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Exam 6: The Political Environment: A Critical Concern

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Question 41

Multiple Choice

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Which of the following is the most important reason to encourage foreign investment?

A) Improve global image for the country
B) Accelerate the development of an economy
C) Evade political tensions between countries
D) Minimize negative political fallouts within the domestic economy
E) Improves ties between the investing country and the host country

F) C) and D)
G) C) and E)

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Question 42

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Nationalism can take an anti-foreign business bias.

A) True
B) False

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Question 43

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Which of the following is used by MNCs as a political bargaining tool with foreign publics and governments?

If there is a substantial amount of capital leaving the country, which of the following is the country likely to implement to control the situation?

According to the study cited in the text, compared to French managers, American managers are less influenced by concerns about political risks in foreign markets.

Today, many countries have domestication as a condition for investment.

At the top of the list of political issues concerning foreign businesses is the:

The newest form of terrorism directed toward a peaceful world is:

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.

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

The seizing of a company's assets without payment is called:

A sovereign state, in the context of international law, has all of the following characteristics EXCEPT that it:

As politicians in almost all countries use xenophobia to consolidate their own political power, the threat of one country attacking another is escalating fast.

All of the following would be considered to be strategies that multinational corporations can use to minimize vulnerability and risk EXCEPT:

All of the following are political causes of instability in international markets EXCEPT:

One of the easiest tasks in tracing cybercrime is determining if a cyberattack is a legitimate threat or just a prank.

When Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with ___. This occurred because the United States required that 50 percent of all parts used in an automobile constructed in the United States must contain parts that were manufactured in the United States. The United States wanted to promote it "Buy American" policy.

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:

_____ 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.

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: