Some Countries Rigorously Enforce Employee Secrecy Agreements In Order To

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CHAPTER 1 QUIZ 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. ultural 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.

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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.

Some Countries Rigorously Enforce Employee Secrecy Agreements In Order To

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. ll 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 . 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 changes the contract for all oil producing companies. This is an example of _____. a. barriers to repatriation . expropriation c. confiscation d. micro political risk 17. Micro political risk events are those that affect _____. a. numerous industries or companies b. several other nations in the same region c. one industry or company or a few companies d. managers and employees who are nationals 18. Which of the following is not one of the seven typical political risk events common today? a. loss of technology or intellectual property rights b. political takeovers and civil wars c. discriminatory treatment in the application of laws d. interference in managerial decision making 19.

Expropriation of corporate assets without prompt and adequate compensation is an example of _____. a. economic risk b. political risk c. legal risk d. cultural risk 20. Risk assessment by multinational corporations usually takes two forms: _____ and _____. a. use of experts or consultants; newspaper reports b. use of experts or consultants; internal staff c. use of internal staff; publications d. government risk reports; computer modeling 21. Which of the following is a form of hedging? a. staged contribution strategies b. development assistance c. local debt financing d. ocalization of the operation 22. Representatives of a MNC seek an interview with local government leaders in the Department of Commerce in India with a view to assess the types of policies likely to be implemented. According to Mathis, this is an example of ______. a. qualitative approach b. quantitative approach c. checklist approach d. a combination of all of the above 23. The host country’s legal system is derived from ______. a. common law b. civil law c. Islamic law d. all of the above 24. Tariffs and quotas are examples of what types of policies?

a. protectionist b. conomic development c. free market d. political development 25. Some countries rigorously enforce employee secrecy agreements in order to _____. a. protect a firm’s intellectual property b. restrict labor mobility c. avoid costly litigation among firms d. all of the above 26. About 70 countries, predominantly in Europe, are ruled by ______ law, as is Japan. a. common b. Islamic c. civil d. custom 27. Political risk insurance is a form of _____. a. input control b. development assistance c. equity sharing d. hedging 28. When a MNC keeps certain key subsidiary management positions in the hands f expatriate or home-office managers, it is exercising ______. a. input control b. market control c. position control d. bureaucratic control 29. Companies often reduce risk in foreign countries by creating dependency of a subsidiary on the host country. Which of the following is not a means of maintaining dependency? a. market control b. equity sharing c. staged contribution strategies d. input control 30. Which of the following risk management strategies is not a means of adaptation? a. participative management b. development assistance c. funds sharing d. localization of the operatio