When the United States and the European Union get into trade disputes, where do both sides go to settle the matter?
The WTO ruled in favor of the US, but the EU ignored the ruling.
When the World Trade Organization attempted to settle what was called a "banana war," what was the outcome?
In the context of international law, a _____________ state is independent and free from all external control.
is obligated to be a member of the UN
A sovereign state, in the context of international law, has all of the following characteristics EXCEPT:
__________ refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.
A stable, friendly government
The ideal political climate for a multinational firm is:
The stability of instability of prevailing government policies
At the top of the list of political issues concerning foreign businesses is the:
US domestic political policies
The five main causes of instability in international markets include trade disputes and all of the following EXCEPT:
as a threat to the US' sovereignty
The proposed purchase of Unocal by the Chinese national oil company was opposed by the U.S. __________.
The only country that precludes women from voting and appears to be still completely in the dark ages with regards to suffrage.
Which of the following is NOT one of the common forms of government?
Peaceful political change
The election of Vicente Fox as President of Mexico was an example of:
the overall business climate
For most countries around the world it is important for international marketers to know the philosophies of all the major political parties, since one them might become dominant and affect:
An intense feeling of national pride and unity, an awakening of a nation's people to pride in their country is called:
The phrase "Buy American" would most closely be associated with which of the following?
No nation-state will tolerate penetration by a foreign company into its market if it perceives a(n) ______________ its well-being.
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?
The seizing of a company's assets without payment is called:
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:
Often an expropriated investment becomes ____________ (i.e., it becomes a government-run entity).
____________ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating ownership and greater national involvement in a company's management.
The gov. in Chile recently informed Clint Travis' co that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by 2050. (...) Which of the following political risk actions is Mr. Travis facing in Chile?
The national telephone company in Mexico was privatized; this meant that the Mexican government sold its operation to _________________.
All of the following are considered to be economic risks that can be faced by international companies EXCEPT:
If there is a substantial amount of capital leaving the country, the country is likely to implement which of the following to control the situation?
In Thailand, it is required that any milk sold in the country must contain at least 50 percent milk from Thai dairy farmers. This would be an illustration of which of the following economic risks faced by international producers of milk?
When Toyota Motor Company built automobile manufacturing plants in Tennessee & Ohio, it faced economic risks associated with _____________. This occurred because the US required that 50 percent of all parts used in an automobile constructed in the US must contain parts that were manufactured in the US.
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 40% of appraised value. (...) This form of economic risk is associated with which of the following?
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.
Stopping or refusing to trade with another nation for political reasons is called:
Boycotts are generally not very successful
Which of the following statements most accurately describes the impact of boycotts?
Coercion does not work, exchange does
Crossing Borders 6.2 "Trade Does Not Work as a Stick, Only as a Carrot" suggests:
Which of the following would NOT be the best illustration of a NGO (nongovernmental organization) group?
Develop military management capability
Which of the following is NOT a common goal of terrorists?
They are less well defended and what they symbolize
Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?
_____ is fast becoming obsolete; the greater threats to peace are civil strife and terrorism.
The newest form of terrorism directed toward a peaceful world is:
Viruses damaging the Internet
Slammer, Melissa, and "Goner worm" are all examples of:
Although some products are more vulnerable than others with regard to political sensitivity in foreign markets, ______________ have often been the lightning rods for groups opposed to foreign companies.
Some products and issues are more politically sensitive in international trade than others. Which of the following would likely be LEAST the politically sensitive?
Political risk assessment
Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:
The investment makes tax contributions
Relations between governments and multinational corporations are generally positive if:
Relations between governments and multinational corporations are generally positive if investments:
is tied to national security
Relations between governments and multinational corporations are generally positive if investments do all of the following EXCEPT:
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.
All of the following would be considered to be strategies that multinational corporations can use to minimize vulnerability and risk EXCEPT:
Which of the following strategies minimizes political risks for the multinational corporation that wishes to expand into overseas markets?
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:
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:
It is illegal for a US citizen to pay a bribe -- period.
Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?
Accelerate the development of an economy
The most important reason to encourage foreign investment is to:
A cynical way to look at the motivation behind corporate social responsibility in general is its use as a __________ with foreign publics and governments.
Department of commerce
The principle U.S. agency that supports U.S. business abroad is the:
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