Deck 2: The Political, Legal, and Technological Environment

Question 1

The FCPA makes it illegal to influence foreign officials through the granting of favorable tariff rates.

Answer 1

False
Explanation: The FCPA makes it illegal to influence foreign officials through personal payment or political contributions.

Question 2

Many firms try to work collaboratively with governments as new laws, policies, and regulations are introduced.

Answer 2

True
Explanation: MNCs must collaboratively work with new governments as laws, policies, and regulations are introduced and altered.

Question 3

The objectives of the FCPA were to stop U.S.MNCs from initiating or perpetuating corruption in foreign governments and to upgrade the image of both the United States and its businesses abroad.

Answer 3

True
Explanation: The objectives of the FCPA were to stop U.S. MNCs from initiating or perpetuating corruption in foreign governments and to upgrade the image of both the United States and its businesses abroad.

Question 4

Trade agreements do not require that trade benefits accorded to one nation be extended to other nations that are party to that agreement.

Question 5

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

Question 6

The domestic and international political environment has a major impact on multinational corporations.

Question 7

Before he was overthrown, Mubarak of Egypt had been one of the most powerful leaders in the region for 30 years.

Question 8

As was true with previous rebellions in the region, the Arab Spring led to real reforms at a deliberate pace.

Question 9

Great Britain's Labour Party practices "democratic socialism."

Question 10

Embedded learning technology will allow thinking to occur in machines.

Question 11

One reason for the rapid increase in telecommunications services is that many countries believe that without an efficient communications system, their economic growth may stall.

Question 12

Technology does not have the potential to displace employees holding positions traditionally reserved for human thinking.

Question 13

Evidence shows that the initial "Day of Revolt" in Egypt in 2011 was coordinated online through Twitter.

Question 14

The Arab Spring was the first sign of unrest in the Middle East in two centuries.

Question 15

The rapid changes in the technological environment of global business is an ongoing challenge for international managers.

Question 16

The current move toward privatization by an increasing number of countries is an example of the changing international regulatory environment.

Question 17

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

Question 18

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

Question 19

According to the text, Russia presents the extreme example of how the political environment impacts on international management.

Question 20

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

Question 21

In a business context, individualism is synonymous with:

A)Collectivism
B)Socialism
C)Totalitarianism
D)Capitalism

Question 22

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

A)Territoriality
B)Nationality
C)Sovereignty
D)Protective

Question 23

Multinational corporations in China are faced with a multitude of problems except:

A)Government regulations
B)Questionable treatment of foreign firms
C)Market growth opportunities
D)Understanding what is needed from investors, resulting in mixed signals

Question 24

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 25

Aristotle and David Hume contributed to the principle of:

A)Socialism
B)Collectivism
C)Individualism
D)Communism

Question 26

_____ law 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
B)Islamic
C)Socialist
D)Common

Question 27

Governmental power in a democracy is limited by:

A)The accountability of the elected representatives to the general public
B)Individual freedom-such as freedom of expression and assembly
C)The police force which is independent of the state
D)Limiting the number of terms for which a representative may be elected

Question 28

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

A)Comity
B)Nationality
C)Territoriality
D)Sovereignty

Question 29

Political repression and denial of rights and civil liberties are dominant ideals of:

A)Totalitarianism
B)Socialist democracy
C)Collectivism
D)Monarchy

Question 30

Which two countries led the effort to mobilize public and private support for Greece in 2010?

A)France and Germany
B)Britain and France
C)Spain and France
D)Germany and Britain

Question 31

One of the biggest impediments to attracting more foreign investment in Russia is:

A)Legal mandates
B)Economic opportunities
C)Political corruption
D)Religious practices

Question 32

Identify from the following the correct statement on civil law.

A)It comes from English law and is found in nonsocialist countries
B)It is to be found in countries of Central Asia
C)It is derived from Roman law and is found in nonsocialist countries such as France
D)It is the foundation of the legal system in the United States, Canada, England, Australia, New Zealand and other nations

Question 33

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

A)Sovereignty
B)Protective
C)Territoriality
D)Nationality

Question 34

Communism as an economic system has failed due to the tendency of common goals to stunt:

A)Progress and individual creativity
B)Individual productivity
C)Individual freedom
D)Profit and growth

Question 35

The Arab Spring began in:

A)Egypt
B)Bahrain
C)Tunisia
D)Syria

Question 36

Northern Africa and the Middle East independent protests that led to government reforms between 2010 and 2011 did not include this country.

A)Yemen
B)Egypt
C)Libya
D)Iran

Question 37

Social media can positively impact international business by:

A)Facilitating a fast transition to more open trade and business dealings
B)Increasing shipping and logistical costs of goods
C)Limiting the economic effects to the country experiencing unrest
D)Stabilizing fuel costs

Question 38

International law includes the following types of jurisdictional principles:

A)Nationality, territoriality, and protective
B)Territoriality, sovereignty, and nationality
C)Good citizenship, territoriality, and protective
D)Protective, comity, and sovereignty

Question 39

Which of the following statements is untrue?

A)Social media is an organizing tool.
B)Social media is an unreliable form of journalism.
C)Various groups have used social media to gather support.
D)Social media impacts international business ventures.

Question 40

The totalitarian form of government is to be seen in:

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

Question 41

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 42

U.S.MNCs always assumed that bribes were required to ensure contracts in:

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

Question 43

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

A)Customs are adhered to
B)Political stability exists
C)Common law is applicable
D)Bribery is an accepted means

Question 44

The statute that makes it illegal to influence foreign officials through personal payment of 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 45

Over the next decade, the merging of the Internet and wireless technology will radically change the ways in which people:

A)Spend
B)Socialize
C)Communicate
D)Invest

Question 46

According to the text, the most popular form of e-business is:

A)B2B dealings
B)B2C dealings
C)Financial dealings
D)E-retailing

Question 47

According to the text, _____ is one of the biggest problems facing MNCs.

A)Fear of investing abroad
B)Loss of sales to foreign competitors
C)Uneven ethical standards
D)Very restrictive foreign bureaucracies

Question 48

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 is in line with the:

A)Principle of sovereignty
B)Nationality principle
C)Doctrine of comity
D)Act of state doctrine

Question 49

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 50

Identify the correct statement on 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 cheaply in rural areas

Question 51

The term "e-cash" stands for:

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

Question 52

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 53

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 54

Out of fear of creating internal political problems for U.S.allies, the U.S.State Department tried to convince the SEC and Justice Department to _____ the names of countries or foreign officials who were involved in its investigations of bribery.

A)Not reveal
B)Disclose
C)Charge officials not to reveal
D)Publish in the New York Times

Question 55

Because of the extensive bureaucracy in Japan,

A)Parochial actions create problems for MNCs trying to do business there
B)Political parties feel more beholden to the country as a whole than to their local interests
C)The country's recent Prime Ministers have tried to fix the resulting problems
D)Businesses believe they are well prepared for the harsh competitive realities of the international marketplace

Question 56

Japanese companies are aware that their dependency on the world market for many goods and services is negatively impacted by _____, resulting in local consumers paying the price.

A)The balance of payments
B)Bureaucratization
C)Trade imbalances
D)Financial exchange

Question 57

Countries have the legal right to refuse admission of foreign citizens and to impose special restrictions on the following except:

A)Conduct
B)Right of travel
C)Spending
D)What business they may conduct

Question 58

It was reported that since the passage of the Foreign Corrupt Practices Act (FCPA):

A)MNCs could not function within the set guidelines
B)Algeria and Saudi Arabia no longer allowed U.S. firms to do business there
C)There was a 30 percent loss of sales to foreign competitors
D)U.S. exports to "bribe prone" countries actually increased

Question 59

Which country does not rank high on the ease-of-doing-business index?

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

Question 60

The most obvious dimension of the technological environment facing international managers today is:

A)Telecommunications
B)Transportation
C)Agricultural mechanization
D)Improved service technologies

Question 61

Describe the Foreign Corrupt Practices Act.What were the objectives of the FCPA?

Question 62

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

Question 63

_____ has placed pressure on MNCs to outsource production.

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

Question 64

Some observers have noted that technology already has eliminated much and in the future will eliminate even more of the work now being done by:

A)Top level managers
B)Middle managers and white-collar staff
C)Maintenance workers
D)Line employees and service staff

Question 65

Identify the option that would constitute white-collar service industries.

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

Question 66

What are the four foundations upon which laws are based around the world? Briefly explain each foundation.

Question 67

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 68

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 69

According to the text, NYNEX holds a stake in:

A)Telecom New Zealand
B)Thailand's Telecom Asia
C)Australia's Optus
D)Thailand's Globe Telecom

Question 70

What is totalitarianism? Identify its features and forms.

Question 71

MNCs have moved certain production activities overseas to capitalize on:

A)Increasing costs
B)Cheap labor
C)Larger markets
D)Higher purchasing power

Question 72

According to the text, a positive side of the opportunities that technology offers would be:

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

Question 73

What jurisdictional principles are given by International Law?

Question 74

Emerging information technology has made work:

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

Question 75

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
D)Code-writing jobs