Question 1

In July 2005,the U.S.Congress blocked China's plans to acquire the U.S.oil and gas company,Unocal.Congress argued that crucial raw materials,such as oil,should not be controlled by an economic rival.This action is motivated by the American government's interest in ____.

Accepted Answer

The action of blocking China's acquisition of Unocal was motivated by the American government's interest in protecting national security. Congress argued that allowing a Chinese company to control oil, a crucial raw material, could potentially harm the security and interests of the US.

Question 2

In the early 1970s,McKesson,an American firm,owned 31 percent of the shares of stock in the Iranian firm,Pak Dairy.During the Iranian revolution in 1979,the Iranian government seized and took full control of Pak Dairy by force.They did not pay McKesson for their losses.This is an example of a ____.

Accepted Answer

Confiscation is the act of a government seizing private property without compensation. In this case, the Iranian government seized McKesson's ownership stake in Pak Dairy without providing any compensation, making this an example of confiscation. Quotas are limits on the amount of a specific product that can be imported or exported, and boycotts involve a voluntary refusal to engage in business or trade. Neither of these terms applies to the situation described.

Question 3

The Iraqi government limits foreign ownership of businesses in Iraq to 49 percent.This is an example of a(n)____.

Accepted Answer

The Iraqi government's limit on foreign ownership of businesses in Iraq to 49 percent is a form of ownership restriction. This means that foreign companies cannot fully own businesses in the country and must have a local partner to hold the majority ownership.

Question 4

In the 1980s,many U.S.consumer groups began to pressure American multinational with operations in South Africa,encouraging them to divest their investments in apartheid-practicing South Africa.These consumer groups are examples of ____ groups.

Accepted Answer

Home country pressure groups refer to groups within a multinational corporation's home country that exert pressure on the company to act in a socially responsible manner. In this scenario, the consumer groups in the US are pressuring American multinationals to divest their investments in apartheid-practicing South Africa.

Question 5

It can take 153 days to establish a business in Mozambique compared with three days in Canada.It takes twenty-one steps to register a commercial property in Nigeria compared with only three steps in Finland.These are examples of cross-national differences in ____.

Accepted Answer

The examples provided illustrate cross-national differences in the regulatory environments of different countries. The time and number of steps required to establish a business or register commercial property are determined by the laws and regulations in place in each country, making A the most appropriate choice. B, C, and D are not directly related to the examples provided.

Question 6

Ecuador provides electricity to several large exporting companies in Quito,the capital city.This is an example of a(n)____.

Accepted Answer

Providing electricity to exporting companies is a form of indirect subsidy as it benefits the companies and reduces their production costs. It indirectly supports their exports by making them more competitive in the global market.

Question 7

A major goal of the European Union government is to provide full employment and increasing standard of living for its citizens by encouraging foreign investment in the EU and promoting EU exports in foreign markets.These actions are motivated by the EU government's interest in ____.

Accepted Answer

The EU government's goal of providing full employment and increasing standard of living for its citizens is directly linked to fostering national prosperity. By encouraging foreign investment and promoting exports, the EU aims to boost its economy and create better opportunities for its people.

Question 8

In Australia,foreign ownership of television stations is limited to no more than 20 percent.It is feared that if a foreign country controlled the media,it could influence public opinion and national sovereignty.This regulation is motivated by the Australian government's interest in ____.

Accepted Answer

The limitation on foreign ownership of television stations in Australia is motivated by the government's interest in self-preservation, as it is believed that foreign control of the media could influence public opinion and potentially threaten national sovereignty. The other options of promoting national ideology, enhancing national prestige, and fostering national prosperity are not directly related to the concern over foreign media ownership.

Question 9

For nearly 50 years,North Korea has pursued the strategy of juche,or self-reliance,trading very little with the outside world except with fellow communist states of China and Russia.This is because of the North Korean government's interest in ____.

Accepted Answer

North Korea's pursuit of juche is primarily driven by its interest in promoting its own national ideology and maintaining self-sufficiency, rather than fostering national prosperity or giving into environmentalist pressure groups.

Question 10

To support the local apparel industry,the Bulgarian government pays each Bulgarian apparel company US$1 for each piece of clothing that they export.This is an example of a(n)____.

Accepted Answer

This is an example of a direct subsidy, as the government is directly providing financial assistance to the Bulgarian apparel companies for each piece of clothing they export.

Question 11

The legal system in the United Kingdom,the United States,and Canada acknowledge the preeminence of social norms.In these countries,lawyers are as likely to look to prior case decisions as to the law itself in order to argue their own cases.This legal system is called a(n)____ system.

Accepted Answer

Common law is a legal system that relies heavily on prior case decisions and social norms. It is practiced in the United Kingdom, the United States, and Canada. Civil law, on the other hand, is based on codified laws and is practiced in countries like France, Germany and Japan. Islamic law is based on the teachings of the Quran and is practiced in many countries with Muslim majorities. Socialist law is a legal system that is practiced in countries with socialist or communist governments, like China and Cuba.

Question 12

About ____ percent of very large U.S.companies have terrorism insurance.

Accepted Answer

According to a survey conducted by Marsh & McLennan Companies Inc. in 2019, 60 percent of very large U.S. companies have terrorism insurance. This means that the remaining 40 percent either do not have terrorism insurance or have limited coverage.

Question 13

In 1998,Friends of the Earth Indonesia and other non-governmental organizations complained that Mobil Oil was complicit in human rights abuses that had occurred during the construction of its pipeline in the Ache province of Indonesia.They tried to pursue the Indonesian government to end their joint venture with Mobil Oil.These organizations are examples of ____ groups.

Accepted Answer

The organizations, including Friends of the Earth Indonesia, were trying to pressure the Indonesian government to take action against Mobil Oil, a foreign company operating within its borders. This is an example of host country pressure.

Question 14

In the past,Iran and Venezuela have attempted to outlaw foreign brand names,requiring international marketers to establish names for their products in Persian and Spanish.These governments were interested in ____.

Accepted Answer

The governments of Iran and Venezuela were interested in protecting their cultural identity by requiring foreign marketers to use names for their products in Persian and Spanish.

Question 15

The United States imposed a two-year ban on imports from Norinco,a major Chinese defense and industrial manufacturer,because of the company's alleged sale of ballistic-missile technology to Iran.This is an example of a government ____.

Accepted Answer

The United States imposed a two-year ban on imports from Norinco, a major Chinese defense and industrial manufacturer, because of the company's alleged sale of ballistic-missile technology to Iran. This is an example of a government boycott, which is a government-imposed ban on trade with a particular country or company.

Question 16

In Saudi Arabia,the collection of interest on loans is forbidden because the legal system in Saudi Arabia is a(n)____ system.

Accepted Answer

In Islamic law, collection of interest on loans is forbidden as it is considered as usury or ribaa. This is based on the prohibition of ribaa in the Quran, which is a fundamental principle in Islamic finance. Therefore, the legal system in Saudi Arabia, which follows Islamic law, prohibits the collection of interest on loans.

Question 17

In Vietnam,foreign electric component manufacturers are required by the Vietnamese government to prove that a minimum of 20 percent of the components must be made with local input products.This is an example of ____.

Accepted Answer

The requirement imposed by the Vietnamese government on foreign electric component manufacturers to use a minimum of 20 percent of locally sourced input products is an example of operating conditions. Operating conditions are requirements or regulations that businesses are required to comply with in order to operate in a particular market or industry. In this case, the requirement is a condition for doing business in Vietnam, as foreign companies will need to use some locally sourced components to meet the minimum percentage requirement. This is not an indirect or direct subsidy, as the government is not providing any financial assistance or support to the businesses. Also, this is not an ownership restriction as the requirement does not involve restrictions on foreign ownership of businesses.

Question 18

An American company sets up a subsidiary in Thailand,including a production facility and marketing/sales office.In this example,Thailand is a(n)____ country.

Accepted Answer

Thailand is the host country where the American company has set up a subsidiary.

Question 19

An American company sets up a subsidiary in Thailand,including a production facility and marketing/sales office.In this example,the USA is a(n)____ country.

Accepted Answer

The USA is the home country of the American company that sets up a subsidiary in Thailand.

Question 20

The Nigerian government decided to host the All-Africa Games in 2003,despite the fact that building costs for a new stadium exceeded $340 million,twice what the government planned to spend on health care for one year.This action was motivated by the Nigerian government's interest in ____.

Accepted Answer

The decision to host the All-Africa Games despite the cost being twice what the government planned to spend on health care for one year suggests that the Nigerian government was motivated by a desire to enhance national prestige. Hosting a major sports event can bring international attention and boost a country's reputation. The other options (protecting national security, promoting national ideology, self-preservation) do not seem relevant to this particular situation.

Quiz 4: Political and Regulatory Climate

In July 2005,the U.S.Congress blocked China's plans to acquire the U.S.oil and gas company,Unocal.Congress argued that crucial raw materials,such as oil,should not be controlled by an economic rival.This action is motivated by the American government's interest in ____.

In the early 1970s,McKesson,an American firm,owned 31 percent of the shares of stock in the Iranian firm,Pak Dairy.During the Iranian revolution in 1979,the Iranian government seized and took full control of Pak Dairy by force.They did not pay McKesson for their losses.This is an example of a ____.

The Iraqi government limits foreign ownership of businesses in Iraq to 49 percent.This is an example of a(n) ____.

In the 1980s,many U.S.consumer groups began to pressure American multinational with operations in South Africa,encouraging them to divest their investments in apartheid-practicing South Africa.These consumer groups are examples of ____ groups.

It can take 153 days to establish a business in Mozambique compared with three days in Canada.It takes twenty-one steps to register a commercial property in Nigeria compared with only three steps in Finland.These are examples of cross-national differences in ____.

Ecuador provides electricity to several large exporting companies in Quito,the capital city.This is an example of a(n) ____.

A major goal of the European Union government is to provide full employment and increasing standard of living for its citizens by encouraging foreign investment in the EU and promoting EU exports in foreign markets.These actions are motivated by the EU government's interest in ____.

In Australia,foreign ownership of television stations is limited to no more than 20 percent.It is feared that if a foreign country controlled the media,it could influence public opinion and national sovereignty.This regulation is motivated by the Australian government's interest in ____.

For nearly 50 years,North Korea has pursued the strategy of juche,or self-reliance,trading very little with the outside world except with fellow communist states of China and Russia.This is because of the North Korean government's interest in ____.

To support the local apparel industry,the Bulgarian government pays each Bulgarian apparel company US$1 for each piece of clothing that they export.This is an example of a(n) ____.

The legal system in the United Kingdom,the United States,and Canada acknowledge the preeminence of social norms.In these countries,lawyers are as likely to look to prior case decisions as to the law itself in order to argue their own cases.This legal system is called a(n) ____ system.

About ____ percent of very large U.S.companies have terrorism insurance.

In the past,Iran and Venezuela have attempted to outlaw foreign brand names,requiring international marketers to establish names for their products in Persian and Spanish.These governments were interested in ____.

The United States imposed a two-year ban on imports from Norinco,a major Chinese defense and industrial manufacturer,because of the company's alleged sale of ballistic-missile technology to Iran.This is an example of a government ____.

In Saudi Arabia,the collection of interest on loans is forbidden because the legal system in Saudi Arabia is a(n) ____ system.

In Vietnam,foreign electric component manufacturers are required by the Vietnamese government to prove that a minimum of 20 percent of the components must be made with local input products.This is an example of ____.

An American company sets up a subsidiary in Thailand,including a production facility and marketing/sales office.In this example,Thailand is a(n) ____ country.

An American company sets up a subsidiary in Thailand,including a production facility and marketing/sales office.In this example,the USA is a(n) ____ country.

The Nigerian government decided to host the All-Africa Games in 2003,despite the fact that building costs for a new stadium exceeded $340 million,twice what the government planned to spend on health care for one year.This action was motivated by the Nigerian government's interest in ____.