Question 1

Which of the following supports a decision in favor of Super Sports opening a store in Norway?

Accepted Answer

The fact that MNEs can transfer profits back to the home country without restriction supports the decision to open a store in Norway as this indicates a favorable regulatory environment for businesses to operate and make profits. Options B, C, and D do not support the decision as they either imply regulatory hurdles, legal risks, or marketing restrictions that could hinder the success of the business.

Question 2

Which of the following laws is responsible for the ban on cigarette advertisements in France?

Accepted Answer

The ban on cigarette advertisements in France is a result of marketing and distribution laws. The Évin Law, passed in 1991, prohibits advertising for tobacco products in France, including on billboards, in newspapers and magazines, on the radio and television, and on the internet. The law also restricts the promotion and sponsorship of tobacco products.

Question 3

The protection of intellectual property rights is guaranteed and enforceable in every country in the world.

Accepted Answer

The protection and enforcement of intellectual property rights vary from country to country. Some countries may have stronger laws and enforcement mechanisms, while others may have weaker or non-existent protection measures. Therefore, it cannot be guaranteed that every country in the world will protect and enforce intellectual property rights.

Question 4

Describe the methods used by governments to seize the assets of foreign firms. How would proactive environmental scanning mitigate this risk?

Accepted Answer

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Question 5

Explain why contract laws can represent a country risk arising from the host-country legal environment, and explain the three approaches firms typically employ to settle international contractual disputes.

Accepted Answer

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Question 6

One of the best sources of intelligence in the scanning process is employees working in foreign countries targeted for market entry

Accepted Answer

Employees working in foreign countries targeted for market entry have first-hand knowledge about local market conditions, consumer behaviors, and competitors. They can provide valuable insights and help companies make informed decisions about entering new markets. Therefore, they are considered one of the best sources of intelligence in the scanning process.

Question 7

The United States restricts foreign investments that might affect ________.

Accepted Answer

The United States restricts foreign investments that might affect national security. This is done through the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign investments and acquisitions for potential threats to national security. While issues related to immigration, labor negotiations, and manufacturing technologies may be important considerations for U.S. policy, they are not typically used as grounds for restricting foreign investments.

Question 8

A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.

Accepted Answer

Foreign investment laws can impose restrictions on entry, ownership, and operations of foreign firms in a country. These laws can impact the performance and success of the foreign firm in the host country.

Question 9

Which of the following would most likely oppose the opening of a Super Sports store in Norway?

Accepted Answer

Local sports retailers would most likely oppose the opening of a Super Sports store in Norway as it would increase competition in the market and potentially harm their business. Labor unions, international banks, and local sports enthusiasts would not have a direct reason to oppose the store's opening.

Question 10

What is transparency? Explain how transparency varies around the world.

Accepted Answer

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Question 11

Manufacturers face legal penalties and lawsuits under product safety and liability laws if they are responsible for damage, injury, or death caused by defective products.

Accepted Answer

This is true as per the laws governing product safety and liability. Manufacturers have a legal responsibility to ensure that their products are safe and free from defects, and they can be held liable if consumer injuries or deaths are caused due to product defects or failures. They may face legal penalties, fines, and lawsuits for such incidents.

Question 12

Which of the following questions would be more important for Zane legal experts to consider before recommending Country A or Country B?

Accepted Answer

In the context of choosing between a civil law country (Country A) and a common law country (Country B), understanding how contractual disputes are resolved is crucial because it directly impacts the legal predictability and the process Zane would navigate in case of disputes. Civil law systems typically have more codified statutes and laws that are applied to cases, while common law systems rely heavily on precedent and judicial decisions, which can result in different approaches to resolving similar disputes.

Question 13

Income repatriation laws affect MNEs that earn profits in foreign countries by ________.

Accepted Answer

Income repatriation laws limit the amount of net income or dividends that can be transferred to the home-country headquarters. This affects MNEs by restricting their ability to transfer their earned profits back to their home country, which can impact their overall financial performance and growth.

Question 14

Explain extraterritoriality. Provide examples to illustrate how extraterritoriality affects international business.

Accepted Answer

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Question 15

What are some of the risks for firms involved with international e-commerce?

Accepted Answer

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Question 16

Which of the following would be the best way for a manager to learn about country risks in a host country?

Accepted Answer

Employees working in the host country are directly exposed to the local environment and can provide firsthand insights into the country risks.

Question 17

Which of the following is the most important issue to consider when determining the best entry strategy for Super Sports?

Accepted Answer

The restrictions on inward foreign direct investment are crucial for determining the best entry strategy, as they directly impact the ability of a foreign company to establish and operate a business in Norway.

Question 18

Which of the following statements is true about managing country risk?

Accepted Answer

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Question 19

Which of the following terms refer to the application of home-country laws to persons or conduct outside national borders?

Accepted Answer

Extraterritoriality refers to the application of home-country laws to persons or conduct outside national borders. The other options do not refer to this concept. Anti-boycott regulations refer to laws that prohibit or restrict companies from participating in boycotts against certain countries or groups. Transparency refers to the disclosure of information and being open and honest in business dealings. Anti-dumping policies refer to laws that prevent foreign companies from selling goods at prices lower than their costs to eliminate competition.

Question 20

Which of the following is the LEAST adversarial method of resolving a contractual dispute?

Accepted Answer

Conciliation is the least adversarial method of resolving a contractual dispute because it involves bringing in a neutral third party to facilitate a voluntary agreement between the parties. This approach is generally considered more cooperative and less confrontational than the other options listed.

Quiz 6: Political and Legal Systems in National Environments