Ch.6, 7 International Marketing Quiz

"Slammer," "Melissa," and "Goner worm" are all examples of:

viruses damaging the Internet.

Which of the following is more likely to be subjected to price control?

Aspirin and antacids

_____ is a nonbinding agreement between parties to resolve disputes by asking a third party to mediate differences.

Conciliation

Which of the following is true of nationalism?

A call to "buy our country's products only" is one form of manifestation of national feelings.

With respect to political risk that can be faced by a company seeking to invest abroad, which of the following is most severe?

Confiscation

Which of the following is the most important reason to encourage foreign investment?

Accelerate the development of an economy.

The first objective of these laws is to protect American consumers by ensuring that they benefit from products and ideas produced by foreign competitors as well as by domestic competitors. ____ are being discussed in this scenario

Antitrust laws

A textile manufacturing company is trying to solve a dispute with one of its raw material suppliers over a breach of contract. After the initial attempts to solve the dispute in a friendly informal manner failed, the companies have approached an international commission to appoint an informed party to act as a referee and make a judgment that both parties will honor. Which of the following dispute resolution methods is being used by the companies in the above scenario?

Arbitration

In the usual _____ procedure, parties select a disinterested and informed party or parties to serve as a referee to determine the merits of the case and make a judgment that both parties agree to honor under the law.

Arbitration

Ralph Richards has been attempting to solve a problem that his company has with a contract default by the Dutch government. He has tried conciliation but the two parties could never find any common ground on which they could begin a fruitful negotiation for settlement. Which of the following is likely to be the course of action that both the parties will try next?

Arbitration

Which of the following government forms is ruled by a few?

Aristocracy

According to Canadian Law, what is the standard expected by courts in Canada to determine whether a representation is false or misleading?

Credulous person standard

Which of the following strategies minimizes political risks for a multinational corporation in situations in which the technology is unique and the risk is high?

Licensing

While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment?

Banks lending to the host government

Which of the following methods is considered most effective while resolving disputes with Chinese business partners?

Conciliation

Which of the following is an effective approach to prevent Chinese consumers from creatively copying foreign intellectual property?

Charging what the market will bear

Which of the following poses a major challenge to international marketers while dealing with counterfeiting?

Collusion between contract manufacturers and illegitimate sellers

Which indicates the exportability status of the item based on the ECCN?

Commerce Control List

In settling international commercial transaction disputes, which of the following methods accounts for the majority of settlements?

Conciliation

Jimmy's foods, a popular food company in the United States is trying to resolve a dispute with a local company in New Zealand which has been operating under the same name in their country. All the attempts by the company to settle the issue in a friendly manner have failed. The directors at Jimmy's want to retain their trade name in the country and have decided to settle the dispute with the local company by appointing a mediator. They also want the sessions to be private because of the fear of creating a poor public image. Which of the following dispute resolution methods is best suited for the above situation?

Conciliation

When formal arbitration organizations receive requests for arbitration, they initially attempt to resolve the issue by:

Conciliation

___ buy and register descriptive nouns, geographic names, names of ethnic groups and pharmaceutical substances, and other similar descriptors and hold them until they can be sold at an inflated price

Cybersquatters

Which of the following forms of terrorism uses the Internet to inflict damage?

Cyberterrorism

Which of the following countries has enacted the most stringent green marketing laws that regulate the management and recycling of packaging waste?

Germany

According to ancient Greeks which of the following refers to a fundamental government form ruled by many?

Democracy

Which of the following is the principle U.S. agency that supports U.S. business abroad?

Department of Commerce

Which of the U.S. government agencies oversees antitrust enforcement in international commerce?

Department of Justice

The government in Chile recently informed Clint Travis' company that his retail grocery chain in Chile would have to be gradually turned over to the people of Chile by the year 2050. Additionally, starting next year fifty percent of the board of directors of the Chilean operation of the company must be Chileans. Which of the following political risk actions is Mr. Travis' company facing in Chile?

Domestication

_____ occurs when host countries gradually cause the transfer of foreign investment to national control and ownership through a series of government decrees by mandating local ownership and greater national involvement in a company's management.

Domestication

When all else fails in an international commercial dispute, the final step is:

Litigation

Relations between governments and MNCs are generally positive if the investment:

brings capital, technology, and/or skills.

The _____ is a multicountry agreement that has established a regional patent system that allows any nationality to file a single international application for a European patent.

European Patent Convention

If there is a substantial amount of capital leaving a country, which of the following is the country likely to implement to control the situation?

Exchange controls

_____ stem from shortages of foreign currency held by a country.

Exchange controls

Which of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation's holdings by a foreign government?

Expanding the investment base

Which of the following strategies to minimize political vulnerability and risk has the advantage of engaging the power of several investors and banks in the host country whenever any kind of government takeover or harassment is threatened?

Expanding the investment base

The revised set of export regulations published by the Department of Commerce to alleviate many of the problems and confusions of exporting and to expedite the process is called ___

Export Administration Regulations

The exporter is responsible for selecting the ____, which leads to a description in the Commerce Control List (CCL), which indicates the exportability status of the item

Export Control Classification Number

Which of the following agencies underwrites trade and investments for U.S. firms?

Export-Import Bank

The responsibility of determining if a license is required rests with the ____

Exporter

The ___ of the U.S. makes it illegal for companies to pay bribes to foreign officials, candidates, or political parties

Foreign Corrupt Practices Act

Which are the licenses required for products exported from the U.S.?

General or a validated license

Which of the following is true of a sovereign state?

It enjoys full legal equality with other states.

Which of the following best describes the U.S. government's policy toward multinational corporations that are confronted with situations where bribery is an issue?

It is illegal for a U.S. citizen to pay a bribe

Which of the following is a strategy that multinational corporations use to minimize political vulnerability and risk?

Licensing

In Thailand, it is required that any milk products sold in the country must contain at least 50 percent milk from Thai dairy farmers. Which of the following economic risks faced by international producers of milk is illustrated in this situation?

Local-content laws

Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country?

Meteora Inc. using their manufacturing unit as an export base.

The ancient Greeks conceived three fundamental forms of government. Which of the following refers to a government ruled by one?

Monarchy

In a common-law country, ownership of intellectual property rights is established by "prior use versus registration" which implies that to claim the ownership of a trademark, an individual:

Must establish first use of a trademark

With which of the following would the phrase "Buy American" be most closely associated?

Nationalism

______ is an intense feeling of state pride, unity, and an awakening of a country's people to pride in their country.

Nationalism

Which of the following is true of domestication?

Nowadays, countries often require companies to become domesticated as a condition for investment

The question of jurisdiction of U.S. laws over acts committed outside the territorial limits of the country has been settled by the courts through application of a long-established principle of international law called the:

Objective theory of jurisdiction

Which of the following is a common term for a form of government in use today?

Oligarchy

When does an expropriated investment become a government-run entity?

On nationalization

Which acts developed by the European Union erases legal and trade differences that have existed for decades between the member nations?

Single Europeans Market Act

Which of the following is an NGO (nongovernmental organization) group?

Oxfam

In _____, police and military are not allowed to vote.

Peru

Which of the following commonly counterfeited products has the potential for doing the greatest harm to the consuming public?

Pharmaceuticals

Which of the following is the most attractive target for pirates because of high development cost and low reproducibility costs?

Software

_____ refers to both the powers exercised by a state in relation to other countries and the supreme powers exercised over its own members.

Sovereignty

Which of the following should ideally be the first step in the settlement of a dispute?

Placating the injured party

Which of the following statements is true of political sanctions?

Political sanctions are generally not very successful.

What was the goal of the April 2009 agreement arrived at by the G20 nations, which required them to cede some sovereignty?

Reject protectionism.

Which of the following is an instance of how nationalism can be manifested?

Restrictions on imports.

Which of the following countries is the only country to preclude women from voting and appears to be still completely in the dark ages with regard to suffrage?

Saudi Arabia

The ideal political climate for a multinational firm is:

a country with a stable and friendly government.

Which of the following is the top political issue concerning foreign businesses?

Stability of prevailing government policies

The Export License Application and Information Network is an electronic service that enables exporters to:

Submit license applications via the internet for all commodities except supercomputers to all free-world destinations

Which of the following agencies is dedicated to helping U.S. business compete in a global marketplace?

The International Trade Administration (ITA)

Which of the following represents a new and powerful tool of PSAs?

The Internet and cell phone combination.

Which of the following international conventions was established to recognize intellectual property rights?

The Paris Convention

Which of the following conventions is responsible for the promotion of the protection of intellectual property rights among all the member countries of the UN?

The World Intellectual Property Organization

Under the Antiboycott Law, U.S. companies are forbidden to participate in any unauthorized foreign boycott. Which of the following situations brought about the Antiboycott Law in the U.S.?

The boycott of Israel by the Arab League

Within the same country, some foreign businesses may fall prey to politically induced harassment, while others may be placed under a government umbrella of protection and preferential treatment. What explains this difference?

The evaluation of a company's contribution to the nation's interest.

Which of the following is true with regard to the internet?

The existing cyberlaws incorporate the uniqueness of the internet successfully

Stopping or refusing to trade with another nation for political reasons is called:

boycotting

U.S. firms, their foreign subsidiaries, or foreign firms that are licenses of U.S. technology cannot sell a product to a country in which the sale is considered by the U.S. government to affect:

The national security of the U.S.

Which of the following is usually placed in the arbitration clause that is becoming standard in many international contracts?

The place of arbitration and the language used in the arbitration process

In terms of political risk, which of the following poses the greatest threat to international marketers?

The possibility of the government actually failing.

Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

They are less well defended.

Arbitration clauses require agreement wherein the concerned parties agree:

To abide by the awards resulting from the arbitration

Which of the following is a political cause of instability in international markets?

Trade disputes

Which of the following is the most comprehensive multilateral agreement on intellectual property to date and covers a full range of rights that are embodied in current international agreements?

Trade-Related Aspects of Intellectual Property Rights

In which of the following countries is the ownership of IP rights established by prior use?

U.S.

The seizing of a company's assets without payment is called:

confiscation

Price controls are used during inflationary periods to:

control the cost of living

Monarchy, like _____, is a form of government ruled by one.

dictatorship

When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government is following a process called:

expropriation

Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment, she will consider using _____ to enter the market.

joint ventures

The United States required that 50 percent of all parts used in an automobile constructed in the United States must contain parts that were manufactured in the United States. When Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with _____.

local-content laws

Adherence to the WTO means:

loss of some degree of national sovereignty.

The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation's business activities in the host country is

planned domestication.

Taxes must be classified as a _____ risk when used as a means of controlling foreign investments.

political

An attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company is referred to as a _____.

political payoff

Brian is attempting to forecast political instability and help management identify and evaluate political events and their potential influence on current and future international business decisions. Brian is engaged in:

political risk assessment.

In North Korea, foreign investors or producers are required to sell products at prices stated by the North Korean government rather than letting market value and demand, determine the prices. This implies that there is severe application of _____.

price controls

In the context of international law, a _____ state is independent and free from all external control.

sovereign

Since the government of Nigeria is strapped for cash, it has decided to tax all foreign investments (such as oil production equipment) by up to forty percent of the appraised value. The Nigerian government has found that this is the handiest and quickest means of finding operating funds. The economic risk in discussion here is:

tax controls

In the case of arbitration:

the plaintiff and the defendant select a person each to present their case