Question 1

Boycotts and protests have the potential to harm businesses by ________.

Accepted Answer

A)   preventing businesses from shipping their products to foreign markets
B)   reducing sales and requiring additional public relations activity
C)   destroying the ability of all local firms to carry on normal business operations
D)   raising concerns about a firm's foreign operations by initiating lawsuits B

Question 2

Which of the following types of organizations would wield the greatest power over a firm attempting to do business in Canada?

Accepted Answer

A)   Canada's Ministry of Foreign Affairs
B)   World Trade Organization
C)   North American Free Trade Agreement
D)   Public Works and Government Services Canada A

Question 3

Civil law is more flexible than the other legal systems.

Accepted Answer

A) True 
 B)False  False

Question 4

Describe the methods used by governments to seize the assets of foreign firms. How would proactive environmental scanning mitigate this risk?

Accepted Answer

The answer of Describe the methods used by governments to...

Question 5

Describe the similarities and differences of common law and civil law, and explain how inadequate or underdeveloped legal systems pose a risk for international businesses.

Accepted Answer

The answer of Describe the similarities and differences of common...

Question 6

Nationalization describes government seizure of an entire industry, with or without compensation.

Accepted Answer

A) True 
 B)False

Question 7

Totalitarianism's fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

Accepted Answer

A) True 
 B)False

Question 8

Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long-term.
-Which of the following statements supports Country B over Country A?

Accepted Answer

A)   Rules and principles form the starting point for legal reasoning and administering justice.
B)   The flexibility of common law allows for judicial interpretation in unique cases.
C)   Common law nations administer justice based on a structured set of rules.
D)   Laws are primarily legislative in origin and based on laws passed by national and local legislatures.

Question 9

________ are the people and organizations that support the political system and receive government resources.

Accepted Answer

A)   Subsidiaries
B)   Regional trade blocs
C)   Constituents
D)   Shell corporations

Question 10

An individual from a country with a high degree of political risk would most likely be from ________.

Accepted Answer

A)   Canada
B)   Singapore
C)   Iraq
D)   Japan

Question 11

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following countries is considered a mixed economy?

Accepted Answer

A)   Norway
B)   Russia
C)   Vietnam
D)   China

Question 13

Islamic law is based on the ________.

Accepted Answer

A)   Bible
B)   Bhagavad Gita
C)   Tanakh
D)   Qur'an

Question 14

In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following pairs of nations are on opposite ends of the political freedom scale?

Accepted Answer

A)   New Zealand and Chile
B)   China and Vietnam
C)   Japan and South Korea
D)   Cuba and Sweden

Question 16

Common and Civil Law (Scenario)
Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long-term.
-Which of the following questions would be more important for Zane legal experts to consider before recommending Country A or Country B?

Accepted Answer

A)   Have other corporations based in these two countries been profitable?
B)   What is the prevalence of industrial crime in these two countries?
C)   How would a contractual dispute with a local vendor be resolved?
D)   Would local environmental organizations target Zane for its manufacturing practices?

Question 17

________ is seizure of corporate assets with compensation.

Accepted Answer

A)   Confiscation
B)   Expropriation
C)   Embargo
D)   Sanction

Question 18

The World Bank is classified as a(n) ________.

Accepted Answer

A)   international organization
B)   regional economic bloc
C)   special interest group
D)   competing firm

Question 19

A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries.

Accepted Answer

A)   confiscation
B)   expropriation
C)   subsidy
D)   sanction

Question 20

Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.

Accepted Answer

A) True 
 B)False

Exam 7: Political and Legal Systems in National Environments

Boycotts and protests have the potential to harm businesses by ________.

Which of the following types of organizations would wield the greatest power over a firm attempting to do business in Canada?

Civil law is more flexible than the other legal systems.

Describe the methods used by governments to seize the assets of foreign firms. How would proactive environmental scanning mitigate this risk?

Describe the similarities and differences of common law and civil law, and explain how inadequate or underdeveloped legal systems pose a risk for international businesses.

Nationalization describes government seizure of an entire industry, with or without compensation.

Totalitarianism's fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.

________ are the people and organizations that support the political system and receive government resources.

An individual from a country with a high degree of political risk would most likely be from ________.

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

Which of the following countries is considered a mixed economy?

Islamic law is based on the ________.

In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.

Which of the following pairs of nations are on opposite ends of the political freedom scale?

________ is seizure of corporate assets with compensation.

The World Bank is classified as a(n) ________.

A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries.

Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.