International Marketing Ch.6

According to Steven Pinker, which of the following reasons explain lower rates of violence on the planet? (Check all that apply.)

1. An increase in the involvement of women in the government 2. Laws and governance

Which of the following are labor problems that companies can face in foreign countries?

1. Companies may not be allowed to lay off workers. 2. Companies may be required to share profits.

Identify the problems related to cyberterrorism. (Check all that apply.)

1. Determining the nature of the cyberattack is not easy. 2. Tracing the crime back to the cyberterrorists and criminals is difficult.

Identify the goals of terrorism. (Check all that apply.)

1. It aims to disrupt daily life and cause widespread terror. 2. It aims to acquire money through kidnapping high-level employees and demanding ransom.

Identify the true statements regarding political risk assessment. (Check all that apply.)

1. It is an attempt to predict political instability. 2. It helps managers identify and assess political events.

Identify the ways in which foreign investors can lessen their susceptibility to politically induced risks in a host country. (Check all that apply.)

1. Offer jobs to the host country's citizens. 2. Donate funds to the host country's charitable organizations. 3. Boost exports from the host country.

Identify the biggest threats to peace and commerce in the twenty-first century. (Check all that apply.)

1. Terrorism 2. Conflict or war within a nation

Countries attract international investment in certain high-priority sectors by offering

1. tax breaks 2. exemption from exchange controls.

Identify a risk related to international marketing.

A country or group of countries may boycott businesses from a specific country.

Identify a true statement regarding Steven Pinker's arguments about warfare, strife, and violence on the planet.

At this point in time, humanity has less to fear regarding violence than in previous eras.

Identify a way in which multinationals can reduce their political vulnerability and risk when doing business in host countries.

By engaging multiple investors and banks in the investment

Which of the following is a threat to international marketing?

Cyber attacks

Identify an accurate statement about joint ventures.

Establishing joint ventures with a third-country MCN may reduce financial vulnerability in a host country.

Which of the following best explains why foreign companies may encounter hostile political environments?

Many believe foreign companies care only about profit and exploit their nation's resources.

Identify a true statement regarding international marketing.

Marketing products that are politically sensitive in a host country should be avoided if possible.

Which of the following products are most likely to be categorized as politically sensitive?

Products that symbolize the company's home country

How do some underdeveloped countries quickly acquire operating funds?

Severe taxation of profitable foreign businesses

Which of the following countries does the United States NOT classify as a Level 4 threat?

South Africa

Identify a true statement regarding political and social activists (PSAs).

They are not always officially sanctioned by the government.

What makes U.S. companies doing business in foreign countries attractive as targets for terrorism?

They are symbols of the political and cultural system that terrorists disagree with.

Which of the following statements is true about political and social activists (PSAs)?

They can be a strong force in marshaling public opinion.

Identify a risk to MNCs that stems from their use of licensing to reduce political vulnerability.

They risk losing money if a licensee discontinues paying the licensing fee.

What is one way that multinational companies can maintain a good working relationship with a host country's government?

Use local content.

Political payoffs

are against the law in the United States, but they are common practice in certain countries.

Multinationals can reduce their political vulnerability by _____.

creating joint ventures with the host country or a third country

What is a major liability for international marketers?

failure of the host country's government

Joint ventures _____.

increase positive feelings toward multinational companies

A multinational company can improve relations with the government of a host country by

increasing the host country's exports.

A multinational company can avoid potential political risks by _____.

influencing policies of the host government

Multinational companies may encounter problems when

labor unions are powerful and supported by the government.

What is a good solution for a MNC that is doing business in a host country that insists upon local participation in the company?

planned domestication

A batch of automobiles produced by the overseas manufacturing unit of a multinational automobile manufacturer was recalled due to defects in engine transmission. Instead of blaming faulty manufacturing, the MNC decided to fix its design and inspection routines and publicly admitted its guilt in the matter. Identify the strategy used by the MNC to avoid political risks in its overseas operations.

political bargaining

Which of the following is the least recommended approach to avoiding political vulnerability and risk?

political payoffs

A feature of planned domestication is that it _____.

reduces political vulnerability

What strategy do host countries use to encourage foreign companies to buy products made within the host country?

restriction of certain imports

Why should a government support foreign investment?

to accelerate the development of its economy

True or false: One government may both encourage and discourage international marketing.

true

Identify a strategy that may drastically minimize the political vulnerability of an MNC in situations where a company has an exclusive technology.

Licensing

Identify a true statement regarding the risks of international marketing.

It remains challenging to assess which products and companies are politically vulnerable.

Why are trade sanctions considered largely ineffective?

because traders from other major nations ignore them

Political and social activists (PSAs) _____.

can be people who take part in violence and terrorism to bring about change

When multinationals include several investors and banks in financing an investment in a host country, they can be protected from government takeover if the _____.

financing banks have made loans to the host country