國際市場營銷學 （原書第18版）測試題及答案Chapter 6 The Political Environment A Critical Concern

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InternationalMarketing,18e(Cateora)

Chapter6ThePoliticalEnvironment:ACriticalConcern

1)Sovereigntyisexclusivetothesupremepowersexercisedbyanationoveritsownmembers.

2)Sovereigntymaybethreatenedbyforeigninvestment.

3)AdherencetotheWorldTradeOrganization(WTO)doesnotresultinthelossofnationalsovereignty.

4)Foreignbusinessesnolongerneedtobeconcernedaboutthestabilityorinstabilityofprevailinggovernmentpolicies.

5)Pressurefromnationalistandself-interestgroupsaffectthestabilityofagovernment.

6)SaudiArabiabeganpermittingwomentovotein2015.

7)Nationalismsupportsforeignbusinessbecauseitimproveslocaleconomies.

8)Nationalisticfeelingsingeneralbearnorelationtothedomesticeconomy.

9)Propertymaylegallybeseizedbythegovernmentwithorwithoutcompensation.

10)Themostseverepoliticalriskofglobalbusinessisthegovernmentactionofdomestication.

11)Theultimategoalofdomesticationistorequirecompaniestoproducemoreproductstoexportthanwasthecasebeforedomestication.

12)Throughexpropriationandnationalization,nationalizedbusinesseshavebecomemoreefficient,technologicallystrong,andcompetitiveinworldmarkets.

13)BarringLatinAmerica,therisksofconfiscationandexpropriationhavedecreasedoverthelasttwodecades.

14)Manycountrieshavedomesticationasaconditionforinvestment.

15)Pricecontrolsareonlytargetedatnonessentialproducts.

16)Politicalsanctionsareusuallyanunsuccessfulmeansofachievingthegoalofforcingacountrytoacceptthedemandsoftheboycottingcountry.

17)Politicalandsocialactivistsgenerallyhavenoimpactonthenormalflowoftrade.

18)Nongovernmentalorganizationscanaffectthepolicydecisionsmadebygovernmentsthroughlobbying.

19)Riskofviolencedoesnottendtobeaconsiderationinassessingthepoliticalvulnerabilityofamultinationalcompany'sactivities.

20)Internationalwarfareisfastgainingpopularityamongnations.

21)Duetoadvancementsintechnology,itisrelativelyeasytodeterminewhetheracyberattackhasbeenlaunchedbyaroguestate,aterrorist,orahackerasaprank.

22)Asculturalandpoliticalscenariosvarysowidelyacrossnations,thereisnowaytogeneralizethetendencyforaparticularproducttobepoliticallysensitive.

23)Productsthathaveorareperceivedtohaveaneffectontheenvironmentaremorelikelytobepoliticallysensitive.

24)Itiscommonforasinglecompanytodirectlycontroloralterthepoliticalenvironmentofthecountrywithinwhichitoperates.

25)RelationsbetweengovernmentsandMNCsaregenerallynegative,particularlyiftheinvestmentmadebytheMNCsincreasesexportsorreducesimports.

26)Licensingisnoteffectiveinsituationswherethetechnologyisuniqueandtheriskishigh.

27)Planneddomesticationinvolvestakingoveranindustryinaforeigncountry.

28)ItisillegalforU.S.citizenstopayabribeunlessitisacommonpracticeinthehostcountry.

29)TheprincipalagencythatsupportsU.S.businessabroadistheGlobalChamberofCommerce(GCC).

30)TheAgencyforInternationalDevelopmentunderwritestradeandinvestmentsforU.S.firms.

31)Inthecontextofinternationallaw,a________governsitsownterritoryandmayenterintoagreementswithothernations.

A)bounded

B)sovereign

C)legal

D)liberal

E)neutral

32)Asovereignstateisonethat

A)isobligatedtobeamemberoftheWorldTradeOrganization.

B)hasitspoliticalandeconomicsystemsdeterminedbytheUnitedNationsDevelopmentProgram.

C)enjoysfulllegalequalitywithotherstates.

D)hasitsterritorygovernedbytheUnitedNations.

E)isboundedbyexternalcontrol.

33)________referstoboththepowersexercisedbyastateinrelationtoothercountriesandthesupremepowersexercisedoveritsownmembers.

A)Sovereignty

B)Self-governance

C)Federalism

D)Autocracy

E)Nationalism

34)InApril2009,theG20nationsagreedtocedesomesovereigntyand

A)includeallG20nationsintheSecurityCouncil.

B)raiseoilprices.

C)increaseinfrastructurefunding.

D)rejectprotectionism.

E)increaseaidtoSouthAfrica.

35)AdherencetotheWTOinevitablymeans

A)adefiniteincreaseinimporttariffsworldwide.

B)thelossofnationalsecuritytoalargeextent.

C)reductioninworldtradeofatleast70percent.

D)thelossofsomedegreeofnationalsovereignty.

E)completestoppageofforeigndirectinvestments.

36)Foramultinationalfirm,theidealpoliticalclimateisa

A)countrywhereinternationallawsdonotapply.

B)countrywherefavorscanbepurchasedeasily.

C)countrywithastableandfriendlygovernment.

D)governmentwithabsolutepower.

E)governmentthatradicallyshiftsitsphilosophy.

37)Whatisthetoppoliticalissueconcerningforeignbusinesses?

A)demographicprofileofpoliticalleaders

B)governmentpoliciesoninfrastructure

C)economicawarenessofpoliticalleaders

D)stabilityofprevailinggovernmentpolicies

E)membershipofgovernmentsintradetreaties

38)Whatisoneofthemainpoliticalcausesofinstabilityininternationalmarkets?

A)variedtaxingconventions

B)differencesineconomicphilosophies

C)globalfocus

D)environmentalawareness

E)tradedisputes

39)Monarchy,like________,isaformofgovernmentruledbyone.

A)aristocracy

B)dictatorship

C)democracy

D)monopoly

E)oligarchy

40)TheancientGreeksconceivedthreefundamentalformsofgovernment.Whichtermreferstoagovernmentruledbyone?

A)aristocracy

B)monarchy

C)democracy

D)monopoly

E)oligarchy

41)Whichgovernmentformcanbemostaccuratelydescribedasrulebyfew?

A)aristocracy

B)dictatorship

C)democracy

D)monopoly

E)monarchy

42)AccordingtoancientGreeks,whatfundamentalgovernmentformrepresentsrulebymany?

A)aristocracy

B)dictatorship

C)democracy

D)monopoly

E)monarchy

43)Whatisacommontermforaformofgovernmentinusetoday?

A)protectionism

B)duopoly

C)oligopoly

D)capitalism

E)oligarchy

44)Whatcountryrecentlyallowedwomentherighttovoteforthefirsttime?

A)Croatia

B)Iran

C)Bolivia

D)SaudiArabia

E)Venezuela

45)Whateventcausedadropin"economicfreedom"intheUnitedStates,accordingtotheHeritageFoundation?

A)HurricaneKatrina

B)thewarinIran

C)Obamacare

D)thebombingoftheWorldTradeTowers

E)theeconomicstimulusof2008–2009

46)________isanintensefeelingofstateprideandunity,anawakeningofacountry'speopletoprideintheircountry.

A)Nepotism

B)Absolutism

C)Fascism

D)Nationalism

E)Polarism

47)Whichactionismostlikelyamanifestationofnationalism?

A)membershipinbilateraltradetreaties

B)acalltobuyaglobalcounterpart'sproducts

C)restrictionsonimports

D)removaloftariffsandquotas

E)afocusonglobalsecurity

48)Withwhichtermwouldthephrase"BuyAmerican"bemostcloselyassociated?

A)socialism

B)communism

C)nationalism

D)abstractionism

E)polarism

49)Whatistrueofnationalism?

A)Themoreacountryfeelsthreatenedbysomeoutsideforcethelessnationalisticthecountrybecomes.

B)Acallto"buyourcountry'sproductsonly"isoneformofmanifestationofnationalfeelings.

C)Nationalistfeelingsleadtolossofcontroloverforeigninvestment.

D)Themoreacountry'sdomesticeconomydeclines,thelessnationalisticitbecomes.

E)Nationalisticfeelingsarenotprevalentineconomicallyprosperouscountries.

50)Withrespecttothepoliticalriskthatcanbefacedbyacompanyseekingtoinvestabroad,whichactionismostsevere?

A)confiscation

B)expropriation

C)domestication

D)exchangecontrols

E)local-contentlaws

51)Theseizingofacompany'sassetswithoutpaymentiscalled

A)confiscation.

B)expropriation.

C)domestication.

D)exchangecontrols.

E)local-contentlaws.

52)Whenagovernmentseizesaninvestmentofaforeigninvestorbutsomereimbursementfortheassetsismade,thegovernmentfollowsaprocesscalled

A)confiscation.

B)expropriation.

C)domestication.

D)exchangecontrols.

E)local-contentlaws.

53)Whenanexpropriatedinvestmentbecomesagovernment-runentity,itis

A)democratized.

B)domesticated.

C)nationalized.

D)prioritized.

E)socialized.

54)________occurswhenhostcountriesgraduallycausethetransferofforeigninvestmenttonationalcontrolandownershipthroughaseriesofgovernmentdecrees.

A)Confiscation

B)Expropriation

C)Domestication

D)Democratization

E)Socialization

55)ThegovernmentinChilerecentlyinformedMario'scompanythathisretailgrocerychaininChilewouldhavetobegraduallyturnedovertothepeopleofChilebytheyear2050asitisaforeigncompanyinChile.Additionally,startingthefollowingyear,50percentoftheboardofdirectorsoftheChileanoperationofthecompanymustbeChileans.WhatpoliticalriskactionisMario'scompanyfacinginChile?

A)confiscation

B)expropriation

C)domestication

D)patronization

E)nationalization

56)Whichstatementaboutdomesticationiscorrect?

A)Theultimategoalofdomesticationistoforcedomesticinvestorstosharemoreoftheprofitswiththegovernment.

B)Theriskofdomesticationappearstohavedecreasedoverthelasttwodecades.

C)Domesticationhasalwaysledtomoretechnologicallyadvancedandcompetitivebusinesses.

D)Countriesoftenrequirecompaniestobecomedomesticatedasaconditionforinvestment.

E)Domesticationreferstotheseizingofacompany'sassetswithoutpayment.

57)Marzilandfoundthatalargeamountofcapitalwasleavingthecountryduetoforeigncorporateownership,soitinstitutedcontrolsoverallmovementsofcapitaltoconservethesupplyofforeignexchange.Thesearecalled________controls.

A)exchange

B)local-content

C)price

D)tax

E)production

58)Ifthereisasubstantialamountofcapitalleavingacountry,whatisacountrymostlikelytoimplementtocontrolthesituation?

A)exchangecontrols

B)local-contentlaws

C)importrestrictions

D)taxcontrols

E)pricecontrols

59)InThailand,itisrequiredthatanymilkproductsoldinthecountrybyaforeigncompanymustusethemilkthatisatleast50percentproducedbyThaidairyfarmers.Whateconomicriskisfacedbytheinternationalproducersofmilkproductsinthissituation?

A)exchangecontrols

B)local-contentlaws

C)exportrestrictions

D)taxcontrols

E)pricecontrols

60)TheUnitedStatesrequiresthat50percentofallpartsusedtoconstructanautomobileintheUnitedStatesbemanufacturedintheUnitedStates.Asaresultofthis,whenToyotaMotorCompanybuildsautomobilemanufacturingplantsinTennesseeandOhio,itfaceseconomicrisksassociatedwith

A)exchangecontrols.

B)local-contentlaws.

C)exportrestrictions.

D)taxcontrols.

E)pricecontrols.

61)Taxesmustbeclassifiedasa(n)________riskwhenusedasameansofcontrollingforeigninvestments.

A)political

B)social

C)ignorable

D)environmental

E)harmless

62)ThegovernmentofNamibiaisstrappedforcash,andithasdecidedtotaxallforeigninvestments(suchasfoodpackagedinthecountry)byupto40percentoftheappraisedvalue.TheNamibiangovernmenthasfoundthatthisisthehandiestandquickestmeansoffindingoperatingfunds.Theeconomicriskindiscussionhereis

A)exchangecontrols.

B)local-contentlaws.

C)taxrestrictions.

D)taxcontrols.

E)pricecontrols.

63)Pricecontrolsappliedduringinflationaryperiodsmayhavetheeffectof

A)controllingthecostofliving.

B)restrictingexportstoforeigncountries.

C)negotiatingtradecontractsfavoringthehostcountry.

D)encouragingimports.

E)collectingtaxesonforeigninvestments.

64)InNorthKorea,foreigninvestorsorproducersarerequiredtosellproductsatpricesstatedbytheNorthKoreangovernmentratherthanlettingmarketvalueanddemanddeterminetheprices.Thisimpliesthatthereisapplicationof

A)exchangecontrols.

B)local-contentlaws.

C)importrestrictions.

D)taxcontrols.

E)pricecontrols.

65)Whichoftheseitemsismostlikelytobesubjectedtopricecontrol?

A)leathergarments

B)mobilephoneaccessories

C)aspirinandantacids

D)camcordersandlenses

E)ceramictiles

66)Stoppingorrefusingtotradewithanothernationforpoliticalreasonsiscalled

A)monopolizing.

B)boycotting.

C)confiscation.

D)democratization.

E)expropriation.

67)Whatistrueofpoliticalsanctions?

A)Politicalsanctionsnormallycontrolandrectifysituationswithinanation.

B)Politicalsanctionsaregenerallyunsuccessful.

C)Politicalsanctionsareillegal.

D)TheUnitedNationsencouragesboycottsasameansofsettlingpoliticaldisputes.

E)Theuseofpoliticalsanctionsisthemosteffectivewaytoincreaseworldtrade.

68)Whatareeffectivetoolsthatpoliticalandsocialactivists(PSAs)usetospreadwordabouttheircauses?

A)politicalsanctions

B)monetarybarriersandtradeembargoes

C)theInternetandcellphones

D)local-contentlawsandquestionnaires

E)exportcontrols

69)WhichoftheseorganizationsisanNGO(nongovernmentalorganization)?

A)CentralIntelligenceAgency

B)PeaceCorps

C)MillenniumChallengeCorporation

D)Oxfam

E)FedEx

70)Whydoterrorismexpertspredictmultinationalbusinesseswillbetargetedbyterroristsmorefrequently?

A)Theyimposeexportcontrolsontheunderdevelopednations.

B)TheyarethemajorcauseforpoliticalsanctionsagainstArabnations.

C)Theyarelesswelldefendedthangovernmenttargets.

D)Theydestroyandpollutetheenvironment.

E)Theyaresubterfugeforespionageagents.

71)WhichformofterrorismismostlikelytousetheInternettoinflictdamage?

A)Germterrorism

B)Bioterrorism

C)Cyberterrorism

D)Ecoterrorism

E)Narcoterrorism

72)AstheFBIinvestigatessecuritybreaches,theanalysesaremoreoftenpointingto________asthemostseriousthreat.

A)Russiangovernmentsupportedhackers

B)religiousextremists

C)whitesupremacists

D)Americanroguehackers

E)theChinesegovernment

73)Baoisattemptingtoforecastpoliticalinstabilityandhelphiscompany'smanagementidentifyandevaluatepoliticaleventsandtheirpotentialinfluenceoncurrentandfutureinternationalbusinessdecisions.Baoisengagedin

A)politicalriskassessment.

B)politicalconfiscation.

C)democratization.

D)arbitration.

E)riskexpropriation.

74)Intermsofpoliticalrisk,whatposesthegreatestthreattointernationalmarketers?

A)newerenvironmentalregulationsapprovedbyglobaltradebodies

B)changeofeconomicpolicies

C)exchangeratefluctuationsaffectingmargins

D)thepossibilityofthegovernmentactuallyfailing

E)membershiporwithdrawalofmembershipofthegovernmentintradeblocs

75)RelationsbetweengovernmentsandMNCsaregenerallypositiveiftheinvestment

A)increasesthevolumeofimports.

B)usesgloballyproducedresources.

C)transferscapital,technology,andskills.

D)bringsinahighernumberofforeignnationals.

E)decreasesthevolumeofexports.

76)MeteoraInc.isplanningtoentertheKenyanmarketbyestablishingamobilephonemanufacturingoperationinKenya.MeteoraismostlikelytohaveapositiverelationshipwithKenyangovernmentthroughitsinvestmentifit

A)useslocallyproducedresources.

B)importsphonecomponentsfromChina.

C)establishesanR&DcenterinCaliforniaandhasallitstechnologypatentedthere.

D)ensuresthatitsmiddleanduppermanagementareexpatriates.

E)bargainsforataxholidayforthenextfivefinancialyears.

77)Julietisconcernedwiththepotentialforpoliticalharassmentwhenhercompanyentersanewinternationalmarket.Toreducetheriskofpoliticalharassment,sheismostlikelytoconsiderusing________toenterthemarket.

A)externallyproducedproducts

B)asmallerinvestmentbase

C)foreigntechnology

D)ajointventure

E)thethreatofsanctions

78)Whatstrategyisusedbymultinationalcorporationstominimizepoliticalvulnerabilityandrisk?

A)expropriation

B)sanctions

C)buyouts

D)confiscation

E)licensing

79)Whichstrategycanbeeffectiveinforestallingorminimizingtheeffectofatotaltakeoverofamultinationalcorporation'sholdingsbyaforeigngovernment?

A)confiscation

B)soleproprietorship

C)expandingtheinvestmentbase

D)advertising

E)leasing

80)Whichstrategytominimizepoliticalvulnerabilityandriskhastheadvantageofengagingthepowerofseveralinvestorsandbanksinthehostcountrywheneveranykindofgovernmenttakeoverorharassmentisthreatened?

A)jointventures

B)licensing

C)expandingtheinvestmentbase

D)soleproprietorship

E)politicalbargaining

81)Whichstrategyismosteffectiveinminimizingpoliticalrisksforamultinationalcorporationinsituationsinwhichthetechnologyisuniqueandtheriskishigh?

A)tradeembargo

B)licensing

C)expandingtheinvestmentbase

D)plannedconfiscation

E)expropriation

82)Themosteffectivelong-rangesolutiontoasituationwhereaforeigngovernmentisdemandinglocalparticipationinamultinationalcorporation'sbusinessactivitiesinthehostcountryis

A)jointventures.

B)licensing.

C)expandingtheinvestmentbase.

D)planneddomestication.

E)politicalpayoffs.

83)Whileexpandingtheinvestmentbaseofacompany,whatcanbeusedasapowerfulallyindealingwiththreatsofgovernmenttakeoversorharassment?

A)banksthathavelentmoneytothehostgovernment

B)theWorldTradeOrganization

C)theInternationalLaborOrganization

D)regionaltradeblocs

E)opposingpoliticalparties

84)Anattempttolessenpoliticalrisksbypayingthoseinpowertointerveneonbehalfofthemultinationalcompanyisreferredtoasa

A)subornation.

B)protectionism.

C)politicalpayoff.

D)buyout.

E)rake-off.

85)WhatistheU.S.government'spolicytowardmultinationalcorporationsthatareconfrontedwithsituationswherebriberyisanissue?

A)Abribemaybepaidaslongasitisnotadomesticsituation.

B)Briberyisjustifiedifitisadocumentedtraditionalpracticeinacountry.

C)Abribecanbepaidinaforeigncountryifitistiedtonationalsecurity.

D)ItisillegalforaU.S.citizentopayabribe.

E)Theissuerevolvesaroundthecustomsofthecountryandeachissueisdecidedseparately.

86)WhatprincipleU.S.agencysupportsU.S.businessesabroad?

A)StateDepartmentofEntrepreneurship

B)BetterBusinessBureau

C)DepartmentofCommerce

D)DepartmentofForeignRelations

E)DepartmentofDefense

87)Withinthesamecountry,someforeignbusinessesmayfallpreytopoliticallyinducedharassment,whileothersmaybeplacedunderagovernmentumbrellaofprotectionandpreferentialtreatment.Whatfactorexplainsthisdifference?

A)thelevelofdomesticationachieved

B)thedifferencesinleveloftechnologybetweenthetwocountries

C)theculturaldifferencesbetweenthehostnationandthebusiness'shomecountry

D)theimporttariffssetbythehostcountry

E)theevaluationofacompany'scontributiontothenation'sinterest

88)Whatisthemostimportantreasonforacountrytoencourageforeigninvestment?

A)toimprovetheglobalimageofacountry

B)toacceleratethedevelopmentofaneconomy

C)toevadepoliticaltensionsbetweencountries

D)tominimizenegativepoliticalfalloutswithinthedomesticeconomy

E)toimprovetiesbetweentheinvestingcountryandthehostcountry

89)WhichagencyunderwritestradeandinvestmentsforU.S.firms?

A)Export-ImportBank

B)theFederalTradeCommission

C)theAgencyforInternationalDevelopment

D)SocialSecurityAdvisoryBoard

E)theOverseasPrivateInvestmentCorporation

90)Waldo'scompanywasexpandingintosomeunderdevelopedcountries,andneededtoacquireriskinsurancetocoverpotentialfalloutfrompoliticalunrestthatwasoccurringinthosecountries.WhatorganizationmightbeabletoprovidethisforWaldo?

A)CommodityFuturesTradingCommission(CFTC)

B)theFederalTradeCommission(FTC)

C)theSmallBusinessAdministration(SBA)

D)theUnitedStatesInternationalTradeCommission(USITC)

E)theOverseasPrivateInvestmentCorporation

91)Youliveinanationthatisconsideredtobeasovereignstate.Whatdoesthismean?

92)Discussstabilityofgovernmentsandlistthemainpoliticalcausesofinstabilityininternationalmarkets.

93)Describetheconceptofnationalismandlistsomeofthewaysitmanifests,particularlyintoday'spoliticalenvironment.

94)Discussthetermsconfiscation,expropriation,anddomestication.Chooseoneoftheseconceptsanddescribeasituationinwhichitmightoccur.

95)Listandbrieflydiscussthevariouseconomicrisksthatinternationalcompaniesmustfacewhentheyseektomarketabroad.

96)BrieflydiscusstheroleofPSAsandNGOs.

97)Discussthethreatsposedbycyberterrorismorcyberattacks.Giveanexampleofarecentoccurrenceofthese.

98)WhataretheconditionsunderwhichrelationsbetweengovernmentsandMNCsaregenerallypositive?

99)RanzanInc.hasinvestedinacountryshowingsignsthatitwillusedomesticationinthenearfuturetoforceforeigninvestorstosharemoreoftheprofitswiththegovernment.CiteanddescribeastrategytodealwiththispotentialofdomesticationthatRanzancouldfollowtoensurethatitsbusinessremainsprofitable.

Compareandcontrastthegovernmentagenciesthatareinvolvedinpromotingforeigninvestmentandinternationalbusiness.

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: