Question 1

All of the following are considered to be economic risks that can be faced by international companies EXCEPT:

Accepted Answer

A)  exchange controls.
B)  local-content laws.
C)  import restrictions.
D)  tax controls.
E)  production costs.F) A) and B)
G) D) and E)

Question 2

Stopping or refusing to trade with another nation for political reasons is called:

Accepted Answer

A)  activism.
B)  boycotting.
C)  confiscation.
D)  democratization.
E)  expropriation.F) A) and B)
G) A) and C)

Question 3

With respect to political risk that can be faced by a company seeking to invest abroad,which of the following presents the most severe political risk?

Accepted Answer

A)  confiscation
B)  expropriation
C)  domestication
D)  exchange controls
E)  local-content lawsF) A) and B)
G) C) and D)

Question 4

The phrase "Buy American" would most closely be associated with which of the following?

Accepted Answer

A)  Socialism
B)  Jingoism
C)  Nationalism
D)  Mercantilism
E)  PolarismF) C) and E)
G) A) and D)

Question 5

Some products and issues are more politically sensitive in international trade than others.Which of the following would likely be LEAST the politically sensitive?

Accepted Answer

A)  the environment.
B)  exchange rates.
C)  national and economic security.
D)  space travel.
E)  publicly visible assets.F) A) and B)
G) B) and D)

Question 6

In the context of international law,a _____________ state is independent and free from all external control.

Accepted Answer

A)  bounded
B)  sovereign
C)  legal
D)  free-born
E)  neutralF) A) and E)
G) B) and E)

Question 7

At the top of the list of political issues concerning foreign businesses is the ___________ of prevailing government policies.

Accepted Answer

stability ...

Question 8

Foreign companies are usually not affected by changes in nationalistic feelings in the countries where they operate.

Accepted Answer

A) True 
 B)False

Question 9

Juliet is concerned with the potential for political harassment when her company enters a new international market.To reduce the risk of political harassment she will consider using _______________ to enter the market.

Accepted Answer

A)  importing
B)  sole-proprietorships
C)  multinational corporations
D)  joint ventures
E)  all of the above are equal with respect to political harassmentF) A) and C)
G) A) and D)

Question 10

The three forms of government are dictatorship,aristocracy,and democracy.

Accepted Answer

A) True 
 B)False

Question 11

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made,the government is following a process called:

Accepted Answer

A)  confiscation.
B)  expropriation.
C)  domestication.
D)  exchange controls.
E)  local-content laws.F) A) and D)
G) A) and C)

Question 12

A sovereign state,in the context of international law,has all of the following characteristics EXCEPT:

Accepted Answer

A)  is obligated to be a member of the United Nations.
B)  is independent.
C)  enjoys full legal equality with other states.
D)  governs its own territory.
E)  is free from all external control.F) A) and B)
G) C) and E)

Question 13

(p.161,Global Perspective) When the World Trade Organization attempted to settle what was called a "banana war," what was the outcome?

Accepted Answer

A)  The European Union won and received payments from the United States.
B)  The matter was declared a draw.
C)  Both sides in the matter were instructed to cease and desist.
D)  The WTO ruled in favor of the United States,however,the EU ignored the ruling.
E)  The WTO ruled in favor of the United States and the matter was ended.F) A) and E)
G) B) and C)

Question 14

Confiscation (as a political risk)is the seizing of a company's assets without payment.

Accepted Answer

A) True 
 B)False

Question 15

Greenpeace actions to bring attention to environmental issues are an illustration of an organization that would be labeled as a __________ (PSA).

Accepted Answer

political ...

Question 16

_______________ is a gradual process of participating with nationals in all phases of company operations resulting in gradual withdrawal of the company from an ownership and control position.

Accepted Answer

Planned do...

Question 17

No nation-state will tolerate penetration by a foreign company into its market if it perceives a(n) ______________ its well-being.

Accepted Answer

A)  sympathy for
B)  synergistic relationship to
C)  economic boost
D)  threat to
E)  profitable outcomeF) B) and C)
G) D) and E)

Question 18

Which of the following would NOT be the best illustration of a NGO (nongovernmental organization) group?

Accepted Answer

A)  Red Crescent
B)  Red Cross
C)  Amnesty International
D)  Oxfam
E)  FedExF) A) and B)
G) A) and C)

Question 19

At the top of the list of political issues concerning foreign businesses is the:

Accepted Answer

A)  ruling party of a country.
B)  the political history of a country.
C)  the voting process of a country.
D)  the court system of a country.
E)  the stability or instability of prevailing government policies.F) A) and E)
G) C) and E)

Question 20

According to the text if China raised the value of its currency that would make it even easier for Chinese firms and government to purchase American companies.

Accepted Answer

A) True 
 B)False

Exam 6: The Political Environment: A Critical Concern

_______________ is a gradual process of participating with nationals in all phases of company operations resulting in gradual withdrawal of the company from an ownership and control position.

Correct AnswerverifiedPlanned do...View AnswerShow Answer

Confiscation (as a political risk)is the seizing of a company's assets without payment.

Correct AnswerverifiedShow Answer

All of the following are considered to be economic risks that can be faced by international companies EXCEPT:

Correct AnswerverifiedShow Answer

Some products and issues are more politically sensitive in international trade than others.Which of the following would likely be LEAST the politically sensitive?

Correct AnswerverifiedShow Answer

Juliet is concerned with the potential for political harassment when her company enters a new international market.To reduce the risk of political harassment she will consider using _______________ to enter the market.

Correct AnswerverifiedShow Answer

Greenpeace actions to bring attention to environmental issues are an illustration of an organization that would be labeled as a __________ (PSA).

Correct Answerverifiedpolitical ...View AnswerShow Answer

Stopping or refusing to trade with another nation for political reasons is called:

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Foreign companies are usually not affected by changes in nationalistic feelings in the countries where they operate.

Correct AnswerverifiedShow Answer

Which of the following would NOT be the best illustration of a NGO (nongovernmental organization) group?

Correct AnswerverifiedShow Answer

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made,the government is following a process called:

Correct AnswerverifiedShow Answer

In the context of international law,a _____________ state is independent and free from all external control.

Correct AnswerverifiedShow Answer

According to the text if China raised the value of its currency that would make it even easier for Chinese firms and government to purchase American companies.

Correct AnswerverifiedShow Answer

A sovereign state,in the context of international law,has all of the following characteristics EXCEPT:

Correct AnswerverifiedShow Answer

The three forms of government are dictatorship,aristocracy,and democracy.

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The phrase "Buy American" would most closely be associated with which of the following?

Correct AnswerverifiedShow Answer

At the top of the list of political issues concerning foreign businesses is the ___________ of prevailing government policies.

Correct Answerverifiedstability ...View AnswerShow Answer

At the top of the list of political issues concerning foreign businesses is the:

Correct AnswerverifiedShow Answer

No nation-state will tolerate penetration by a foreign company into its market if it perceives a(n) ______________ its well-being.

Correct AnswerverifiedShow Answer

With respect to political risk that can be faced by a company seeking to invest abroad,which of the following presents the most severe political risk?

Correct AnswerverifiedShow Answer

(p.161,Global Perspective) When the World Trade Organization attempted to settle what was called a "banana war," what was the outcome?

Correct AnswerverifiedShow Answer

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Planned do...
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political ...
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stability ...
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