MKT 468 EXAM 2 QUESTIONS COMPLETE
WITH 100% CORRECT ANSWERS
\.the evaluation of a company's contribution to the nation's interest - ANSWERS-
Within the same country, some foreign businesses may fall prey to politically
induced harassment, while others may be placed under a government umbrella of
protection and preferential treatment. What factor explains this difference?
\.licensing - ANSWERS-Which strategy is most effective in minimizing political risks
for a multinational corporation in situations in which the technology is unique and
the risk is high?
\.boycotting - ANSWERS-Stopping or refusing to trade with another nation for
political reasons is called
\.expanding the investment base - ANSWERS-Which strategy can be effective in
forestalling or minimizing the effect of a total takeover of a multinational
corporation's holdings by a foreign government?
\.the loss of some degree of national sovereignty. - ANSWERS-Adherence to the
WTO inevitably means
\.reject protectionism. - ANSWERS-In April 2009, the G20 nations agreed to cede
some sovereignty and
,\.dictatorship - ANSWERS-Monarchy, like ________, is a form of government ruled
by one.
\.Department of Commerce - ANSWERS-What principle U.S. agency supports U.S.
businesses abroad?
\.local-content laws. - ANSWERS-The United States requires that 50 percent of all
parts used to construct an automobile in the United States be manufactured in
the United States. As a result of this, when Toyota Motor Company builds
automobile manufacturing plants in Tennessee and Ohio, it faces economic risks
associated with
\.Nationalism - ANSWERS-________ is an intense feeling of state pride and unity,
an awakening of a country's people to pride in their country.
\.expanding the investment base - ANSWERS-Which strategy to minimize political
vulnerability and risk has the advantage of engaging the power of several investors
and banks in the host country whenever any kind of government takeover or
harassment is threatened?
\.enjoys full legal equality with other states. - ANSWERS-A sovereign state is one
that
\.They are less well defended than government targets. - ANSWERS-Why do
terrorism experts predict multinational businesses will be targeted by terrorists
more frequently?
,\.transfers capital, technology, and skills. - ANSWERS-Relations between
governments and MNCs are generally positive if the investment
\.oligarchy - ANSWERS-What is a common term for a form of government in use
today?
\.expropriation - ANSWERS-When a government seizes an investment of a foreign
investor but some reimbursement for the assets is made, the government follows
a process called
\.uses locally produced resources. - ANSWERS-Meteora Inc. is planning to enter
the Kenyan market by establishing a mobile phone manufacturing operation in
Kenya. Meteora is most likely to have a positive relationship with Kenyan
government through its investment if it
\.confiscation. - ANSWERS-The seizing of a company's assets without payment is
called
\.It is illegal for a U.S. citizen to pay a bribe. - ANSWERS-What is the U.S.
government's policy toward multinational corporations that are confronted with
situations where bribery is an issue?
\.Sovereignty - ANSWERS-________ refers to both the powers exercised by a state
in relation to other countries and the supreme powers exercised over its own
members.
, \.political payoff. - ANSWERS-An attempt to lessen political risks by paying those in
power to intervene on behalf of the multinational company is referred to as a
\.democracy - ANSWERS-According to ancient Greeks, what fundamental
government form represents rule by many?
\.the Overseas Private Investment Corporation - ANSWERS-Waldo's company was
expanding into some underdeveloped countries, and needed to acquire risk
insurance to cover potential fallout from political unrest that was occurring in
those countries. What organization might be able to provide this for Waldo?
\.the economic stimulus of 2008-2009 - ANSWERS-What event caused a drop in
"economic freedom" in the United States, according to the Heritage Foundation?
\.political risk assessment. - ANSWERS-Bao is attempting to forecast political
instability and help his company's management identify and evaluate political
events and their potential influence on current and future international business
decisions. Bao is engaged in
\.Political sanctions are generally unsuccessful. - ANSWERS-Which of the following
statements is true of political sanctions?
\.The Internet and cellphones - ANSWERS-Which of the following represents a
new and powerful tool of PSAs?
\.political risk assessment - ANSWERS-Brian is attempting to forecast political
instability and help his company's management identify and evaluate political
WITH 100% CORRECT ANSWERS
\.the evaluation of a company's contribution to the nation's interest - ANSWERS-
Within the same country, some foreign businesses may fall prey to politically
induced harassment, while others may be placed under a government umbrella of
protection and preferential treatment. What factor explains this difference?
\.licensing - ANSWERS-Which strategy is most effective in minimizing political risks
for a multinational corporation in situations in which the technology is unique and
the risk is high?
\.boycotting - ANSWERS-Stopping or refusing to trade with another nation for
political reasons is called
\.expanding the investment base - ANSWERS-Which strategy can be effective in
forestalling or minimizing the effect of a total takeover of a multinational
corporation's holdings by a foreign government?
\.the loss of some degree of national sovereignty. - ANSWERS-Adherence to the
WTO inevitably means
\.reject protectionism. - ANSWERS-In April 2009, the G20 nations agreed to cede
some sovereignty and
,\.dictatorship - ANSWERS-Monarchy, like ________, is a form of government ruled
by one.
\.Department of Commerce - ANSWERS-What principle U.S. agency supports U.S.
businesses abroad?
\.local-content laws. - ANSWERS-The United States requires that 50 percent of all
parts used to construct an automobile in the United States be manufactured in
the United States. As a result of this, when Toyota Motor Company builds
automobile manufacturing plants in Tennessee and Ohio, it faces economic risks
associated with
\.Nationalism - ANSWERS-________ is an intense feeling of state pride and unity,
an awakening of a country's people to pride in their country.
\.expanding the investment base - ANSWERS-Which strategy to minimize political
vulnerability and risk has the advantage of engaging the power of several investors
and banks in the host country whenever any kind of government takeover or
harassment is threatened?
\.enjoys full legal equality with other states. - ANSWERS-A sovereign state is one
that
\.They are less well defended than government targets. - ANSWERS-Why do
terrorism experts predict multinational businesses will be targeted by terrorists
more frequently?
,\.transfers capital, technology, and skills. - ANSWERS-Relations between
governments and MNCs are generally positive if the investment
\.oligarchy - ANSWERS-What is a common term for a form of government in use
today?
\.expropriation - ANSWERS-When a government seizes an investment of a foreign
investor but some reimbursement for the assets is made, the government follows
a process called
\.uses locally produced resources. - ANSWERS-Meteora Inc. is planning to enter
the Kenyan market by establishing a mobile phone manufacturing operation in
Kenya. Meteora is most likely to have a positive relationship with Kenyan
government through its investment if it
\.confiscation. - ANSWERS-The seizing of a company's assets without payment is
called
\.It is illegal for a U.S. citizen to pay a bribe. - ANSWERS-What is the U.S.
government's policy toward multinational corporations that are confronted with
situations where bribery is an issue?
\.Sovereignty - ANSWERS-________ refers to both the powers exercised by a state
in relation to other countries and the supreme powers exercised over its own
members.
, \.political payoff. - ANSWERS-An attempt to lessen political risks by paying those in
power to intervene on behalf of the multinational company is referred to as a
\.democracy - ANSWERS-According to ancient Greeks, what fundamental
government form represents rule by many?
\.the Overseas Private Investment Corporation - ANSWERS-Waldo's company was
expanding into some underdeveloped countries, and needed to acquire risk
insurance to cover potential fallout from political unrest that was occurring in
those countries. What organization might be able to provide this for Waldo?
\.the economic stimulus of 2008-2009 - ANSWERS-What event caused a drop in
"economic freedom" in the United States, according to the Heritage Foundation?
\.political risk assessment. - ANSWERS-Bao is attempting to forecast political
instability and help his company's management identify and evaluate political
events and their potential influence on current and future international business
decisions. Bao is engaged in
\.Political sanctions are generally unsuccessful. - ANSWERS-Which of the following
statements is true of political sanctions?
\.The Internet and cellphones - ANSWERS-Which of the following represents a
new and powerful tool of PSAs?
\.political risk assessment - ANSWERS-Brian is attempting to forecast political
instability and help his company's management identify and evaluate political
