Deck 6: Politics and Law

Question 1

Issued by the U.S.Department of Commerce,_________ permit the export of sensitive goods and services.

A)critical commodity permits
B)import licenses
C)export licenses
D)intellectual property rights
E)expropriation bills

Answer 1

C

Question 2

The United States has banned all trade with Cuba,with the exception of humanitarian activities. This is an example of a(n):

A)sanction
B)embargo
C)tariff
D)duty
E)export license

Answer 2

B

Question 3

________ is the ability of a nation to protect its international values from external threats.

A)Extraterritoriality
B)Security advantage
C)International competitiveness
D)Sovereignty
E)National security

Answer 3

E

Question 4

Today,the principal focus of export controls rests in which area(s)of the world?

A)Third World
B)Under-populated regions
C)Developed world
D)Communist world
E)Northern hemisphere

Question 5

Controls on deemed exports address:

A)Specific nations
B)Particular products
C)People
D)Specific types of technologies
E)Services only

Question 6

_______ items,which are controlled by the Joint List of the European Union,are goods and services that are useful for both military and civilian purposes.

A)Single-use
B)Multi-use
C)Dual-use
D)Disposable
E)Concrete

Question 7

A(n)_________ is a government action,usually consisting of a specific measure that distorts the free flow of trade for an adversarial or political purpose rather than an economic one.

A)sanction
B)embargo
C)tariff
D)boycott
E)export license

Question 8

_________ are designed to deny or at least delay the acquisition of strategically important goods to adversaries.

A)Sanctions
B)Coups d'états
C)Embargoes
D)Import-control systems
E)Export-control systems

Question 9

Richard has successfully smuggled a leading-edge piece of technology by hiding it in his cell phone during an international flight. A decade ago,it would have been impossible to contain this same piece of technology in anything smaller than a suitcase. This scenario demonstrates the:

A)Reduced need for export controls due to greater technology innovation
B)Increased need for export controls due to the loosening of mutual bonds among allied nations
C)Increased need for export controls due to greater foreign availability of high technology products
D)Increased need for export controls due to technology miniaturization
E)Reduced need for export control systems due to trade from economic organizations

Question 10

__________ is an exemption from rules and regulations of one country that may challenge the national sovereignty of another country.

A)Extraterritoriality
B)International competition
C)Sanctioning
D)Cultural convergence
E)Globalization

Question 11

Due to heightened political unrest,the government in Sally's home country has recently developed a "black list" of items not to be purchased from a neighboring country. Sally can best describe this action as imposing a(n):

A)Bribe
B)Antitrust policy
C)Embargo
D)Boycott
E)Sanction

Question 12

_________ is the degree to which products similar to those of a firm can be obtained in markets outside the firm's home country.

A)International abundance
B)Foreign availability
C)Deemed surplus
D)Export control level
E)Political clout

Question 13

Critics in the United States argue that the passage of minimum-wage legislation has resulted in reduced U.S.international competitiveness. This example demonstrates that:

A)Cultural convergence is making it impossible for U.S.firms to do business abroad
B)New minimum-wage requirements have a profound impact on the international competitiveness of firms that are highly capital intensive
C)All domestic laws and regulations affect the international competitiveness of a firm
D)Some laws and regulations indirectly affect international business
E)Extraterritoriality is a major concern for U.S.firms

Question 14

________ prohibit monopolies,restraint of trade,and conspiracies to inhibit competition.

A)Antitrust laws
B)Ethics policies
C)Export controls
D)Competitive policies
E)Copyright infringement policies

Question 15

Which act makes it a crime for U.S.executives of publicly traded firms to bribe a foreign official in order to obtain business?

A)Civil Rights Act
B)International Protection Act
C)1988 Trade Act
D)Foreign Corrupt Practices Act
E)Webb-Pomerene Act

Question 16

Arthur is a U.S.city mayor who has recently been accused of accepting payment to support local natural gas drilling. Such an act can best be described as:

A)Bribery
B)Blackmail
C)Corruption
D)Extortion
E)Business as usual

Question 17

Which form of legislation excluded from antitrust prosecution U.S.firms cooperating to develop foreign markets?

A)Warsaw Pact
B)International Protection Rights Act
C)1988 Trade Act
D)Foreign Corrupt Practices Act
E)Webb-Pomerene Act

Question 18

The ____________ clarifies the applicability of the Foreign Corrupt Practices Act.

A)Civil Rights Act
B)International Protection Act
C)1988 Trade Act
D)Warsaw Treaty
E)Webb-Pomerene Act

Question 19

A criminal offense in the U.S.but a way of life in other countries,________ is the use of payments or favors to obtain some right or benefit to which the briber has no legal right.

A)corruption
B)bribery
C)boycotting
D)blacklisting
E)coup d'état

Question 20

________ is the ability of a firm,an industry,or a country to compete in the international marketplace at a stable or rising standard of living.

A)Competitive advantage
B)International competitiveness
C)Market competitiveness
D)Absolute advantage
E)Extraterritoriality

Question 21

A mining company in Tanzania was recently forced to give up all assets to the Tanzanian government without compensation. The Tanzanian government claimed that the company was operating with the use of illegal workers. This example demonstrates what form of transfer of ownership?

A)Confiscation
B)Patriotism
C)Expropriation
D)Domestication
E)Bribery

Question 22

__________ are imposed on foreign investors in an effort to control multinational corporations and their capital.

A)Political risks
B)Exchange controls
C)Rent controls
D)Tax policies
E)Price controls

Question 23

The forceful government seizure of a company without compensation for the assets seized is referred to as:

A)Patronism
B)Expropriation
C)Confiscation
D)Domestication
E)Thievery

Question 24

_________ refers to legal rights resulting from industrial,scientific,literary,or artistic activity.

A)International content regulation
B)Local content regulation
C)Trademark right
D)Copyright
E)Intellectual property right

Question 25

_________ law is based on tradition and the establishment of precedent and custom.

A)Theocratic
B)Common
C)Democratic
D)Code
E)Anarchic

Question 26

Which of the following can be linked to a business-related loss that is the result of events caused by factors OUTSIDE the control of government?

A)Strikes
B)Externally imposed limits on imports
C)Nationalistic buyers
D)Threats by hostile groups
E)Forced divestiture

Question 27

_________ is the government takeover of a company with compensation frequently at a lower level than the investment value of the company's assets.

A)Patronism
B)Expropriation
C)Confiscation
D)Domestication
E)Thievery

Question 28

__________ regulations attempt to gain control over foreign investment by ensuring that a large share of the product is locally produced or a larger share of the profit is retained in the country.

A)Common law
B)Theocratic
C)Exchange control
D)Intellectual property right
E)Local content

Question 29

________ risk is the loss of assets,earning power,or managerial control as a result of political actions by the host country.

A)Political
B)Cultural
C)Economic
D)Financial
E)Governmental

Question 30

Which industry or sector listed below is most likely to have price controls imposed upon its products or services?

A)Airline
B)Gold
C)Grain
D)Hotel
E)Ivory

Question 31

________ occurs when a government demands for partial transfer of ownership and management responsibility from a foreign company to local entities,with or without compensation.

A)Confiscation
B)Patriotism
C)Expropriation
D)Domestication
E)Extortion

Question 32

__________ risk involves the danger of interference by governments or other groups in one's corporate operations abroad.

A)Transfer
B)Financial
C)Ownership
D)Operating
E)Cultural

Question 33

________ is a legal perspective that is based on religious practices and interpretations.

A)Theocracy
B)Common law
C)Democracy
D)Code law
E)Anarchy

Question 34

The three major types of political risk include ownership risk,operating risk,and:

A)Transfer risk
B)Culture risk
C)Financial risk
D)Economic risk
E)Social risk

Question 35

A forced change in a country's government,often resulting in attacks of foreign firms and policy changes by the new government is called:

A)Expatriation
B)Genocide
C)Coup d'état
D)Terrorism
E)Extortion

Question 36

In most Islamic nations,society is ruled by the Sharia,or Islamic law. This exemplifies what type of legal system?

A)Theocracy
B)Common law
C)Democracy
D)Code law
E)Anarchy

Question 37

_________ law is based on a comprehensive set of written statutes.

A)Theocratic
B)Common
C)Democratic
D)Code
E)Anarchic

Question 38

__________ controls are a form of economic risk that control the movement of capital in and out of a country.

A)Political
B)Exchange
C)Ownership
D)Tax
E)Price

Question 39

Sylvie owned a piece of property overseas that had been handed down to her through her family. She recently learned that the property was seized by the country's government due to the nonpayment of a special tax for foreign citizens - a tax of which Sylvie had no prior knowledge. Sylvie's loss comes as a result of what form of political risk?

A)Operating risk
B)Ownership risk
C)Transfer risk
D)Financial risk
E)Technology risk

Question 40

_________ refers to illegal and violent acts toward property and people.

A)Extortion
B)Terrorism
C)Expatriation
D)Genocide
E)Coup d'état

Question 41

__________ are well-connected individuals or firms that are hired by a business to influence the decision making of policymakers and legislators.

A)Terrorists
B)Reference groups
C)Loyalists
D)Lobbyists
E)Arbitrators

Question 42

The 1988 Trade Act made it a crime for U.S.executives of publicly traded firms to bribe a foreign official in order to obtain business.

Question 43

Multipurpose items are goods and services that are useful for both military and civilian purposes.

Question 44

Transfer risk is a form of political risk inherent in maintaining ownership of property abroad.

Question 45

Confiscation is the government takeover of a company with compensation frequently at a level lower than the investment value of the company's assets.

Question 46

The body of rules governing relationships between sovereign states is called:

A)Multinational policy
B)International policy
C)International law
D)Domestic law
E)Multinational law

Question 47

A coup d'état is a forced change in a country's government,often resulting in attacks of foreign firms and policy changes by the new government.

Question 48

The increase in terrorism worldwide highlights the importance of curbing export controls.

Question 49

Public concerns have increasingly been raised on issues such as environmental protection,global warming,and pollution.

Question 50

Issued by the U.S.Department of Commerce,export licenses permit the export of sensitive goods and services.

Question 51

An embargo consists of a specific coercive trade measure that distorts the free flow of trade for an adversarial or political purpose.

Question 52

Foreign availability is the degree to which products similar to those of a firm can be obtained in markets outside the firm's home country.

Question 53

________ is the procedure for settling a dispute in which an objective third party hears both sides and makes a decision.

A)Negotiation
B)Arbitration
C)Bribery
D)Communication
E)Delegation

Question 54

Antitrust laws prohibit monopolies,restraint of trade,and conspiracies to inhibit competition.

Question 55

The __________ is an agreement that outlines procedures for filing one international patent application rather than filing numerous individual national applications.

A)Patent Cooperation Treaty
B)International Copyright Act
C)Individual Patent Rights Act
D)Copyright Cooperation Treaty
E)Intellectual Logistics Pact

Question 56

The international political and legal environment can be broken down into three segments: the politics and laws of the home country,the politics and laws of the host country,and the bilateral and multilateral agreements,treaties,and laws governing relations between countries.

Question 57

Business risk refers to the potential of loss by an international corporation of assets,earning power,or managerial control as a result of political actions by the host country.

Question 58

Sanctions rarely result in significant loss of business to firms.

Question 59

Typical categories of firm-level political behavior include all of the following EXCEPT:

A)Lobbying
B)Public and governmental associations
C)Industry alliances and associations
D)Political incentives
E)Theocratic policymaking

Question 60

Deemed exports address products rather than people where knowledge transfer could lead to a breach of export restrictions.

Question 61

__________ is the ability of a nation to protect its internal values from external threats.

Question 62

Define and describe the different forms of political and economic risk.

Question 63

__________ risk refers to the danger of interference by governments or other groups in one's corporate operations abroad.

Question 64

A(n)__________ is a forced change in a country's government,often resulting in attacks of foreign firms and policy changes by the new government.

Question 65

_________ are typically well-connected individuals or firms that are hired by a business to influence the decision making of policymakers and legislators.

Question 66

International law is the body of rules governing relationships between sovereign states.

Question 67

A(n)__________ refers to an organized effort to refrain from conducting business with a particular country of origin or seller of goods or services.

Question 68

Theocracy is a legal perspective based on religious practices and interpretations.

Question 69

Describe the differences between embargoes and sanctions and provide examples.

Question 70

Domestication is the government demand for partial transfer of ownership and management responsibility from a foreign company to local entities,with or without compensation.

Question 71

Countries may use __________ toward foreign investors in an effort to control multinational corporations and their capital.

Question 72

Negotiation is the procedure in the international business arena for settling a dispute,in which an objective third party hears both sides of an issue and makes a decision.

Question 73

_________ law is based on tradition that depends more on precedent than on written statutes.

Question 74

________ is an exemption from rules and regulations of one country that may challenge the national sovereignty of another.

Question 75

Explain the primary ways in which host governments can gain control over multinational corporations.

Question 76

__________ is the procedure for settling a dispute in which an objective third party hears both sides and makes a decision.

Question 77

The _________ is an agreement that outlines procedures for filing one international patent application rather than several individual national applications.

Question 78

__________ is the forceful government seizure of a company without compensation for the assets seized.

Question 79

Exchange controls are a means by which countries may control foreign investors.

Question 80

A(n)_________ is a governmental action,usually consisting of a specific coercive trade measure that distorts the free flow of trade for an adversarial or political purpose rather than an economic one.