Deck 2: The Political, Legal, and Technological Environment

Question 1

The Foreign Corrupt Practices Act (FCPA)is an act that makes it illegal to influence foreign officials through personal payment or political contributions.

Answer 1

True
Explanation: The Foreign Corrupt Practices Act (FCPA) is an act that makes it illegal to influence foreign officials through personal payment or political contributions. The objectives of the act were to stop U.S. Multinational corporations from initiating or perpetuating corruption in foreign governments and to upgrade the image of both the United States and its businesses abroad.

Question 2

Fascism is an extreme form of socialism that was realized through violent revolution and was committed to the idea of a worldwide communist state.

Answer 2

False
Explanation: Fascism is an authoritarian political ideology that considers individual and other societal interests inferior to the needs of the state and seeks to forge a type of national unity, usually based on ethnic, religious, cultural, or racial attributes. Communism, however, is an extreme form of socialism that was realized through violent revolution and was committed to the idea of a worldwide communist state.

Question 3

Both domestic and international political environments have a major impact on multinational corporations.

Answer 3

True
Explanation: Both domestic and international political environments have a major impact on multinational corporations.

Question 4

The most common form of totalitarian government is communist totalitarianism.

Question 5

The doctrine of civility holds that there must be mutual respect for the laws,institutions,and governments of other countries in the matter of jurisdiction over their own citizens.

Question 6

Nationalization is an ideal in and of itself whereby an individual is completely loyal to his or her nation.

Question 7

The doctrine of comity holds that there must be mutual respect for the laws,institutions,and governments of other countries in the matter of jurisdiction over their own citizens.

Question 8

Common law is derived from Roman law and is found in non-Islamic and nonsocialist countries such as France,some countries in Latin America,and even Louisiana in the United States.

Question 9

A form of totalitarianism,sometimes referred to as "right-wing," allows for both economic and political freedoms.

Question 10

A vast network of fiber-optic cables that are used for almost all transoceanic communication lead to a great deal of system vulnerability.

Question 11

The territoriality principle is a jurisdictional principle that holds that holds that every nation has the right of jurisdiction within its legal territory.

Question 12

Collectivism emerged in Poland and France as "national socialism."

Question 13

Socialism is a broad political movement,and in modern times,it branched off into two extremes: communism and social democracy.

Question 14

The protective principle is a jurisdictional principle that holds that every country has jurisdiction over behavior that adversely affects its national security,even if that conduct occurred outside the country.

Question 15

The nationality principle is a jurisdictional principle of international law that holds that every country has jurisdiction over its citizens no matter where they are located.

Question 16

In the context of the trends in technology,the open-source model restricts free and legal sharing of software and code to prevent underdeveloped countries from gaining competitive advantage while minimizing costs.

Question 17

Essentially,every citizen should be involved in decision-making processes in a democratic system.

Question 18

Individualism views the needs and goals of society at large as more important than individual desires.

Question 19

Biotech companies mainly manufacture drugs through a process similar to that of organic chemistry and are unable to discover genetic abnormalities.

Question 20

Communism is an authoritarian political ideology that considers individual and other societal interests inferior to the needs of the state.

Question 21

Aspects and degrees of the totalitarian form of government are still found in:

A) Singapore and Cambodia.
B) Germany and Italy.
C) Latin America only.
D) Vietnam, Cuba, and North Korea.

Question 22

Adopters of individualism adhere to the philosophy that:

A) people should be free to pursue economic and political endeavors without constraint.
B) government interest should solely influence individual behavior.
C) communism in its extreme form is realized through violent revolution.
D) the needs and goals of society at large are more important compared to individual desires.

Question 23

In the context of the four foundations on which laws are based around the world,civil or code law:

A) comes from the Marxist socialist system.
B) is derived from Roman law.
C) is the foundation of the legal system in the United States.
D) continues to influence regulations in former communist countries.

Question 24

In the context of the four foundations on which laws are based around the world,Islamic law is derived from:

A) the Marxist socialist system.
B) Roman law.
C) the ideologies of the Greek philosopher Prophet Farooq.
D) the teachings of the Prophet Muhammad.

Question 25

In a business context,individualism is synonymous with _____.

A) collectivism
B) socialism
C) totalitarianism
D) capitalism

Question 26

The _____ holds that every nation has the right of jurisdiction within its legal territory.

A) sovereignty principle
B) protective principle
C) territoriality principle
D) nationality principle

Question 27

Which of the following statements is true of democracy?

A) The government is controlled by the citizens either directly or through elections.
B) Once elected, a representative can no longer be held accountable for his or her actions.
C) Impartial public service restricts freedom of expression and assembly.
D) Once elected, a representative cannot be reelected.

Question 28

Which of the following statements is true about totalitarianism?

A) The government is controlled by the citizens either directly or through elections.
B) Individual freedoms, such as freedom of expression and assembly, are secured.
C) Power is often maintained by suppression of opposition, which can be violent.
D) A representative party needs to strictly adhere to the goals of the majority ruling.

Question 29

In the context of collectivism,the Greek philosopher Plato believed that:

A) individual desires should be viewed as the most important.
B) a classless society would help keep people focused on societal goals.
C) individual rights should be secured.
D) property should be commonly owned.

Question 30

_____ comes from English law and is the foundation of the legal system in the United States,Canada,England,Australia,New Zealand,and others.

A) Civil or code law
B) Islamic law
C) socialist law
D) Common law

Question 31

The _____ holds that every country has jurisdiction (authority or power)over its citizens no matter where they are located.

A) doctrine of comity
B) nationality principle
C) territoriality principle
D) sovereignty principle

Question 32

When compared with domestic law,international law is less coherent because:

A) it contains unwritten understandings that arise from repeated interactions among nations.
B) its sources embody only the laws of individual countries concerned with disputes.
C) its sources embody only the treaties and conventions of individual countries concerned with any dispute.
D) it is derived from the Marxist socialist system and is highly influenced by the regulations prevalent in former communist countries.

Question 33

The _____ holds that every country has jurisdiction over behavior that adversely affects its national security,even if that conduct occurred outside the country.

A) territoriality principle
B) nationality principle
C) sovereignty principle
D) protective principle

Question 34

Identify a true statement about civil law.

A) It comes from English law and is found in nonsocialist countries.
B) It is found in most Islamic countries in the Middle East and Central Asia.
C) It is derived from Roman law and is found in the non-Islamic and nonsocialist countries.
D) It is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand, and other nations.

Question 35

Political repression and denial of rights and civil liberties are dominant ideals of _____.

A) totalitarianism
B) a socialist democracy
C) collectivism
D) a monarchy

Question 36

The _____ holds that governments have the right to rule themselves as they see fit.

A) principle of sovereignty
B) nationality principle
C) territoriality principle
D) protective principle

Question 37

In the context of socialism,Karl Marx believed that:

A) businesses should benefit at the expense of laborers.
B) only a few individuals should benefit from businesses.
C) societal classes should exist.
D) governments should own businesses.

Question 38

Which of the following is one of the biggest problems in Russia and in other transition economies?

A) Social democracy
B) Privatization
C) Corruption
D) Nationalization

Question 39

Philosophers such as David Hume,Adam Smith,and Aristotle contributed to the ideology of _____.

A) socialism
B) collectivism
C) individualism
D) communism

Question 40

Identify a characteristic of social democracy.

A) Achievement of goals through nonviolent revolution
B) Transference of ownership of a business from individuals to a government
C) Loyalty of an individual toward his or her nation
D) Complete control over every facet of political and human life

Question 41

In the context of bureaucratization,which of the following statements is true of Japan?

A) Government controls are inefficient and need to be corrected to encourage multinational corporations to do business.
B) Politicians are more interested in the long-term well-being of the nation as a whole than in the well-being of their own districts.
C) Parochial actions are highly unlikely to create problems for multinational corporations trying to do business.
D) The banking system is expansionary, and there is very little room for reformation.

Question 42

Keith,a manager in the country of Bodonia,violates a Bodonian law while traveling abroad.He can still be found guilty in Bodonia.This scenario exemplifies _____.

A) socialist law
B) Islamic law
C) the principle of sovereignty
D) the nationality principle

Question 43

Many foreign governments applauded the investigations under the Foreign Corrupt Practices Act (FCPA)because it helped them:

A) crack down on corruption in their own country.
B) reduce internal political problems for U.S. allies.
C) reduce the risks associated with the derivatives activities of banks.
D) restrict the courts from fining and not imprisoning corrupt parties.

Question 44

The area of e-business that will most affect global customers is _____.

A) e-marketing
B) e-retailing and financial services
C) retailing
D) internet sales

Question 45

Under the _____,all acts of other governments are considered to be valid by U.S.courts,even if such acts are inappropriate in the United States.

A) act of state doctrine
B) act of international civility
C) act of judicial sovereignty
D) act of international understanding

Question 46

An act that makes it illegal to influence foreign officials through personal payment or political contributions is referred to as the _____.

A) Fairness in International Affairs Act
B) Foreign Corrupt Practices Act
C) Global Ethics Act
D) Fair Treatment of Foreign Citizens Act

Question 47

In the context of the treatment and rights of aliens,countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on all of the following except _____.

A) conduct
B) right of travel
C) spending
D) what business they may conduct

Question 48

In the context of bureaucratization,Japanese businesses are becoming aware of the fact that:

A) they are heavily dependent on their local market for maximum number of goods and services.
B) local consumers are paying a heavy price due to the bureaucratic red tape.
C) government bureaucracy has created a true sense of security.
D) they are well prepared to face the harsh competitive realities of the international marketplace.

Question 49

U.S.laws require equality in the workplace for all employees.U.S.citizens who take a job in Germany cannot sue their German employer under the provisions of U.S.law for failure to provide equal opportunity for them.This exemplifies the:

A) principle of sovereignty.
B) nationality principle.
C) doctrine of comity.
D) act of state doctrine.

Question 50

Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign competitors,especially in those countries where:

A) customs are rigidly followed.
B) political stability exists.
C) common law is applicable.
D) bribery is an accepted way of doing business.

Question 51

A firm in the country of Batangonia that sells secret government blueprints of the country of Cambrialand for a satellite system can be subjected to the Cambrialand laws.This scenario exemplifies _____.

A) the nationality principle
B) the protective principle
C) socialist law
D) Islamic law

Question 52

A firm based in the country of Iskoolbia that sells a defective hair dryer in the country of Octavia can be sued under Octavian law even though the company is headquartered outside Octavia.This scenario exemplifies _____.

A) socialist law
B) the nationality principle
C) the territoriality principle
D) Islamic law

Question 53

The most popular form of e-business is for _____.

A) B2B dealings
B) B2C dealings
C) financial dealings
D) e-retailing

Question 54

The _____ holds that there must be mutual respect for the laws,institutions,and the government of other countries in the matter of jurisdiction over their own citizens.

A) doctrine of protectionism
B) doctrine of civility
C) doctrine of mutual understanding
D) doctrine of comity

Question 55

Since the passage of the Foreign Corrupt Practices Act (FCPA),investigations reveal that:

A) U.S. exports to "bribe prone" countries decreased significantly.
B) the act was unsuccessful in removing bribes as a key competitive tool from the Middle East.
C) the act allowed the courts to fine but not imprison guilty parties.
D) individual executives started getting increasingly targeted apart from corporations.

Question 56

In the context of e-business,the term e-cash stands for _____.

A) Easy cash
B) Export cash
C) Electronic cash
D) Exchange cash

Question 57

According to the World Bank,which of the following economies does not rank high on the ease-of-doing-business index?

A) The Philippines
B) Singapore
C) The United Kingdom
D) The United States

Question 58

The most important dimension of the technological environment facing international management today is _____.

A) telecommunications
B) transportation
C) agricultural mechanization
D) improved service technologies

Question 59

In the context of the trends in technology,communication,and innovation,the creation of a digital framework:

A) made business communication vastly more expensive.
B) made the microprocessor obsolete.
C) allowed high-power computer performance at low cost.
D) required satellites for all forms of communication.

Question 60

U.S.multinational corporations always assumed that bribes were required to ensure contracts in _____.

A) India
B) the Middle East
C) Asia Pacific
D) Eastern Europe

Question 61

Which of the following industries would constitute the white-collar service industries?

A) Steel and autos
B) Agriculture
C) Insurance only
D) Insurance and banks

Question 62

Discuss the three types of jurisdictional principles provided by International Law.

Question 63

What is biotechnology? Discuss some of the areas in which it has been used or is likely to be used.

Question 64

In the context of technological advancements,outsourcing,and offshoring,low-paid workers in India and Asian countries now are being given subcontracted work such as _____.

A) insurance jobs
B) auto industry jobs
C) labor-intensive hardware development jobs
D) code-writing jobs

Question 65

In the context of offshoring,which of the following factors has placed pressure on multinational corporations to outsource production?

A) Mounting cost pressure
B) Lack of cheap and expert labor
C) Global and internal competition
D) Profit expectation by governments

Question 66

Explain the political system of totalitarianism,and identify its features and forms.

Question 67

In the context of technological advancements,outsourcing,and offshoring,multinational corporations have moved certain production activities overseas to capitalize on _____.

A) increasing costs
B) cheap labor resources
C) larger markets
D) higher purchasing power

Question 68

In the context of offshoring,some informed observers note that technology already has eliminated much and in the future will eliminate even more of the work being done by:

A) top level managers.
B) middle managers and white-collar staff.
C) maintenance workers.
D) line employees and service staff.

Question 69

In the context of telecommunications,governments are accepting the belief that the only way to attract foreign investment and know-how in telecommunications is to:

A) cede control to private industry.
B) get cheaper service providers.
C) get cheap and efficient labor.
D) get private partners.

Question 70

Describe the Foreign Corrupt Practices Act and list its objectives.

Question 71

The Hong Kong office of Salomon Brothers,a U.S.investment bank,estimates that to meet the expanding demand for telecommunication service in Asia,companies will need _____.

A) cheaper technology
B) cheap and efficient labor
C) considerable increase in investment
D) cheaper service providers

Question 72

Identify a correct statement about cellular infrastructure.

A) It is expensive to install.
B) It is quick and relatively inexpensive to install.
C) It is relatively inexpensive to install but takes time.
D) It cannot be installed easily and cost-efficiently in rural areas.

Question 73

List the four foundations on which laws are based around the world,and briefly explain each foundation.

Question 74

In the context of technological advancements,emerging information technology has made work _____.

A) more portable
B) more risky
C) more tedious
D) more complicated

Question 75

In the context of technological advancements,outsourcing,and offshoring,identify a way in which the new technological environment impacts multinational corporations and societies as a whole.

A) A decline in the cost of doing business worldwide
B) Price rise due to cost of equipment
C) Elimination of higher-priced labor
D) Replacement of employees by machines