Question 1

Which of these organizations is an NGO (nongovernmental organization) ?

Accepted Answer

A)   Central Intelligence Agency
B)   Peace Corps
C)   Millennium Challenge Corporation
D)   Oxfam
E)   FedEx

Question 2

When an expropriated investment becomes a government-run entity, it is

Accepted Answer

A)   democratized.
B)   domesticated.
C)   nationalized.
D)   prioritized.
E)   socialized.

Question 3

It is illegal for U.S. citizens to pay a bribe unless it is a common practice in the host country.

Accepted Answer

A) True 
 B)False

Question 4

What 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 disputes E

Question 5

Sovereignty is exclusive to the supreme powers exercised by a nation over its own members.

Accepted Answer

A) True 
 B)False

Question 6

In April 2009, the G20 nations agreed to cede some sovereignty and

Accepted Answer

A)   include all G20 nations in the Security Council.
B)   raise oil prices.
C)   increase infrastructure funding.
D)   reject protectionism.
E)   increase aid to South Africa.

Question 7

Pressure from nationalist and self-interest groups affect the stability of a government.

Accepted Answer

A) True 
 B)False  True

Question 8

It is common for a single company to directly control or alter the political environment of the country within which it operates.

Accepted Answer

A) True 
 B)False

Question 9

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 10

Briefly discuss the role of PSAs and NGOs.

Accepted Answer

The impact of political and social activ...

Question 11

In Thailand, it is required that any milk product sold in the country by a foreign company must use the milk that is at least 50 percent produced by Thai dairy farmers. What economic risk is faced by the international producers of milk products in this situation?

Accepted Answer

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

Question 12

Discuss the terms confiscation, expropriation, and domestication. Choose one of these concepts and describe a situation in which it might occur.

Accepted Answer

Confiscation is the seizing of a company...

Question 13

What country recently allowed women the right to vote for the first time?

Accepted Answer

A)   Croatia
B)   Iran
C)   Bolivia
D)   Saudi Arabia
E)   Venezuela

Question 14

What is the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

Accepted Answer

A)   A bribe may be paid as long as it is not a domestic situation.
B)   Bribery is justified if it is a documented traditional practice in a country.
C)   A bribe can be paid in a foreign country if it is tied to national security.
D)   It is illegal for a U.S. citizen to pay a bribe.
E)   The issue revolves around the customs of the country and each issue is decided separately. D

Question 15

Political sanctions are usually an unsuccessful means of achieving the goal of forcing a country to accept the demands of the boycotting country.

Accepted Answer

A) True 
 B)False

Question 16

What is true of political sanctions?

Accepted Answer

A)   Political sanctions normally control and rectify situations within a nation.
B)   Political sanctions are generally unsuccessful.
C)   Political sanctions are illegal.
D)   The United Nations encourages boycotts as a means of settling political disputes.
E)   The use of political sanctions is the most effective way to increase world trade.

Question 17

Property may legally be seized by the government with or without compensation.

Accepted Answer

A) True 
 B)False

Question 18

Which agency underwrites trade and investments for U.S. firms?

Accepted Answer

A)   Export-Import Bank
B)   the Federal Trade Commission
C)   the Agency for International Development
D)   Social Security Advisory Board
E)   the Overseas Private Investment Corporation

Question 19

Which statement about domestication is correct?

Accepted Answer

A)   The ultimate goal of domestication is to force domestic investors to share more of the profits with the government.
B)   The risk of domestication appears to have decreased over the last two decades.
C)   Domestication has always led to more technologically advanced and competitive businesses.
D)   Countries often require companies to become domesticated as a condition for investment.
E)   Domestication refers to the seizing of a company's assets without payment.

Question 20

Saudi Arabia began permitting women to vote in 2015.

Accepted Answer

A) True 
 B)False

Exam 6: The Political Environment: a Critical Concern

Which of these organizations is an NGO (nongovernmental organization) ?

Correct AnswerverifiedShow Answer

When an expropriated investment becomes a government-run entity, it is

Correct AnswerverifiedShow Answer

It is illegal for U.S. citizens to pay a bribe unless it is a common practice in the host country.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedE

Sovereignty is exclusive to the supreme powers exercised by a nation over its own members.

Correct AnswerverifiedShow Answer

In April 2009, the G20 nations agreed to cede some sovereignty and

Correct AnswerverifiedShow Answer

Pressure from nationalist and self-interest groups affect the stability of a government.

Correct AnswerverifiedTrue

It is common for a single company to directly control or alter the political environment of the country within which it operates.

Correct AnswerverifiedShow 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

Briefly discuss the role of PSAs and NGOs.

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

In Thailand, it is required that any milk product sold in the country by a foreign company must use the milk that is at least 50 percent produced by Thai dairy farmers. What economic risk is faced by the international producers of milk products in this situation?

Correct AnswerverifiedShow Answer

Discuss the terms confiscation, expropriation, and domestication. Choose one of these concepts and describe a situation in which it might occur.

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

What country recently allowed women the right to vote for the first time?

Correct AnswerverifiedShow Answer

What is the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

Correct AnswerverifiedD

Political sanctions are usually an unsuccessful means of achieving the goal of forcing a country to accept the demands of the boycotting country.

Correct AnswerverifiedShow Answer

What is true of political sanctions?

Correct AnswerverifiedShow Answer

Property may legally be seized by the government with or without compensation.

Correct AnswerverifiedShow Answer

Which agency underwrites trade and investments for U.S. firms?

Correct AnswerverifiedShow Answer

Which statement about domestication is correct?

Correct AnswerverifiedShow Answer

Saudi Arabia began permitting women to vote in 2015.

Correct AnswerverifiedShow Answer

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E

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True

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The text lists six economic risks. Excha...
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The impact of political and social activ...
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Confiscation is the seizing of a company...
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D

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