International Business Quiz 4

A government nationalizes a firm when it shifts the ownership from public to private.

False

When people are kidnapped for ransom, all governments agree that the right response is to pay the ransom, get the hostages released, and then retaliate.

False

Unfair international competition for a company can be minimized through the enaction of national laws.

True

Some countries impose both an ad valorem duty and a specific duty on a single import. What type of duty are these countries using?

compound

Tariffs often are set to

encourage local input.

Among the cybercrimes that most often target businesses are

hacking and data espionage.

A business would obtain KRE insurance to cover losses associated with

kidnapping situations associated with a foreign involvement.

Governments provide stability by

protecting business from unfair competition and from attacks and theft.

An argument against using sanctions to punish an offending nation is that

sanctions seldom achieve their goal of forcing change in the offending country

Some nontariff barriers are difficult to discourage because

they consist of government subsidies and standards.

Policy continuity and government stability are more important to a business than the type of political system.

true

One of the problems associated with the "cheap foreign labor" argument for restricting trade is that

wages don't account for all production costs.

What is the role of the home country in risk assessment?

It is a significant consideration

Examples of expropriation without compensation involve the following governments

the Unite States confiscated Iranian property in the United States and Cuba confiscated property during the Cuban revolution of the 1950s, and Zimbabwe confiscated land owned by white Zimbabwean citizens.

Unlike quotas, voluntary export restraints (VERs) are imposed by

the exporting country's government.