Question 1

The special nature of foreign direct investment is not related to:

Accepted Answer

A) Sector 
B) Technology 
C) Ownership 
D) Operations 
A) Sector 
B) Technology 
C) Ownership 
D) Operations

Question 2

Expropriation is more likely to occur in:

Accepted Answer

A) Non-Western governments that are poor, relatively unstable and suspicious of foreign multinationals 
B) Western governments that are rich, relatively stable and are experienced in dealing with foreign multinationals 
C) Non-Western governments that are neither rich nor poor, relatively stable and are unsure about the presence of foreign multinationals 
D) Western governments that are moderately wealthy, relatively stable and are new at dealing with foreign multinationals 
A) Non-Western governments that are poor, relatively unstable and suspicious of foreign multinationals 
B) Western governments that are rich, relatively stable and are experienced in dealing with foreign multinationals 
C) Non-Western governments that are neither rich nor poor, relatively stable and are unsure about the presence of foreign multinationals 
D) Western governments that are moderately wealthy, relatively stable and are new at dealing with foreign multinationals

Question 3

All the following are motivations for firms to enter into international strategic alliances except:

Accepted Answer

A) Faster entry and payback 
B) Economies of scale 
C) Co-opting or blocking competition 
D) Stronger control over technologies and patents 
A) Faster entry and payback 
B) Economies of scale 
C) Co-opting or blocking competition 
D) Stronger control over technologies and patents

Question 4

_____ techniques are designed to help the overseas operation become part of the host country's infrastructure.

Accepted Answer

A) Protective 
B) Defensive 
C) Integrative 
D) Statutory 
A) Protective 
B) Defensive 
C) Integrative 
D) Statutory

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) Transfer 
B) Operational 
C) Ownership-control 
D) Exchange 
A) Transfer 
B) Operational 
C) Ownership-control 
D) Exchange

Question 7

The following are listed as techniques for responding to political risks except:

Accepted Answer

A) Relative bargaining power analysis 
B) Realistic bargaining power analysis 
C) Integrative techniques 
D) Proactive political strategies 
A) Relative bargaining power analysis 
B) Realistic bargaining power analysis 
C) Integrative techniques 
D) Proactive political strategies

Question 8

What are some of the advantages of international strategic alliances?

Accepted Answer

International strategic alliances allow

Question 9

Foreign ownership limitations, pressure for local participation, confiscation, expropriation and abrogation of property rights are examples of:

Accepted Answer

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

Question 10

MNCs attempt to manage political risk through a quantification process, to derive an overall rating of the degree of political risk in a given jurisdiction.The factors that are quantified reflect all of the following except:

Accepted Answer

A) Political and economic environment 
B) Domestic economic conditions 
C) Social conditions 
D) External economic conditions 
A) Political and economic environment 
B) Domestic economic conditions 
C) Social conditions 
D) External economic conditions

Question 11

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

Accepted Answer

A) El Salvador 
B) Columbia 
C) Lebanon 
D) Somalia 
A) El Salvador 
B) Columbia 
C) Lebanon 
D) Somalia

Question 12

Firms that are at the greatest risk in regard to expropriation are in extractive, agricultural or infrastructural industries such as utilities and transportation because of the importance of these industries to the country.

Accepted Answer

A) True 
 B)False

Question 13

Conglomerate investments usually are rated as low risk, because foreign governments see them as providing fewer benefits to the MNC and greater benefits to the country than other investments.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

In recent years _____ risk analysis has become of increasing concern to MNCs because of the growing number of countries that are finding their economies in trouble as in Southeast Asia or even worse, unable to make the transition to a market-driven economy.

Accepted Answer

A) Micro 
B) Basic 
C) Macro 
D) Complex 
A) Micro 
B) Basic 
C) Macro 
D) Complex

The special nature of foreign direct investment is not related to:

Expropriation is more likely to occur in:

All the following are motivations for firms to enter into international strategic alliances except:

_____ techniques are designed to help the overseas operation become part of the host country's infrastructure.

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

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

The following are listed as techniques for responding to political risks except:

What are some of the advantages of international strategic alliances?

Foreign ownership limitations, pressure for local participation, confiscation, expropriation and abrogation of property rights are examples of:

MNCs attempt to manage political risk through a quantification process, to derive an overall rating of the degree of political risk in a given jurisdiction.The factors that are quantified reflect all of the following except:

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

Firms that are at the greatest risk in regard to expropriation are in extractive, agricultural or infrastructural industries such as utilities and transportation because of the importance of these industries to the country.

Conglomerate investments usually are rated as low risk, because foreign governments see them as providing fewer benefits to the MNC and greater benefits to the country than other investments.

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

In recent years _____ risk analysis has become of increasing concern to MNCs because of the growing number of countries that are finding their economies in trouble as in Southeast Asia or even worse, unable to make the transition to a market-driven economy.

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

The special nature of foreign direct investment is not related to:

Expropriation is more likely to occur in:

All the following are motivations for firms to enter into international strategic alliances except:

_____ techniques are designed to help the overseas operation become part of the host country's infrastructure.

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

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

The following are listed as techniques for responding to political risks except:

What are some of the advantages of international strategic alliances?

Foreign ownership limitations, pressure for local participation, confiscation, expropriation and abrogation of property rights are examples of:

MNCs attempt to manage political risk through a quantification process, to derive an overall rating of the degree of political risk in a given jurisdiction.The factors that are quantified reflect all of the following except:

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

Firms that are at the greatest risk in regard to expropriation are in extractive, agricultural or infrastructural industries such as utilities and transportation because of the importance of these industries to the country.

Conglomerate investments usually are rated as low risk, because foreign governments see them as providing fewer benefits to the MNC and greater benefits to the country than other investments.

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

In recent years _____ risk analysis has become of increasing concern to MNCs because of the growing number of countries that are finding their economies in trouble as in Southeast Asia or even worse, unable to make the transition to a market-driven economy.

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