国际市场营销学 （原书第18版）测试题答案 Chapter 6 The Political Environment A Critical Concern-answerkey

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InternationalMarketing,18e(Cateora)

Chapter6ThePoliticalEnvironment:ACriticalConcern

1)Sovereigntyisexclusivetothesupremepowersexercisedbyanationoveritsownmembers.

Answer:FALSE

Explanation:Sovereigntyreferstoboththepowersexercisedbyastateinrelationtoothercountriesandthesupremepowersexercisedoveritsownmembers.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

2)Sovereigntymaybethreatenedbyforeigninvestment.

Answer:TRUE

Explanation:Foreigninvestmentcanbeperceivedasathreattosovereigntyandthusbecomearallyingcrybyopposingfactions.

Difficulty:1Easy

Topic:BenefitsandChallengesofForeignDirectInvestment

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

3)AdherencetotheWorldTradeOrganization(WTO)doesnotresultinthelossofnationalsovereignty.

Answer:FALSE

Explanation:AdherencetotheWTOinevitablymeansthelossofsomedegreeofnationalsovereigntybecausethemembernationshavepledgedtoabidebyinternationalcovenantsandarbitrationproceduresthatcanoverridenationallawsandhavefar-reachingramificationsforcitizens.

Difficulty:1Easy

Topic:TheWorldTradingSystem,GATT,andtheWTO

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

4)Foreignbusinessesnolongerneedtobeconcernedaboutthestabilityorinstabilityofprevailinggovernmentpolicies.

Answer:FALSE

Explanation:Thestabilityorinstabilityofprevailinggovernmentpoliciesisatthetopofthelistofpoliticalissuesconcerningforeignbusinesses.Governmentsmightchangeornewpoliticalpartiesmightbeelected,buttheconcernofthemultinationalcorporationisthecontinuityofthesetofrulesorcodesofbehaviorandthecontinuationoftheruleoflaw—regardlessofwhichgovernmentisinpower.

Difficulty:1Easy

Topic:TheWorldTradingSystem,GATT,andtheWTO

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Understand

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

5)Pressurefromnationalistandself-interestgroupsaffectthestabilityofagovernment.

Answer:TRUE

Explanation:Radicalshiftsingovernmentphilosophywhenanopposingpoliticalpartyascendstopower,pressurefromnationalistandself-interestgroups,weakenedeconomicconditions,biasagainstforeigninvestment,orconflictsamonggovernmentsareallissuesthatcanaffectthestabilityofagovernment.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

6)SaudiArabiabeganpermittingwomentovotein2015.

Answer:TRUE

Explanation:SaudiArabiaprecludedwomenfromvotinguntiltheKingpermitteditin2015.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-02Howdifferentgovernmentaltypes,politicalparties,nationalism,targetedfear/animosity,andtradedisputescanaffecttheenvironmentformarketinginforeigncountries.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

7)Nationalismsupportsforeignbusinessbecauseitimproveslocaleconomies.

Answer:FALSE

Explanation:Nationalismcanbestbedescribedasanintensefeelingofnationalprideandunity,anawakeningofanation'speopletoprideintheircountry.Thispridecantakeananti-foreignbusinessbias,whereminorharassmentandcontrolsofforeigninvestmentaresupported,ifnotapplauded.

Difficulty:1Easy

Topic:TheDebateConcerningGlobalandRegionalEconomicIntegration

LearningObjective:06-02Howdifferentgovernmentaltypes,politicalparties,nationalism,targetedfear/animosity,andtradedisputescanaffecttheenvironmentformarketinginforeigncountries.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

8)Nationalisticfeelingsingeneralbearnorelationtothedomesticeconomy.

Answer:FALSE

Explanation:Generally,themoreacountryfeelsthreatenedbysomeoutsideforceorthedomesticeconomydeclines,themorenationalisticitbecomesinprotectingitselfagainstintrusions.

Difficulty:1Easy

Topic:TheDebateConcerningGlobalandRegionalEconomicIntegration

LearningObjective:06-02Howdifferentgovernmentaltypes,politicalparties,nationalism,targetedfear/animosity,andtradedisputescanaffecttheenvironmentformarketinginforeigncountries.

Bloom's:Understand

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

9)Propertymaylegallybeseizedbythegovernmentwithorwithoutcompensation.

Answer:TRUE

Explanation:Confiscationistheseizingofacompany'sassetswithoutpayment.Confiscationwasmostprevalentinthe1950sand1960swhenmanyunderdevelopedcountriessawconfiscation,albeitineffective,asameansofeconomicgrowth

Difficulty:1Easy

Topic:DifferentFormsofGovernment

LearningObjective:06-03Thepoliticalrisksofglobalbusinessandthefactorsthataffectstability.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

10)Themostseverepoliticalriskofglobalbusinessisthegovernmentactionofdomestication.

Answer:FALSE

Explanation:Themostseverepoliticalriskisconfiscation,thatis,theseizingofacompany'sassetswithoutpayment.Domesticationistheprocessbywhichahostcountrygraduallytransfersforeigninvestmentstonationalcontrolandownership.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

11)Theultimategoalofdomesticationistorequirecompaniestoproducemoreproductstoexportthanwasthecasebeforedomestication.

Answer:FALSE

Explanation:Theultimategoalofdomesticationistoforceforeigninvestorstosharemoreoftheownership,management,andprofitswithnationalsthanwasthecasebeforedomestication.

Difficulty:1Easy

Topic:GovernmentInterventioninForeignDirectInvestment

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

12)Throughexpropriationandnationalization,nationalizedbusinesseshavebecomemoreefficient,technologicallystrong,andcompetitiveinworldmarkets.

Answer:FALSE

Explanation:Expropriationandnationalizationhaveoftenledtonationalizedbusinessesthatwereinefficient,technologicallyweak,andnoncompetitiveinworldmarkets.

Difficulty:1Easy

Topic:NationalizationandPrivatizationofBusiness

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

13)BarringLatinAmerica,therisksofconfiscationandexpropriationhavedecreasedoverthelasttwodecades.

Answer:TRUE

Explanation:Risksofconfiscationandexpropriationappeartohavelessenedoverthelasttwodecades(withexceptionsinLatinAmerica,particularlyVenezuela)becauseexperiencehasshownthatfewofthedesiredbenefitsmaterializeaftergovernmenttakeover.

Difficulty:1Easy

Topic:GovernmentInterventioninForeignDirectInvestment

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

14)Manycountrieshavedomesticationasaconditionforinvestment.

Answer:TRUE

Explanation:Today,countriesoftenrequireprospectiveinvestorstoagreetoshareownership,uselocalcontent,enterintolaborandmanagementagreements,andshareparticipationinexportsalesasaconditionofentry;ineffect,thecompanyhastobecomedomesticatedasaconditionforinvestment.

Difficulty:1Easy

Topic:GovernmentInterventioninForeignDirectInvestment

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

15)Pricecontrolsareonlytargetedatnonessentialproducts.

Answer:FALSE

Explanation:Essentialproductsthatcommandconsiderablepublicinterest,suchaspharmaceuticals,food,gasoline,andcars,areoftensubjectedtopricecontrols.Suchcontrolsappliedduringinflationaryperiodscanbeusedtocontrolthecostofliving.

Difficulty:1Easy

Topic:ElementsThatInfluenceInternationalPricingStrategies

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

16)Politicalsanctionsareusuallyanunsuccessfulmeansofachievingthegoalofforcingacountrytoacceptthedemandsoftheboycottingcountry.

Answer:TRUE

Explanation:Historyindicatesthatsanctionsarealmostalwaysunsuccessfulinreachingdesiredgoals,particularlywhenothermajornations'tradersignorethem

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

17)Politicalandsocialactivistsgenerallyhavenoimpactonthenormalflowoftrade.

Answer:FALSE

Explanation:Althoughnotusuallyofficiallysanctionedbythegovernment,theimpactofpoliticalandsocialactivists(PSAs)caninterruptthenormalflowoftrade.PSAscanrangefromthosewhoseektobringaboutpeacefulchangetothosewhoresorttoviolenceandterrorismtoeffectchange.Whenwellorganized,theactionsofPSAscansucceed.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-04Theimportanceofthepoliticalsystemtointernationalmarketinganditseffectonforeigninvestments.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

18)Nongovernmentalorganizationscanaffectthepolicydecisionsmadebygovernmentsthroughlobbying.

Answer:TRUE

Explanation:Oftenassociatedwithpoliticalactivism,nongovernmentalorganizations(NGOs)areincreasinglyaffectingpolicydecisionsmadebygovernments.Manyareinvolvedinpeacefulprotests,lobbying,andevencollaborationswithgovernmentalorganizations.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-05Theimpactofpoliticalandsocialactivists,violence,andterrorismoninternationalbusiness.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

19)Riskofviolencedoesnottendtobeaconsiderationinassessingthepoliticalvulnerabilityofamultinationalcompany'sactivities.

Answer:FALSE

Explanation:Althoughnotusuallygovernmentinitiated,violenceisanotherrelatedriskformultinationalcompaniestoconsiderinassessingthepoliticalvulnerabilityoftheiractivities.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-05Theimpactofpoliticalandsocialactivists,violence,andterrorismoninternationalbusiness.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

20)Internationalwarfareisfastgainingpopularityamongnations.

Answer:FALSE

Explanation:Internationalwarfareisfastbecomingobsolete.ThenumberofwarshassteadilydeclinedsincetheendoftheColdWar,withsomeexceptions.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-05Theimpactofpoliticalandsocialactivists,violence,andterrorismoninternationalbusiness.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

21)Duetoadvancementsintechnology,itisrelativelyeasytodeterminewhetheracyberattackhasbeenlaunchedbyaroguestate,aterrorist,orahackerasaprank.

Answer:FALSE

Explanation:Oneproblemintracingcyberterroristsandcriminalsisthatitishardtodeterminewhohaslaunchedacyberattack.

Difficulty:1Easy

Topic:Terrorism,TerroristActivities,andCountermeasures

LearningObjective:06-05Theimpactofpoliticalandsocialactivists,violence,andterrorismoninternationalbusiness.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

22)Asculturalandpoliticalscenariosvarysowidelyacrossnations,thereisnowaytogeneralizethetendencyforaparticularproducttobepoliticallysensitive.

Answer:FALSE

Explanation:Althoughtherearenospecificformulastodetermineaproduct'svulnerabilityatanypoint,therearesomegeneralizationsthathelpidentifythetendencyforproductstobepoliticallysensitive.Productsthathaveorareperceivedtohaveaneffectontheenvironment,exchangerates,nationalandeconomicsecurity,andthewelfareofpeopleorthatarepubliclyvisible,subjecttopublicdebate,orassociatedwiththeircountryoforiginaremorelikelytobepoliticallysensitive.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-06Howtoassessandreducetheeffectofpoliticalvulnerability.

Bloom's:Understand

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

23)Productsthathaveorareperceivedtohaveaneffectontheenvironmentaremorelikelytobepoliticallysensitive.

Answer:TRUE

Explanation:Productsthathaveorareperceivedtohaveaneffectontheenvironment,exchangerates,nationalandeconomicsecurity,andthewelfareofpeopleorthatarepubliclyvisible,subjecttopublicdebate,orassociatedwiththeircountryoforiginaremorelikelytobepoliticallysensitive.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-06Howtoassessandreducetheeffectofpoliticalvulnerability.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

24)Itiscommonforasinglecompanytodirectlycontroloralterthepoliticalenvironmentofthecountrywithinwhichitoperates.

Answer:FALSE

Explanation:Althoughasinglecompanycannotdirectlycontroloralterthepoliticalenvironmentofthecountrywithinwhichitoperates,aspecificbusinessventurecantakemeasurestolessenitsdegreeofsusceptibilitytopoliticallyinducedrisks.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-06Howtoassessandreducetheeffectofpoliticalvulnerability.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

25)RelationsbetweengovernmentsandMNCsaregenerallynegative,particularlyiftheinvestmentmadebytheMNCsincreasesexportsorreducesimports.

Answer:FALSE

Explanation:RelationsbetweengovernmentsandMNCsaregenerallypositiveiftheinvestmentmadebytheMNCs(1)improvesthebalanceofpaymentsbyincreasingexportsorreducingimportsthroughimportsubstitution;(2)useslocallyproducedresources;(3)transferscapital,technology,and/orskills;(4)createsjobs;and/or(5)makestaxcontributions.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-06Howtoassessandreducetheeffectofpoliticalvulnerability.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

26)Licensingisnoteffectiveinsituationswherethetechnologyisuniqueandtheriskishigh.

Answer:FALSE

Explanation:Licensingcanbeeffectiveinsituationsinwhichthetechnologyisuniqueandtheriskishigh.Ofcourse,thereissomeriskassumed,becausethelicenseecanrefusetopaytherequiredfeeswhilecontinuingtousethetechnology.

Difficulty:1Easy

Topic:BasicIssuesinInternationalLicensing

LearningObjective:06-06Howtoassessandreducetheeffectofpoliticalvulnerability.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

27)Planneddomesticationinvolvestakingoveranindustryinaforeigncountry.

Answer:FALSE

Explanation:Planneddomesticationinvolvesgraduallyinvolvinglocalparticipationuntilthereisparticipationwithnationalsinallphasesofcompanyoperations.

Difficulty:1Easy

Topic:GovernmentInterventioninForeignDirectInvestment

LearningObjective:06-06Howtoassessandreducetheeffectofpoliticalvulnerability.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

28)ItisillegalforU.S.citizenstopayabribeunlessitisacommonpracticeinthehostcountry.

Answer:FALSE

Explanation:Briberyposesproblemsforthemarketerathomeandabroad,becauseitisillegalforU.S.citizenstopayabribeevenifitisacommonpracticeinthehostcountry.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-06Howtoassessandreducetheeffectofpoliticalvulnerability.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

29)TheprincipalagencythatsupportsU.S.businessabroadistheGlobalChamberofCommerce(GCC).

Answer:FALSE

Explanation:TheDepartmentofCommerce(DOC)istheprincipalagencythatsupportsU.S.businessabroad.TheInternationalTradeAdministration(ITA)abureauoftheDOC,isdedicatedtohelpingU.S.businesscompeteintheglobalmarketplace.

Difficulty:1Easy

Topic:GovernmentPoliciesAffectingTrade

LearningObjective:06-07Howandwhygovernmentsencourageforeigninvestment.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

30)TheAgencyforInternationalDevelopmentunderwritestradeandinvestmentsforU.S.firms.

Answer:FALSE

Explanation:TheExport-ImportBank(Ex-ImBank)underwritestradeandinvestmentsforU.S.firms.

Difficulty:1Easy

Topic:GovernmentPoliciesAffectingTrade

LearningObjective:06-07Howandwhygovernmentsencourageforeigninvestment.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

31)Inthecontextofinternationallaw,a________governsitsownterritoryandmayenterintoagreementswithothernations.

A)bounded

B)sovereign

C)legal

D)liberal

E)neutral

Answer:B

Explanation:Inthecontextofinternationallaw,asovereignstateisindependentandfreefromallexternalcontrol;enjoysfulllegalequalitywithotherstates;governsitsownterritory;selectsitsownpolitical,economic,andsocialsystems;andhasthepowertoenterintoagreementswithothernations.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

32)Asovereignstateisonethat

A)isobligatedtobeamemberoftheWorldTradeOrganization.

B)hasitspoliticalandeconomicsystemsdeterminedbytheUnitedNationsDevelopmentProgram.

C)enjoysfulllegalequalitywithotherstates.

D)hasitsterritorygovernedbytheUnitedNations.

E)isboundedbyexternalcontrol.

Answer:C

Explanation:Inthecontextofinternationallaw,asovereignstateisindependentandfreefromallexternalcontrol;enjoysfulllegalequalitywithotherstates;governsitsownterritory;selectsitsownpolitical,economic,andsocialsystems;andhasthepowertoenterintoagreementswithothernations.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

33)________referstoboththepowersexercisedbyastateinrelationtoothercountriesandthesupremepowersexercisedoveritsownmembers.

A)Sovereignty

B)Self-governance

C)Federalism

D)Autocracy

E)Nationalism

Answer:A

Explanation:Sovereigntyincludesboththepowersexercisedbyastateinrelationtoothercountriesandthesupremepowersexercisedoveritsownmembers.Astatesetsrequirementsforcitizenship,definesgeographicalboundaries,andcontrolstradeandthemovementofpeopleandgoodsacrossitsborders.Additionally,acitizenissubjecttothestate'slawsevenwhenbeyondnationalborders.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

34)InApril2009,theG20nationsagreedtocedesomesovereigntyand

A)includeallG20nationsintheSecurityCouncil.

B)raiseoilprices.

C)increaseinfrastructurefunding.

D)rejectprotectionism.

E)increaseaidtoSouthAfrica.

Answer:D

Explanation:TheleadersoftheG20nationscededsomesovereigntyintheirhugelyimportantApril2009agreementto"rejectprotectionism"atthenadirofthe2009crash,whenworldtradehaddeclinedmorethan12percent.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

35)AdherencetotheWTOinevitablymeans

A)adefiniteincreaseinimporttariffsworldwide.

B)thelossofnationalsecuritytoalargeextent.

C)reductioninworldtradeofatleast70percent.

D)thelossofsomedegreeofnationalsovereignty.

E)completestoppageofforeigndirectinvestments.

Answer:D

Explanation:AdherencetotheWTOinevitablymeansthelossofsomedegreeofnationalsovereignty,becausethemembernationshavepledgedtoabidebyinternationalcovenantsandarbitrationproceduresthatcanoverridenationallawsandhavefar-reachingramificationsforcitizens.

Difficulty:1Easy

Topic:TheWorldTradingSystem,GATT,andtheWTO

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

36)Foramultinationalfirm,theidealpoliticalclimateisa

A)countrywhereinternationallawsdonotapply.

B)countrywherefavorscanbepurchasedeasily.

C)countrywithastableandfriendlygovernment.

D)governmentwithabsolutepower.

E)governmentthatradicallyshiftsitsphilosophy.

Answer:C

Explanation:Theidealpoliticalclimateforamultinationalfirmisastable,friendlygovernment.Becauseforeignbusinessesarejudgedbystandardsasvariableastherearenations,thestabilityandfriendlinessofthegovernmentineachcountrymustbeassessedasanongoingbusinesspractice.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

37)Whatisthetoppoliticalissueconcerningforeignbusinesses?

A)demographicprofileofpoliticalleaders

B)governmentpoliciesoninfrastructure

C)economicawarenessofpoliticalleaders

D)stabilityofprevailinggovernmentpolicies

E)membershipofgovernmentsintradetreaties

Answer:D

Explanation:Atthetopofthelistofpoliticalissuesconcerningforeignbusinessesisthestabilityorinstabilityofprevailinggovernmentpolicies.Governmentsmightchangeornewpoliticalpartiesmightbeelected,buttheconcernofthemultinationalcorporationisthecontinuityofthesetofrulesorcodesofbehaviorandthecontinuationoftheruleoflaw—regardlessofwhichgovernmentisinpower.

Difficulty:1Easy

Topic:GovernmentPoliciesAffectingTrade

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

38)Whatisoneofthemainpoliticalcausesofinstabilityininternationalmarkets?

A)variedtaxingconventions

B)differencesineconomicphilosophies

C)globalfocus

D)environmentalawareness

E)tradedisputes

Answer:E

Explanation:Therearefivemainpoliticalcausesofinstabilityininternationalmarkets:(1)someformsofgovernmentseemtobeinherentlyunstable,(2)changesinpoliticalpartiesduringelectionscanhavemajoreffectsontradeconditions,(3)nationalism,(4)animositytargetedtowardspecificcountries,and(5)tradedisputesthemselves.

Difficulty:1Easy

Topic:ManagingPoliticalRiskandDifferences

LearningObjective:06-01Whatthesovereigntyofnationsmeansandhowitcanaffectthestabilityofgovernmentpolicies.

Bloom's:Remember

AACSB:AnalyticalThinking

Accessibility:KeyboardNavigation

39)Monarchy,like________,isaformofgovernmentruledbyone.

A)aristocracy

B)dictatorship

C)democracy

D)monopoly

E)oligarchy

Answer:B

Explanation:Circa500BC,theancientGreeksconceivedofandcriticizedthreefundamentalformsofgovernment:rulebyone,rulebyfew,andrulebymany.Thecommontermsfortheseformsinusetodayaremonarchy(ordictatorship),aristocracy(oroligarchy),anddemocracy.

Difficulty:1Easy

Topic:DifferencesinPoliticalSystems

LearningObjective:06-02Howdifferentgovernmentaltypes,politicalparties,nationalism,targetedfear/animosity,andtradedisputescanaffecttheenvironmentformarketinginfo