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

_____ investments typically are made with an eye toward satisfying the host country's market demands.As a result, they are not very likely to be takeover targets.

(Multiple Choice)

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Question 21

The seizure of businesses by a host country with little, if any, compensation to the owners is referred to as:

(Multiple Choice)

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Question 22

Some MNCs attempt to manage political risk through a quantification process in which a range of variables are simultaneously analyzed to derive an overall rating of the degree of political risk in a given jurisdiction.

(True/False)

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Question 23

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

(Multiple Choice)

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Question 24

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

(True/False)

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Question 25

The following is not an example of risk factors for an MNC:

(Multiple Choice)

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Question 26

_____ techniques are designed to discourage the host government from interfering in operations.

(Multiple Choice)

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Question 27

There are three sectors of economic activity: the primary sector, the secondary sector and the service sector.

(True/False)

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Question 28

In the context of international business, what is meant by the term "political risk"? In general, how do MNCs analyze this risk?

(Essay)

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Question 29

Protective and defensive techniques are designed to encourage the host government to actively participate in the management of the MNC.

(True/False)

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Question 30

The following are internal factors which MNCs may use to evaluate political risk except:

(Multiple Choice)

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Question 31

Political risks can be broken down into three basic categories.These are:

(Multiple Choice)

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Question 32

China's government policies regarding investment in the telecommunications industry fall into the _____ political risk category.

(Multiple Choice)

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Question 33

The most difficult cultural differences to manage in international strategic alliances are power distance and uncertainty avoidance.

(True/False)

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Question 34

Tariffs on exports and imports, restrictions on exports, dividend remittance and capital repatriation are examples of:

(Multiple Choice)

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Question 35

Vertical investments run the risk of being taken over by government because they are export-oriented and governments like a business that helps it to generate foreign capital.

(True/False)

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Question 36

Local knowledge can be internalized primarily as a result of an MNC operating in that market.

(True/False)

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(80)

Question 37

Micro political risk analysis is directed toward government policies and actions that influence selected sectors of the economy or specific foreign businesses.

(True/False)

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Question 38

What is expropriation risk?

(Essay)

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Question 39

Over the past decade political risk has become:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 75

_____ investments typically are made with an eye toward satisfying the host country's market demands.As a result, they are not very likely to be takeover targets.

The seizure of businesses by a host country with little, if any, compensation to the owners is referred to as:

Some MNCs attempt to manage political risk through a quantification process in which a range of variables are simultaneously analyzed to derive an overall rating of the degree of political risk in a given jurisdiction.

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

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

The following is not an example of risk factors for an MNC:

_____ techniques are designed to discourage the host government from interfering in operations.

There are three sectors of economic activity: the primary sector, the secondary sector and the service sector.

In the context of international business, what is meant by the term "political risk"? In general, how do MNCs analyze this risk?

Protective and defensive techniques are designed to encourage the host government to actively participate in the management of the MNC.

The following are internal factors which MNCs may use to evaluate political risk except:

Political risks can be broken down into three basic categories.These are:

China's government policies regarding investment in the telecommunications industry fall into the _____ political risk category.

The most difficult cultural differences to manage in international strategic alliances are power distance and uncertainty avoidance.

Tariffs on exports and imports, restrictions on exports, dividend remittance and capital repatriation are examples of:

Vertical investments run the risk of being taken over by government because they are export-oriented and governments like a business that helps it to generate foreign capital.

Local knowledge can be internalized primarily as a result of an MNC operating in that market.

Micro political risk analysis is directed toward government policies and actions that influence selected sectors of the economy or specific foreign businesses.

What is expropriation risk?

Over the past decade political risk has become:

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

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