International Business Chapter 4

according to your textbook, which of the following sets of countries are classified as newly industrialized countries?

Brazil, India, China, and South Korea

the world bank classifies economic development according to

GNI

which of the following measures the quality of life in different countries?

HDI

____ is largely a key factor that leads to an increase in the unemployment level, intensified competition, and the entry of international companies into China.

Privatization

some of the factors included in the assessment of political risk levels include all of the following EXCEPT

a multinational company management team

which of the following means incorporating risk into business strategies, often with the help of local officials?

adaptation

nationalization is more common than confiscation and expropriation. likely candidates for nationalization include industries important to a nation's security and those that generate large revenues. in general a government may nationalize an industry for the following reasons EXCEPT

attracting foreign direct investment

____ is the forced transfer of assets from a company to the government without compensation.

confiscation

when local social unrest in a country causes disturbances that impair a company's ability to manufacture and distribute products, obtain materials and equipment, and threaten the lives of its employees, the company is facing a _____ risk

conflict and violence

international firms attempt to gather information that will help them predict and manage political risk. which source should company use to gain insight into local culture and politics?

current employees who have worked in a country for an extended period

countries that are highly industrialized and highly efficient, and whose people enjoy a high quality of life are called ___.

developed countries

adaptation is one of the main methods of managing political risks. which of the following is a type of adaptation that allows an international business to assist the host country or region in improving the quality of life for locals?

development assistance

the economic transition process involves the following key reform measures to promote economic development EXCEPT

expanding state ownership of economic resources

_____ forbids U.S. companies from bribing government officials or political candidates in other nations in other nations (except when a person's life is in danger)

foreign corrupt practices act

which political risk is indicated when the laws of the foreign country stipulate a specified amount of goods or services be supplied by produce in the domestic market?

local content requirements

which of the following means government takeover of an entire industry?

nationalization

___ are the countries that have recently increased the portion of their national production and exports derived from industrial operations.

newly industrialized countries

personal relationships, or guanxi, in China, are very important in order to successfully so business in China. Which of the following characteristics of doing business with China is FALSE?

obtain a legal contract first

insurance against political risk can be essential to companies entering risky business environments. which type of insurance that insures U.S. companies that invest abroad against losses created by violent events, including war and terrorism, can also provide project financing?

overseas private investment corporation

according to your textbook, exxon mobil suspended production of liquid natural gas at its facility in Indonesia's Aceh province when separatist rebels targeted the complex with violence. what is the main origin of this conflict that forced exxon to make this decision?

peoples resentment toward their own government

which of the following is a result of Russia's annexation of the Ukraine's peninsula of Crimea?

political instability

Using gross product figures to compare production across countries does not account for the different cost of living in each country. Which of the following indicators helps in adjusting the GDP to reflect the cost of living in each country?

purchasing power parity

Confiscation, expropriation, and nationalization can have an impact on the economic development of the country. Which of the following reflects the long-term impact on the country's economic development?

slower economic development because of foreign investors being more reluctant to invest in the country

which of the following is counted as part of the gross domestic product (GDP)?

the value of all goods and services produced withing the borders of the nation over a one-year period

the governments of many countries in transition cannot afford all the investment required to develop and upgrade their infrastructure system, including highways, bridges, and rail networks. which of these financing resources do they tend to source?

though outside sources such as the World Bank, IMF, and the Asian Development Bank