Chapter 6 Quiz

Economic nationalism has what effect on international relations?

It makes national security and interest more important than international relations.

What is an example of a nation giving up some of its sovereign rights to meet a mutually beneficial goal?

NATO

The International Trade Administration provides

a means to helping U.S. business compete in the global marketplace.

Countries, such as South Korea and Singapore, now view foreign investment as

a path to economic growth.

When a Chinese company tried to purchase Unocal, it was perceived by some in the U.S. as

a threat to sovereignty

Expropriation may result in

assets becoming a government-run entity.

What political risk is occurring when a government decides to take over a business without paying for it?

confiscation

A country is ruled by one woman alone. This country's form of government is most likely a(n)

dictatorship

Confiscation, expropriation, and domestication are classified as ________ risks.

political

To control the cost of living in a country during inflationary periods, what may be applied to essential products that command considerable public interest?

price controls

Changes in governments or ruling political parties can affect businesses. The main concern of a multinational corporation is

the continuity of the set of rules, codes of behaviors, and the rule of law.

An American business wants to enter a foreign market, but it is concerned with how political issues may affect the business. Which of the following is most likely to be at the top of the list it should be concerned with?

the instability of prevailing government policies

After Russia's interference in the U.S. election, Congress issued ________ against the country.

trade sanctions

The Export-Import Bank provides

underwriting of trade and investments for U.S. firms.

Exchange controls are most likely imposed by a country

when there is a substantial amount of capital leaving the country.