5-6 self assessment

The three major types of current political systems are ________.

totalitarianism, socialism, and democracy

Both common law and civil law systems originated in ________.

western Europe

Born global firms are ________.

young companies that internationalize early in their evolution

Which of the following explains the expansion of born global firms despite the scarcity of financial, human, and tangible resources?

globalization has made doing international business easier than ever before

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

limiting the amount of net income or dividends that can be transferred to the home-country headquarters

The ________ is one of the three key modern perspectives that helps explain the development of national competitive advantage.

national industrial policy

Maxdime Inc. is an international automobile manufacturer that has decided to work on low-cost fuel efficient motorbikes. Foray Inc., a domestic automobile company based in China, is willing to partner temporarily with the R&D team of Maxdime to design and launch motorbikes specially for the Chinese market. This is an example of ________.

non-equity-based strategic alliance

Which of the following statements is true of country risk?

It is always present.

Mercantilism Assignment (Scenario) The final assignment for Daniel Parilla's international business class involves taking an in-depth look at one of the six classical perspectives that explain the rationale for international trade. Daniel plans to present an argument in favor of mercantilism. Daniel will be attempting to convince his classmates that mercantilism leads to national prosperity. Daniel's peers will be given the opportunity to counter his argument

Restricting imports reduces the choice of products consumers can buy.

Which of the following is the underlying principle of socialism?

Collective welfare of people outweighs the welfare of the individual.

The most widespread form of religious law is ________ law.

Islamic

Which of the following is true about the determinants of national competitive advantage?

The presence of demanding customers pressures firms to innovate faster and produce better products.

According to the ________, a country benefits by producing only those products in which it has complete advantage or that it can produce using fewer resources than another country.

absolute advantage principle

International entrepreneurship is a new field of scholarly inquiry that is a result of the________ phenomenon.

born global

Competitive advantage refers to the ________.

distinctive assets or competencies of a firm that are difficult for competitors to imitate and are typically derived from specific knowledge, capabilities, skills, or superior strategies

Which of the following is true with regard to new trade theory?

According to new trade theory, trade is beneficial even for countries that produce only a limited variety of products.

Which of the following pairs of nations are on opposite ends of the political freedom scale?

Cuba and Sweden

Common and Civil Law (Scenario) Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long-term. Which of the following questions would be more important for Zane legal experts to consider before recommending Country A or Country B?

How would a contractual dispute with a local vendor be resolved?

Which of the following is true about national industrial policy?

It is designed to create monetary and fiscal policies, such as low-interest loans, that provide a stable supply of capital for company investment needs.

Common and Civil Law (Scenario) Zane Computer Corporation is considering the possibility of building a new manufacturing facility in a foreign country in order to lower labor and production costs. The legal department of Zane has raised some issues regarding two countries that are the top contenders for the new facility. The legal system of Country A is based on civil law, while the legal system of Country B is based on common law. Other than the legal systems of the two countries, all other aspects are virtually identical. Zane's legal experts must determine which system would be the most beneficial to Zane in the long-term. Which of the following statements is most likely applicable to Country B?

detailed contracts that clearly state all potential contingencies