Exam 6: The Political Environment: a Critical Concern

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

Which of the following statements is true of political sanctions?

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

The most severe political risk is domestication.

Relations between governments and MNCs are generally positive if the investment:

What goal did the G20 nations agree to in the April 2009 agreement that required them to cede some sovereignty?

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

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 regards to suffrage?

Ranzan Inc. has invested in a country showing signs that it will use domestication in the near future to force foreign investors to share more of the profits with the government. Cite and describe a strategy to deal with this potential of domestication that Ranzan could follow to ensure that its business remains profitable.

The Agency for International Development underwrites trade and investments for U.S. firms.

In Thailand, it is required that any milk product sold in the country by a foreign company must use the milk produced by Thai dairy farmers. Which of the following economic risks is faced by the international producers of milk products in this situation?

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 _____.

Products that have or are perceived to have an effect on the environment are more likely to be politically sensitive.

Which of the following is true of a sovereign state?

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

Planned domestication can be profitable and operationally expedient for the foreign investor.

Economically prosperous countries do not display strong nationalistic feelings.

Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

Which of the following is the principle U.S. agency that supports U.S. business abroad?

As a result of the General Agreement on Tariffs and Trade, foreign businesses no longer need to be concerned about the stability or instability of prevailing government policies.