Question 1

Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

Accepted Answer

A)   Commodity Futures Trading Commission (CFT
C)  
B)   The Federal Trade Commission (FT
C)  
C)   The Small Business Administration (SB
A)  
D)   The United States International Trade Commission (USIT
C)  
E)   The International Trade Administration (IT
A)  F) B) and E)
G) A) and E)

Question 2

Businesses become increasingly attractive to terrorists, both because they are less well defended than government targets and because of what they symbolize.

Accepted Answer

A) True 
 B)False

Question 3

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

Accepted Answer

A)   The "oiling of the machinery" in terms of bribes and commissions
B)   The political clout of the investing parties
C)   The profile of the management
D)   The amount of funds invested in the business
E)   The evaluation of a company's contribution to the nation's interestF) A) and B)
G) B) and E)

Question 4

All of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government EXCEPT:

Accepted Answer

A)   joint ventures.
B)   licensing.
C)   expanding the investment base.
D)   advertising.
E)   planned domestication.F) B) and E)
G) B) and C)

Question 5

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

Accepted Answer

A)   They are rich and they are powerful.
B)   They are capitalists and what they sell.
C)   They are less well defended and because of what they symbolize.
D)   They destroy the environment.
E)   They are subterfuge for espionage agents.F) C) and E)
G) A) and B)

Question 6

Brazil would like to increase its control and ownership of foreign investments in its country. However, Brazil does not want to cut off or discourage foreign investment. Cite and describe a political risk strategy that Brazil could follow that would meet the aforementioned objective.

Accepted Answer

Brazil could choose domestication (plann...

Question 7

Saudi Arabia permits women to vote if they are at least 18 years old and married or 21 years old, if single.

Accepted Answer

A) True 
 B)False

Question 8

Licensing, while being effective in other situations, is least effective when the technology is unique.

Accepted Answer

A) True 
 B)False

Question 9

Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity) .

Accepted Answer

A)   democratized
B)   domesticated
C)   nationalized
D)   prioritized
E)   socializedF) C) and E)
G) A) and E)

Question 10

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

Accepted Answer

A)   joint ventures.
B)   licensing.
C)   expanding the investment base.
D)   planned domestication.
E)   political payoffs.F) A) and B)
G) A) and E)

Question 11

In North Korea there is little foreign investment. One of the reasons is the severe application of ___. Any foreign investor or producer is required to sell its products at prices stated by the North Korean government rather than letting market value and demand determine prices.

Accepted Answer

A)   exchange controls
B)   local-content laws
C)   import restrictions
D)   tax controls
E)   price controlsF) B) and C)
G) All of the above

Question 12

Relations between governments and MNCs are generally positive if the investment leads to all of the following EXCEPT:

Accepted Answer

A)   reduces the balance of payments.
B)   uses locally produced resources.
C)   transfers capital, technology, and/or skills.
D)   creates jobs.
E)   makes tax contributions.F) A) and B)
G) A) and D)

Question 13

All of the following agencies provide assistance to U.S. companies EXCEPT:

Accepted Answer

A)   Export-Import Bank
B)   Foreign Credit Insurance Association
C)   The Agency for International Development
D)   Social Security Advisory Board
E)   The Overseas Private Investment CorporationF) A) and D)
G) All of the above

Question 14

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)   trade bloc membershipsF) B) and D)
G) B) and C)

Question 15

Price controls are used during inflationary periods to:

Accepted Answer

A)   control the cost of living.
B)   restrict exports to foreign countries.
C)   negotiate trade contracts favoring the host country.
D)   encourage imports.
E)   avoid tax burden on essential items.F) B) and D)
G) A) and B)

Exam 6: The Political Environment: A Critical Concern

Licensing, while being effective in other situations, is least effective when the technology is unique.

Correct Answer
verified

In North Korea there is little foreign investment. One of the reasons is the severe application of ___. Any foreign investor or producer is required to sell its products at prices stated by the North Korean government rather than letting market value and demand determine prices.

Correct Answer
verified

Businesses become increasingly attractive to terrorists, both because they are less well defended than government targets and because of what they symbolize.

Correct Answer
verified

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

Correct Answer
verified

Brazil would like to increase its control and ownership of foreign investments in its country. However, Brazil does not want to cut off or discourage foreign investment. Cite and describe a political risk strategy that Brazil could follow that would meet the aforementioned objective.

Correct Answer
verified
Brazil could choose domestication (plann...
View Answer

All of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government EXCEPT:

Correct Answer
verified

Saudi Arabia permits women to vote if they are at least 18 years old and married or 21 years old, if single.

Correct Answer
verified

Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

Correct Answer
verified

Price controls are used during inflationary periods to:

Correct Answer
verified

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

Correct Answer
verified

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 Answer
verified

Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity) .

Correct Answer
verified

All of the following agencies provide assistance to U.S. companies EXCEPT:

Correct Answer
verified

Relations between governments and MNCs are generally positive if the investment leads to all of the following EXCEPT:

Correct Answer
verified

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

Correct Answer
verified

Exam 6: The Political Environment: A Critical Concern

Licensing, while being effective in other situations, is least effective when the technology is unique.

Correct AnswerverifiedShow Answer

In North Korea there is little foreign investment. One of the reasons is the severe application of ___. Any foreign investor or producer is required to sell its products at prices stated by the North Korean government rather than letting market value and demand determine prices.

Correct AnswerverifiedShow Answer

Businesses become increasingly attractive to terrorists, both because they are less well defended than government targets and because of what they symbolize.

Correct AnswerverifiedShow Answer

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

Correct AnswerverifiedShow Answer

Brazil would like to increase its control and ownership of foreign investments in its country. However, Brazil does not want to cut off or discourage foreign investment. Cite and describe a political risk strategy that Brazil could follow that would meet the aforementioned objective.

Correct AnswerverifiedBrazil could choose domestication (plann...View AnswerShow Answer

All of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government EXCEPT:

Correct AnswerverifiedShow Answer

Saudi Arabia permits women to vote if they are at least 18 years old and married or 21 years old, if single.

Correct AnswerverifiedShow Answer

Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

Correct AnswerverifiedShow Answer

Price controls are used during inflationary periods to:

Correct AnswerverifiedShow Answer

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

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

Often an expropriated investment becomes _____ (i.e., it becomes a government-run entity) .

Correct AnswerverifiedShow Answer

All of the following agencies provide assistance to U.S. companies EXCEPT:

Correct AnswerverifiedShow Answer

Relations between governments and MNCs are generally positive if the investment leads to all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Brazil could choose domestication (plann...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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