Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

A. Commodity Futures Trading Commission (CFTC)

B. The Federal Trade Commission (FTC)

C. The Small Business Administration (SBA)

D. The United States International Trade Commission (USITC)

E. The International Trade Administration (ITA)


Answer: E. The International Trade Administration (ITA)

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

A. A bribe may be paid as long as it is not a domestic situation.

B. It is justified if it is a documented traditional practice in a country.

C. A bribe can be paid in a foreign country if it is tied to national security.

D. It is illegal for a U.S. citizen to pay a bribe.

E. The issue revolves around the customs of the country and each issue is decided separately.


Answer: D. It is illegal for a U.S. citizen to pay a bribe.

Which of the following is the principle U.S. agency that supports U.S. business abroad?

Which of the following is the principle U.S. agency that supports U.S. business abroad?

A. State Department of Entrepreneurship

B. Better Business Bureau

C. Department of Commerce

D. Department of Foreign Relations

E. Department of Defense


Answer: C. Department of Commerce

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

A. The level of domestication achieved.

B. The host nation's relations with the business' home country.

C. The cultural differences between the host nation and the business' home country.

D. The amount of funds invested in the business.

E. The evaluation of a company's contribution to the nation's interest.


Answer: E. The evaluation of a company's contribution to the nation's interest.

Which of the following is the most important reason to encourage foreign investment?

Which of the following is the most important reason to encourage foreign investment?

A. Improve global image of the country.

B. Accelerate the development of an economy.

C. Evade political tensions between countries.

D. Minimize negative political fallouts within the domestic economy.

E. Improves ties between the investing country and the host country.


Answer: B. Accelerate the development of an economy.

Which of the following agencies underwrites trade and investments for U.S. firms?

Which of the following agencies underwrites trade and investments for U.S. firms?

A. Export-Import Bank

B. The Federal Trade Commission

C. The Agency for International Development

D. Social Security Advisory Board

E. The Overseas Private Investment Corporation


Answer: A. Export-Import Bank

Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

A. Joint ventures

B. Licensing

C. Expanding the investment base

D. Sole-proprietorship

E. Political bargaining


Answer: C. Expanding the investment base

Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high?

Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high?

A. Joint ventures

B. Licensing

C. Expanding the investment base

D. Planned domestication

E. Multi-facilities


Answer: B. Licensing

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is:

A. joint ventures.

B. licensing.

C. expanding the investment base.

D. planned domestication.

E. political payoffs.


Answer: D. planned domestication.

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

A. Banks lending to the host government

B. World Trade Organization

C. International Labor Organization

D. Regional trade blocs

E. Opposing political parties


Answer: A. Banks lending to the host government

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

A. subornation

B. protectionism

C. political payoff

D. buy out

E. rake-off


Answer: C. political payoff

Relations between governments and MNCs are generally positive if the investment:

Relations between governments and MNCs are generally positive if the investment:

A. increases the volume of imports.

B. uses globally produced resources.

C. brings capital, technology, and/or skills.

D. brings in more number of foreign nationals.

E. outsources work back to its home country.


Answer: C. brings capital, technology, and/or skills.

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

A. Meteora Inc. using their manufacturing unit as an export base.

B. Meteora Inc. importing phone components from China.

C. Meteora having an R&D center in California and have all technology patented there.

D. Having most of Meteora Inc.'s middle and upper management be expatriates.

E. Meteora bargaining for a tax holiday for the next five financial years.


Answer: A. Meteora Inc. using their manufacturing unit as an export base.

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she will consider using _____ to enter the market.

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she will consider using _____ to enter the market.

A. externally produced products

B. a smaller investment base

C. foreign technology

D. joint ventures

E. sole-proprietorships


Answer: D. joint ventures

Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk?

Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk?

A. Expropriation

B. Sanctions

C. Buy outs

D. Confiscation

E. Licensing


Answer: E. Licensing

Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

A. Confiscation

B. Sole-proprietorship

C. Expanding the investment base

D. Advertising

E. Leasing


Answer: C. Expanding the investment base

Slammer," "Melissa," and "Goner worm" are all examples of:

Slammer," "Melissa," and "Goner worm" are all examples of:

A. viruses damaging the Internet.

B. politically sensitive products.

C. third-world diseases.

D. hackers intent on attacking multinational businesses.

E. new video games espousing Internet crime.


Answer: A. viruses damaging the Internet.

Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:

Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:

A. political risk assessment.

B. political securitization.

C. democratization.

D. risk conditioning.

E. quantification of risk.


Answer: A. political risk assessment.

In terms of political risk, which of the following poses the greatest threat to international marketers?

In terms of political risk, which of the following poses the greatest threat to international marketers?

A. Newer environmental regulations approved by global trade bodies.

B. Change of economic policies.

C. Exchange rate fluctuations affecting margins.

D. The possibility of the government actually failing.

E. Membership or withdrawal of membership of the government in trade blocs.


Answer: D. The possibility of the government actually failing.

Which of the following forms of terrorism uses the Internet to inflict damage?

Which of the following forms of terrorism uses the Internet to inflict damage?

A. Germterrorism

B. Bioterrorism

C. Cyberterrorism

D. Ecoterrorism

E. Narcoterrorism


Answer: C. Cyberterrorism