Question 1

What is country risk analysis and how is it conducted?

Accepted Answer

In conducting country risk analysis, international companies consider those factors that expose them to various types of risks, including financial losses. Factors used in country risk analysis include: political stability, economic conditions, banking and finance, laws and regulations, cultural factors, quality of infrastructure, level of technology, quality of life, and country's external debt.

Question 2

How do international companies conduct competitive analysis?

Accepted Answer

In conducting competitive analysis, international companies consider the following key variables:
• How similar are the product or service offerings of a company to other firms in the same country (substitutability)?
• How similar are the benefits derived by the customers from the products or services that the other firms offer?
• How do other firms define the scope of their market?
A systematic approach to competitive analysis helps international companies weigh their position in each country and develop strategic steps to be successful.

Question 3

Downstream distribution is meant for

Accepted Answer

A)  Bringing raw materials and supplies to manufacturing plants 
B)  For transporting goods and services using a country's river systems 
C)  Bringing finished goods to wholesalers and retailers for distribution to consumers 
D)  Shipping crude oil to refineries 
A)  Bringing raw materials and supplies to manufacturing plants 
B)  For transporting goods and services using a country's river systems 
C)  Bringing finished goods to wholesalers and retailers for distribution to consumers 
D)  Shipping crude oil to refineries C

Question 4

How are the countries of the world classified in terms of their economic development?

Accepted Answer

The answer of How are the countries of the world...

Question 5

Quality of life issues deal with

Accepted Answer

A)  Factors such as standard of living, educational system, crime rate, and healthcare facilities 
B)  Availability of ISO approved high quality goods and services 
C)  Aging of a country's population 
D)  Corporate quality awards established by industry associations 
A)  Factors such as standard of living, educational system, crime rate, and healthcare facilities 
B)  Availability of ISO approved high quality goods and services 
C)  Aging of a country's population 
D)  Corporate quality awards established by industry associations

Question 6

Based on quality of life rankings, the country with the highest number of top ten cities is

Accepted Answer

A)  The United States 
B)  The United Kingdom 
C)  Japan 
D)  Switzerland 
A)  The United States 
B)  The United Kingdom 
C)  Japan 
D)  Switzerland

Question 7

Differentiate between market economies and centrally planned economies.

Accepted Answer

The answer of Differentiate between market economies and centrally planned...

Question 8

Quality of life issues are useful in

Accepted Answer

A)  A country's educational system 
B)  Developing infrastructure facilities 
C)  Improving banking transactions 
D)  In attracting qualified and productive workforce 
A)  A country's educational system 
B)  Developing infrastructure facilities 
C)  Improving banking transactions 
D)  In attracting qualified and productive workforce

Question 9

Balance-of-payments refers to a country's external debt with the rest of the world.

Accepted Answer

A) True 
 B)False

Question 10

The three main economic systems are

Accepted Answer

A)  Macro, micro, and mixed economic systems 
B)  Presidential, parliamentary, and dictatorship 
C)  Democracy, socialism, and communism 
D)  Market-based, centrally planned, and mixed economies 
A)  Macro, micro, and mixed economic systems 
B)  Presidential, parliamentary, and dictatorship 
C)  Democracy, socialism, and communism 
D)  Market-based, centrally planned, and mixed economies

Question 11

Developing countries find it difficult to control inflation because of fundamental economic structural problems.

Accepted Answer

A) True 
 B)False

Question 12

Infrastructure is made up of

Accepted Answer

A)  Buildings and other facilities 
B)  The utilities such as electricity, gas, and water 
C)  The network transportation systems, telecommunication links, and warehouse facilities. 
D)  The educational system of a country 
A)  Buildings and other facilities 
B)  The utilities such as electricity, gas, and water 
C)  The network transportation systems, telecommunication links, and warehouse facilities. 
D)  The educational system of a country

Question 13

International companies make use of the macroeconomic conditions of a country to decide on whether to enter that country.

Accepted Answer

A) True 
 B)False

Question 14

In underground economies, corporations, small businesses, and private citizens do not fully disclose their financial data.

Accepted Answer

A) True 
 B)False

Question 15

Totaling the amount spent by a country on final goods and services is called the expenditure method of computing a country's GDP.

Accepted Answer

A) True 
 B)False

Question 16

The efficiency of a country's infrastructure affects

Accepted Answer

A)  The speed limit of automobiles on highways 
B)  The use of cellular phones by the public 
C)  The productivity of a country's workforce 
D)  The logistics and distribution of goods and services 
A)  The speed limit of automobiles on highways 
B)  The use of cellular phones by the public 
C)  The productivity of a country's workforce 
D)  The logistics and distribution of goods and services

Question 17

Technology is useful for

Accepted Answer

A)  Improving the productivity levels of a country 
B)  Offering popular TV shows 
C)  Reaching various consumer segments 
D)  Importing goods and services 
A)  Improving the productivity levels of a country 
B)  Offering popular TV shows 
C)  Reaching various consumer segments 
D)  Importing goods and services

Question 18

Underground or parallel economies is a result

Accepted Answer

A)  Of overpopulation 
B)  High economic growth rates 
C)  Understatement of income by companies and individuals 
D)  Low GDP per capita 
A)  Of overpopulation 
B)  High economic growth rates 
C)  Understatement of income by companies and individuals 
D)  Low GDP per capita

Question 19

The critical variables that should be considered in conducting competitive analysis are

Accepted Answer

A)  How similar are the products and customer segments of the company to those of their competitors 
B)  The number of foreign employees hired by competitors 
C)  The number of foreign subsidiaries owned by competitors 
D)  The Fortune Global 500 rankings of competitors 
A)  How similar are the products and customer segments of the company to those of their competitors 
B)  The number of foreign employees hired by competitors 
C)  The number of foreign subsidiaries owned by competitors 
D)  The Fortune Global 500 rankings of competitors

Question 20

What are some of the factors used in raking quality of life indexes?

Accepted Answer

The answer of What are some of the factors used...

What is country risk analysis and how is it conducted?

How do international companies conduct competitive analysis?

Downstream distribution is meant for

How are the countries of the world classified in terms of their economic development?

Quality of life issues deal with

Based on quality of life rankings, the country with the highest number of top ten cities is

Differentiate between market economies and centrally planned economies.

Quality of life issues are useful in

Balance-of-payments refers to a country's external debt with the rest of the world.

The three main economic systems are

Developing countries find it difficult to control inflation because of fundamental economic structural problems.

Infrastructure is made up of

International companies make use of the macroeconomic conditions of a country to decide on whether to enter that country.

In underground economies, corporations, small businesses, and private citizens do not fully disclose their financial data.

Totaling the amount spent by a country on final goods and services is called the expenditure method of computing a country's GDP.

The efficiency of a country's infrastructure affects

Technology is useful for

Underground or parallel economies is a result

The critical variables that should be considered in conducting competitive analysis are

What are some of the factors used in raking quality of life indexes?

Introduction and Overview

International Business Environment-Culture

The Political and Legal Environment

International Trade and Foreign Direct Investments

Entry Strategies

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Financial Management

International Accounting

Filters

Exam 3: Economic and Other Related Environmental Variables

What is country risk analysis and how is it conducted?

How do international companies conduct competitive analysis?

Downstream distribution is meant for

How are the countries of the world classified in terms of their economic development?

Quality of life issues deal with

Based on quality of life rankings, the country with the highest number of top ten cities is

Differentiate between market economies and centrally planned economies.

Quality of life issues are useful in

Balance-of-payments refers to a country's external debt with the rest of the world.

The three main economic systems are

Developing countries find it difficult to control inflation because of fundamental economic structural problems.

Infrastructure is made up of

International companies make use of the macroeconomic conditions of a country to decide on whether to enter that country.

In underground economies, corporations, small businesses, and private citizens do not fully disclose their financial data.

Totaling the amount spent by a country on final goods and services is called the expenditure method of computing a country's GDP.

The efficiency of a country's infrastructure affects

Technology is useful for

Underground or parallel economies is a result

The critical variables that should be considered in conducting competitive analysis are

What are some of the factors used in raking quality of life indexes?

Introduction and Overview

International Business Environment-Culture

The Political and Legal Environment

International Trade and Foreign Direct Investments

Entry Strategies

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Financial Management

International Accounting

Filters