Question 1

At the top of the list of political issues concerning foreign businesses is the:

Accepted Answer

A) ruling party of a country. 
B) the political history of a country. 
C) the voting process of a country. 
D) the court system of a country. 
E) the stability or instability of prevailing government policies. 
A) ruling party of a country. 
B) the political history of a country. 
C) the voting process of a country. 
D) the court system of a country. 
E) the stability or instability of prevailing government policies.

Question 2

Some products and issues are more politically sensitive in international trade than others.Which of the following would likely be LEAST the politically sensitive?

Accepted Answer

A) the environment. 
B) exchange rates. 
C) national and economic security. 
D) space travel. 
E) publicly visible assets. 
A) the environment. 
B) exchange rates. 
C) national and economic security. 
D) space travel. 
E) publicly visible assets.

Question 3

Foreign companies are usually not affected by changes in nationalistic feelings in the countries where they operate.

Accepted Answer

A) True 
 B)False

Question 4

The three forms of government are dictatorship,aristocracy,and democracy.

Accepted Answer

A) True 
 B)False

Question 5

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) free-born 
E) neutral 
A) bounded 
B) sovereign 
C) legal 
D) free-born 
E) neutral

Question 6

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

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 7

Which of the following would NOT be the best illustration of a NGO (nongovernmental organization)group?

Accepted Answer

A) Red Crescent 
B) Red Cross 
C) Amnesty International 
D) Oxfam 
E) FedEx 
A) Red Crescent 
B) Red Cross 
C) Amnesty International 
D) Oxfam 
E) FedEx

Question 8

At the top of the list of political issues concerning foreign businesses is the ___________ of prevailing government policies.

Accepted Answer

stability

Question 9

A sovereign state,in the context of international law,has all of the following characteristics EXCEPT:

Accepted Answer

A) is obligated to be a member of the United Nations. 
B) is independent. 
C) enjoys full legal equality with other states. 
D) governs its own territory. 
E) is free from all external control. 
A) is obligated to be a member of the United Nations. 
B) is independent. 
C) enjoys full legal equality with other states. 
D) governs its own territory. 
E) is free from all external control.

Question 10

_______________ is a gradual process of participating with nationals in all phases of company operations resulting in gradual withdrawal of the company from an ownership and control position.

Accepted Answer

Planned do

Question 11

(p.161,Global Perspective)When the World Trade Organization attempted to settle what was called a "banana war," what was the outcome?

Accepted Answer

A) The European Union won and received payments from the United States. 
B) The matter was declared a draw. 
C) Both sides in the matter were instructed to cease and desist. 
D) The WTO ruled in favor of the United States,however,the EU ignored the ruling. 
E) The WTO ruled in favor of the United States and the matter was ended. 
A) The European Union won and received payments from the United States. 
B) The matter was declared a draw. 
C) Both sides in the matter were instructed to cease and desist. 
D) The WTO ruled in favor of the United States,however,the EU ignored the ruling. 
E) The WTO ruled in favor of the United States and the matter was ended.

Question 12

All of the following are considered to be economic risks that can be faced by international companies EXCEPT:

Accepted Answer

A) exchange controls. 
B) local-content laws. 
C) import restrictions. 
D) tax controls. 
E) production costs. 
A) exchange controls. 
B) local-content laws. 
C) import restrictions. 
D) tax controls. 
E) production costs.

Question 13

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made,the government is following 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 14

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 will consider using _______________ to enter the market.

Accepted Answer

A) importing 
B) sole-proprietorships 
C) multinational corporations 
D) joint ventures 
E) all of the above are equal with respect to political harassment 
A) importing 
B) sole-proprietorships 
C) multinational corporations 
D) joint ventures 
E) all of the above are equal with respect to political harassment

Question 15

No nation-state will tolerate penetration by a foreign company into its market if it perceives a(n)______________ its well-being.

Accepted Answer

A) sympathy for 
B) synergistic relationship to 
C) economic boost 
D) threat to 
E) profitable outcome 
A) sympathy for 
B) synergistic relationship to 
C) economic boost 
D) threat to 
E) profitable outcome

Question 16

According to the text if China raised the value of its currency that would make it even easier for Chinese firms and government to purchase American companies.

Accepted Answer

A) True 
 B)False

Question 17

Confiscation (as a political risk)is the seizing of a company's assets without payment.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

Greenpeace actions to bring attention to environmental issues are an illustration of an organization that would be labeled as a __________ (PSA).

Accepted Answer

political

Question 20

The phrase "Buy American" would most closely be associated with which of the following?

Accepted Answer

A) Socialism 
B) Jingoism 
C) Nationalism 
D) Mercantilism 
E) Polarism 
A) Socialism 
B) Jingoism 
C) Nationalism 
D) Mercantilism 
E) Polarism

At the top of the list of political issues concerning foreign businesses is the:

Some products and issues are more politically sensitive in international trade than others.Which of the following would likely be LEAST the politically sensitive?

Foreign companies are usually not affected by changes in nationalistic feelings in the countries where they operate.

The three forms of government are dictatorship,aristocracy,and democracy.

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

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

Which of the following would NOT be the best illustration of a NGO (nongovernmental organization)group?

At the top of the list of political issues concerning foreign businesses is the ___________ of prevailing government policies.

A sovereign state,in the context of international law,has all of the following characteristics EXCEPT:

_______________ is a gradual process of participating with nationals in all phases of company operations resulting in gradual withdrawal of the company from an ownership and control position.

(p.161,Global Perspective)When the World Trade Organization attempted to settle what was called a "banana war," what was the outcome?

All of the following are considered to be economic risks that can be faced by international companies EXCEPT:

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

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 will consider using _______________ to enter the market.

No nation-state will tolerate penetration by a foreign company into its market if it perceives a(n)______________ its well-being.

According to the text if China raised the value of its currency that would make it even easier for Chinese firms and government to purchase American companies.

Confiscation (as a political risk)is the seizing of a company's assets without payment.

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

Greenpeace actions to bring attention to environmental issues are an illustration of an organization that would be labeled as a __________ (PSA).

The phrase "Buy American" would most closely be associated with which of the following?

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

Emerging Markets

Multinational Market Regions and Market Groups

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Exporting and Logistics: Special Issues for Business

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

At the top of the list of political issues concerning foreign businesses is the:

Some products and issues are more politically sensitive in international trade than others.Which of the following would likely be LEAST the politically sensitive?

Foreign companies are usually not affected by changes in nationalistic feelings in the countries where they operate.

The three forms of government are dictatorship,aristocracy,and democracy.

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

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

Which of the following would NOT be the best illustration of a NGO (nongovernmental organization)group?

At the top of the list of political issues concerning foreign businesses is the ___________ of prevailing government policies.

A sovereign state,in the context of international law,has all of the following characteristics EXCEPT:

_______________ is a gradual process of participating with nationals in all phases of company operations resulting in gradual withdrawal of the company from an ownership and control position.

(p.161,Global Perspective)When the World Trade Organization attempted to settle what was called a "banana war," what was the outcome?

All of the following are considered to be economic risks that can be faced by international companies EXCEPT:

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

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 will consider using _______________ to enter the market.

No nation-state will tolerate penetration by a foreign company into its market if it perceives a(n)______________ its well-being.

According to the text if China raised the value of its currency that would make it even easier for Chinese firms and government to purchase American companies.

Confiscation (as a political risk)is the seizing of a company's assets without payment.

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

Greenpeace actions to bring attention to environmental issues are an illustration of an organization that would be labeled as a __________ (PSA).

The phrase "Buy American" would most closely be associated with which of the following?

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

Emerging Markets

Multinational Market Regions and Market Groups

Global Marketing Management: Planning and Organization

Products and Services for Consumers

Products and Services for Businesses

International Marketing Channels

Exporting and Logistics: Special Issues for Business

Integrated Marketing Communications and International Advertising

Personal Selling and Sales Management

Pricing for International Markets

Negotiating With International Customers, Partners, and Regulators

Filters