and upper management are made of expatriates. 
E)  bargains for a tax holiday for the next five financial years.

Question 6

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

Accepted Answer

Nationalism can best be described as an

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

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

Accepted Answer

A) True 
 B)False

Question 9

_____ 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 10

Foreign investment can be perceived as a threat to sovereignty.

Accepted Answer

A) True 
 B)False

Question 11

Brian is attempting to forecast political instability and help his company's 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 confiscation. 
C)  democratization. 
D)  arbitration. 
E)  risk expropriation. 
A)  political risk assessment. 
B)  political confiscation. 
C)  democratization. 
D)  arbitration. 
E)  risk expropriation.

Question 12

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

Accepted Answer

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

Question 13

Expropriation and nationalization have often led to nationalized businesses that were efficient, technologically strong, and competitive in world markets.

Accepted Answer

A) True 
 B)False

Question 14

Describe the characteristics of a sovereign state.

Accepted Answer

A sovereign state is independent and fre

Question 15

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)  Bribery 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)  Bribery 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 16

The most effective long-range 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 17

Nationalism can take an anti-foreign business bias.

Accepted Answer

A) True 
 B)False

Question 18

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 always led to more technologically advanced and competitive businesses. 
D)  Nowadays, countries often require companies to become domesticated as a condition for investment. 
E)  Domestication refers to 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 always led to more technologically advanced and competitive businesses. 
D)  Nowadays, countries often require companies to become domesticated as a condition for investment. 
E)  Domestication refers to the seizing of a company's assets without payment.

Question 19

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

Accepted Answer

Relations between governments and MNCs a

Question 20

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 as it is a foreign company in Chile. Additionally, starting next year 50 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

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

_____ 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.

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

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

Meteora Inc. is planning to enter the Kenyan market by establishing a mobile phone manufacturing operation in Kenya. Meteora is most likely to have a positive relationship with Kenyan government through its investment if it:

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

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

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

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

Foreign investment can be perceived as a threat to sovereignty.

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

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

Expropriation and nationalization have often led to nationalized businesses that were efficient, technologically strong, and competitive in world markets.

Describe the characteristics of a sovereign state.

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?

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

Nationalism can take an anti-foreign business bias.

Which of the following is true of domestication?

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

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

The 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

Inventive Negotiations With International Customers, Partners, and Regulators

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Exam 6: The Political Environment: a Critical Concern

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

_____ 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.

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

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

Meteora Inc. is planning to enter the Kenyan market by establishing a mobile phone manufacturing operation in Kenya. Meteora is most likely to have a positive relationship with Kenyan government through its investment if it:

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

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

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

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

Foreign investment can be perceived as a threat to sovereignty.

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

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

Expropriation and nationalization have often led to nationalized businesses that were efficient, technologically strong, and competitive in world markets.

Describe the characteristics of a sovereign state.

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?

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

Nationalism can take an anti-foreign business bias.

Which of the following is true of domestication?

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

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

The 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

Inventive Negotiations With International Customers, Partners, and Regulators

Filters