Chap-6-BUSA Exam 2026 Questions and
Answers
Which of the following terms indicates potential loss or adverse effects on
company operations and profitability caused by developments in a country's
political and/or legal environments? - Correct answer-country risk
Country risk is considered similar to ________. - Correct answer-political risk
An individual from a country with a high degree of political risk would most likely
be from ________. - Correct answer-Iraq
An individual from a country with a low degree of political risk would most likely
be from ________. - Correct answer-Canada
Which of the following best explains why India was once characterized by high
country risk? - Correct answer-The government of India imposes many restrictions
on imports and inward foreign investment.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Which of the following characterizes country risk? - Correct answer-Country risk
is always present, but its nature and intensity vary over time and from country to
country.
________ are the people and organizations that support the political system and
receive government resources. - Correct answer-Constituents
Which of the following statements is TRUE of country risk? - Correct answer-It is
always present.
The immediate cause of country risk is a legal or political factor. - Correct answer-
TRUE
Trade unions are not a part of a country's legal system - Correct answer-TRUE
Country risk can be potentially present in all nations. - Correct answer-true
The three major types of current political systems are ________. - Correct answer-
authoritarianism, socialism, and democracy
Religion-based authoritarian states are called ________. - Correct answer-
theocratic
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers
Which of the following terms indicates potential loss or adverse effects on
company operations and profitability caused by developments in a country's
political and/or legal environments? - Correct answer-country risk
Country risk is considered similar to ________. - Correct answer-political risk
An individual from a country with a high degree of political risk would most likely
be from ________. - Correct answer-Iraq
An individual from a country with a low degree of political risk would most likely
be from ________. - Correct answer-Canada
Which of the following best explains why India was once characterized by high
country risk? - Correct answer-The government of India imposes many restrictions
on imports and inward foreign investment.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Which of the following characterizes country risk? - Correct answer-Country risk
is always present, but its nature and intensity vary over time and from country to
country.
________ are the people and organizations that support the political system and
receive government resources. - Correct answer-Constituents
Which of the following statements is TRUE of country risk? - Correct answer-It is
always present.
The immediate cause of country risk is a legal or political factor. - Correct answer-
TRUE
Trade unions are not a part of a country's legal system - Correct answer-TRUE
Country risk can be potentially present in all nations. - Correct answer-true
The three major types of current political systems are ________. - Correct answer-
authoritarianism, socialism, and democracy
Religion-based authoritarian states are called ________. - Correct answer-
theocratic
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
