Question 1

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Accepted Answer

A)   Meteora Inc. plans to use their manufacturing unit as an export base.
B)   Meteora Inc. plans to import phone components from China.
C)   Meteora has an R & D centre in California and all technology will be patented there.
D)   Most of Meteora Inc.'s middle and upper management are expatriates.
E)   Meteora has bargained for a tax holiday for the next five financial years.

Question 2

The most severe political risk is domestication.

Accepted Answer

A) True 
 B)False

Question 3

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)   neutral

Question 4

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

Accepted Answer

The text lists six economic risks:
Excha...

Question 5

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.

Question 6

List the government agencies that are involved in promoting foreign investment and international business.

Accepted Answer

The Department of Commerce (DOC) at www....

Question 7

Which of the following poses the greatest threat to international marketers, in terms of political risk?

Accepted Answer

A)   Newer environmental regulations approved by global trade bodies
B)   Change of ruling parties in the government
C)   Exchange rate fluctuations affecting margins
D)   The threat of the government actually failing
E)   Membership or withdrawal of membership of the government in trade blocs

Question 8

All of the following are instances of how nationalism can be manifested EXCEPT:

Accepted Answer

A)   membership in bilateral trade treaties
B)   call to buy our country's products
C)   restrictions on import
D)   restrictive tariffs
E)   focus on national security

Question 9

Which of the following is NOT true of nationalism?

Accepted Answer

A)   Economic nationalism has as one of its central aims the preservation of national economic autonomy.
B)   A call to "buy our country's products only" is one form of manifestation of national feelings.
C)   Nationalist feelings may lead to control over foreign investment.
D)   The more a country's domestic economy declines, the more nationalistic it becomes.
E)   Nationalistic feelings are not prevalent in economically prosperous countries.

Question 10

When a nation faces shortages of foreign exchange import controls are established.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT one of the common forms of government?

Accepted Answer

A)   Democracy
B)   Aristocracy
C)   Oligopoly
D)   Monarchy
E)   Dictatorship

Question 12

Describe the concept of nationalism and list some of the ways it can be manifested.

Accepted Answer

Nationalism can best be described as an ...

Question 13

Nationalistic feelings are directly proportional to growth of domestic economy.

Accepted Answer

A) True 
 B)False

Question 14

Risks of confiscation and expropriation appear to have lessened over the last two decades.

Accepted Answer

A) True 
 B)False

Question 15

Since the government of Nigeria is strapped for cash, it has decided to tax all foreign investments (such as oil production equipment)  by up to forty percent of appraised value. The Nigerian government has found that this is the handiest and quickest means of finding operating funds. The economic risk in discussion here is:

Accepted Answer

A)   exchange controls.
B)   local-content laws.
C)   import restrictions.
D)   tax controls.
E)   price controls.

Question 16

Economically prosperous countries do not display strong nationalistic feelings.

Accepted Answer

A) True 
 B)False

Question 17

Planned domestication can be profitable and operationally expedient for the foreign investor.

Accepted Answer

A) True 
 B)False

Question 18

The five main causes of instability in international markets include trade disputes and all of the following EXCEPT:

Accepted Answer

A)   some forms of government seem to be inherently unstable.
B)   changes in political parties.
C)   nationalism.
D)   U.S. domestic political policies.
E)   animosity targeted toward specific countries.

Question 19

Slammer, Melissa, and "Goner worm" are all examples of:

Accepted Answer

A)   viruses damaging the Internet.
B)   politically sensitive products.
C)   third-world diseases.
D)   hackers intent on attacking multinational businesses.
E)   new video games espousing Internet crime.

Question 20

_____ 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)   Sovereignty
B)   Self governance
C)   Ethnocentrism
D)   Autocracy
E)   Non-interventionism

Exam 6: The Political Environment: A Critical Concern

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Correct Answer
verified

Slammer, Melissa, and "Goner worm" are all examples of:

Correct Answer
verified

When a nation faces shortages of foreign exchange import controls are established.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is NOT true of nationalism?

Correct Answer
verified

Nationalistic feelings are directly proportional to growth of domestic economy.

Correct Answer
verified

Describe the concept of nationalism and list some of the ways it can be manifested.

Correct Answer
verified
Nationalism can best be described as an ...
View Answer

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

Correct Answer
verified
The text lists six economic risks:
Excha...
View Answer

_____ 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

Planned domestication can be profitable and operationally expedient for the foreign investor.

Correct Answer
verified

Which of the following is NOT one of the common forms of government?

Correct Answer
verified

The five main causes of instability in international markets include trade disputes and all of the following EXCEPT:

Correct Answer
verified

List the government agencies that are involved in promoting foreign investment and international business.

Correct Answer
verified
The Department of Commerce (DOC) at www....
View Answer

Which of the following poses the greatest threat to international marketers, in terms of political risk?

Correct Answer
verified

All of the following are instances of how nationalism can be manifested EXCEPT:

Correct Answer
verified

Risks of confiscation and expropriation appear to have lessened over the last two decades.

Correct Answer
verified

Correct Answer
verified

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

Correct Answer
verified

The most severe political risk is domestication.

Correct Answer
verified

Economically prosperous countries do not display strong nationalistic feelings.

Correct Answer
verified

Exam 6: The Political Environment: A Critical Concern

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Correct AnswerverifiedShow Answer

Slammer, Melissa, and "Goner worm" are all examples of:

Correct AnswerverifiedShow Answer

When a nation faces shortages of foreign exchange import controls are established.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is NOT true of nationalism?

Correct AnswerverifiedShow Answer

Nationalistic feelings are directly proportional to growth of domestic economy.

Correct AnswerverifiedShow Answer

Describe the concept of nationalism and list some of the ways it can be manifested.

Correct AnswerverifiedNationalism can best be described as an ...View AnswerShow Answer

List and briefly discuss the various economic risks that international companies must face when they seek to market abroad.

Correct AnswerverifiedThe text lists six economic risks:Excha...View AnswerShow Answer

_____ 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

Planned domestication can be profitable and operationally expedient for the foreign investor.

Correct AnswerverifiedShow Answer

Which of the following is NOT one of the common forms of government?

Correct AnswerverifiedShow Answer

The five main causes of instability in international markets include trade disputes and all of the following EXCEPT:

Correct AnswerverifiedShow Answer

List the government agencies that are involved in promoting foreign investment and international business.

Correct AnswerverifiedThe Department of Commerce (DOC) at www....View AnswerShow Answer

Which of the following poses the greatest threat to international marketers, in terms of political risk?

Correct AnswerverifiedShow Answer

All of the following are instances of how nationalism can be manifested EXCEPT:

Correct AnswerverifiedShow Answer

Risks of confiscation and expropriation appear to have lessened over the last two decades.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The most severe political risk is domestication.

Correct AnswerverifiedShow Answer

Economically prosperous countries do not display strong nationalistic feelings.

Correct AnswerverifiedShow Answer

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
verified
Nationalism can best be described as an ...
View Answer

Correct Answer
verified
The text lists six economic risks:
Excha...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Department of Commerce (DOC) at www....
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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