Question 1

Many countries have domestication as a condition for investment.

Accepted Answer

A) True 
 B)False

Question 2

Risk of violence is not a consideration in assessing the political vulnerability of a multinational company's activities.

Accepted Answer

A) True 
 B)False

Question 3

The United States requires that 50 percent of all parts used to construct an automobile in the United States be manufactured in the United States. As a result of this, when Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with _____.

Accepted Answer

A)   exchange controls
B)   local-content laws
C)   export restrictions
D)   tax controls
E)   price controlsF) A) and E)
G) A) and B)

Question 4

Briefly discuss the role of PSAs and NGOs.

Accepted Answer

The impact of political and social activ...

Question 5

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

Accepted Answer

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

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)   liberal
E)   neutralF) B) and C)
G) A) and B)

Question 7

Discuss the terms confiscation, expropriation, and domestication.

Accepted Answer

Confiscation is the seizing of a company...

Question 8

Relations between governments and MNCs are generally negative even if the investment made by the MNCs improves the balance of payments by increasing exports or reducing imports.

Accepted Answer

A) True 
 B)False

Question 9

Price controls are only targeted at nonessential products.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true of nationalism?

Accepted Answer

A)   The more a country feels threatened by some outside force the less nationalistic the country becomes.
B)   A call to "buy our country's products only" is one form of manifestation of national feelings.
C)   Nationalist feelings lead to loss of control over foreign investment.
D)   The more a country's domestic economy declines, the less nationalistic it becomes.
E)   Nationalistic feelings are not prevalent in economically prosperous countries.F) B) and D)
G) B) and C)

Question 11

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 is most likely to consider using _____ to enter the market.

Accepted Answer

A)   externally produced products
B)   a smaller investment base
C)   foreign technology
D)   joint ventures
E)   the threat of sanctionsF) B) and E)
G) A) and B)

Question 12

The ideal political climate for a multinational firm is:

Accepted Answer

A)   a country where international laws do not apply.
B)   a country where favors can be purchased easily.
C)   a country with a stable and friendly government.
D)   a government with absolute power.
E)   a government that radically shifts its philosophy.F) A) and D)
G) All of the above

Question 13

Political and social activists have no impact on the normal flow of trade.

Accepted Answer

A) True 
 B)False

Question 14

When does an expropriated investment become a government-run entity?

Accepted Answer

A)   On democratization
B)   On deportation
C)   On nationalization
D)   On prioritization
E)   On socializationF) B) and C)
G) B) and E)

Question 15

Which of the following is one of the main political causes of instability in international markets?

Accepted Answer

A)   Varied taxing conventions
B)   Differences in economic philosophies
C)   Global focus
D)   Environmental awareness
E)   Trade disputesF) None of the above
G) A) and C)

Question 16

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

Accepted Answer

A) True 
 B)False

Question 17

If there is a substantial amount of capital leaving a country, which of the following is the country most likely to implement to control the situation?

Accepted Answer

A)   Exchange controls
B)   Local-content laws
C)   Import restrictions
D)   Tax controls
E)   Price controlsF) C) and E)
G) A) and B)

Question 18

Taxes must be classified as a(n)  _____ risk when used as a means of controlling foreign investments.

Accepted Answer

A)   political
B)   social
C)   ignorable
D)   environmental
E)   harmlessF) None of the above
G) A) and B)

Question 19

The ancient Greeks conceived three fundamental forms of government. Which of the following refers to a government ruled by one?

Accepted Answer

A)   Aristocracy
B)   Monarchy
C)   Democracy
D)   Monopoly
E)   OligarchyF) C) and D)
G) A) and E)

Question 20

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

Accepted Answer

A)   Banks that have lent money to the host government
B)   The World Trade Organization
C)   The International Labor Organization
D)   Regional trade blocs
E)   Opposing political partiesF) A) and B)
G) A) and E)

Exam 6: The Political Environment: a Critical Concern

Many countries have domestication as a condition for investment.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Relations between governments and MNCs are generally negative even if the investment made by the MNCs improves the balance of payments by increasing exports or reducing imports.

Correct Answer
verified

If there is a substantial amount of capital leaving a country, which of the following is the country most likely to implement to control the situation?

Correct Answer
verified

Price controls are only targeted at nonessential products.

Correct Answer
verified

Political and social activists have no impact on the normal flow of trade.

Correct Answer
verified

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

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 is most likely to consider using _____ to enter the market.

Correct Answer
verified

Discuss the terms confiscation, expropriation, and domestication.

Correct Answer
verified
Confiscation is the seizing of a company...
View Answer

The ancient Greeks conceived three fundamental forms of government. Which of the following refers to a government ruled by one?

Correct Answer
verified

Which of the following is one of the main political causes of instability in international markets?

Correct Answer
verified

Which of the following is true of nationalism?

Correct Answer
verified

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

Correct Answer
verified

Taxes must be classified as a(n) _____ risk when used as a means of controlling foreign investments.

Correct Answer
verified

When does an expropriated investment become a government-run entity?

Correct Answer
verified

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

Correct Answer
verified

Risk of violence is not a consideration in assessing the political vulnerability of a multinational company's activities.

Correct Answer
verified

Briefly discuss the role of PSAs and NGOs.

Correct Answer
verified
The impact of political and social activ...
View Answer

The ideal political climate for a multinational firm is:

Correct Answer
verified

Exam 6: The Political Environment: a Critical Concern

Many countries have domestication as a condition for investment.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Relations between governments and MNCs are generally negative even if the investment made by the MNCs improves the balance of payments by increasing exports or reducing imports.

Correct AnswerverifiedShow Answer

If there is a substantial amount of capital leaving a country, which of the following is the country most likely to implement to control the situation?

Correct AnswerverifiedShow Answer

Price controls are only targeted at nonessential products.

Correct AnswerverifiedShow Answer

Political and social activists have no impact on the normal flow of trade.

Correct AnswerverifiedShow Answer

Sovereignty refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

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 is most likely to consider using _____ to enter the market.

Correct AnswerverifiedShow Answer

Discuss the terms confiscation, expropriation, and domestication.

Correct AnswerverifiedConfiscation is the seizing of a company...View AnswerShow Answer

The ancient Greeks conceived three fundamental forms of government. Which of the following refers to a government ruled by one?

Correct AnswerverifiedShow Answer

Which of the following is one of the main political causes of instability in international markets?

Correct AnswerverifiedShow Answer

Which of the following is true of nationalism?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Taxes must be classified as a(n) _____ risk when used as a means of controlling foreign investments.

Correct AnswerverifiedShow Answer

When does an expropriated investment become a government-run entity?

Correct AnswerverifiedShow Answer

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

Correct AnswerverifiedShow Answer

Risk of violence is not a consideration in assessing the political vulnerability of a multinational company's activities.

Correct AnswerverifiedShow Answer

Briefly discuss the role of PSAs and NGOs.

Correct AnswerverifiedThe impact of political and social activ...View AnswerShow Answer

The ideal political climate for a multinational firm is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Confiscation is the seizing of a company...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The impact of political and social activ...
View Answer

Correct Answer
verified