International Business The New Realities 4th Edition By Cavusgil
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International Business: The New Realities 4th Edition By Cavusgil
ISBN-10:0134388267 , ISBN-13:978-0134388267
International Business: The New Realities, 4th Edition (Cavusgil)
Chapter 6: Strategies in National Environments – Political and Licensed Perspectives
1) Identify the term that indicates potential risk or negative outcomes on firm operations and profitability due to developments in a country’s political and/or legal environments.
A) industrial threat
B) global currency threat
C) cross-cultural risk
D) nation threat
Answer: D
Difficulty Level: Easy
Skill: Conceptual Understanding
Objective: 6-1: Differentiating political and legal environments in international business
AACSB: Analytical Thinking
2) Country threat is often likened to ________.
A) political risk
B) industrial threat
C) global currency threat
D) cross-cultural risk
Answer: A
Difficulty Level: Easy
Skill: Conceptual Understanding
Objective: 6-1: Differentiating political and legal environments in international business
AACSB: Analytical Thinking
3) An individual from a nation with a high degree of political risk would most likely be from ________.
A) Canada
B) Singapore
C) Iraq
D) Japan
Answer: C
Difficulty Level: Easy
Skill: Conceptual Understanding
Objective: 6-1: Differentiating political and legal environments in international business
AACSB: Analytical Thinking
4) An individual from a nation with a low degree of political risk would most likely be from ________.
A) Venezuela
B) Canada
C) Zimbabwe
D) Iraq
Answer: B
Difficulty Level: Easy
Skill: Conceptual Understanding
Objective: 6-1: Differentiating political and legal environments in international business
AACSB: Analytical Thinking
5) What was the main reason for India’s historical high nation risk?
A) taxes and financial incentives favored Indian companies over foreign companies
B) Indian business leaders distrusted most European companies
C) political leaders implemented laws that targeted foreign companies for scrutiny
D) Indian leaders were wary of the cultural influences of American corporations
Answer: C
Difficulty Level: Moderate
Skill: Conceptual Understanding
Objective: 6-1: Differentiating political and legal environments in international business
AACSB: Analytical Thinking
6) What is a defining characteristic of country risk?
A) The political and legal systems of neighboring countries significantly impact the country risk of nations hosting foreign firms.
B) Country risk can only shift following the introduction of laws and regulations affecting foreign enterprises.
C) A nation’s country risk level remains relatively stable until the election and inauguration of a new political leader.
D) Country risk is always a factor, but its nature and intensity fluctuate over time and across nations.
Answer: D
Difficulty Level: Moderate
Skill: Conceptual Understanding
Objective: 6-1: Differentiating political and legal environments in international business
AACSB: Analytical Thinking
7) ________ are the individuals and organizations that support the political system and receive government benefits.
A) Subsidiaries
B) Regional trade blocs
C) Constituents
D) Shell companies
Answer: C
Difficulty Level: Easy
Skill: Conceptual Understanding
Objective: 6-1: Differentiating political and legal environments in international business
AACSB: Analytical Thinking
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