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 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 […]
QUESTION Which of the following statements is true about the changing economic system since the 1980s? A. There has been a shift from market-based economies to centrally planned economies. B. There has been a shift away from a mixed economy. C. Many states have restricted the sale of state-owned businesses to private investors. D. The […]
QUESTION In the context of global economy, which of the following has been widely accepted since the late 1980s? A. Centrally planned command economy B. Mixed economy C. Nationalization of private property D. Deregulation of economies E. Authoritarian regime ANSWER D
