Exam 1: Assessing the Environment: Political, Economic, Legal, Technological

Which of the following means of adaptation to political risk requires that a firm actively involve nationals in the management of its subsidiary?

Experts suggest that firms wanting to globalize through e-commerce must first localize,which means firms need to ________.

________ results from the lessening of trade barriers and the increased flow of goods and services,capital,labor,and technology around the world.

Privatization refers to the forced sale of an MNC's assets to local buyers with some compensation to the firm,perhaps leaving a minority ownership with the MNC.

If a foreign-based firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation,the firm is managing political risk with ________.

SAARC is an agreement that came into force to bring faster growth,more jobs,better working conditions,and a cleaner environment for all as a result of increased exports and trade.

What is the European Union (EU)? Discuss how the EU affects both Europe and international managers working in Europe.

Which two factors are primarily assessed when using the qualitative approach to measure a country's economic risk?

Expropriation occurs when a local government seizes and does not provide any compensation for the foreign-owned assets of an MNC.

Robert is a technology officer in an Umerian firm and he manages the firm's operations at its facility in Elador.Robert is considering the idea of installing new technology in the facility that would significantly improve productivity and reduce labor costs.Which of the following undermines the argument that Robert should install the new technology?

Which of the following best describes nationalization?

Which of the following means of political risk reduction is best suited for firms that decide a high-risk environment is worth the potential returns?

What methods are used by MNCs to protect intellectual property rights?

Which of the following terms refers to the integration of systems,processes,organizations,value chains,and entire markets using Internet-based technologies?

Internet is a completely open platform and it does not have to abide by any laws.

Which of the following is a form of protectionist policies?

Which type of country is most likely to use its investment laws to acquire appropriate technology?

Emerson is a global manufacturing company headquartered in St.Louis,Missouri.The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents.Emerson manufactures a wide range of products including air-conditioning compressors,garbage disposers,and automotive parts.Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia.Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit.Emerson executives are considering whether to build the new facility in China or in the U.S. Which of the following questions is LEAST relevant to Emerson's decision regarding where to build a new facility?

Which of the following best explains China's success in exporting?

What is currency translation exposure? Provide an example to illustrate your answer.