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 In Samuel Huntington’s thesis, global terrorism is a product of the: A. clash of value systems and ideology between civilizations. B. widespread acceptance of universal global civilization. C. declining liberal democratic ideals. D. differences in the factor endowments between countries. E. geographical differences between nations. ANSWER A In Huntington’s thesis, global terrorism is […]
QUESTION Which of the following is an implication of the global changes in political and economic systems for international business? A. The ideological conflict between collectivism and individualism is less in evidence today. B. Adoption of Western ideology is declining worldwide. C. The global tide has been running in favor of command economies and totalitarian […]
QUESTION The government of Great Lanthania is planning to adopt a market-based economic system. To be able to do so, the government of this country should: A. abolish the laws that deal with protection of property rights. B. introduce stringent foreign investment regulations. C. increase its intervention in the economy. D. adopt privatization. E. oppose […]
