Question 1

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

Question 2

Nationalistic feelings are directly proportional to the growth of domestic economy.

Accepted Answer

A) True 
 B)False

Question 3

_____ is an intense feeling of state pride and unity, an awakening of a country's people to pride in their country.

Accepted Answer

A)  Nepotism 
B)  Absolutism 
C)  Fascism 
D)  Nationalism 
E)  Polarism 
A)  Nepotism 
B)  Absolutism 
C)  Fascism 
D)  Nationalism 
E)  Polarism

Question 4

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

Accepted Answer

A)  monopolizing. 
B)  boycotting. 
C)  confiscation. 
D)  democratization. 
E)  expropriation. 
A)  monopolizing. 
B)  boycotting. 
C)  confiscation. 
D)  democratization. 
E)  expropriation.

Question 5

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

Accepted Answer

A)  They impose export controls on the underdeveloped nations. 
B)  They are the major cause for political sanctions against Arab nations. 
C)  They are less well defended than government targets. 
D)  They destroy and pollute the environment. 
E)  They are subterfuge for espionage agents. 
A)  They impose export controls on the underdeveloped nations. 
B)  They are the major cause for political sanctions against Arab nations. 
C)  They are less well defended than government targets. 
D)  They destroy and pollute the environment. 
E)  They are subterfuge for espionage agents.

Question 6

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 7

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

Accepted Answer

The text lists six economic risks. Excha

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

The Department of Commerce (DOC) is the

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

In terms of political risk, which of the following poses the greatest threat to international marketers?

Accepted Answer

A)  Newer environmental regulations approved by global trade bodies 
B)  Change of economic policies 
C)  Exchange rate fluctuations affecting margins 
D)  The possibility of the government actually failing 
E)  Membership or withdrawal of membership of the government in trade blocs 
A)  Newer environmental regulations approved by global trade bodies 
B)  Change of economic policies 
C)  Exchange rate fluctuations affecting margins 
D)  The possibility of the government actually failing 
E)  Membership or withdrawal of membership of the government in trade blocs

Question 13

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. Which of the following is the factor that explains this difference?

Accepted Answer

A)  The level of domestication achieved 
B)  The differences in level of technology between the two countries 
C)  The cultural differences between the host nation and the business's home country 
D)  The import tariffs set by the host country 
E)  The evaluation of a company's contribution to the nation's interest 
A)  The level of domestication achieved 
B)  The differences in level of technology between the two countries 
C)  The cultural differences between the host nation and the business's home country 
D)  The import tariffs set by the host country 
E)  The evaluation of a company's contribution to the nation's interest

Question 14

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

Accepted Answer

A)  subornation 
B)  protectionism 
C)  political payoff 
D)  buyout 
E)  rake-off 
A)  subornation 
B)  protectionism 
C)  political payoff 
D)  buyout 
E)  rake-off

Question 15

Adherence to the WTO inevitably means:

Accepted Answer

A)  a definite increase in import tariffs worldwide. 
B)  the loss of national security to a large extent. 
C)  reduction in world trade by at least 70 percent. 
D)  the loss of some degree of national sovereignty. 
E)  complete stoppage of foreign direct investments. 
A)  a definite increase in import tariffs worldwide. 
B)  the loss of national security to a large extent. 
C)  reduction in world trade by at least 70 percent. 
D)  the loss of some degree of national sovereignty. 
E)  complete stoppage of foreign direct investments.

Question 16

Which of the following government forms can be most aptly described as a rule by few?

Accepted Answer

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

Question 17

As cultural and political scenarios vary so widely across nations, there is absolutely no way to generalize tendencies for products to be politically sensitive.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the threats posed by cyberterrorism or cyberattacks with an example.

Accepted Answer

Cyberterrorism and cybercrime are growin

Question 19

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

Accepted Answer

A)  Trade embargo 
B)  Licensing 
C)  Expanding the investment base 
D)  Planned confiscation 
E)  Expropriation 
A)  Trade embargo 
B)  Licensing 
C)  Expanding the investment base 
D)  Planned confiscation 
E)  Expropriation

Question 20

Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

Accepted Answer

A)  Confiscation 
B)  Sole proprietorship 
C)  Expanding the investment base 
D)  Advertising 
E)  Leasing 
A)  Confiscation 
B)  Sole proprietorship 
C)  Expanding the investment base 
D)  Advertising 
E)  Leasing

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

Nationalistic feelings are directly proportional to the growth of domestic economy.

_____ is an intense feeling of state pride and unity, an awakening of a country's people to pride in their country.

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

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

Price controls are used during inflationary periods to:

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

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.

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

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

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

In terms of political risk, which of the following poses the greatest threat to international marketers?

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. Which of the following is the factor that explains this difference?

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

Adherence to the WTO inevitably means:

Which of the following government forms can be most aptly described as a rule by few?

As cultural and political scenarios vary so widely across nations, there is absolutely no way to generalize tendencies for products to be politically sensitive.

Discuss the threats posed by cyberterrorism or cyberattacks with an example.

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

Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

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

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

Nationalistic feelings are directly proportional to the growth of domestic economy.

_____ is an intense feeling of state pride and unity, an awakening of a country's people to pride in their country.

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

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

Price controls are used during inflationary periods to:

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

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.

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

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

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

In terms of political risk, which of the following poses the greatest threat to international marketers?

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. Which of the following is the factor that explains this difference?

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

Adherence to the WTO inevitably means:

Which of the following government forms can be most aptly described as a rule by few?

As cultural and political scenarios vary so widely across nations, there is absolutely no way to generalize tendencies for products to be politically sensitive.

Discuss the threats posed by cyberterrorism or cyberattacks with an example.

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

Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

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