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Cards In This Set
| Front | Back |
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1.
What
is the primary reason that some firms decide to enter foreign markets through
FDI instead of exporting?
|
a.
government-imposed
import tariffs
b.
legal
systems which prohibit imports
c.
extensive
customs bureaucracy
d.
competition
among exporters
|
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All of the following are ways that firms can
benefit from a foreign market’s political and legal systems except
|
A.
tax
holidays
b.
subsidies
c.
legal
protection
d.
cash
incentives
|
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1.
A
company’s potential loss of profitability caused by a nation’s political or
legal setting is known by which of the following terms?
|
A.
commercial
risk
b.
currency
risk
c.
cross-cultural
risk
d.
country
risk
|
|
1.
Each
of the following could be considered intellectual property except
________.
|
a.
stock
b.
trademark
c.
TV
script
d.
invention
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1.
Which
of the following situations would raise country risk the most?
|
A.
inflation
b.
civil
war
c.
elections
d.
stock
market
|
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Which of the following helps explain why India was once
characterized by high country risk?
|
A.
Taxes
and financial incentives benefit Indian businesses over foreign firms.
b.
Indian
business leaders distrust most European corporations.
c.
Political
leaders enacted laws targeted against foreign firms.
d.
Indian
leaders fear the modern influences of American firms.
|
|
1.
Which
of the following characterizes country risk?
|
A.
The
political and legal systems of adjacent nations greatly impact the country risk
of nations that host foreign firms.
b.
Country
risk changes only after the creation of laws and regulations that affect
foreign firms.
c.
A
nation’s country risk level remains fairly constant until the election and
installation of a new political leader.
d.
Although
country risk never disappears, its intensity fluctuates with political changes
and legal happenings.
|
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Which of the following is not a typical principal
function of a political system?
|
a.
regulate
private sector investments
b.
establish
stability based on laws
c.
provide
protection from external threats
d.
govern
the allocation of valued resources
|
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1.
Which
of the following countries is considered primarily socialist?
|
A.
Germany
b.
Canada
c.
Venezuela
d.
Libya
|
|
Totalitarian states are characterized by all of
the following except
|
A.
dictator-led
state political party
b.
state
supported religious ideology
c.
state
regulated public behavior
d.
free
flow of information in the mass media
|
|
1.
Which
of the following is the underlying principle of socialism?
|
A.
The
welfare of individuals far outweighs the welfare of society.
b.
The
wellbeing of the group supersedes the wellbeing of individuals.
c.
The
rights of individuals should be balanced with societal needs.
d.
The
state should protect itself from individual and group interests.
|
|
Which form of government is characterized by
private property rights and limited government?
|
A.
autocratic
b.
democratic
c.
socialist
d. totalitarian
|
|
1.
What
has been the impact of social democracy on international business relations in
some European countries?
|
a.
Regulations
have forced foreign firms to invest elsewhere.
b.
Politically
conscious foreign firms invest in socialist nations.
c.
Low
income tax rates have encouraged an influx of FDI.
d.
Political
stability decreases the country risk of socialist nations.
|
|
Which of the following is an element of
socialism often found in democratic societies?
|
A.
government
subsidies for foreign firms
b.
government
sponsored businesses
c.
government
regulation of the public sector
d.
government
control of information technology
|
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1.
Which
of the following pairs of nations are on opposite ends of the political freedom
scale?
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A.
New Zealand and Chile
b.
China and Syria
c.
Japan and South Africa
d.
Cuba and Sweden
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