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

Under civil law,it is assumed a contract reflects promises that will be enforced without specifying the details in the contract.

An international agreement which regulates international business by spelling out the rights and obligations of the seller and buyer is known as ________.

Confiscation occurs when a local government seizes and provides inadequate compensation for the foreign-owned assets of an MNC.

The term ________ refers directly to the marketing and sales process via the Internet.

Common law is based on a comprehensive set of laws organized into a code.

Which of the following agreements is a free trade pact among seven South Asian nations,signed in order to lower tariffs?

Which of the following is characterized by networks of international linkages that bind countries,institutions,and people in an interdependent economy?

Under which law system must the details of the promises be written into a contract in order for it to be enforced?

The ________ method of analyzing economic risk attempts to measure statistically a country's ability to honor its debt obligation by assigning different weights to economic variables.

Firms use e-business to help build new relationships between businesses and retailers.

How does the phenomenon of ethnicity affect the international manager?

Differences in laws and regulations from country to country are very few and simple.

The European Union currently consists of how many nations?

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,if true,undermines the argument to build a new Emerson facility in China?

An event that affects all foreign firms doing business in a country or region is called a micropolitical risk event.

Identify and describe four means of political risk adaptation.

What is political risk? Give an example of how political risk can affect an MNC.

For autonomous international subsidiaries,most of the impact from political risks will be in which of the following areas?

Zagreb Inc.,a transnational energy company,negotiates a multimillion dollar contract with the government to provide electricity to Pilladia.The government is voted out of power shortly after.The new government cancels all contracts it has with all oil companies but not contracts with firms in other industries.This is an example of ________.

To which of the following free-trade agreements do Costa Rica,Guatemala,Honduras,El Salvador,and Nicaragua all belong?