Question 1

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

Accepted Answer

Japan is a good example of a very restrictive foreign bureaucracy in which bureaucratic government controls are inefficient and need to be corrected to encourage multinational corporations to do business here. In Japan, politicians are more interested in the well-being of their own districts than in the long-term well-being of the nation as a whole. In turn, parochial actions create problems for multinational corporations trying to do business there.

Question 2

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 _____.

Accepted Answer

This scenario exemplifies the nationality principle. It holds that every country has jurisdiction (authority or power) over its citizens no matter where they are located. Thus, Bodonia has jurisdiction over Keith even when he violates a Bodonian law while travelling abroad.

Question 3

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

Accepted Answer

Many foreign governments applauded the investigations under the Foreign Corrupt Practices Act (FCPA) because it helped them crack down on corruption in their own country. This was an interesting development that occurred despite political sensitivity.

Question 4

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

Accepted Answer

The area of e-business that will most affect global customers is e-retailing and financial services.

Question 5

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.

Accepted Answer

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 6

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

Accepted Answer

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

Question 7

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 _____.

Accepted Answer

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 their conduct, their right of travel, where they can stay, and what business they may conduct.

Question 8

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

Accepted Answer

Japanese businesses are becoming increasingly aware of the fact that they are dependent on the world market for many goods and services and that when bureaucratic red tape drives up the costs of these purchases, local consumers pay the price. These businesses are also beginning to realize that government bureaucracy can create a false sense of security and leave them unprepared to face the harsh competitive realities of the international marketplace.

Question 9

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:

Accepted Answer

The principle of sovereignty implies that one country's court system cannot be used to rectify injustices or impose penalties in another country unless that country agrees. So while 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.

Question 10

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

Accepted Answer

Critics of the FCPA feared the loss of sales to foreign competitors, especially in those countries where bribery is an accepted way of doing business.

Question 11

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 _____.

Accepted Answer

This scenario exemplifies the protective principle. It holds that every country has jurisdiction over behavior that adversely affects its national security, even if that conduct occurred outside the country. The selling of secret government blueprints for a satellite system by a firm in the country of Batangonia affects the national security of Cambrialand. Thus, the firm can be subjected to Cambrialand laws.

Question 12

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 _____.

Accepted Answer

This scenario exemplifies the territoriality principle. It holds that every nation has the right of jurisdiction within its legal territory. Thus, the country of Octavia has the right of jurisdiction even when a firm based in the country of Iskoolbia sells a defective hair dryer within the Octavian territory.

Question 13

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

Accepted Answer

The most popular form of e-business is for business-to-business (B2B) dealings.

Question 14

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.

Accepted Answer

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 15

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

Accepted Answer

Since the passage of the Foreign Corrupt Practices Act (FCPA), investigations reveal that individual executives started getting increasingly targeted along with corporations. Also, it was found that penalties imposed under the FCPA have skyrocketed, and violations have spurred a number of collateral civil actions.

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

According to the World Bank, the Philippines economy does not rank high on the ease-of-doing-business index. The three top rankings are held by Singapore, the United States, and the United Kingdom.

Question 18

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

Accepted Answer

One of the most important dimensions of the technological environment facing international management today is telecommunications.

Question 19

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

Accepted Answer

In the context of the trends in technology, communication, and innovation, the creation of a digital frame-work allowed high-power computer performance at low cost.

Question 20

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

Accepted Answer

Many U.S. multinational corporations always assumed that bribes were required to ensure contracts in the Middle East.

Quiz 2: The Political, Legal, and Technological Environment