Quizz on Chapter 1 International Management 10 E

Topics: Risk, Risk management, Political risk Pages: 6 (1136 words) Published: November 27, 2010
1. The term globalism or globalization generally refers to _____. a. increasing loyalty to your own country
b. global competition characterized by networks that bind countries, institutions, and people. c. competition in an increasingly borderless world
d. b and c only

2. The hostility to the takeover of Europe’s largest steel company, Acelor, by India’s Mittal Steel illustrates a. the decrease in nationalism and increase in globalism.
b. the backlash against globalism.
c. the decline in competitiveness in the steel industry.
d. cultural differences about the benefits of takeovers.

3. Small and medium-sized enterprises (SMEs)
a. are generally not competing internationally.
b. are major investors in world markets.
c. face good opportunities currently as a result of trade shows, export initiatives, and the Internet. d. are unaffected by globalism

4. The three major world currencies today are _____.
a. euro, yen, U.S.
b. euro, yen, peso
c. euro, U.S. dollar, German mark
d. euro, U.S. dollar, peso

5. The European Union currently consists of how many nations? a. Ten
b. Twenty-seven
c. Forty
d. Fifty

6. Which of the following countries is not one of the Four Tigers? a. South Korea
b. Hong Kong
c. Taiwan
d. Thailand

7. China has enjoyed recent success as an export powerhouse built upon its _____. a. strengths of low costs and flow of capital
b. geographic location in the world
c. high educational standards
d. close ties with Japan

8. Which of the following statements is not correct about China? a. China joined the WTO in 2002
b. One of China’s key strengths is its excellent infrastructure c. China is stuck halfway between a command economy and a market economy d. China continues to enjoy significant inflows of money from ethnic Chinese outside of China

9. Which of the following statements is correct about India? a. India’s biggest contributor to growth is its excellent infrastructure. b. India is the world’s leader for outsourced back-office services, and increasingly for high tech services c. India is the fastest-growing free-market democracy

d. b and c only are correct

10. India’s economic boom is a result of
a. reducing protectionism and red tape
b. lifting restrictions on foreign investment
c. reforming its financial sectors
d. all of the above

11. Which of the following is not correct?
a. Foreign investors have become wary of Russia because of recent government action against the Yukos oil group. b. Africa has been ignored by most of the world’s investors c. Because of the political and economic risks in LDCs, they offer no potential international business opportunities d. South Africa has the biggest economy in Africa.

12. The U.S is offshoring white-collar computer programming jobs to India because _____. a. Indians are better programmers than Americans
b. Indians speak better English than Americans
c. Indian programmers cost one-fourth the cost of equivalent American programmers d. all of the above

13. Political risks are any governmental actions or politically motivated events that adversely affect the _____. a. capacity of the company to survive long-run profitability or value of the company b. personal safety of corporate managers and employees

c. company’s capacity to meet consumer needs

14. _____ occurs when the local government seizes the foreign-owned assets of the MNC and provides inadequate compensation. a. Nationalization
b. Expropriation
c. Confiscation
d. Repatriation

15. Suppose the government of Karakozia seizes all assets of Pepsi in Karakozia without offering any compensation to the company. This action on the part of the government is an example of _____. a. nationalization

b. repatriation
c. expropriation
d. confiscation

16. Zagreb Inc., negotiates a multi-million dollar contract with the government to provide electricity to country A. The government is voted out of power shortly after and the new government...
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