Question 1

Explain the role of host governments in alliances.

Accepted Answer

The answer of Explain the role of host governments in...

Question 2

According to the 2012 Transparency International Corruption Perceptions Index, which of the following is the most corrupt nation?

Accepted Answer

A) El Salvador 
B) Columbia 
C) Lebanon 
D) Somalia

Question 3

_____ investments include the production of raw materials or intermediate goods that are to be processed into final products.

Accepted Answer

A) Vertical 
B) Matrix 
C) Conglomerate 
D) Horizontal

Question 4

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

Accepted Answer

A) Transfer 
B) Functional 
C) Operational 
D) Ownership-control

Question 5

Which of the following cultural differences tend to be more disruptive for international joint ventures than the others?

Accepted Answer

A) Power distance 
B) Uncertainty avoidance 
C) Individualism 
D) Masculinity

Question 6

China's government policies regarding investment in the telecommunications industry fall into the _____ political risk category.

Accepted Answer

A) Macro 
B) Micro 
C) Integrative 
D) Relative

Question 7

In their attempts to forestall harm in risky venues, MNCs must thoroughly evaluate the political environment, install modern security systems, compile a crisis handbook, and

Accepted Answer

A) go on the offensive. 
B) appeal to the religious leaders in the country. 
C) establish an effective bargaining position. 
D) prepare employees for situations that may arise.

Question 8

The seizure of businesses by a host country with little, if any, compensation to the owners is referred to as:

Accepted Answer

A) Nationalization 
B) Expropriation 
C) Dispossession 
D) Removal

Question 9

The following are listed as techniques for responding to political risks except:

Accepted Answer

A) Relative bargaining power analysis 
B) Realistic bargaining power analysis 
C) Integrative techniques 
D) Proactive political strategies

Question 10

Which of the following criteria involves maximum political risk?

Accepted Answer

A) International financial standing 
B) Economic growth during previous 5 years 
C) Restrictions imposed on imports 
D) Effectiveness of public administration

Question 11

_____ risks stem from government policies that limit the transfer of capital, payments, production, people, and technology in or out of a country.

Accepted Answer

A) Operational 
B) Bureaucratic 
C) Transfer 
D) Expropriation

Question 12

Conglomerate investments usually are rated as low risk, because foreign governments see them as providing fewer benefits to the MNC and greater benefits to the country than other investments.

Accepted Answer

A) True 
 B)False

Question 13

What are some of the advantages of international strategic alliances?

Accepted Answer

The answer of What are some of the advantages of...

Question 14

Since the terrorist attacks of 9/11, political risk assessment has become less vital to MNCs.

Accepted Answer

A) True 
 B)False

Question 15

_____ risk issues often take forms such as industry regulation, taxes on specific types of business activity, and various restrictive local laws.

Accepted Answer

A) Macro 
B) Standard 
C) Direct 
D) Micro

Question 16

Price controls, financing restrictions, export commitments, taxes, and local-sourcing requirements are examples of:

Accepted Answer

A) Ownership-control risks 
B) Operational risks 
C) Transfer risks 
D) Functional risks

Question 17

Examples of proactive political strategies include all of the following except:

Accepted Answer

A) Formal lobbying 
B) Campaign financing 
C) Seeking advocacy through embassies and consulates of the home country 
D) Downsizing and transferring business elsewhere

Question 18

The primary sector of economic activity includes:

Accepted Answer

A) manufacturing operations 
B) agriculture, forestry, and mineral exploration and extraction 
C) industry and service 
D) transportation, finance, insurance, and related industries

Question 19

Alliances and joint ventures are increasingly less-common modes of entry and operation in international business.

Accepted Answer

A) True 
 B)False

Question 20

There are three sectors of economic activity: the primary sector, the secondary sector, and the service sector.

Accepted Answer

A) True 
 B)False

Exam 10: Managing Political Risk, Government Relations, and Alliances

Explain the role of host governments in alliances.

According to the 2012 Transparency International Corruption Perceptions Index, which of the following is the most corrupt nation?

_____ investments include the production of raw materials or intermediate goods that are to be processed into final products.

_____ risks are brought about by government policies or actions that inhibit ownership or control of local operations.

Which of the following cultural differences tend to be more disruptive for international joint ventures than the others?

China's government policies regarding investment in the telecommunications industry fall into the _____ political risk category.

In their attempts to forestall harm in risky venues, MNCs must thoroughly evaluate the political environment, install modern security systems, compile a crisis handbook, and

The seizure of businesses by a host country with little, if any, compensation to the owners is referred to as:

The following are listed as techniques for responding to political risks except:

Which of the following criteria involves maximum political risk?

_____ risks stem from government policies that limit the transfer of capital, payments, production, people, and technology in or out of a country.

Conglomerate investments usually are rated as low risk, because foreign governments see them as providing fewer benefits to the MNC and greater benefits to the country than other investments.

What are some of the advantages of international strategic alliances?

Since the terrorist attacks of 9/11, political risk assessment has become less vital to MNCs.

_____ risk issues often take forms such as industry regulation, taxes on specific types of business activity, and various restrictive local laws.

Price controls, financing restrictions, export commitments, taxes, and local-sourcing requirements are examples of:

Examples of proactive political strategies include all of the following except:

The primary sector of economic activity includes:

Alliances and joint ventures are increasingly less-common modes of entry and operation in international business.

There are three sectors of economic activity: the primary sector, the secondary sector, and the service sector.