Question 1

Explain the role of host governments in alliances.

Accepted Answer

Host governments are active in mandating

Question 2

Laws that require that nations hold a majority interest in the operation are known as:

Accepted Answer

A) Commercial laws 
B) Appropriation laws 
C) Indigenization laws 
D) Expropriation laws 
A) Commercial laws 
B) Appropriation laws 
C) Indigenization laws 
D) Expropriation laws

Question 3

Comprehensive political strategies are most important in stable policy environments.

Accepted Answer

A) True 
 B)False

Question 4

According to the 2009 Transparency International Corruption Perceptions Index, which of the following is the least corrupt nation?

Accepted Answer

A) India 
B) United States 
C) Spain 
D) New Zealand 
A) India 
B) United States 
C) Spain 
D) New Zealand

Question 5

According to the text, the following are all forms of terrorism except:

Accepted Answer

A) Classic terrorism 
B) Amateur terrorism 
C) Religious motivated terrorism 
D) Political terrorism 
A) Classic terrorism 
B) Amateur terrorism 
C) Religious motivated terrorism 
D) Political terrorism

Question 6

Which of the following is not a challenge of doing business in Russia?

Accepted Answer

A) Corruption 
B) Red tape 
C) Strong faith in government policies 
D) Security concerns 
A) Corruption 
B) Red tape 
C) Strong faith in government policies 
D) Security concerns

Question 7

When host governments do not require alliances as a condition for entry many MNCs:

Accepted Answer

A) Are advised not to voluntarily pursue alliances as they tend to be problematic 
B) Are usually indifferent about establishing alliances 
C) Find that having an alliance is advantageous to their entry and expansion 
D) Are likely to consider alliances, except in emerging markets and highly regulated industries 
A) Are advised not to voluntarily pursue alliances as they tend to be problematic 
B) Are usually indifferent about establishing alliances 
C) Find that having an alliance is advantageous to their entry and expansion 
D) Are likely to consider alliances, except in emerging markets and highly regulated industries

Question 8

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

Accepted Answer

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

Question 9

Explain the integrative, protective and defensive techniques MNCs use to respond to political risks.

Accepted Answer

Once political risk has been analyzed by

Question 10

Over the past decade and with the recent terrorist attacks on the U.S., political risk assessment has become less vital to MNCs.

Accepted Answer

A) True 
 B)False

Question 11

The following is not an external factor used by MNCs for evaluating political risks:

Accepted Answer

A) Alliances with major and regional powers 
B) Anti-establishment movements 
C) Internal groupings 
D) Sources of key raw materials 
A) Alliances with major and regional powers 
B) Anti-establishment movements 
C) Internal groupings 
D) Sources of key raw materials

Question 12

Which of the following is not a critical legal issue for successful termination of international alliances?

Accepted Answer

A) Conditions of termination 
B) Disposition of assets and liabilities 
C) Distributorship arrangements 
D) People-related issues 
A) Conditions of termination 
B) Disposition of assets and liabilities 
C) Distributorship arrangements 
D) People-related issues

Question 13

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

Accepted Answer

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

Question 14

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

Accepted Answer

A) Formal lobbying 
B) Campaign financing 
C) Seeking advocacy through embassies and consulates of the home country 
D) Downsizing and transferring business elsewhere 
A) Formal lobbying 
B) Campaign financing 
C) Seeking advocacy through embassies and consulates of the home country 
D) Downsizing and transferring business elsewhere

Question 15

_____ risks stem from government policies that limit the transfer of capital, payments, production, people and technology in or out of a country.

Accepted Answer

A) Operational 
B) Bureaucratic 
C) Transfer 
D) Expropriation 
A) Operational 
B) Bureaucratic 
C) Transfer 
D) Expropriation

Question 16

_____ investments involve the production of goods or services that are the same as those produced at home.

Accepted Answer

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

Question 17

When terrorism entails a specific, well-defined objective pursued by well-trained, professional, underground members, it is called

Accepted Answer

A) traditional terrorism 
B) amateur terrorism 
C) religiously motivated terrorism 
D) classic terrorism 
A) traditional terrorism 
B) amateur terrorism 
C) religiously motivated terrorism 
D) classic terrorism

Question 18

The theory behind _____ is quite simple.The MNC works to maintain a stronger bargaining power position than that of the host country.

Accepted Answer

A) Analogous negotiating power 
B) Pertinent bargaining power 
C) Proportionate negotiating power 
D) Relative bargaining power 
A) Analogous negotiating power 
B) Pertinent bargaining power 
C) Proportionate negotiating power 
D) Relative bargaining power

Question 19

_____ reviews major political decisions that are likely to affect all business conducted in a particular country.

Accepted Answer

A) Macro political risk analysis 
B) Micro political risk analysis 
C) Standard political risk analysis 
D) Multidimensional political risk analysis 
A) Macro political risk analysis 
B) Micro political risk analysis 
C) Standard political risk analysis 
D) Multidimensional political risk analysis

Question 20

Which of the following is not a critical business issue for successful termination of international alliances?

Accepted Answer

A) The basic decision to exit 
B) People-related issues 
C) Rights over sales territories and obligations to customers 
D) Relations with the host government 
A) The basic decision to exit 
B) People-related issues 
C) Rights over sales territories and obligations to customers 
D) Relations with the host government

Explain the role of host governments in alliances.

Laws that require that nations hold a majority interest in the operation are known as:

Comprehensive political strategies are most important in stable policy environments.

According to the 2009 Transparency International Corruption Perceptions Index, which of the following is the least corrupt nation?

According to the text, the following are all forms of terrorism except:

Which of the following is not a challenge of doing business in Russia?

When host governments do not require alliances as a condition for entry many MNCs:

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

Explain the integrative, protective and defensive techniques MNCs use to respond to political risks.

Over the past decade and with the recent terrorist attacks on the U.S., political risk assessment has become less vital to MNCs.

The following is not an external factor used by MNCs for evaluating political risks:

Which of the following is not a critical legal issue for successful termination of international alliances?

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

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

_____ risks stem from government policies that limit the transfer of capital, payments, production, people and technology in or out of a country.

_____ investments involve the production of goods or services that are the same as those produced at home.

When terrorism entails a specific, well-defined objective pursued by well-trained, professional, underground members, it is called

The theory behind _____ is quite simple.The MNC works to maintain a stronger bargaining power position than that of the host country.

_____ reviews major political decisions that are likely to affect all business conducted in a particular country.

Which of the following is not a critical business issue for successful termination of international alliances?

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

Explain the role of host governments in alliances.

Laws that require that nations hold a majority interest in the operation are known as:

Comprehensive political strategies are most important in stable policy environments.

According to the 2009 Transparency International Corruption Perceptions Index, which of the following is the least corrupt nation?

According to the text, the following are all forms of terrorism except:

Which of the following is not a challenge of doing business in Russia?

When host governments do not require alliances as a condition for entry many MNCs:

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

Explain the integrative, protective and defensive techniques MNCs use to respond to political risks.

Over the past decade and with the recent terrorist attacks on the U.S., political risk assessment has become less vital to MNCs.

The following is not an external factor used by MNCs for evaluating political risks:

Which of the following is not a critical legal issue for successful termination of international alliances?

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

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

_____ risks stem from government policies that limit the transfer of capital, payments, production, people and technology in or out of a country.

_____ investments involve the production of goods or services that are the same as those produced at home.

When terrorism entails a specific, well-defined objective pursued by well-trained, professional, underground members, it is called

The theory behind _____ is quite simple.The MNC works to maintain a stronger bargaining power position than that of the host country.

_____ reviews major political decisions that are likely to affect all business conducted in a particular country.

Which of the following is not a critical business issue for successful termination of international alliances?

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