Question 1

Examples of ownership-control risks include tariffs on export and imports and well as restrictions on exports.

Accepted Answer

A) True 
 B)False  False

Question 2

_____ investments include the production of raw materials or intermediate goods that are to be processed into final products.

Accepted Answer

A) Vertical 
B) Matrix 
C) Conglomerate 
D) Horizontal 
A) Vertical 
B) Matrix 
C) Conglomerate 
D) Horizontal A

Question 3

_____ risk is the likelihood that a multinational corporation's foreign investment will be constrained by a host government's policies.

Accepted Answer

A) Social 
B) Development 
C) Legal 
D) Political 
A) Social 
B) Development 
C) Legal 
D) Political D

Question 4

Not all MNCs are confident about international investment in countries with:

Accepted Answer

A) Low labor costs 
B) Political unrest 
C) Emerging economies 
D) Cultural differences 
A) Low labor costs 
B) Political unrest 
C) Emerging economies 
D) Cultural differences

Question 5

Host government mandates that require foreign investors to partner with local state-owned firms or follow local-content rules may still have a positive impact on MNCs.

Accepted Answer

A) True 
 B)False

Question 6

Some multinational corporations attempt to manage political risk through simultaneously analyzing a range of variables to derive an overall rating of the degree of political risk in a given jurisdiction.This is referred to as a:

Accepted Answer

A) Quantification process 
B) Quantification circle 
C) Quantity risk analysis 
D) Quantity management 
A) Quantification process 
B) Quantification circle 
C) Quantity risk analysis 
D) Quantity management

Question 7

Benefits of proactive political strategies include all of the following except:

Accepted Answer

A) Enhancing government relations in unstable and transitional policy environments 
B) Mitigating risk before it becomes unmanageable 
C) Providing support for national and sub-central governments in transitional economies 
D) Counteracting competitors' efforts to influence government policy 
A) Enhancing government relations in unstable and transitional policy environments 
B) Mitigating risk before it becomes unmanageable 
C) Providing support for national and sub-central governments in transitional economies 
D) Counteracting competitors' efforts to influence government policy

Question 8

Which of the following criteria involves maximum political risk?

Accepted Answer

A) International financial standing 
B) Economic growth during previous 5 years 
C) Restrictions imposed on imports 
D) Effectiveness of public administration 
A) International financial standing 
B) Economic growth during previous 5 years 
C) Restrictions imposed on imports 
D) Effectiveness of public administration

Question 9

The economies of China, Russia, India and Vietnam present _____ political risk for MNCs.

Accepted Answer

A) Macro 
B) Micro 
C) Proactive 
D) Relative 
A) Macro 
B) Micro 
C) Proactive 
D) Relative

Question 10

The following actions raise the political risk of doing business in China except:

Accepted Answer

A) Interpretation of rules and regulations by officials 
B) Industrial piracy 
C) Pressure on the MNCs to do things in a particular way 
D) Concerns on safety and reliability of product quality 
A) Interpretation of rules and regulations by officials 
B) Industrial piracy 
C) Pressure on the MNCs to do things in a particular way 
D) Concerns on safety and reliability of product quality

Question 11

Which of the following cultural differences tend to more disruptive for international joint ventures than the others?

Accepted Answer

A) Power distance 
B) Uncertainty avoidance 
C) Individualism 
D) Masculinity 
A) Power distance 
B) Uncertainty avoidance 
C) Individualism 
D) Masculinity

Question 12

All of the following are examples of integrative techniques except:

Accepted Answer

A) Developing good relations with the host government and other local political parties 
B) Doing as little local manufacturing as possible and conducting all research and development outside the country 
C) Producing as much of the product locally as possible with the use of in-country suppliers and subcontractors, thus making it a "domestic" product 
D) Developing effective labor-management relations 
A) Developing good relations with the host government and other local political parties 
B) Doing as little local manufacturing as possible and conducting all research and development outside the country 
C) Producing as much of the product locally as possible with the use of in-country suppliers and subcontractors, thus making it a "domestic" product 
D) Developing effective labor-management relations

Question 13

Price controls, financing restrictions, export commitments, taxes and local-sourcing requirements are examples of:

Accepted Answer

A) Ownership-control risks 
B) Operational risks 
C) Transfer risks 
D) Functional risks 
A) Ownership-control risks 
B) Operational risks 
C) Transfer risks 
D) Functional risks

Question 14

Operational risks result from government policies and procedures that directly constrain the management and performance of local operations.

Accepted Answer

A) True 
 B)False

Question 15

_____ risk issues often take forms such as industry regulation, taxes on specific types of business activity and various restrictive local laws.

Accepted Answer

A) Macro 
B) Standard 
C) Direct 
D) Micro 
A) Macro 
B) Standard 
C) Direct 
D) Micro

Question 16

Examples of protective and defensive techniques include all of the following except:

Accepted Answer

A) Limiting the responsibility of local personnel and hiring only those who are vital to the operations 
B) Raising capital from local banks and the host government as well as outside forces 
C) Diversifying production of the product among a number of countries 
D) Producing as much of the product locally as possible with the use of in-country suppliers and subcontractors, thus making it a "domestic" product 
A) Limiting the responsibility of local personnel and hiring only those who are vital to the operations 
B) Raising capital from local banks and the host government as well as outside forces 
C) Diversifying production of the product among a number of countries 
D) Producing as much of the product locally as possible with the use of in-country suppliers and subcontractors, thus making it a "domestic" product

Question 17

In a conglomerate investment, the goods or services produced are not similar to those produced at home.

Accepted Answer

A) True 
 B)False

Question 18

In the context of international strategic alliances, value-claiming activities are competitive and distributive.

Accepted Answer

A) True 
 B)False

Question 19

China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all MNCs.

Accepted Answer

A) Micro 
B) Standard 
C) Macro 
D) Multidimensional 
A) Micro 
B) Standard 
C) Macro 
D) Multidimensional

Question 20

Macro risk issues often take forms such as industry regulations, taxes of specific types of business activity and various restrictive local laws.

Accepted Answer

A) True 
 B)False

Examples of ownership-control risks include tariffs on export and imports and well as restrictions on exports.

_____ investments include the production of raw materials or intermediate goods that are to be processed into final products.

_____ risk is the likelihood that a multinational corporation's foreign investment will be constrained by a host government's policies.

Not all MNCs are confident about international investment in countries with:

Host government mandates that require foreign investors to partner with local state-owned firms or follow local-content rules may still have a positive impact on MNCs.

Some multinational corporations attempt to manage political risk through simultaneously analyzing a range of variables to derive an overall rating of the degree of political risk in a given jurisdiction.This is referred to as a:

Benefits of proactive political strategies include all of the following except:

Which of the following criteria involves maximum political risk?

The economies of China, Russia, India and Vietnam present _____ political risk for MNCs.

The following actions raise the political risk of doing business in China except:

Which of the following cultural differences tend to more disruptive for international joint ventures than the others?

All of the following are examples of integrative techniques except:

Price controls, financing restrictions, export commitments, taxes and local-sourcing requirements are examples of:

Operational risks result from government policies and procedures that directly constrain the management and performance of local operations.

_____ risk issues often take forms such as industry regulation, taxes on specific types of business activity and various restrictive local laws.

Examples of protective and defensive techniques include all of the following except:

In a conglomerate investment, the goods or services produced are not similar to those produced at home.

In the context of international strategic alliances, value-claiming activities are competitive and distributive.

China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all MNCs.

Macro risk issues often take forms such as industry regulations, taxes of specific types of business activity and various restrictive local laws.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics and Social Responsibility

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Entry Strategies and Organizational Structures

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters

Exam 10: Managing Political Risk, Government Relations, and Alliances

Examples of ownership-control risks include tariffs on export and imports and well as restrictions on exports.

_____ investments include the production of raw materials or intermediate goods that are to be processed into final products.

_____ risk is the likelihood that a multinational corporation's foreign investment will be constrained by a host government's policies.

Not all MNCs are confident about international investment in countries with:

Host government mandates that require foreign investors to partner with local state-owned firms or follow local-content rules may still have a positive impact on MNCs.

Some multinational corporations attempt to manage political risk through simultaneously analyzing a range of variables to derive an overall rating of the degree of political risk in a given jurisdiction.This is referred to as a:

Benefits of proactive political strategies include all of the following except:

Which of the following criteria involves maximum political risk?

The economies of China, Russia, India and Vietnam present _____ political risk for MNCs.

The following actions raise the political risk of doing business in China except:

Which of the following cultural differences tend to more disruptive for international joint ventures than the others?

All of the following are examples of integrative techniques except:

Price controls, financing restrictions, export commitments, taxes and local-sourcing requirements are examples of:

Operational risks result from government policies and procedures that directly constrain the management and performance of local operations.

_____ risk issues often take forms such as industry regulation, taxes on specific types of business activity and various restrictive local laws.

Examples of protective and defensive techniques include all of the following except:

In a conglomerate investment, the goods or services produced are not similar to those produced at home.

In the context of international strategic alliances, value-claiming activities are competitive and distributive.

China's decision regarding restrictions on foreign exchange transactions is a _____ political risk because it affects all MNCs.

Macro risk issues often take forms such as industry regulations, taxes of specific types of business activity and various restrictive local laws.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics and Social Responsibility

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Entry Strategies and Organizational Structures

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters