The Political and Legal Environment
Showing posts with label The Political and Legal Environment. Show all posts
Showing posts with label The Political and Legal Environment. Show all posts

Which of the following best describes "ehrbarer Kaufmann"?

Which of the following best describes "ehrbarer Kaufmann"?



a.
It refers to a legal entitlement of exclusive rights to use an idea, piece of knowledge, or invention.
b.
It refers to governmental actions that distort the free flow of trade in goods, services, or ideas for decidedly adversarial and political, rather than strictly economic, purposes.
c.
It is a key legal perspective that has faith and belief as its key focus and is also a mix of societal, legal, and spiritual guidelines.
d.
It focuses on maintaining long-term successful international trade efforts with distant and often unfamiliar people.


Answer: D

Which 2002 law protects investors by improving the accuracy and reliability of corporate disclosures, and also covers issues like corporate responsibility, financial transparency, and accounting oversight?

Which 2002 law protects investors by improving the accuracy and reliability of corporate disclosures, and also covers issues like corporate responsibility, financial transparency, and accounting oversight?



a.
The Glass-Steagall Act
b.
The Aldrich-Vreeland Act
c.
The Gramm-Leach-Bliley Act
d.
The Sarbanes-Oxley Act


Answer: D

The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS):

The WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS):



a.
includes maximum standards for copyrights, appellations of geographic origin, industrial designs, trademarks, and trade secrets.
b.
gives developing countries more time to implement changes related to intellectual property.
c.
requirements apply equally to all WTO member states except emerging countries.
d.
gives individuals and companies the right to own and sell property as they see fit.


Answer: B

The phenomenon when buyers become uncertain about the state of their nation's economy, leading to a sharp reduction in demand for both consumer and industrial goods is known as _____.

The phenomenon when buyers become uncertain about the state of their nation's economy, leading to a sharp reduction in demand for both consumer and industrial goods is known as _____.



a.
the chill effect
b.
functional lubrication
c.
domestication
d.
expropriation


Answer: A

Which of the following is true about the legal procedures preferred by businesses?

Which of the following is true about the legal procedures preferred by businesses?



a.
Businesses who opt for conciliation fear discrimination in foreign countries and therefore avoid it.
b.
Arbitration often involves extensive delays and is very costly, and hence is not preferred by businesses.
c.
Litigation results in much quicker decisions than arbitration, and hence is preferred by businesses.
d.
Arbitration results in much quicker decisions, and hence is more preferred by businesses.


Answer: D

Code law differs from common law in that code law:

Code law differs from common law in that code law:



a.
is based solely on tradition.
b.
originated in England.
c.
is based on a comprehensive set of written statements.
d.
depends on precedent and custom.


Answer: C

Which of the following is true about common law?

Which of the following is true about common law?



a.
It depends primarily on written statutes and codes.
b.
It is based on Roman law and is found in the majority of the nations of the world.
c.
Countries with the common law system have much more rigid laws than those with the code law system.
d.
It is based on tradition and depends on precedent and custom.


Answer: D

Which of the following statements about legal differences and restraints is true?

Which of the following statements about legal differences and restraints is true?



a.
All countries conform to the same laws, and they are implemented similarly as well.
b.
Many common law countries have adopted commercial codes to govern the conduct of business.
c.
Countries with the common law system have much more rigid laws than those with the code law system.
d.
The enforcement of laws have the same effect on national and on foreign marketers.


Answer: B

Confiscation differs from domestication in that confiscation:

Confiscation differs from domestication in that confiscation:



a.
does not involve transfer of ownership from the foreign firm to the host country.
b.
offers compensation in the form of local, nontransferable currency.
c.
does not provide compensation to the foreign firm.
d.
provides compensation on the book value of the firm.


Answer: C

Which of the following is true about domestication?

Which of the following is true about domestication?



a.
It imposes regulations to ensure that no profits are retained by the host country.
b.
It results in inefficiencies due to lack of market discipline, and thus affects the international competitiveness of operations abroad.
c.
It results in total ownership and total management responsibility being conferred on the host country.
d.
It imposes regulations to ensure that all high-end products are locally produced while all low-end products are produced by the host country.


Answer: B

____ occurs when a government demands partial transfer of ownership and management responsibility and imposes regulations to ensure that a large share of the product is locally produced and a larger share of the profit is retained in the country.

____ occurs when a government demands partial transfer of ownership and management responsibility and imposes regulations to ensure that a large share of the product is locally produced and a larger share of the profit is retained in the country.



a.
Injunction
b.
Defalcation
c.
Domestication
d.
Structuring


Answer: C

Which of the following is true about expropriation?

Which of the following is true about expropriation?



a.
Its use as a policy tool has increased significantly over time.
b.
It does not provide compensation to the former owners.
c.
It immediately transfers a certain amount of wealth and resources from foreign
companies to the host country.
d.
It provides satisfactory settlements and thus encourages foreign firms to invest in the country.


Answer: C
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