International Management Test
Questions and All Correct Answers.
• Discuss the two basic types of political system with examples. - Answer Democracy
System in which government is controlled by citizens either directly or through elections
Totalitarianism
Only one representative party which exhibits control over every facet of political and human life
• Describe, with examples, any 3 of the 4 basic types of legal foundations. - Answer Socialist
law- Members of former Soviet Union
Common law- United States
Civil or code law-France
• Explain what we mean by the following: Sovereign Immunity, Doctrine of Comity, and Act of
State Doctrine. - Answer Sovereign Immunity- An international principle of law which holds
that governments have the right to rule themselves as they see fit.
Doctrine of Comity- A jurisdictional principle of international law which holds that there must
be mutual respect for the laws, institutions, and government of other countries in the matter of
jurisdiction over their own citizens.
Act of State Doctrine- A jurisdictional principle of international law which holds that all acts of
other governments are considered to be valid by U.S. courts, even if such acts are illegal or
inappropriate under U.S. law.
• Describe the pros and cons of globalization ( 3 each). - Answer Benefits of Globalization
Wealth
Jobs
Technology
Criticisms of Globalization
off-shoring of business service jobs to lower-wage countries
growing trade deficits
slow wage growth
• How do you think will the global economy look different in 2050 compared to today? - Answer
, • What are some of the key criticisms of MNCs by NGOs? How have MNCs responded to these?
- Answer Agreements and codes of conduct committing MNCs to maintain certain standards
U.N. Global Compact
Codes help offset real or perceived concern that companies move jobs to avoid higher labor or
environmental standards in their home markets
• What is the Global Compact? What are some of its key principles - Answer Agreements and
codes of conduct committing MNCs to maintain certain standards
Human Rights
Labor
Environment
Anti-Corruption
• What is corporate governance? Distinguish between the 'insider' and 'outsider' systems of
corporate governance. - Answer The system by which business corporations are directed and
controlled.
insider" systems
Ownership more concentrated
Shares owned by holding companies, families or banks
U.K. and U.S. systems are "outsider" systems
Dispersed ownership of equity
Large number of outside investors
• What is the FCPA? How has it affected the performance of US MNCs overseas? - Answer
Foreign Corrupt Practices Act
makes it illegal for U.S. companies and their managers to attempt to influence foreign officials
through personal payments or political contributions
"Entertainment" expenses
"Consulting" fees
Recent formal agreement by many industrialized nations to outlaw the practice of bribing
foreign government officials
Questions and All Correct Answers.
• Discuss the two basic types of political system with examples. - Answer Democracy
System in which government is controlled by citizens either directly or through elections
Totalitarianism
Only one representative party which exhibits control over every facet of political and human life
• Describe, with examples, any 3 of the 4 basic types of legal foundations. - Answer Socialist
law- Members of former Soviet Union
Common law- United States
Civil or code law-France
• Explain what we mean by the following: Sovereign Immunity, Doctrine of Comity, and Act of
State Doctrine. - Answer Sovereign Immunity- An international principle of law which holds
that governments have the right to rule themselves as they see fit.
Doctrine of Comity- A jurisdictional principle of international law which holds that there must
be mutual respect for the laws, institutions, and government of other countries in the matter of
jurisdiction over their own citizens.
Act of State Doctrine- A jurisdictional principle of international law which holds that all acts of
other governments are considered to be valid by U.S. courts, even if such acts are illegal or
inappropriate under U.S. law.
• Describe the pros and cons of globalization ( 3 each). - Answer Benefits of Globalization
Wealth
Jobs
Technology
Criticisms of Globalization
off-shoring of business service jobs to lower-wage countries
growing trade deficits
slow wage growth
• How do you think will the global economy look different in 2050 compared to today? - Answer
, • What are some of the key criticisms of MNCs by NGOs? How have MNCs responded to these?
- Answer Agreements and codes of conduct committing MNCs to maintain certain standards
U.N. Global Compact
Codes help offset real or perceived concern that companies move jobs to avoid higher labor or
environmental standards in their home markets
• What is the Global Compact? What are some of its key principles - Answer Agreements and
codes of conduct committing MNCs to maintain certain standards
Human Rights
Labor
Environment
Anti-Corruption
• What is corporate governance? Distinguish between the 'insider' and 'outsider' systems of
corporate governance. - Answer The system by which business corporations are directed and
controlled.
insider" systems
Ownership more concentrated
Shares owned by holding companies, families or banks
U.K. and U.S. systems are "outsider" systems
Dispersed ownership of equity
Large number of outside investors
• What is the FCPA? How has it affected the performance of US MNCs overseas? - Answer
Foreign Corrupt Practices Act
makes it illegal for U.S. companies and their managers to attempt to influence foreign officials
through personal payments or political contributions
"Entertainment" expenses
"Consulting" fees
Recent formal agreement by many industrialized nations to outlaw the practice of bribing
foreign government officials
