International Management Final Exam
questions n answers
European nations are most likely to use which type of law? - correct answer ✔✔ civil
Which of the following is NOT one of the Four Tigers? - correct answer ✔✔ Thailand
In 2008, India joined a free-trade agreement known as - correct answer ✔✔ ASEAN
Events that affect all foreign firms doing business in a country or region are called _______. -
correct answer ✔✔ macropolitical risk events
Political risk insurance and local debt financing are both forms of ___________. - correct answer
✔✔ hedging
A country's ability or intention to meet its financial obligations determines its _____ risk. -
correct answer ✔✔ economic
Moral universalism is the need for a moral standard that is accepted by ________. - correct
answer ✔✔ all cultures
Under ethnocentrism, a company would apply the morality used in _________. - correct answer
✔✔ its own home country
Payments to expedite routine transactions are often referred to as ________. - correct answer
✔✔ grease money
, Which of the following is not one of the important tests of ethical corporate decisions? - correct
answer ✔✔ Does it work in the short run?
Under ______, the host country institutes a partial or complete closing of borders to withstand
competitive foreign products, using tariff and nontariff barriers. - correct answer ✔✔
protectionism
A country subscribing to ethical relativism would take the approach to morality appropriate in
________. - correct answer ✔✔ the host nation
If McDonald's applies the morality it practices in its home country to all countries where it
operates, it is an example of _________. - correct answer ✔✔ ethnocentrism
The risk of expropriation is highest in countries that experience continuous political upheaval,
violence, and change. - correct answer ✔✔ true
Political risk insurance usually covers losses in assets but not revenues. - correct answer ✔✔
true
What is the primary difference between macro and micro political risks? - correct answer ✔✔
Macro risks affect all companies operating foreignly while micro risks just affect one or a few
MNCs.
Define and discuss the purpose of the Foreign Corrupt Practices Act (FCPA) of 1977. - correct
answer ✔✔ The pupose of this act was to minimize corruption within MNCs and therefore
improve the image of the U.S. and its companies operating overseas.
What is the primary difference between expropriation and confiscation? - correct answer ✔✔
The main difference is that with expropriation the assets are seized little compensation and
confiscation means assets are seized with no compensation at all.
questions n answers
European nations are most likely to use which type of law? - correct answer ✔✔ civil
Which of the following is NOT one of the Four Tigers? - correct answer ✔✔ Thailand
In 2008, India joined a free-trade agreement known as - correct answer ✔✔ ASEAN
Events that affect all foreign firms doing business in a country or region are called _______. -
correct answer ✔✔ macropolitical risk events
Political risk insurance and local debt financing are both forms of ___________. - correct answer
✔✔ hedging
A country's ability or intention to meet its financial obligations determines its _____ risk. -
correct answer ✔✔ economic
Moral universalism is the need for a moral standard that is accepted by ________. - correct
answer ✔✔ all cultures
Under ethnocentrism, a company would apply the morality used in _________. - correct answer
✔✔ its own home country
Payments to expedite routine transactions are often referred to as ________. - correct answer
✔✔ grease money
, Which of the following is not one of the important tests of ethical corporate decisions? - correct
answer ✔✔ Does it work in the short run?
Under ______, the host country institutes a partial or complete closing of borders to withstand
competitive foreign products, using tariff and nontariff barriers. - correct answer ✔✔
protectionism
A country subscribing to ethical relativism would take the approach to morality appropriate in
________. - correct answer ✔✔ the host nation
If McDonald's applies the morality it practices in its home country to all countries where it
operates, it is an example of _________. - correct answer ✔✔ ethnocentrism
The risk of expropriation is highest in countries that experience continuous political upheaval,
violence, and change. - correct answer ✔✔ true
Political risk insurance usually covers losses in assets but not revenues. - correct answer ✔✔
true
What is the primary difference between macro and micro political risks? - correct answer ✔✔
Macro risks affect all companies operating foreignly while micro risks just affect one or a few
MNCs.
Define and discuss the purpose of the Foreign Corrupt Practices Act (FCPA) of 1977. - correct
answer ✔✔ The pupose of this act was to minimize corruption within MNCs and therefore
improve the image of the U.S. and its companies operating overseas.
What is the primary difference between expropriation and confiscation? - correct answer ✔✔
The main difference is that with expropriation the assets are seized little compensation and
confiscation means assets are seized with no compensation at all.
