QUESTION When social unrest and disorder in a country causes drastic changes in its business environment that adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing which of the following type of risk? A. Political B. Demographic C. Ethical D. Technological E. Physiological ANSWER […]
QUESTION Which of the following factors in a country is most likely to cause political risk for an international business? A. The presence of more than one ethnic nationality B. Infrequent changes in government and government policy C. Low inflation rate D. Low level of government debt E. High living standards ANSWER A Political […]
QUESTION MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. MedPlus is trying to avoid what type of risk? A. Political B. Legal C. Ethical D. Economic E. Ethnographic ANSWER B When legal risks […]
QUESTION The risks of doing business are most likely to be the highest in a country that: A. has low inflation rates. B. supports high living standards. C. has only one ethnic nationality. D. protects intellectual property. E. faces frequent changes in government and government policy. ANSWER E Social unrest can result in abrupt […]
QUESTION Generally, the costs and risks associated with doing business in a foreign country are typically lower in: A. less developed countries. B. economically advanced countries. C. totalitarian states. D. countries with high inflation and falling living standards. E. countries that lack intellectual property rights. ANSWER B Generally, the costs and risks associated with […]
QUESTION Which of the following is most likely to be true about the overall attractiveness of a country as a potential market or investment site for an international business? A. The potential long-run benefits of doing business in a foreign country are independent of the country’s future economic growth rates. B. The costs and risks […]
QUESTION Which of the following of the Cold War era has vanished? A. Multipolar world B. Democratic system C. Free market system D. Bipolar world E. Widespread belief in Western ideology ANSWER D The long-standing ideological conflict between collectivism and individualism that defined the twentieth century is less in evidence today. The West won […]
QUESTION The government of Nerumbia wants to open the country’s economy to international business, and increase its overall attractiveness as a potential market or investment site. Which of the following will facilitate this decision of the Nerumbian government? A. Shifting toward command economy or an economy where property rights are not enforced strictly B. Investing […]
QUESTION The United Nation of Amberia, a Western European country, fought on the winning side of the Cold War. Which of the following was most likely being propagated by the country by participating in the Cold War? A. Strong business regulations B. Communist ideologies C. Command economies D. Totalitarian dictatorships E. Free markets ANSWER […]
QUESTION Values provide the context within which a society’s norms are established and justified. Indicate whether the statement is true or false. ANSWER TRUE Values are abstract ideas about what a society believes to be good, right, and desirable. They form the bedrock of a culture. They provide the context within which a society’s […]
