Question 1

Understanding the political and legal environment is easy because of the resolution titled The Uniform International Political and Legal Standards Act of 1999.

Accepted Answer

There is no resolution titled The Uniform International Political and Legal Standards Act of 1999. Therefore, understanding the political and legal environment may be complex and influenced by different factors, such as historical, cultural, social, and economic components.

Question 2

When economic sanctions are imposed unilaterally by one country, they tend to be more effective than when imposed multilaterally by all countries.

Accepted Answer

Economic sanctions tend to be more effective when imposed by a coalition of countries rather than by a single country acting alone. Multilateral sanctions have greater impact because they affect a broader range of industries and target countries' ability to trade with many nations simultaneously, which can have a more powerful economic impact. Unilateral sanctions may not work as well since the targeted country can find alternative trade partners to replace any lost business.

Question 3

Boycotts are attempts by the government to control technology transfer.

Accepted Answer

Boycotts are not attempts by the government to control technology transfer. Boycotts are deliberate refusals to do business with a particular country, company, or group as a form of protest or to achieve a political or social objective.

Question 4

Expropriation is a term used to describe the U.S. government's investment in foreign technology with the intent to spur development of trade partners.

Accepted Answer

Expropriation refers to the act of a government seizing private property for public use or compensation. It does not relate to the investment in foreign technology.

Question 5

To succeed in a market, the international marketer needs much more than business know-how.

Accepted Answer

In addition to business know-how, the international marketer needs cultural awareness, language skills, knowledge of local laws and regulations, and the ability to adapt to diverse cultural environments.

Question 6

Tariffs, voluntary restraint agreements, and quota systems are used to help capture terrorists at airports.

Accepted Answer

Tariffs, voluntary restraint agreements, and quota systems are trade policy tools used to regulate the flow of goods and services between countries, and do not have anything to do with capturing terrorists at airports. Security measures such as background checks, passenger screening, and baggage inspection are used to identify and prevent potential terrorist threats at airports.

Question 7

Trade sanctions and embargoes can be used inter-changeably.

Accepted Answer

The answer of Trade sanctions and embargoes can be used...

Question 8

The 9/11 terrorists attacks in the United States will lead to more sophisticated export controls.

Accepted Answer

The 9/11 terrorist attacks highlighted the national security risks associated with lax export controls. As a result, the United States government implemented more rigorous export control measures to prevent unauthorized access to sensitive technologies and materials.

Question 9

Marketing managers are interested in four main areas of political and legal circumstances. These areas are within the home country, within the host country, bilateral agreements, and agreements a country makes with itself.

Accepted Answer

Marketing managers are interested in political and legal circumstances within the home country, within the host country, bilateral agreements, and multilateral agreements, not agreements a country makes with itself.

Question 10

Code law is based on tradition and depends less on written statutes and codes than on precedent and custom.

Accepted Answer

Code law is based on written statutes and codes, rather than on precedent and custom, which are characteristics of common law systems.

Question 11

Typically, the intent of trade sanctions is to bring commercial interchange to a complete halt.

Accepted Answer

Trade sanctions are typically imposed to punish or pressure a country by restricting or prohibiting trade with it. The intent is to cause economic harm and force the target country to change its behavior.

Question 12

The term embargo refers to products that are packaged in one country one way, and then altered to fit the international marketplace in another country.

Accepted Answer

The term embargo refers to a government-imposed restriction on trade with a specific country or countries, usually for political or economic reasons. It does not refer to packaging or altering products for international markets.

Question 13

Sanctions can be viewed as a middle ground between going to war and doing nothing.

Accepted Answer

Sanctions are a form of economic or political pressure imposed by countries or groups of countries on other countries or entities. They are often used as a way to try to influence behavior without resorting to military action, but also show that some action is being taken. As such, they can be seen as a middle ground or compromise between taking military action and not taking any action at all.

Question 14

Bribes are an accepted way of operation in many foreign countries, and U.S. companies must learn these corporate culture rituals and participate in them in order to successfully compete.

Accepted Answer

Bribes are illegal and unethical, and U.S. companies are prohibited from participating in them no matter the country they operate in. While some countries may have a different corporate culture, it is important for U.S. companies to maintain their ethical standards and comply with the Foreign Corrupt Practices Act.

Question 15

When the United Nations approves trade sanctions for a particular country, all countries must abide by this decision, and, usually, this process works flawlessly.

Accepted Answer

While all countries are expected to abide by UN-approved trade sanctions, there have been cases where certain countries have violated or evaded these sanctions. Additionally, some countries may have their own policies regarding trade with the sanctioned country, which may not necessarily align with the UN decision.

Question 16

One of the problems with detecting the transfer of cutting-edge technology that may be considered a threat to world security is that technology has become so miniaturized that it is easy to hide and hard to detect.

Accepted Answer

With the increase in miniaturization of technology, it becomes easier to hide and harder to detect, making it difficult to detect the transfer of cutting-edge technology that may pose a threat to world security.

Question 17

Laws in the United States control all exports of goods, services, and ideas.

Accepted Answer

The Export Administration Regulations (EAR) control all exports of goods, services, and ideas from the United States.

Question 18

Political and legal factors often play critical roles in international marketing activities.

Accepted Answer

Political and legal factors can affect everything from pricing and distribution to advertising and product development. Ignoring these factors can lead to significant financial and legal consequences for companies operating in foreign markets. As such, it is vital for international marketers to carefully consider and adapt to local political and legal environments.

Question 19

Theocracy is a form of government in which the theory of economic warfare takes precedence over nationalism.

Accepted Answer

Theocracy is a form of government in which religious leaders hold the power, and their laws and teachings are the basis for governance. Economic warfare and nationalism may not necessarily have a priority in a theocratic government.

Question 20

Even though firms that are expropriated may deplore the low levels of payment obtained, they frequently accept them in the absence of better alternatives.

Accepted Answer

The statement suggests that firms may accept low levels of payment after expropriation because they have no better options available.

Quiz 5: The Political and Legal Environment