Chapter 3 Quiz--International Management (Borges)

Which of the following statements about approaches to political risk management is NOT true? A) Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards. B) Passive political risk management assumes that it is difficult, if not impossible, to systematically model political risk. C) Active political risk management assumes that positive and negative political events in any country are neither independent nor random events. D) Active political risk management assumes that political events unfold in observable patterns that statistical methods can detect.

A) Passive political risk management discourages managers from fully or partially hedging their bets against exposure to political hazards.

Which of the following statements referring to intellectual property rights and violations is INCORRECT? A) Richer countries claim looser regulation of intellectual property rights will hinder innovation. B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO). C) The International Anti-Counterfeiting Coalition estimates international trade in counterfeit products at $600 billion a year. D) Developing markets claim tougher regulation of IPRs will slow, if not halt, their economic development.

B) Companies can register a global patent, trademark, or copyright through the World Trade Organization (WTO).

Which of the following ideas holds that a government should NOT interfere in business affairs? A) Pluralism. B) Laissez-Faire. C) The Rule of The Man. D) Collectivism.

B) Laissez-Faire.

A ________ law system is based on a systematic and extensive codification of laws and puts political officials in charge of specifying accessible, detailed, and written law that applies to all citizens.

Civil.

Rockwall Enterprises is planning to expand the firm by establishing operations outside of the United States. In which of the following countries would Rockwall most likely be able to establish operations most quickly? A) Japan B) Brazil C) Germany D) Australia

D) Australia.

Countries often use local content regulations to determine the proportion of the product that must be made in the local market versus made outside of the local market in order to _____________________.

Favor domestic companies.

Although there are different views about the purpose of a political system, most analysts agree that an essential task of a political system is to _________________________________.

Integrate the different elements of a society into a functioning unit.

In a totalitarian political system, ___________________.

One agent monopolizes political power.

The march toward greater political freedoms and more expansive civil liberties, beginning in the 1970s, strongly fueled a sense of _____________________.

The inevitability of democracy.

In a country that emphasizes collectivism, ___________________.

The needs of society take precedence over individual freedoms.