Question 1

Which of the following is true about domestication?

Accepted Answer

A)  It imposes regulations to ensure that no profits are retained by the host country. 
B)  It results in inefficiencies due to lack of market discipline, and thus affects the international competitiveness of operations abroad. 
C)  It results in total ownership and total management responsibility being conferred on the host country. 
D)  It imposes regulations to ensure that all high-end products are locally produced while all low-end products are produced by the host country. 
A)  It imposes regulations to ensure that no profits are retained by the host country. 
B)  It results in inefficiencies due to lack of market discipline, and thus affects the international competitiveness of operations abroad. 
C)  It results in total ownership and total management responsibility being conferred on the host country. 
D)  It imposes regulations to ensure that all high-end products are locally produced while all low-end products are produced by the host country.

Question 2

_____ are designed to deny or at least delay the acquisition of strategically important goods by adversaries.

Accepted Answer

A)  Antidumping laws 
B)  Export control systems 
C)  Voluntary restraint agreements 
D)  Domestication activities 
A)  Antidumping laws 
B)  Export control systems 
C)  Voluntary restraint agreements 
D)  Domestication activities

Question 3

Describe political risk and the different types of political risk.

Accepted Answer

Political risk is defined as the risk of

Question 4

Permitting a foreign national from a controlled country to have access to a highly sensitive computer program in the United States is not considered as an export.

Accepted Answer

A) True 
 B)False

Question 5

The seizure of foreign assets by a government with payment of compensation to owners is known as _____.

Accepted Answer

A)  asset forfeiture 
B)  misappropriation 
C)  expropriation 
D)  dissolution 
A)  asset forfeiture 
B)  misappropriation 
C)  expropriation 
D)  dissolution

Question 6

Political risk can be the result of government action,but it can also be outside the control of government.

Accepted Answer

A) True 
 B)False

Question 7

Nuclear nonproliferation is a determinant for export control.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true about the legal procedures preferred by businesses?

Accepted Answer

A)  Businesses who opt for conciliation fear discrimination in foreign countries and therefore avoid it. 
B)  Arbitration often involves extensive delays and is very costly, and hence is not preferred by businesses. 
C)  Litigation results in much quicker decisions than arbitration, and hence is preferred by businesses. 
D)  Arbitration results in much quicker decisions, and hence is more preferred by businesses. 
A)  Businesses who opt for conciliation fear discrimination in foreign countries and therefore avoid it. 
B)  Arbitration often involves extensive delays and is very costly, and hence is not preferred by businesses. 
C)  Litigation results in much quicker decisions than arbitration, and hence is preferred by businesses. 
D)  Arbitration results in much quicker decisions, and hence is more preferred by businesses.

Question 9

Which of the following best describes "ehrbarer Kaufmann"?

Accepted Answer

A)  It refers to a legal entitlement of exclusive rights to use an idea, piece of knowledge, or invention. 
B)  It refers to governmental actions that distort the free flow of trade in goods, services, or ideas for decidedly adversarial and political, rather than strictly economic, purposes. 
C)  It is a key legal perspective that has faith and belief as its key focus and is also a mix of societal, legal, and spiritual guidelines. 
D)  It focuses on maintaining long-term successful international trade efforts with distant and often unfamiliar people. 
A)  It refers to a legal entitlement of exclusive rights to use an idea, piece of knowledge, or invention. 
B)  It refers to governmental actions that distort the free flow of trade in goods, services, or ideas for decidedly adversarial and political, rather than strictly economic, purposes. 
C)  It is a key legal perspective that has faith and belief as its key focus and is also a mix of societal, legal, and spiritual guidelines. 
D)  It focuses on maintaining long-term successful international trade efforts with distant and often unfamiliar people.

Question 10

Lobbyists are well-connected individuals and firms that can provide access to policymakers and legislators.

Accepted Answer

A) True 
 B)False

Question 11

Countries with the common law system have much more rigid laws than those with the code law system.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is NOT considered a political risk?

Accepted Answer

A)  Deflation 
B)  Tariffs 
C)  Expropriation of assets 
D)  Restriction in repatriation of profits 
A)  Deflation 
B)  Tariffs 
C)  Expropriation of assets 
D)  Restriction in repatriation of profits

Question 13

_____ refer to governmental actions that distort the free flow of trade in goods,services,or ideas for decidedly adversarial and political,rather than strictly economic,purposes.

Accepted Answer

A)  Gray market activities 
B)  Tariffs and barriers 
C)  Trade sanctions and embargoes 
D)  Expropriation and confiscation 
A)  Gray market activities 
B)  Tariffs and barriers 
C)  Trade sanctions and embargoes 
D)  Expropriation and confiscation

Question 14

Today's export controls use a "strategic balance" approach affecting specific hotspots rather than the "tactical balance" approach.

Accepted Answer

A) True 
 B)False

Question 15

_____ results in a transfer of ownership from the foreign firm to the host country without providing compensation for the firm.

Accepted Answer

A)  Defalcation 
B)  Injunction 
C)  Confiscation 
D)  Structuring 
A)  Defalcation 
B)  Injunction 
C)  Confiscation 
D)  Structuring

Question 16

When products and goods enter a market in ways not desired by their manufacturers,this is known as _____ market activities.

Accepted Answer

A)  black 
B)  white 
C)  green 
D)  gray 
A)  black 
B)  white 
C)  green 
D)  gray

Question 17

Which of the following is true about import controls?

Accepted Answer

A)  Nontariff barriers like voluntary restraint agreements are self-imposed restrictions and cutbacks aimed at avoiding punitive trade actions from the host. 
B)  Import controls generally exact a small price from domestic consumers. 
C)  The social cost of import controls benefits the economy in all situations. 
D)  Import controls improve the productivity of an industry, provide it with a level of safety and a cushion of increased income, and lead the drive for technological advancement. 
A)  Nontariff barriers like voluntary restraint agreements are self-imposed restrictions and cutbacks aimed at avoiding punitive trade actions from the host. 
B)  Import controls generally exact a small price from domestic consumers. 
C)  The social cost of import controls benefits the economy in all situations. 
D)  Import controls improve the productivity of an industry, provide it with a level of safety and a cushion of increased income, and lead the drive for technological advancement.

Question 18

Economic sanctions that are imposed unilaterally by one country tend to be more effective than those imposed multilaterally by countries.

Accepted Answer

A) True 
 B)False

Question 19

When the United Nations (UN)votes on economic sanctions for a country:

Accepted Answer

A)  it will apply only to nations who are members of the UN. 
B)  any permanent member of the Security Council can veto the sanctions. 
C)  the government must consider them as being free of cost. 
D)  a new set of rules must be written for the specific infractions. 
A)  it will apply only to nations who are members of the UN. 
B)  any permanent member of the Security Council can veto the sanctions. 
C)  the government must consider them as being free of cost. 
D)  a new set of rules must be written for the specific infractions.

Question 20

Which of the following is an example of a dual-use item?

Accepted Answer

A)  Handbags 
B)  Life jackets 
C)  Compact cars 
D)  Artillery 
A)  Handbags 
B)  Life jackets 
C)  Compact cars 
D)  Artillery

Which of the following is true about domestication?

_____ are designed to deny or at least delay the acquisition of strategically important goods by adversaries.

Describe political risk and the different types of political risk.

Permitting a foreign national from a controlled country to have access to a highly sensitive computer program in the United States is not considered as an export.

The seizure of foreign assets by a government with payment of compensation to owners is known as _____.

Political risk can be the result of government action,but it can also be outside the control of government.

Nuclear nonproliferation is a determinant for export control.

Which of the following is true about the legal procedures preferred by businesses?

Which of the following best describes "ehrbarer Kaufmann"?

Lobbyists are well-connected individuals and firms that can provide access to policymakers and legislators.

Countries with the common law system have much more rigid laws than those with the code law system.

Which of the following is NOT considered a political risk?

_____ refer to governmental actions that distort the free flow of trade in goods,services,or ideas for decidedly adversarial and political,rather than strictly economic,purposes.

Today's export controls use a "strategic balance" approach affecting specific hotspots rather than the "tactical balance" approach.

_____ results in a transfer of ownership from the foreign firm to the host country without providing compensation for the firm.

When products and goods enter a market in ways not desired by their manufacturers,this is known as _____ market activities.

Which of the following is true about import controls?

Economic sanctions that are imposed unilaterally by one country tend to be more effective than those imposed multilaterally by countries.

When the United Nations (UN)votes on economic sanctions for a country:

Which of the following is an example of a dual-use item?

Global Environmental Drivers

International Trade Frameworks and Policy

The Role of Culture

The Economic Environment

Consumer,Industrial,and Government Markets

Strategic Planning

Analyzing People and Markets

Market Entry and Expansion

Marketing Organization,Implementation,and Control

Product Management and Global Brands

Global Marketing of Services

Advertising,Promotion,and Sales

Pricing Strategies and Tactics

Global Distribution and Logistics

Social Networks and Communication

Leadership,Corporate Social Responsibility,and Sustainability

New Directions and Challenges

Filters

Exam 5: The Political and Legal Environment

Which of the following is true about domestication?

_____ are designed to deny or at least delay the acquisition of strategically important goods by adversaries.

Describe political risk and the different types of political risk.

Permitting a foreign national from a controlled country to have access to a highly sensitive computer program in the United States is not considered as an export.

The seizure of foreign assets by a government with payment of compensation to owners is known as _____.

Political risk can be the result of government action,but it can also be outside the control of government.

Nuclear nonproliferation is a determinant for export control.

Which of the following is true about the legal procedures preferred by businesses?

Which of the following best describes "ehrbarer Kaufmann"?

Lobbyists are well-connected individuals and firms that can provide access to policymakers and legislators.

Countries with the common law system have much more rigid laws than those with the code law system.

Which of the following is NOT considered a political risk?

_____ refer to governmental actions that distort the free flow of trade in goods,services,or ideas for decidedly adversarial and political,rather than strictly economic,purposes.

Today's export controls use a "strategic balance" approach affecting specific hotspots rather than the "tactical balance" approach.

_____ results in a transfer of ownership from the foreign firm to the host country without providing compensation for the firm.

When products and goods enter a market in ways not desired by their manufacturers,this is known as _____ market activities.

Which of the following is true about import controls?

Economic sanctions that are imposed unilaterally by one country tend to be more effective than those imposed multilaterally by countries.

When the United Nations (UN)votes on economic sanctions for a country:

Which of the following is an example of a dual-use item?

Global Environmental Drivers

International Trade Frameworks and Policy

The Role of Culture

The Economic Environment

Consumer,Industrial,and Government Markets

Strategic Planning

Analyzing People and Markets

Market Entry and Expansion

Marketing Organization,Implementation,and Control

Product Management and Global Brands

Global Marketing of Services

Advertising,Promotion,and Sales

Pricing Strategies and Tactics

Global Distribution and Logistics

Social Networks and Communication

Leadership,Corporate Social Responsibility,and Sustainability

New Directions and Challenges

Filters