Question 1

Compare and contrast the business environments in China and Russia.

Accepted Answer

The answer of Compare and contrast the business environments in...

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Which of the following terms refers to the broadest measure of economic development of a country?

Accepted Answer

A)  gross domestic product (GDP) 
B)  purchasing power parity (PPP) 
C)  gross national product (GNP) 
D)  human development index (HDI)

Question 4

The immediate cause of country risk is a legal or political factor.

Accepted Answer

A) True 
 B)False

Question 5

A solid grasp of local values,customs,and traditions can help reduce a company's exposure to political risk.

Accepted Answer

A) True 
 B)False

Question 6

SJC Enterprises,a global firm,operates a facility in Angola.Managers want to reduce the firm's vulnerability to political risk in Angola.All of the following actions would most likely accomplish this task except ________.

Accepted Answer

A)  reducing net investment in the subsidiary 
B)  purchasing capital equipment outright 
C)  buying inputs from local suppliers 
D)  being a good corporate citizen

Question 7

Political risk that affects all firms in a country is referred to as ________.

Accepted Answer

A)  micropolitical risk 
B)  macropolitical risk 
C)  inclusive political risk 
D)  exclusive political risk

Question 8

Lobbying is the policy of hiring people to represent a company's views on political matters.

Accepted Answer

A) True 
 B)False

Question 9

Civil conflict,tax discrimination,weak legal systems,and terrorist actions are political risks faced by MNEs operating in foreign countries.

Accepted Answer

A) True 
 B)False

Question 10

________ has one of the highest levels of macropolitical risk.

Accepted Answer

A)  Saudi Arabia 
B)  Chile 
C)  Brazil 
D)  Afghanistan

Question 11

________ refers to the transfer of ownership of resources from the private to the public sector.

Accepted Answer

A)  Nationalization 
B)  Expropriation 
C)  Federalization 
D)  Conversion

Question 12

Expropriation is best defined as the ________.

Accepted Answer

A)  transference of ownership of resources from private to public sector with no compensation 
B)  transference of ownership from private to public sector with compensation to private owners for their losses 
C)  conversion of state-owned property to privately owned property 
D)  conversion of state-owned property to privately owned property with no compensation

Question 13

Which of the following is true about economic development of a nation?

Accepted Answer

A)  The purchasing power parity is a poor indicator of a people's total well-being. 
B)  GDP is a larger figure and includes a nation's income generated from exports, imports, and international operations. 
C)  Illegal activities such as gambling and black market transactions are considered in GDP and GNP. 
D)  Using gross product figures to compare production across countries accounts for different cost of living in each country.

Question 14

International companies never have to customize products to comply with local standards if they are to do business in a particular country.

Accepted Answer

A) True 
 B)False

Question 15

Country risk is considered similar to ________.

Accepted Answer

A)  political risk 
B)  commercial risk 
C)  currency risk 
D)  cross-cultural risk

Question 16

Explain the three types of property seizure.Why might property seizure be a risk for a business operating in a totalitarian nation?

Accepted Answer

The answer of Explain the three types of property seizure.Why...

Question 17

Among asset seizure approaches,expropriation is more common than confiscation and nationalization.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  Venezuela 
B)  Switzerland 
C)  Zimbabwe 
D)  Iraq

Question 19

Local content regulations are primarily intended to ________.

Accepted Answer

A)  address cultural differences between local employees and expatriates 
B)  encourage MNEs to increase production activities in a country 
C)  address contract negotiation difficulties 
D)  assess local tax rates on MNEs

Question 20

Why are many mixed economies converting to market-based systems? How does the role of government change when a mixed economy transitions to a market economy?

Accepted Answer

The answer of Why are many mixed economies converting to...

Exam 4: Economic Development of Nations

Compare and contrast the business environments in China and Russia.

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

Which of the following terms refers to the broadest measure of economic development of a country?

The immediate cause of country risk is a legal or political factor.

A solid grasp of local values,customs,and traditions can help reduce a company's exposure to political risk.

SJC Enterprises,a global firm,operates a facility in Angola.Managers want to reduce the firm's vulnerability to political risk in Angola.All of the following actions would most likely accomplish this task except ________.

Political risk that affects all firms in a country is referred to as ________.

Lobbying is the policy of hiring people to represent a company's views on political matters.

Civil conflict,tax discrimination,weak legal systems,and terrorist actions are political risks faced by MNEs operating in foreign countries.

________ has one of the highest levels of macropolitical risk.

________ refers to the transfer of ownership of resources from the private to the public sector.

Expropriation is best defined as the ________.

Which of the following is true about economic development of a nation?

International companies never have to customize products to comply with local standards if they are to do business in a particular country.

Country risk is considered similar to ________.

Explain the three types of property seizure.Why might property seizure be a risk for a business operating in a totalitarian nation?

Among asset seizure approaches,expropriation is more common than confiscation and nationalization.

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

Local content regulations are primarily intended to ________.

Why are many mixed economies converting to market-based systems? How does the role of government change when a mixed economy transitions to a market economy?