Question 1

Political and social activists have no impact on the normal flow of trade.

Accepted Answer

A) True 
 B)False

Question 2

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government follows 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 3

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 that have lent money to the host government 
B)  The World Trade Organization 
C)  The International Labor Organization 
D)  Regional trade blocs 
E)  Opposing political parties 
A)  Banks that have lent money to the host government 
B)  The World Trade Organization 
C)  The International Labor Organization 
D)  Regional trade blocs 
E)  Opposing political parties

Question 4

Price controls are only targeted at nonessential products.

Accepted Answer

A) True 
 B)False

Question 5

Briefly discuss the role of PSAs and NGOs.

Accepted Answer

The impact of political and social activ

Question 6

Discuss the terms confiscation, expropriation, and domestication.

Accepted Answer

Confiscation is the seizing of a company

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

A)  political 
B)  social 
C)  ignorable 
D)  environmental 
E)  harmless 
A)  political 
B)  social 
C)  ignorable 
D)  environmental 
E)  harmless

Question 9

Which of the following is one of the main political causes of instability in international markets?

Accepted Answer

A)  Varied taxing conventions 
B)  Differences in economic philosophies 
C)  Global focus 
D)  Environmental awareness 
E)  Trade disputes 
A)  Varied taxing conventions 
B)  Differences in economic philosophies 
C)  Global focus 
D)  Environmental awareness 
E)  Trade disputes

Question 10

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 11

If there is a substantial amount of capital leaving a country, which of the following is the country most 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

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 easily. 
C)  a country with a stable and friendly government. 
D)  a government with absolute power. 
E)  a government that radically shifts its philosophy. 
A)  a country where international laws do not apply. 
B)  a country where favors can be purchased easily. 
C)  a country with a stable and friendly government. 
D)  a government with absolute power. 
E)  a government that radically shifts its philosophy.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The United States requires that 50 percent of all parts used to construct an automobile in the United States be manufactured in the United States. As a result of this, when Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with _____.

Accepted Answer

A)  exchange controls 
B)  local-content laws 
C)  export restrictions 
D)  tax controls 
E)  price controls 
A)  exchange controls 
B)  local-content laws 
C)  export restrictions 
D)  tax controls 
E)  price controls

Question 15

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 is most likely to consider using _____ to enter the market.

Accepted Answer

A)  externally produced products 
B)  a smaller investment base 
C)  foreign technology 
D)  joint ventures 
E)  the threat of sanctions 
A)  externally produced products 
B)  a smaller investment base 
C)  foreign technology 
D)  joint ventures 
E)  the threat of sanctions

Question 16

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 17

Many countries have domestication as a condition for investment.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  bounded 
B)  sovereign 
C)  legal 
D)  liberal 
E)  neutral 
A)  bounded 
B)  sovereign 
C)  legal 
D)  liberal 
E)  neutral

Question 19

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 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

Political and social activists have no impact on the normal flow of trade.

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

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?

Price controls are only targeted at nonessential products.

Briefly discuss the role of PSAs and NGOs.

Discuss the terms confiscation, expropriation, and domestication.

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

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

Which of the following is one of the main political causes of instability in international markets?

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

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

The ideal political climate for a multinational firm is:

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

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 is most likely to consider using _____ to enter the market.

Which of the following is true of nationalism?

Many countries have domestication as a condition for investment.

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

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

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

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

Exam 6: The Political Environment: a Critical Concern

Political and social activists have no impact on the normal flow of trade.

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

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?

Price controls are only targeted at nonessential products.

Briefly discuss the role of PSAs and NGOs.

Discuss the terms confiscation, expropriation, and domestication.

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

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

Which of the following is one of the main political causes of instability in international markets?

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

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

The ideal political climate for a multinational firm is:

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

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 is most likely to consider using _____ to enter the market.

Which of the following is true of nationalism?

Many countries have domestication as a condition for investment.

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

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

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

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