MAN3600 Exam 2 part 2
Both common law and civil law systems originated in ________.
Western Europe
Which of the following is the most important issue to consider when determining the best entry strategy for Super Sports?
What are the restrictions on inward foreign direct investment?
Representative A is from a totalitarian state.Which of the following countries would Representative A most likely be from?
Zimbabwe
Which of the following terms indicates a company's potential loss of profitability caused by a nation's political or legal setting?
country risk
Which of the following is an element of socialism often found in democratic societies?
government intervention in the affairs of individuals and firms
The World Bank is classified as a(n) ________.
international organization
Income repatriation laws affect MNEs that earn profits in foreign countries by ________.
limiting the amount of net income and dividends that can be transferred to the home-country headquarters
Which of the following would most likely oppose the opening of a Super Sports store in Norway?
local sports retailers
Which of the following laws is responsible for the ban on cigarette advertisements in France?
marketing and distribution laws
The United States restricts foreign investments that might affect ________.
national security
Which of the following best explains why India was once characterized by high country risk
political leaders enacted laws that targeted foreign firms for harassment
Country risk is considered similar to ________.
political risk
A ________ government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.
totalitarian
The three major types of current political systems are ________.
totalitarianism, socialism, and democracy
A foreign firm's entry strategy, operations, and performance are often dictated by foreign investment laws.
true
Civil law is primarily legislative in origin and based on laws passed by national and local legislatures.
true
Common law is primarily judicial in origin and based on court decisions.
true
Democracy is characterized by limited governmental interference.
true
Democracy is closely associated with openness.
true
Government agencies, institutions, and public officials influence the manner in which foreign firms conduct business.
true
Host-country employees provide firms with information about country risks that might harm the firm and its international interests
true
In a market economy, the government may intervene to address the inequalities that market economies sometimes produce.
true
Manufacturers face legal penalties and lawsuits under product safety and liability laws if they are responsible for damage, injury, or death caused by defective products.
true
Market forces and free trade are encouraged in democracies
true
Most democracies include elements of socialism.
true
Nationalization describes government seizure of an entire industry, with or without compensation.
true
Of the five types of participants that are active in transforming political and legal systems, the public sector is the most important.
true
Socialism is based on a collectivist ideology which assumes that the collective welfare of people outweighs the welfare of the individual.
true
Special interest groups serve the interests of particular countries, industries, or causes
true
The European Union impacts international trade and business because of its ability to enact and enforce laws and regulations.
true
Which of the following is the LEAST adversarial method of resolving a contractual dispute?
conciliation
Which of the following supports Country A over Country B?
contractual noncompliance provisions are broader in scope
An individual from a country with a low degree of political risk would most likely be from ________.
Canada
Representative C hails from a democratic society.Representative C is most likely from ________
Canada
Which of the following types of organizations would wield the greatest power over a firm attempting to do business in Canada?
Canada's Ministry of Foreign Affairs
________ is the seizure of corporate assets without compensation.
Confiscation
________ are the people and organizations that support the political system and receive government resources.
Constituents
Which of the following characterizes country risk?
Country risk is always present, but its intensity fluctuates over time and from country to country.
Which of the following pairs of nations are on opposite ends of the political freedom scale?
Cuba & Sweden
________ is seizure of corporate assets with compensation
Expropriation
Trade unions are part of a country's legal system.
False
Which of the following is a typical complaint of host-country competitors against foreign firms?
Foreign firms receive financial support from host-country governments.
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 countries is considered primarily socialist?
India
An individual from a country with a high degree of political risk would most likely be from ________.
Iraq
The most widespread form of religious law is ________ law.
Islamic
Which of the following statements is true of country risk?
It is present in all nations.
Which of the following supports a decision in favor of Super Sports opening a store in Norway
MNEs may transfer profits back to the home country without restriction.
Which of the following countries is considered a mixed economy?
Norway
Islamic law is based on the ________.
Qur'an
What has been the impact of social democracy on international business relations in some European countries?
Regulations have forced foreign firms to invest elsewhere
Representative B is from a socialist nation. Representative B is most likely from ________.
Russia
Which of the following statements is true about managing country risk?
Scanning allows a firm to assess the potential country risk.
________ fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.
Socialism's
An embargo is an official ban on exports to or imports from a particular country
TRUE
Which of the following statements supports Country B(common law) over Country A(civil )?
The flexibility of common law allows for judicial interpretation in unique cases.
Which of the following is the underlying principle of socialism?
The well-being of the group supersedes the well-being of individuals.
The immediate cause of country risk is a legal or political factor.
True
Common law can best be described as a system ________.
based on legal precedents set by the nation's courts
A(n) ________ is a voluntary refusal to engage in commercial dealings with a nation or a company.
boycott
Which of the following legal systems is based on legal precedents and past practices set by the nation's courts through interpretation of statutes, legislation, and past rulings?
common
Which form of government is characterized by private property rights and limited government?
democratic
the legal system of Country B is based on common law. Which of the following statements is most likely applicable to Country B?
detailed contracts that clearly state all potential contingencies
A(n) ________ is an official ban on exports to or imports from a particular country, in order to isolate it and punish its government.
embargo
Which of the following would be the best way for a manager to learn about country risks in a host country?
employees working in the host country
Which of the following terms refer to the application of home-country laws to persons or conduct outside national borders?
extraterritoriality
A democratic government seeks to control not only all economic and political matters but also the attitudes, values, and beliefs of the citizenry.
false
A market economy is also called a centrally planned economy.
false
Civil law is more flexible than the other legal systems.
false
Common law is also known as code law.
false
Common law originated in the United States.
false
Confiscation is the seizure of assets with compensation.
false
Country risk is present in select nations.
false
Expropriation is the term used to describe a host-country government seizing the assets of a foreign corporation and providing no compensation in return.
false
Like most legal systems, Islamic law evolves with changing times to better meet the needs of the Islamic society.
false
The protection of intellectual property rights is guaranteed and enforceable in every country in the world.
false
Totalitarianism's fundamental tenet is that capital and wealth should be vested in the state and used primarily as a means of production rather than for profit.
false
Boycotts and protests have the potential to harm businesses by ________.
reducing sales and requiring additional public relations activity
The European Union is classified as a(n) ________.
regional economic bloc
Which of the following legal systems is largely practiced in the Middle East?
religious
The U.S. Securities and Exchange Act encourages confidence in business transactions by ________.
requiring public companies to frequently disclose their financial status
Which of the following terms refers to the existence of a legal system based on clear rules and fair enforcement?
rule of law
A(n) ________ is a type of trade penalty imposed on one or more countries by one or more other countries.
sanction
The Organisation for Economic Co-operation and Development (OECD) is classified as a(n) ________.
special interest group
Which of the following is characteristic of an effective legal system?
systematically enforced laws and regulations
Religion-based totalitarian states are called ________.
theocratic
