International Mkt

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Chapter 6 Study/Review Top of Form

50 out of 50 points (100%)
The questions on this assignment were pooled. The question numbering below has been standardized to assist you in discussions of the results with your instructor.  4.
10 out of
10 points
The ideal political climate for a multinational firm is:

| a country where international laws do not apply.|
| a country where favors can be purchased cheaply.|
| a stable, friendly government.|
| a government where absolute power is a reality.|
| an authoritarian government that can be dealt with through non-legal channels.| The ideal political climate for a multinational firm is a stable, friendly government. Because foreign businesses are judged by standards as variable as there are nations, the stability and friendliness of the government in each country must be assessed as an ongoing business practice. Multiple Choice| Learning Objective: 06-01 - What the sovereignty of nations means and how it can affect the stability of government policies|  |

10 out of
10 points
An intense feeling of national pride and unity, an awakening of a nation's people to pride in their country is called:

| socialism.|
| communism.|
| fascism.|
| nationalism.|
| polarism.|
Nationalism can best be described as an intense feeling of national pride and unity, an awakening of a nation's people to pride in their country. This pride can take an anti-foreign business bias, where minor harassment and controls of foreign investment are supported, if not applauded. Multiple Choice| Learning Objective: 06-02 - How different governmental types, political parties, nationalism, targeted fear/animosity, and trade disputes can affect the environment for marketing in foreign countries|  |

10 out of
10 points
Since the government of Nigeria is strapped for cash, it has decided to tax all foreign investments (such as oil production equipment) by up to forty percent of appraised value. The Nigerian government has found that this is the handiest and quickest means of finding operating funds. The economic risk in discussion here is:

| exchange controls.|
| local-content laws.|
| import restrictions.|
| tax controls.|
| price controls.|
Taxes are classified as a political risk when used as a means of controlling foreign investments. In such cases, they are raised without warning and in violation of formal agreements. Multiple Choice| Learning Objective: 06-04 - The importance of the political system to international marketing and its effect on foreign investments|  |

10 out of
10 points
Why do terrorism experts predict multinational businesses will be targeted by terrorists more frequently?

| They are rich and they are powerful.|
| They are capitalists and what they sell.|
| They are less well defended and because of what they symbolize.| | They destroy the environment.|
| They are subterfuge for espionage agents.|
There are reasons to expect that businesses will become increasingly attractive to terrorists, both because they are less well defended than government targets and because of what they symbolize. Multiple Choice| Learning Objective: 06-05 - The impact of political and social activists, violence, and terrorism on international business|  |

10 out of
10 points
Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment she will consider using _____ to enter the market.

| Importing|
| sole-proprietorships|
| multinational corporations|
| joint ventures|
| trade bloc memberships|
Typically less susceptible to political harassment, joint ventures can be with locals or other third-country multinational...
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