Question 1

What is transparency? Explain how transparency varies around the world.

Accepted Answer

Transparency is the degree to which firms regularly reveal substantial information about their financial condition and accounting practices. The timing and transparency of financial reporting vary widely around the world. For example, in the United States, public firms are required to report financial results to stockholders and to the Securities and Exchange Commission every quarter. In much of the world, however, financial statements may come out once a year or less often, and they often lack transparency. Not only does greater transparency improve the environment for business decision-making, it also improves the ability of citizens to hold companies accountable.

Question 2

Country risk is considered similar to ________.

Accepted Answer

A) political risk 
B) commercial risk 
C) currency risk 
D) cross-cultural risk 
A) political risk 
B) commercial risk 
C) currency risk 
D) cross-cultural risk A

Question 3

Which of the following statements is true of country risk?

Accepted Answer

A) Its nature remains constant over time and across nations. 
B) Its intensity seldom varies over time and across nations. 
C) It is present only in poor nations. 
D) It is always present. 
A) Its nature remains constant over time and across nations. 
B) Its intensity seldom varies over time and across nations. 
C) It is present only in poor nations. 
D) It is always present. D

Question 4

Describe how the political and legal systems of a host country can both harm and benefit a foreign firm.

Accepted Answer

The political and legal systems of a hos

Question 5

Both common law and civil law systems originated in ________.

Accepted Answer

A) eastern Europe 
B) western Europe 
C) western Asia 
D) eastern Asia 
A) eastern Europe 
B) western Europe 
C) western Asia 
D) eastern Asia

Question 6

A(n)________ is a voluntary refusal to engage in commercial dealings with a nation or a company.

Accepted Answer

A) expropriation 
B) sanction 
C) boycott 
D) confiscation 
A) expropriation 
B) sanction 
C) boycott 
D) confiscation

Question 7

Explain the connection between democracy and economic freedom. What are some of the characteristics associated with political and economic freedom?

Accepted Answer

Compared to totalitarianism and socialis

Question 8

Democracy is closely associated with openness.

Accepted Answer

A) True 
 B)False

Question 9

An individual from a country with a high degree of political risk would most likely be from ________.

Accepted Answer

A) Canada 
B) Singapore 
C) Iraq 
D) Japan 
A) Canada 
B) Singapore 
C) Iraq 
D) Japan

Question 10

Describe the similarities and differences of common law and civil law, and explain how inadequate or underdeveloped legal systems pose a risk for international businesses.

Accepted Answer

Also known as case law, common law is a

Question 11

Which of the following countries is considered a mixed economy?

Accepted Answer

A) Norway 
B) Russia 
C) Vietnam 
D) China 
A) Norway 
B) Russia 
C) Vietnam 
D) China

Question 12

Boycotts and protests have the potential to harm businesses by ________.

Accepted Answer

A) preventing businesses from shipping their products to foreign markets 
B) lost sales and increased costs for public relations activities 
C) destroying the ability of all local firms to carry on normal business operations 
D) raising concerns about a firm's foreign operations by initiating lawsuits 
A) preventing businesses from shipping their products to foreign markets 
B) lost sales and increased costs for public relations activities 
C) destroying the ability of all local firms to carry on normal business operations 
D) raising concerns about a firm's foreign operations by initiating lawsuits

Question 13

The World Bank is classified as a(n)________.

Accepted Answer

A) international organization 
B) regional economic bloc 
C) special interest group 
D) competing firm 
A) international organization 
B) regional economic bloc 
C) special interest group 
D) competing firm

Question 14

The European Union is classified as a(n)________.

Accepted Answer

A) international organization 
B) regional trade organization 
C) special interest group 
D) competing firm 
A) international organization 
B) regional trade organization 
C) special interest group 
D) competing firm

Question 15

Which of the following terms refer to the application of home-country laws to persons or conduct outside national borders?

Accepted Answer

A) anti-boycott regulations 
B) extraterritoriality 
C) transparency 
D) anti-dumping policies 
A) anti-boycott regulations 
B) extraterritoriality 
C) transparency 
D) anti-dumping policies

Question 16

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Accepted Answer

A) trial 
B) arbitration 
C) litigation 
D) conciliation 
A) trial 
B) arbitration 
C) litigation 
D) conciliation

Question 17

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

Accepted Answer

A) True 
 B)False

Question 18

Compare and contrast common law with civil law specifically as the two systems relate to international business.

Accepted Answer

Both common law and civil law systems or

Question 19

Explain the purpose of special interest groups. How do these organizations affect international business? Provide examples to support your answer.

Accepted Answer

Special interest groups engage in politi

Question 20

An individual from a country with a low degree of political risk would most likely be from ________.

Accepted Answer

A) Venezuela 
B) Canada 
C) Zimbabwe 
D) Iraq 
A) Venezuela 
B) Canada 
C) Zimbabwe 
D) Iraq

What is transparency? Explain how transparency varies around the world.

Country risk is considered similar to ________.

Which of the following statements is true of country risk?

Describe how the political and legal systems of a host country can both harm and benefit a foreign firm.

Both common law and civil law systems originated in ________.

A(n)________ is a voluntary refusal to engage in commercial dealings with a nation or a company.

Explain the connection between democracy and economic freedom. What are some of the characteristics associated with political and economic freedom?

Democracy is closely associated with openness.

An individual from a country with a high degree of political risk would most likely be from ________.

Describe the similarities and differences of common law and civil law, and explain how inadequate or underdeveloped legal systems pose a risk for international businesses.

Which of the following countries is considered a mixed economy?

Boycotts and protests have the potential to harm businesses by ________.

The World Bank is classified as a(n)________.

The European Union is classified as a(n)________.

Which of the following terms refer to the application of home-country laws to persons or conduct outside national borders?

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

Compare and contrast common law with civil law specifically as the two systems relate to international business.

Explain the purpose of special interest groups. How do these organizations affect international business? Provide examples to support your answer.

An individual from a country with a low degree of political risk would most likely be from ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 6: Political and Legal Systems in National Environments

What is transparency? Explain how transparency varies around the world.

Country risk is considered similar to ________.

Which of the following statements is true of country risk?

Describe how the political and legal systems of a host country can both harm and benefit a foreign firm.

Both common law and civil law systems originated in ________.

A(n)________ is a voluntary refusal to engage in commercial dealings with a nation or a company.

Explain the connection between democracy and economic freedom. What are some of the characteristics associated with political and economic freedom?

Democracy is closely associated with openness.

An individual from a country with a high degree of political risk would most likely be from ________.

Describe the similarities and differences of common law and civil law, and explain how inadequate or underdeveloped legal systems pose a risk for international businesses.

Which of the following countries is considered a mixed economy?

Boycotts and protests have the potential to harm businesses by ________.

The World Bank is classified as a(n)________.

The European Union is classified as a(n)________.

Which of the following terms refer to the application of home-country laws to persons or conduct outside national borders?

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.

Compare and contrast common law with civil law specifically as the two systems relate to international business.

Explain the purpose of special interest groups. How do these organizations affect international business? Provide examples to support your answer.

An individual from a country with a low degree of political risk would most likely be from ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters