BUAD 2080 EXAM 2 QUESTIONS WITH
ALL ANSWERS CORRECT
Which of the following is a major obstacle to economic transition? - ANSWER
environmental degradation
The relative ability of two countries' currencies to buy the same basket of goods
in those two countries is called ________. - ANSWER purchasing power
parity
Expropriation is best defined as the ________. - ANSWER transference of
ownership from private to public sector with compensation to private owners
for their losses
When Cleanshot USA, a photography products company, decided to enter the
international arena, it chose Russia as its main market. Although Russia has
been in transition for years, Cleanshot managers believe their company has
tremendous opportunities there.
Russia is in transition from ________. - ANSWER a centrally planned
economy to a free-market economy
Which of the following statements is true about the political risks in a global
marketing environment? - ANSWER Political risk is a major deterrent for
companies that want to invest abroad.
________ is the value of all goods and services produced by the domestic
economy over a one-year period. - ANSWER Gross domestic product (GDP)
Local content regulations are primarily intended to ________. - ANSWER
encourage MNEs to increase production activities in a country
________ is the forced transfer of assets from a company to the government
with compensation. - ANSWER Expropriation
,Had the government taken over (with compensation) the assets of Global
Trading but not those of any other company, the government's actions would be
an example of ________. - ANSWER expropriation
Economic transition is the process of moving from ________. - ANSWER
centrally planned to free-market economies
Which of the following measures the extent to which a government equitably
provides its people with a long and healthy life, an education, and a decent
standard of living? - ANSWER human development index
Himark Enterprises has foreign operations in Taiwan, India, and China. The
firm pays an annual insurance premium to the Overseas Private Investment
Corporation. The firm is most likely protecting itself from ________. -
ANSWER nationalization
Christopher Electronics plans to expand into foreign markets. Top executives
want the firm to focus only on locations where the rule of law prevails. Which
of the following should most likely be considered by Christopher? - ANSWER
wealthier, westernized countries
Countries often use local content regulations to determine the proportion of the
product that must be made in the local market versus made outside of the local
market in order to ________. - ANSWER favor domestic companies
Had the government taken over the assets of Global Trading without
compensation, and not taken over the assets of any other company, the
government's actions would be an example of ________. - ANSWER
confiscation
________ has one of the highest levels of macropolitical risk. - ANSWER
Afghanistan
Country risk is considered similar to ________. - ANSWER political risk
An individual from a country with a high degree of political risk would most
likely be from ________. - ANSWER Iraq
, ________ is the value of goods and services that can be purchased with one unit
of a country's currency. - ANSWER Purchasing power
________ is political risk that affects only a specific firm or firms within a
specific industry. - ANSWER Exclusive political risk
Which of the following terms refers to the forced transfer of assets from a
company to the government without compensation? - ANSWER confiscation
CADE Enterprises, a U.S. manufacturer, received assistance from the Overseas
Private Investment Corporation when it expanded operations into Saudi Arabia.
Which of the following types of support did CADE most likely receive from
OPIC? - ANSWER political risk insurance
A country that has recently increased the portion of its national production and
exports derived from industrial operations is called a(n) ________. - ANSWER
newly industrialized country (NIC)
When Cleanshot USA, a photography products company, decided to enter the
international arena, it chose Russia as its main market. Although Russia has
been in transition for years, Cleanshot managers believe their company has
tremendous opportunities there.
Which of the following challenges is Cleanshot most likely to face in Russia? -
ANSWER organized crime
An individual from a country with a low degree of political risk would most
likely be from ________. - ANSWER Canada
Which of the following terms is used to refer to the exchange of goods and
services for other goods and services instead of money? - ANSWER barter
_______ refers to governmental action to dispossess a company or investor. -
ANSWER Expropriation
ALL ANSWERS CORRECT
Which of the following is a major obstacle to economic transition? - ANSWER
environmental degradation
The relative ability of two countries' currencies to buy the same basket of goods
in those two countries is called ________. - ANSWER purchasing power
parity
Expropriation is best defined as the ________. - ANSWER transference of
ownership from private to public sector with compensation to private owners
for their losses
When Cleanshot USA, a photography products company, decided to enter the
international arena, it chose Russia as its main market. Although Russia has
been in transition for years, Cleanshot managers believe their company has
tremendous opportunities there.
Russia is in transition from ________. - ANSWER a centrally planned
economy to a free-market economy
Which of the following statements is true about the political risks in a global
marketing environment? - ANSWER Political risk is a major deterrent for
companies that want to invest abroad.
________ is the value of all goods and services produced by the domestic
economy over a one-year period. - ANSWER Gross domestic product (GDP)
Local content regulations are primarily intended to ________. - ANSWER
encourage MNEs to increase production activities in a country
________ is the forced transfer of assets from a company to the government
with compensation. - ANSWER Expropriation
,Had the government taken over (with compensation) the assets of Global
Trading but not those of any other company, the government's actions would be
an example of ________. - ANSWER expropriation
Economic transition is the process of moving from ________. - ANSWER
centrally planned to free-market economies
Which of the following measures the extent to which a government equitably
provides its people with a long and healthy life, an education, and a decent
standard of living? - ANSWER human development index
Himark Enterprises has foreign operations in Taiwan, India, and China. The
firm pays an annual insurance premium to the Overseas Private Investment
Corporation. The firm is most likely protecting itself from ________. -
ANSWER nationalization
Christopher Electronics plans to expand into foreign markets. Top executives
want the firm to focus only on locations where the rule of law prevails. Which
of the following should most likely be considered by Christopher? - ANSWER
wealthier, westernized countries
Countries often use local content regulations to determine the proportion of the
product that must be made in the local market versus made outside of the local
market in order to ________. - ANSWER favor domestic companies
Had the government taken over the assets of Global Trading without
compensation, and not taken over the assets of any other company, the
government's actions would be an example of ________. - ANSWER
confiscation
________ has one of the highest levels of macropolitical risk. - ANSWER
Afghanistan
Country risk is considered similar to ________. - ANSWER political risk
An individual from a country with a high degree of political risk would most
likely be from ________. - ANSWER Iraq
, ________ is the value of goods and services that can be purchased with one unit
of a country's currency. - ANSWER Purchasing power
________ is political risk that affects only a specific firm or firms within a
specific industry. - ANSWER Exclusive political risk
Which of the following terms refers to the forced transfer of assets from a
company to the government without compensation? - ANSWER confiscation
CADE Enterprises, a U.S. manufacturer, received assistance from the Overseas
Private Investment Corporation when it expanded operations into Saudi Arabia.
Which of the following types of support did CADE most likely receive from
OPIC? - ANSWER political risk insurance
A country that has recently increased the portion of its national production and
exports derived from industrial operations is called a(n) ________. - ANSWER
newly industrialized country (NIC)
When Cleanshot USA, a photography products company, decided to enter the
international arena, it chose Russia as its main market. Although Russia has
been in transition for years, Cleanshot managers believe their company has
tremendous opportunities there.
Which of the following challenges is Cleanshot most likely to face in Russia? -
ANSWER organized crime
An individual from a country with a low degree of political risk would most
likely be from ________. - ANSWER Canada
Which of the following terms is used to refer to the exchange of goods and
services for other goods and services instead of money? - ANSWER barter
_______ refers to governmental action to dispossess a company or investor. -
ANSWER Expropriation
