Exam 4: Political Legal Environments
Home country governments may impose _______________ which disrupt the free flow of goods, services and money in order to force a target country to coexist peacefully with its neighbours and the rest of the world.
C
Why is it often difficult to impose sanctions multilaterally? Give one example in which consensus to impose sanctions was achieved and one in which there was a failure to achieve consensus.
It is often difficult to impose sanctions multilaterally because it requires the agreement and cooperation of multiple countries, each with their own interests and priorities. This can lead to disagreements and delays in reaching a consensus on whether or how to impose sanctions.
One example of successful multilateral consensus to impose sanctions is the case of Iran. In 2010, the United Nations Security Council, along with the European Union and other countries, agreed to impose sanctions on Iran in response to its nuclear program. This multilateral approach helped to increase the effectiveness of the sanctions and put pressure on Iran to negotiate a nuclear deal.
On the other hand, a notable failure to achieve consensus on imposing sanctions was seen in the case of Syria. Despite widespread international condemnation of the Syrian government's actions during the civil war, there was a lack of agreement among key players such as Russia and China, which prevented the United Nations Security Council from imposing comprehensive sanctions. This lack of consensus weakened the impact of international efforts to address the situation in Syria.
Which of the following (if any) is a legitimate criticism of the Corruption Perception Index (CPI)?
D
What strategies can a global marketer use to mitigate political risk when operating in a foreign country?
Which of the following (if any) is an indirect impact of terrorism?
What is arbitration? How can it be used in the settlement of international disputes between firms?
The _______________ provides a measure of the likelihood that firms headquartered in various countries will bribe when operating in a foreign country.
The Venezuelan government is rumored to be planning new restrictions on foreign firms. According to these rumors all foreign companies operating in Venezuela will soon have to have a new board of directors. Venezuelan nationals must comprise 60% of the membership of the new board. If true, such a ruling would significantly increase ____________ risks for foreign firms.
Deep divisions in society such as between the Hutus and Tutsis in Africa and the Shiites and Sunnis in Iraq contribute to political risk and would be captured by the ____________________________.
The seizure of foreign assets by a government without payment of compensation to owners is called:
When a government demands partial transfer of ownership and management responsibility and imposes regulations to ensure that a large share of the product is locally produced and a larger share of the profit is retained in the country, this is called:
What is meant by the term 'corruption'? List three problems that may result from a corrupt international business environment.
According to the OECD companies should provide protection for whistleblowers, who report corrupt practices taking place within the organization.
What is meant by the term 'political risk'? Distinguish between price controls and local content requirements as examples of political risk.
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