Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

________ is the value of all goods and services produced by the domestic economy over a one-year period.

Accepted Answer

A) Gross domestic product (GDP) 
B) Human development index (HDI) 
C) Gross national product (GNP) 
D) Purchasing power parity (PPP)

Question 4

The concept of purchasing power parity (PPP)must be applied to understand the true value of a currency in its home country.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation?

Accepted Answer

A) expropriation 
B) nationalism 
C) nationalization 
D) confiscation

Question 6

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 7

Political risk tends to be higher in developing countries compared to industrialized countries.

Accepted Answer

A) True 
 B)False

Question 8

International companies often must customize products to comply with local standards if they are to do business in a particular country.

Accepted Answer

A) True 
 B)False

Question 9

What is privatization? What role does it play in economic transition?

Accepted Answer

The answer of What is privatization? What role does it...

Question 10

Country risk is considered similar to ________.

Accepted Answer

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

Question 11

U.S.individuals are exempt from being prosecuted for bribery under the Foreign Corrupt Practices Act.

Accepted Answer

A) True 
 B)False

Question 12

Global Trading just learned that the government of one country in which it does business has taken over the entire electric utility industry.The government's actions are an example of ________.

Accepted Answer

A) confiscation 
B) globalization 
C) expropriation 
D) nationalization

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The GDP per capita of a country is higher than that of Thailand.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is lower than that of Thailand.Which of the following is most likely true about the country?

Accepted Answer

A) There are fewer goods available for purchase in the country than in Thailand. 
B) The cost to buy everyday goods in the country is approximately the same as in Thailand. 
C) It costs less to buy everyday goods in the country than in Thailand. 
D) It costs more to buy everyday goods in the country than in Thailand.

Question 15

Christopher Electronics plans to expand into foreign markets.Top executives want the firm to focus only on locations where the rule of law prevails.Which of the following should most likely be considered by Christopher?

Accepted Answer

A) wealthier,westernized countries 
B) developing,non-Western countries 
C) emerging economies experiencing rapid growth 
D) countries inclined toward totalitarian-style government

Question 16

If a foreign company is taken over by the host-country government and some form of compensation is paid,confiscation is said to have occurred.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following statements is true about the political risks in a global marketing environment?

Accepted Answer

A) The political risk of low-income countries is lesser than high-income countries. 
B) The more a country is developed,the greater is the political risk. 
C) Political risk is a major deterrent for companies that want to invest abroad. 
D) A country with high political risks attracts more investors.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

________ is political risk that affects only a specific firm or firms within a specific industry.

Accepted Answer

A) Inclusive political risk 
B) Exclusive political risk 
C) Micropolitical risk 
D) Macropolitical risk

Question 20

Expropriation involves the forced transfer of assets from a company to the government without compensation.

Accepted Answer

A) True 
 B)False

Exam 4: Economic Development of Nations

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

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

________ is the value of all goods and services produced by the domestic economy over a one-year period.

The concept of purchasing power parity (PPP)must be applied to understand the true value of a currency in its home country.

Which of the following terms refers to the forced transfer of assets from a company to the government without compensation?

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

Political risk tends to be higher in developing countries compared to industrialized countries.

International companies often must customize products to comply with local standards if they are to do business in a particular country.

What is privatization? What role does it play in economic transition?

Country risk is considered similar to ________.

U.S.individuals are exempt from being prosecuted for bribery under the Foreign Corrupt Practices Act.

Global Trading just learned that the government of one country in which it does business has taken over the entire electric utility industry.The government's actions are an example of ________.

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

The GDP per capita of a country is higher than that of Thailand.If the GDP per capita of the country is adjusted for PPP,the country's revised GDP is lower than that of Thailand.Which of the following is most likely true about the country?

Christopher Electronics plans to expand into foreign markets.Top executives want the firm to focus only on locations where the rule of law prevails.Which of the following should most likely be considered by Christopher?

If a foreign company is taken over by the host-country government and some form of compensation is paid,confiscation is said to have occurred.

Which of the following statements is true about the political risks in a global marketing environment?

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

________ is political risk that affects only a specific firm or firms within a specific industry.

Expropriation involves the forced transfer of assets from a company to the government without compensation.