Exam 5: Political and Legal Environment

Legal issues facing a company affect:

The United States government accounts for ____________ of the total U.S. consumption.

_______________ if unfettered, may result in excessive production and excessive consumption, thereby causing social problems of great magnitude.

To overcome the problems of expropriation, confiscation, and even nationalization, many companies are now adopting a policy of ___________________ where the Company gradually turns over management and operational responsibilities as well as Ownership to local companies over time.

To reduce the risk of expropriation or confiscation of company assets overseas, many companies use __________________ with local companies.

_________________ systems rely on statutes and codes for the interpretation of the law. There is very little interpretation in this form of law.

With the growing adoption of the __________ standards by firms worldwide, an __________ certification has become an essential marketing tool for firms.

A country that follows common law as its primary system is:

What are the two primary types of trade controls? Give a description and an example of each major type.

The International Court of Justice was established by the ____________________ to settle international conflicts between nations, not between individual parties and Companies.

An example of a product-based trade control would be the:

Common law systems base the interpretation of law on prior court rulings.

Governments often decide to block trade. All of the following are reasons EXCEPT:

An example of a direct government subsidy by the United States to meet foreign competition would be:

Trade laws that harm other countries are likely to invoke _______________.

International marketers cannot afford to be __________________ as they interact with a multitude of political and legal systems, including their own at home.

Weapons that might be used as economic trade controls to protect locally produced goods against imports would be:

The United States maintains an economic embargo on __________________.

Lack of political stability and continuity is usually a characteristic of which of the following systems?

The Group of 7 (or G-7) is made up of France, Germany, Italy, England, Canada, Japan, and the United States.