Exam 1: Assessing the Environment: Political, Economic, Legal, Technological

Which of the following terms refers to an agreement by the parties concerned to establish a set of rules for governing a business transaction?

Past court decisions serve as precedents to the interpretation of the law under ________.

Which of the following is characterized by networks of international linkages that bind countries, institutions, and people in an interdependent economy?

The quantitative approach evaluates a country's economic risk by assessing the competence of its leaders and analyzing the types of policies they are likely to implement.

Intelligentia is attempting to do business in Bazania, but the Bazanian government purposely delays granting Intelligentia the necessary licenses and permissions required to conduct business in the country.Which of the following best describes this situation?

Which of the following means of political risk reduction is best suited for firms that decide a high-risk environment is worth the potential returns?

Small- and medium-sized enterprises contribute to their national economies by creating new jobs.

Under common law, it is assumed a contract reflects promises that will be enforced without specifying the details in the contract.

In which of the following groups of trade blocs does most of today's world trade take place?

Which of the following is an advantage of e-business?

Emerson is a global manufacturing company headquartered in St.Louis, Missouri.The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents.Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts.Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia.Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit.Emerson executives are considering whether to build the new facility in China or in the United States.Which of the following questions is LEAST relevant to Emerson's decision regarding where to build a new facility?

Which of the following is a method of hedging?

Which of the following means of adaptation to political risk requires that a firm actively involve nationals in the management of its subsidiary?

The ________ approach to analyzing economic risk relies on a few easily measurable and timely criteria believed to reflect or indicate changes in the creditworthiness of the country.

Identify and describe four means of political risk adaptation.

________ results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around the world.

Political risk insurance and local debt financing are both forms of ________.

Which of the following is a true statement about China?

Zagreb Inc., a transnational energy company, negotiates a multimillion-dollar contract with the government to provide electricity to Pilladia.The government is voted out of power shortly after.The new government cancels all contracts it has with all oil companies but not contracts with firms in other industries.This is an example of ________.

Some countries rigorously enforce employee secrecy agreements in order to ________.