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Q:
The United States became one of the first countries to prohibit dumping into its own market, in:
A. 2006.
B. 1856.
C. 1916.
D. 1776.
E. none of the above.
Q:
Zimbabwe's government offers an example of government instability.
Q:
Dumping is:
A. selling a product abroad for less than its production cost in the importing nation.
B. selling a product abroad for less than the market price in the export nation.
C. exporting a product to a third country without correct documentation.
D. two of the above.
E. all of A, B, and C.
Q:
Policy continuity and government stability are more important to a business than the type of political system.
Q:
Arguments for trade restrictions include:
A. national defense, infant industry, and job protection.
B. punishment of offending nations.
C. fair competition and retaliation.
D. all of the above.
E. two of A, B, and C.
Q:
Businesses favor unstable governments because they present more profit opportunities.
Q:
Counterarguments to the "protect domestic jobs from cheap foreign labor" argument include:
A. the labor rate is not all of the labor cost or the production cost.
B. productivity per worker is what matters.
C. cheap foreign labor is a natural occurrence.
D. two of the above.
E. all of A, B, and C.
Q:
Kidnap, ransom, and extortion are techniques often used by terrorists against which no insurance is available.
Q:
An argument against the protection of an infant industry is that:
A. in the long run the industry will have a competitive advantage.
B. firms need protection from imports until the required investment capital is obtained.
C. protection of emerging industries occurs only in developing nations.
D. there can be high costs from subsidizing infant industries.
E. Two of the above.
Q:
To hedge the terrorism risk, there are insurance, antiterrorist schools, and even companies to handle negotiations.
Q:
An argument against using trade restrictions to punish an offending nation is that:
A. sanctions seldom achieve their goal of forcing change in the offending country.
B. sanctions are relatively harmful to the citizens of the offending country.
C. sanctions are not condoned by the UN.
D. sanctions decrease the cost of doing business.
E. two of the above.
Q:
Paying ransom makes sense because a life is saved and the payments can be traced.
Q:
The national defense argument for trade restrictions has been used in the United States to argue for restriction on imports of:
A. munitions.
B. uniforms.
C. shoes.
D. all of the above.
E. two of A, B, and C.
Q:
Terrorists avoid kidnapping because the repercussions can be harmful to their movement.
Q:
Among the external businesses that conduct country risk assessment are:
A. the Economist Intelligence Unit, Euromoney, the Harvard Business Review
B. Moody's, Standard and Poor's, STRATFOR
C. The New York Times, Wilson Quarterly, Forum
D. two of the above.
E. all of A, B, and C.
Q:
When people are kidnapped for ransom, the right response is to pay the ransom, get the hostages released, and then retaliate.
Q:
According to the text, the type of information a firm will need to judge country risks:
A. none of B, C, and D.
B. varies according to the nature of its business.
C. varies according to its size.
D. varies according to the length of time required to yield a satisfactory return.
E. two of B, C, and D.
Q:
A historical function of capitalistbut not communistgovernments has been the protection of the economic activities within their geographic area of control.
Q:
What is the role of the home country in risk assessment?
A. It has no role.
B. It is a significant consideration.
C. It is used initially, but then more micro issues become the focus of CRA.
D. None of the above.
E. Two of A, B, and C.
Q:
Former British prime minister Tony Blair led the privatization movement.
Q:
The trend for firms in regard to country risk assessment (CRA) is to:
Q:
When the U.S. military contracts out security details in war zones, it is engaged in privatization.
Q:
International business can be a powerful political force, in part because:
A. a recent Supreme Court ruling in the United States allows corporate contributions to political races.
B. many top management team members are willing to accept roles with national security agencies.
C. about half the world's 100 largest economic units are firms.
D. business is all about achieving political goals.
E. two of the above.
Q:
When government-owned companies compete with private companies, the private companies have the advantage.
Q:
Government stability is a characteristic of a government that:
A. makes sudden radical policy changes.
B. readily shifts alliances to maintain power.
C. maintains predictability in fiscal, monetary and political policies.
D. two of the above.
E. all of A, B, and C.
Q:
One example of nationalization of private companies is the nationalization of French-owned firms in Europe after World War II.
Q:
Zimbabwe is an example of:
A. a richly endowed country that has suffered because of government instability.
B. a government that expropriated private property, that is, nationalized it, and then redistributed it.
C. a country whose leadership stole the 2008 election.
D. all of the above.
E. two of A, B, and C.
Q:
The only reason firms are nationalized is to spread a socialist-communist ideology.
Q:
Government stability is understood to refer to a government's:
A. policiestheir ability to endure over time.
B. ability to keep itself in power.
C. two of A, B, and D.
D. ability to adjust to sudden changes by making radical policy changes.
E. all of A, B, and D.
Q:
Only in communist countries do governments own the factors of production.
Q:
Kidnapping:
A. two of B, C, and D.
B. is a weapon used by some terrorists to extract ransom.
C. can result in counterproductive results if ransom is paid for hostages.
D. can be insured against by obtaining kidnapping, ransom, and extraction (KRE) insurance.
E. all of B, C, and D.
Q:
Unlike the topography, the political climate of a country has relatively little influence on its exports.
Q:
Government protection of economic activities is:
A. two of the following.
B. a historical function of government.
C. a recent responsibility of government.
D. a socialist characteristic.
E. stronger in democracies.
Q:
Nationalization and privatization are:
A. similar trends.
B. opposing trends.
C. both risks faced by privately held firms.
D. both risks not encountered in capitalist democracies.
E. two of the above.
Q:
With privatization:
A. assets are transferred from the public sector to the private sector.
B. stock is bought back so that the company no longer has public shareholders.
C. state activities are moved into private management through contracts.
D. all of the above.
E. two of A, B, and C.
Q:
Privately owned companies sometimes complain that government-owned companies have the following unfair advantages:
A. higher-cost financing.
B. ability to charge higher prices.
C. access to government contracts.
D. all of the above.
E. two of A, B, and C.
Q:
The reasons a government may nationalize a firm include:
A. to get government contracts.
B. to promote the ideology of capitalism.
C. to preserve jobs.
D. all of the above.
E. two of A, B, and C.
Q:
The reasons a government may nationalize a firm include:
A. to extract more money from the firm.
B. to increase the firm's profitability.
C. to preserve jobs.
D. all of the above.
E. two of A, B, and C.
Q:
Sanctions against nations are not a form of trade restriction because the motivation is political.
Q:
The national defense argument for trade restrictions suggests that some industries, even if they are not competitive, need protection from imports.
Q:
Trade barriers create costs that are paid by the government erecting the barrier.
Q:
Nontariff barriers that are not quantitative can be divided into two groups, those that are established by the government participation in trade and those that are administrative.
Q:
Voluntary export restraints are imposed by the importing nation to avoid violating WTO rules.
Q:
Voluntary export restraints are imposed by the importing nation to avoid violating WTO rules.
Q:
The Multi-Fiber Arrangement (MFA) was an orderly marketing arrangement to regulate textiles and clothing exports.
Q:
Nuisance tariffs require importers to go through the administrative paperwork connected to paying tariffs, even though the payment itself might be quite small.
Q:
Duties may be used to encourage local input.
Q:
A variable levy confers benefit on the domestic producer, as with the EU variable levy on grain.
Q:
A compound duty is a combination of specific and variable duties.
Q:
Tariff barriers may be used to protect domestic industry from foreign, lower-cost producers.
Q:
Subsidies from the United States to its sugar industry have been critical in helping to prevent a loss of jobs from American companies that are high users of sugar.
Q:
Subsidies that confer a benefit may well evoke countervailing duties.
Q:
New types of dumping include tax dumping.
Q:
New types of dumping include concession dumping.
Q:
One way that the WTO defines dumping is the selling of a product abroad for less than the average cost of production in the importing nation.
Q:
Retaliatory trade restrictions are not made for dumping because price competition is protected by the WTO.
Q:
Fair competition is a strong rationale for trade barriers.
Q:
A comparison based on hourly wages is a reasonable guide to a need to protect domestic jobs.
Q:
Protection of infant industries through trade restrictions is used only in developing nations.
Q:
To protect an infant industry, trade restrictions might be effective.
Q:
Sanctions are a trade restriction that is effective in forcing change.
Q:
U.S. ocean shipping companies are benefiting from U.S. government subsidies.
Q:
The national defense argument for trade restrictions is based on the development level of the country.
Q:
Trade restrictions violate the spirit of the WTO.
Q:
The government officials who make decisions about import restrictions are particularly sensitive to their country's broad population of consumers, who will be hurt by international competition.
Q:
The utility of risk analyses of social, political, and economic factors increases rapidly over longer time spans.
Q:
The length of the investment in a foreign country has no impact on the risk assessment for that investment. What matters is the economic and political situations in the country.
Q:
The types of information a firm will need to judge country risks vary according to the nature of its business and the amount of money invested.
Q:
A way to measure a company's success in sustainable business practices is:
A. to examine the return on investment.
B. triple-bottom-line accounting.
C. to monitor the company in a social context.
D. to review the marketing materials.
Q:
Stakeholder theory is an understanding of how business works that:
A. takes into account culture and environmentalism.
B. rejects the importance of the bottom line.
C. emphasizes planning.
D. takes into account all identifiable interest holders.
Q:
Sam Palmisano, CEO of IBM, has described a new way of doing business that goes to equity of distribution by observing that:
A. profit sharing will need to increase.
B. stakeholder theory provides a way forward, combining local and global.
C. IBM would end its colonial company model and move on to an integrated model with high levels of trust among stakeholders.
D. A and B.
Q:
The three characteristics of evolving sustainable business practices are:
A. local, global, and improving quality of life.
B. environmental sustainability, quality-of-life sustainability, and triple-bottom-line accounting.
C. limits, interdependence, and equity.
D. none of the above.
Q:
Environmental sustainability is both local and global because:
A. environmental conditions do not recognize national borders.
B. governments are not prepared to address environmental issues beyond the UN.
C. business has become global, so sustainability must follow the trend.
D. all of the above.
Q:
Nonfuel minerals:
A. include chrome, manganese, platinum, and arsenic, all necessary for modern living.
B. are mostly sourced through imports in the United States.
C. frequently originate in China.
D. all of the above.
Q:
The area with the greatest capacities in renewables as of 2010 is:
A. the United States.
B. European Union.
C. India.
D. Japan.
Q:
Renewable energy sources:
A. will replace fossil fuels, due to price, depletion, or carbon emissions.
B. are growing at greater rates than the nonrenewables in the United States and Europe.
C. A and B.
D. are all available everywhere.
Q:
Coal pollutes heavily:
A. so its use has declined markedly in the past 15 years.
B. yet its consumption has increased and is projected to continue on this trend, especially in China and India.
C. and contributes to greenhouse gas emissions, especially in China, India, and the United States.
D. B and C.
Q:
As an energy source, nuclear power:
A. is growing significantly, especially in developing countries.
B. has been growing as the price of oil climbs and cleaner energy sources (nonpolluting) are sought.
C. has been exploited by France, which has one of the lowest greenhouse gas emissions in the industrialized world.
D. all of the above.
Q:
Heavy oil is:
A. a group of unconventional oil sources such as oil sands, shale, coal, and natural gas, all of which via processing can yield oil.
B. a rich oil found in deposits in Saudi Arabia and Kuwait whose molecular weight is heavier than normal oil.
C. oil extracted from biomass that is reprocessed.
Q:
The top four countries in proven reserves are:
A. China, Japan, Singapore, and Malaysia.
B. Kuwait, Saudi Arabia, the United States, and Mexico.
C. Qatar, Libya, Nigeria, and Venezuela.
D. Saudi Arabia, Canada, Iran, and Iraq.