Deck 5: Political and Legal Environment

Question 1

A(n) _____ country refers to a country in which foreign companies are allowed to do business in accordance with its government policies and within its laws.

A)foreign trade zone
B)domestic
C)origin
D)home
E)host

Answer 1

E

Question 2

Lack of political stability and continuity is usually a characteristic of which of the following systems?

A)single-party
B)dual-party
C)multiple-party
D)bi-cameral system
E)communist

Answer 2

C

Question 3

When marketing executives do business across national boundaries, where do they primarily face regulations and laws?

A)at home.
B)in the foreign country.
C)both at home and in the foreign country.
D)at the World Court in the Hague.
E)at the United Nations (which controls the oversight of international business).

Answer 3

C

Question 4

What is a VPN?

A)Virtual personal network
B)Vital personal network
C)Very personal network
D)Virtual private network
E)Very private network

Question 5

After the breakup of the Soviet Union in 1991, most Central and East European countries have converted to _____ ideology.

A)Socialism
B)Communism
C)Neo-fascism
D)Capitalism
E)Monarchies

Question 6

The US has which of the following systems?

A)single-party
B)dual-party
C)multiple-party
D)bi-cameral system
E)communist

Question 7

_____ Institutional Revolutionary Party had controlled the country for 70 years.

A)Italy's
B)Great Britain's
C)India's
D)Ireland's
E)Mexico's

Question 8

______ refers to an economic system in which free enterprise is permitted and encouraged along with private ownership.

A)Socialism
B)Communism
C)Fascism
D)Capitalism
E)Planned economics

Question 9

A(n) _____ country refers to a country the parent company is based in and operates from.

A)origin
B)domestic
C)host
D)home
E)plural

Question 10

_____ is generally considered to be a system that falls in the middle between largely independent systems and controlled economic systems.

A)Socialism
B)Communism
C)Neo-fascism
D)Capitalism
E)Monarchies

Question 11

International marketers cannot afford to be ______ as they interact with a multitude of political and legal systems, including their own at home.

A)geocentric
B)ethnocentric
C)polycentric
D)multicentric
E)none of the above

Question 12

Under strict _____, the government owns and manages all businesses, and no private ownership is allowed.

A)Socialism
B)Communism
C)Fascism
D)Capitalism
E)Planned economics

Question 13

The three main political ideologies are:

A)Communism, capitalism and globalism
B)Communism, capitalism and radicalism
C)Communism, capitalism and modernism
D)Communism, capitalism and Confucianism
E)Communism, capitalism and socialism

Question 14

_____ if unfettered, may result in excessive production and excessive consumption, thereby causing social problems of great magnitude.

A)Socialism
B)Communism
C)Protected economies
D)Monopolies
E)Capitalism

Question 15

Lately, the Chinese government has seen a use for the internet in controlling its citizens, called what?

A)Citizen Ranking System
B)Citizen Credit System
C)Citizen Loyalty Score
D)Social Loyalty Score
E)Social Credit System

Question 16

What type of political events are executives most concerned with in host countries?

A)major political upheavals.
B)day-to-day low-key events that produce a fairly significant change in policy.
C)property seizures.
D)terrorist strikes.
E)labor strikes.

Question 17

An example of the dual-party system in operation is found in:

A)Mexico
B)Britain
C)India
D)Pakistan
E)Japan

Question 18

The government in each country determines which industries will receive:

A)protection in the country and which will face open competition.
B)benefits.
C)penalties.
D)monopolies.
E)special protection from the armed services.

Question 19

One way to characterize the nature of a government is by its ______.

A)political ideology
B)ethnic ideology
C)regional ideology
D)business ideology
E)social ideology

Question 20

As China continues to free its markets in response to global pressure, the _____ is (are) undermining its censorship policies.

A)travel policies
B)Internet
C)education policies
D)manufacturing locations
E)outsourcing policies

Question 21

Trade controls can be broken into two categories: economic trade controls and:

A)covert trade controls.
B)political trade controls.
C)geophysical trade controls.
D)maritime trade controls.
E)most favored nation trade controls.

Question 22

The ultimate government involvement in trade is when the government:

A)gives tax breaks to businesses.
B)itself is the customer.
C)prevents competition.
D)controls the foreign competition with tariffs.
E)allows domestic businesses to bribe in foreign countries so they can remain competitive.

Question 23

All of the following are considered forms of nontariff barriers except:

A)government participation in trade.
B)customs and entry procedures.
C)product requirements.
D)countervailing duties.
E)quotas.

Question 24

In this system, no party has a clear majority.

A)single-party
B)dual-party
C)multiple-party
D)bi-cameral system
E)communist

Question 25

In Europe, Airbus Industries was established with joint government subsidies from the governments of _________.

A)Britain, France, Germany, and Spain
B)Britain, France, Germany, and Sweden
C)Britain, France, Norway, and Spain
D)Britain, Finland, Germany, and Spain
E)Iceland, France, Germany, and Spain

Question 26

_____ are country-based political trade controls.

A)Embargoes and sanctions
B)Nontariff barriers
C)Taxing imports
D)Taxing exports
E)Tariffs

Question 27

The United States has maintained an economic embargo on _____, but in September 2015, began easing the embargo, advancing normalization.

A)Nicaragua
B)Mongolia
C)Hungary
D)Cuba
E)none of the above.

Question 28

The United States government accounts for _______ of the total U.S.consumption.

A)a tenth
B)a third
C)a quarter
D)nearly sixty percent
E)nearly seventy percent

Question 29

In the United States, ITA stands for:

A)International Training Administration.
B)International Testing Administration.
C)International Teaching Administration.
D)International Tourism Administration.
E)International Trade Administration.

Question 30

Governments often decide to block trade.All of the following are reasons except:

A)national security.
B)to protect the stock market.
C)to develop new industry.
D)to protect declining industries.

Question 31

Weapons that might be used as economic trade controls to protect locally produced goods against imports would be:

A)embargoes.
B)sanctions.
C)asset freezes.
D)tariffs and nontariff barriers.
E)confiscation.

Question 32

A major objective of any state government wishing to support businesses that will be exporting or relocating to the United States is:

A)job creation.
B)increasing the defense industry in their state.
C)gaining control of multinational corporations.
D)accumulating wealth.
E)opening more hotels/motels.

Question 33

In this system, the parties are usually not divided by ideology but rather have different constituencies.

A)single-party
B)dual-party
C)multiple-party
D)bi-cameral system
E)communist

Question 34

An example of a direct government subsidy by the United States to meet foreign competition would be:

A)Microsoft.
B)COMECON.
C)The Tennessee Valley Authority.
D)BART in California.
E)SEMATECH (Semiconductor Manufacturing Technology).

Question 35

An example of an economic trade control would be a trade restraint instituted to:

A)protect local jobs.
B)embargo goods.
C)sanction trading in certain goods.
D)refrain from trading with communist Cuba.
E)freeze the assets of Iraq.

Question 36

U.S.government has been pressuring its allies to shun Chinese tech giant _____ network equipment due to its concern that Huawei has a secret mission as a high-tech spy for the Chinese government

A)Xiaomi
B)Alibaba
C)Baidu
D)Huawei
E)Didi

Question 37

In this system, parties with differing policy goals form a coalition government.

A)single-party
B)dual-party
C)multiple-party
D)bi-cameral system
E)communist

Question 38

An example of a product-based trade control would be the:

A)quota.
B)countervailing duty.
C)export license requirement.
D)ownership control.
E)asset freezing.

Question 39

Embargoes and sanctions are _____ political trade controls.

A)locally-based
B)regionally-based
C)country-based
D)company-based
E)party-based

Question 40

In the United States, the _____ has a national network of district offices in every state, offering export promotion assistance to local businesses.

A)Ministry of International Trade and Industry
B)EXIM Bank
C)National Industrial Council
D)International Trade Administration
E)United Nations, Division of Commerce

Question 41

_____ provides the U.S.President a free hand and the power to negotiate trade deals with other governments.

A)Fast-track reciprocal authority
B)Fast-track senate authority
C)Fast-track business authority
D)Fast-track trade authority
E)Slow-track trade authority

Question 42

_____ was founded in 1949 to stop the flow of Western technology to the Soviet Union.Australia, Japan, and the NATO countries (except Ireland) are members.

A)The NATO alliance
B)The Western bloc
C)The Eastern bloc
D)The G-7 (Group of Seven)
E)COCOM (The Coordinating Committee for Multilateral Controls)

Question 43

______ refers to a foreign government's takeover of company assets such as land and goods with compensation that tend to fall short of their market value.

A)Expropriation
B)Confiscation
C)Domestication
D)Nationalization
E)None of the above

Question 44

According to the PRS Group's 2016 International Country Risk Ratings, which of the following country has the lowest risk rating?

A)Norway
B)Switzerland
C)Singapore
D)Finland
E)Somalia

Question 45

Profit remittances and differential taxation and interest rates are illustrations of which of the following types of control?

A)ownership control
B)incentive control
C)industry control
D)financial control
E)political control

Question 46

Another name for domestication is ______.

A)repatriation policy
B)phase-out policy
C)phase-in policy
D)upward-bound policy
E)equity policy

Question 47

To reduce the risk of expropriation or confiscation of company assets overseas, many companies use ______ with local companies.

A)joint ventures
B)strategic alliances
C)contract manufacturing
D)licensing
E)none of the above

Question 48

Recently the Russian subsidiary of PepsiCo needed to import bottling equipment from the United States.However, the Russian government did not allow the company to exchange rubles for dollars, so it exported Russian vodka to the United States to earn enough dollars to import the needed equipment.This would be an example of _____.

A)retaliation.
B)countertrade.
C)sanction.
D)domestication.
E)profit sharing.

Question 49

Trade laws that harm other countries are likely to invoke ______.

A)war
B)retaliation
C)domestication attempts
D)covert action
E)United Nations sanction

Question 50

______ refers to a foreign government's takeover for the purpose of making the industry a government-run industry.

A)Expropriation
B)Confiscation
C)Domestication
D)Nationalization
E)None of the above

Question 51

______ involve(s) trading of products without involving direct monetary payments.

A)Joint ventures
B)Strategic alliances
C)Contract manufacturing
D)Countertrade
E)Outsourcing

Question 52

According to the PRS Group's 2016 International Country Risk Rating, which of the following countries has the highest risk rating?

A)Greece
B)Iran
C)Singapore
D)Finland
E)Bangladesh

Question 53

Which of the following countries has very few restrictions on foreign ownership of corporations within its borders (domestic businesses)?

A)United States
B)Russia
C)Japan
D)China
E)Saudi Arabia

Question 54

G-7 began during the economic crisis of the mid-_______.

A)1950s
B)1960s
C)1970s
D)1980s
E)1990s

Question 55

All of the following are members of the G-7 (Group of Seven) except:

A)Canada
B)Ireland
C)Germany
D)United States
E)Italy

Question 56

The group consisting of the original G-7 and _____ is known as G-8.

A)Singapore
B)Ireland
C)Russia
D)China
E)New Zealand

Question 57

______ is an outright takeover of assets without compensation.

A)Expropriation
B)Confiscation
C)Domestication
D)Nationalization
E)None of the above

Question 58

The Middle East crisis and the September 11 terrorist attacks on the United States have caused tremendous concern about the future _____?

A)aluminum supply
B)oil supply
C)copper supply
D)food supply
E)none of the above

Question 59

According to the textbook, government policies drive the following economic factors except:

A)the cost of capital.
B)level of economic growth.
C)companies' outsourcing strategies.
D)rates of inflation.
E)international exchange rates.

Question 60

_____ is currently the United States' largest goods trading partner.

A)Mexico
B)Canada
C)China
D)Great Britain
E)France

Question 61

The ISO 9000 standards served as a model for the _____ series.

A)ISO 10000
B)ISO 11000
C)ISO 12000
D)ISO 14000
E)ISO 15000

Question 62

The International Court of Justice was established by the _____ to settle international conflicts between nations, not between individual parties and companies.

A)United Nations
B)Asian Development Bank
C)International Labor Organization
D)International Monetary Fund
E)World Bank

Question 63

With the growing adoption of the _____ standards by firms worldwide, an _____ certification has become an essential marketing tool for firms.

A)ISO 6000
B)ISO 7000
C)ISO 8000
D)ISO 9000
E)ISO 10000

Question 64

Legal issues facing a company affect:

A)pricing decisions.
B)packaging decisions.
C)product decisions.
D)all of the above.
E)none of the above.

Question 65

Civil laws regulating business contracts and transactions are usually called:

A)business law.
B)code law.
C)confederation law.
D)commercial law.
E)contract law.

Question 66

_____ laws primarily govern behavior within a country and also govern the resolution of international contractual disputes since foreign subsidiaries and expatriate employees live within the legal bounds of their host countries' legal systems.

A)Global
B)Transnational
C)Multinational
D)Local and municipal
E)Bi-national

Question 67

All of the following countries believe that most disputes can be solved outside the litigation system except:

A)Brazil.
B)Japan.
C)China.
D)United States.
E)Taiwan.

Question 68

The legal system that holds that law was established by God and a "natural law" embodies all justice is represented by:

A)Common law.
B)Code (written) law.
C)Islamic law.
D)Germanic Confederation law.
E)Napoleonic law.

Question 69

Business managers view _____ as a market-driven approach to environmental protection.

A)ISO 10000
B)ISO 11000
C)ISO 12000
D)ISO 14000
E)ISO 15000

Question 70

The _____ (based in Geneva, Switzerland) has instituted a set of process standards that has been subscribed to by the European Union.

A)International Organization for Standards
B)International Production Standards Organization
C)Quality Council
D)Deming Committee
E)Baldridge Foundation

Question 71

_____ may be defined as that body of rules or laws that is binding on states and other international persons in their mutual relations.

A)Legal systems
B)International law (or the "law of nations")
C)Local law
D)Napoleonic code law
E)Civil law

Question 72

_____ systems base the interpretation of law on prior court rulings (that is, legal precedents and customs of time).

A)Common law
B)Code law
C)Written law
D)Islamic law
E)Napoleonic law

Question 73

International law comes from customs, national and international court decisions, and:

A)tradition.
B)joint ventures.
C)strategic alliances.
D)cabals.
E)international treaties.

Question 74

A country that follows common law as its primary system is:

A)France.
B)the United States.
C)Iraq.
D)Egypt.
E)Mexico.

Question 75

In Pakistan, importers and exporters of raw materials rely on a technique that is known as _____ to avoid the ban on interest.

A)credit cards
B)foreign loans
C)higher prices
D)murabaha
E)collateral

Question 76

DUT stands for ______.

A)Digitally unified technology
B)Dual usage technology
C)Direct usage technology
D)Digital use technology

Question 77

Formal agreements among nations or firsts that set down rules and obligations to govern their mutual relationships are called:

A)business law.
B)code law.
C)confederation law.
D)commercial law.
E)treaties.

Question 78

_____ systems rely on statutes and codes for the interpretation of the law.There is very little interpretation in this form of law.

A)Common law
B)Code (written) law
C)United Nation's law
D)Germanic Confederation law
E)Spanish Constitutional law

Question 79

International law represents ______ among countries.

A)very loose arrangements
B)contractually binding agreements
C)gentlemen's agreements
D)almost no control of law
E)the best and most recognized legal standards

Question 80

_____ refers to ideas that are translated into tangible products, writings, and so on, and that are protected by the state for a limited period of time from unauthorized commercial exploitation.

A)A copyright
B)A trademark
C)A trade secret
D)Intellectual property
E)A patent