QUESTION When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was already saturated with other players. Thus, the company was forced to exit the market due to lack of customer loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the […]
QUESTION In the context of cost, which of the following can be considered as the most attractive market or investment site? A. A country that has adopted a closed totalitarian state B. A country that has a well-developed body of business contract law C. A country with a command-based economic system D. A country with […]
QUESTION Star Volans Inc. is planning on expanding its business globally. In terms of the costs involved in conducting business in a country, it will be most economical for the company if it chooses a country: A. with a closed totalitarian political system. B. where the company will have to provide its own infrastructure and […]
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 […]
