Question 1

Most counterfeit goods are made in markets in which ________ is the basis of the legal system.

Accepted Answer

A)  the rule of man 
B)  the rule of law 
C)  religious doctrine 
D)  corporate precedent 
A)  the rule of man 
B)  the rule of law 
C)  religious doctrine 
D)  corporate precedent

Question 2

The political system of a country refers to the laws that regulate actions,along with the processes by which those laws are enforced and by which redress for grievances is acquired.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following types of political risks often is caused by ethnic conflict or civil disorder and includes those random political developments that adversely affect the operations of all companies in a country?

Accepted Answer

A)  systemic political risk 
B)  procedural political risk 
C)  catastrophic political risk 
D)  distributive political risk 
A)  systemic political risk 
B)  procedural political risk 
C)  catastrophic political risk 
D)  distributive political risk

Question 4

Select the correct order,going from low to high total impact on an MNE,of the following types of political risk: (1)procedural political risks,(2)systemic political risks,(3)distributive political risks,(4)catastrophic political risks.

Accepted Answer

A)  3, 2, 1, 4 
B)  1, 2, 3, 4 
C)  2, 3, 4, 1 
D)  2, 1, 3, 4 
A)  3, 2, 1, 4 
B)  1, 2, 3, 4 
C)  2, 3, 4, 1 
D)  2, 1, 3, 4

Question 5

In a brief essay,describe the political and legal systems in China and their effect on MNEs doing business in China.

Accepted Answer

China applies state capitalism whereby t

Question 6

As exemplified in China,the government in a collectivist society is highly connected to and interdependent with business.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following ideas holds that a government should NOT interfere in business affairs?

Accepted Answer

A)  collectivism 
B)  laissez-faire 
C)  the rule of man 
D)  pluralism 
A)  collectivism 
B)  laissez-faire 
C)  the rule of man 
D)  pluralism

Question 8

Harmon Clothing has a production facility located in Venezuela.Recently,Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government.Which type of political risk is Harmon most likely experiencing?

Accepted Answer

A)  catastrophic 
B)  distributive 
C)  procedural 
D)  systemic 
A)  catastrophic 
B)  distributive 
C)  procedural 
D)  systemic

Question 9

In a democracy,________.

Accepted Answer

A)  citizens have the right to participate in the decision-making process 
B)  the opportunity to truly participate in the political process is restricted to a select few 
C)  the court system is directly supervised by the political system 
D)  the rights of the individual are merged with the state 
A)  citizens have the right to participate in the decision-making process 
B)  the opportunity to truly participate in the political process is restricted to a select few 
C)  the court system is directly supervised by the political system 
D)  the rights of the individual are merged with the state

Question 10

Premium Manufacturing is planning to expand operations overseas.Executives at the firm are considering a number of different countries.Which of the following countries would most likely have the lowest start-up costs?

Accepted Answer

A)  India 
B)  China 
C)  Japan 
D)  Guatemala 
A)  India 
B)  China 
C)  Japan 
D)  Guatemala

Question 11

A democracy grants the voting citizenry the power to alter the laws and structures of government.

Accepted Answer

A) True 
 B)False

Question 12

What is political risk? What is the relationship between political environment and political risk?

Accepted Answer

Investing overseas exposes a company to

Question 13

Managers who take an active approach to political risk management are likely to rely on statistical modeling to quantify the precise degree of political risk.

Accepted Answer

A) True 
 B)False

Question 14

Civil conflict,tax discrimination,weak legal systems,and terrorist actions are political risks faced by MNEs operating in foreign countries.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

Accepted Answer

A)  Totalitarian regimes delivered acceptable economic progress to their populations. 
B)  Economic advances caused contentment among the working class and minimized the need to push for democratic reforms. 
C)  Many groups were able to successfully challenge the legitimacy of democratic systems. 
D)  Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources. 
A)  Totalitarian regimes delivered acceptable economic progress to their populations. 
B)  Economic advances caused contentment among the working class and minimized the need to push for democratic reforms. 
C)  Many groups were able to successfully challenge the legitimacy of democratic systems. 
D)  Information and communications technologies broke down the ability of the state to control access to uncensored information, especially that from foreign sources.

Question 16

Recently,the Economist Intelligence Unit investigated the status of democracies around the globe.Relying on 60 indicators that focus on the performance of free elections,civil liberties,government functioning,political participation,and political culture in a country,the study found that ________.

Accepted Answer

A)  almost all of the world's democracies are full democracies 
B)  nearly half of the world's democracies qualify as "full" or "flawed" democracies 
C)  less than a quarter of the countries studied are outright authoritarian regimes 
D)  most democracies are hybrid political systems that share theocratic and totalitarian characteristics 
A)  almost all of the world's democracies are full democracies 
B)  nearly half of the world's democracies qualify as "full" or "flawed" democracies 
C)  less than a quarter of the countries studied are outright authoritarian regimes 
D)  most democracies are hybrid political systems that share theocratic and totalitarian characteristics

Question 17

A system of ________ law sets the framework for the system of government and defines the authority and procedure of political bodies to establish laws and regulations.

Accepted Answer

A)  criminal 
B)  constitutional 
C)  civil 
D)  commercial 
A)  criminal 
B)  constitutional 
C)  civil 
D)  commercial

Question 18

Democracy and totalitarianism fall on the same end of the political spectrum.

Accepted Answer

A) True 
 B)False

Question 19

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail.Which of the following legal conventions does ION most likely have?

Accepted Answer

A)  intellectual property right 
B)  trademark credential 
C)  patent certificate 
D)  TRIPS permit 
A)  intellectual property right 
B)  trademark credential 
C)  patent certificate 
D)  TRIPS permit

Question 20

Wharton Enterprises,a U.S.firm,manufactures small kitchen appliances.The firm has recently developed an innovative blender design that Wharton executives anticipate being very profitable.Currently,Wharton has production facilities in the U.S.and China.Wharton executives are trying to determine where the new product should be manufactured.Which of the following questions is most relevant to the decision?

Accepted Answer

A)  What selection procedures would be best in China? 
B)  Should expatriates or locals manage the Chinese facility? 
C)  How can the firm guard against counterfeiting in China? 
D)  How would China's individualistic system affect the firm? 
A)  What selection procedures would be best in China? 
B)  Should expatriates or locals manage the Chinese facility? 
C)  How can the firm guard against counterfeiting in China? 
D)  How would China's individualistic system affect the firm?

Most counterfeit goods are made in markets in which ________ is the basis of the legal system.

The political system of a country refers to the laws that regulate actions,along with the processes by which those laws are enforced and by which redress for grievances is acquired.

Which of the following types of political risks often is caused by ethnic conflict or civil disorder and includes those random political developments that adversely affect the operations of all companies in a country?

Select the correct order,going from low to high total impact on an MNE,of the following types of political risk: (1)procedural political risks,(2)systemic political risks,(3)distributive political risks,(4)catastrophic political risks.

In a brief essay,describe the political and legal systems in China and their effect on MNEs doing business in China.

As exemplified in China,the government in a collectivist society is highly connected to and interdependent with business.

Which of the following ideas holds that a government should NOT interfere in business affairs?

Harmon Clothing has a production facility located in Venezuela.Recently,Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government.Which type of political risk is Harmon most likely experiencing?

In a democracy,________.

Premium Manufacturing is planning to expand operations overseas.Executives at the firm are considering a number of different countries.Which of the following countries would most likely have the lowest start-up costs?

A democracy grants the voting citizenry the power to alter the laws and structures of government.

What is political risk? What is the relationship between political environment and political risk?

Managers who take an active approach to political risk management are likely to rely on statistical modeling to quantify the precise degree of political risk.

Civil conflict,tax discrimination,weak legal systems,and terrorist actions are political risks faced by MNEs operating in foreign countries.

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

Recently,the Economist Intelligence Unit investigated the status of democracies around the globe.Relying on 60 indicators that focus on the performance of free elections,civil liberties,government functioning,political participation,and political culture in a country,the study found that ________.

A system of ________ law sets the framework for the system of government and defines the authority and procedure of political bodies to establish laws and regulations.

Democracy and totalitarianism fall on the same end of the political spectrum.

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail.Which of the following legal conventions does ION most likely have?

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 3: The Political and Legal Environments Facing Business

Most counterfeit goods are made in markets in which ________ is the basis of the legal system.

The political system of a country refers to the laws that regulate actions,along with the processes by which those laws are enforced and by which redress for grievances is acquired.

Which of the following types of political risks often is caused by ethnic conflict or civil disorder and includes those random political developments that adversely affect the operations of all companies in a country?

Select the correct order,going from low to high total impact on an MNE,of the following types of political risk: (1)procedural political risks,(2)systemic political risks,(3)distributive political risks,(4)catastrophic political risks.

In a brief essay,describe the political and legal systems in China and their effect on MNEs doing business in China.

As exemplified in China,the government in a collectivist society is highly connected to and interdependent with business.

Which of the following ideas holds that a government should NOT interfere in business affairs?

Harmon Clothing has a production facility located in Venezuela.Recently,Harmon has been unable to arrange for overseas loans due to the burdensome regulatory policies of the Venezuelan government.Which type of political risk is Harmon most likely experiencing?

In a democracy,________.

Premium Manufacturing is planning to expand operations overseas.Executives at the firm are considering a number of different countries.Which of the following countries would most likely have the lowest start-up costs?

A democracy grants the voting citizenry the power to alter the laws and structures of government.

What is political risk? What is the relationship between political environment and political risk?

Managers who take an active approach to political risk management are likely to rely on statistical modeling to quantify the precise degree of political risk.

Civil conflict,tax discrimination,weak legal systems,and terrorist actions are political risks faced by MNEs operating in foreign countries.

Which of the following is a condition that powered the worldwide spread of democracy from 1970 onward?

Recently,the Economist Intelligence Unit investigated the status of democracies around the globe.Relying on 60 indicators that focus on the performance of free elections,civil liberties,government functioning,political participation,and political culture in a country,the study found that ________.

A system of ________ law sets the framework for the system of government and defines the authority and procedure of political bodies to establish laws and regulations.

Democracy and totalitarianism fall on the same end of the political spectrum.

ION Software is the registered owner of a program designed to help sort and organize incoming and outgoing e-mail.Which of the following legal conventions does ION most likely have?

Globalization and International Business

The Cultural Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters