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22 Cards in this Set
- Front
- Back
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Which of the following is characterized by networks of international linkages that bind people in a interdependent economy? |
Globalization |
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__ results from the lessening of trade barriers and the increased flow of goods and services, capital, labor, and technology around the world. |
Economic Integration |
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In which of the following groups of trade blocs does most of today's world trade take place? |
Western Europe, Asia, and the Americas |
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The European Union currently consists of how many nations? |
27 |
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Which of the following best explains China's success in exporting? |
low costs and steady stream of capital |
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Which of the following countries is today known as the world's services supplier, providing highly skilled and educated workers to foreign companies. |
India |
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Which of the following agreements is a free trade pact among seven South Asian nations, signed in order to lower tariffs? |
SAARC |
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Which of the following, if true, supporting the argument to build a new Emerson facility in China? |
The Chinese courts recently ruled in favor of an MNC in an intellectual property rights lawsuit. |
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Which of the following, if true, undermines the argument to building a new Emerson facility in China? |
Fuel costs in China have risen sharply and are not expected to drop. |
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Which of the following questions is LEAST relevant to Emerson's decision regarding where to build a new facility? |
How will e-commerce affect Emerson's ability to export products from China? |
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To which of the following free-trade agreements do Costa Rica, Guatemala, Honduras, El Salvador, and Nicaragua all belong? |
CAFTA |
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Political risks are best described as any governmental actions or politically motivated events that ___. |
Negatively affect the firm's long-run profitability or value. |
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Which of the following best describes nationalization? |
Forced sale of an MNC's assets to local buyers |
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____ occurs when the local government seizes the foreign-owned assets of the MNC and provides inadequate compensation. |
Expropriation |
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Expropriation is most likely to occur in a country that has ___. |
constant political upheaval and change |
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The government of Jonovia seizes all assets of Refresh, a world-famous, soft-drink brand in Jonovia, without offering any compensation to the compensation to the company. This action by the government of Jonovia is an example of __. |
Confiscation |
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Which of the following is an example of a macropolitical risk events? |
a terrorist attack |
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Zagreb Inc., a transnational energy company, negotiates a multimillion dollar contract with the government to provide electricity to Pilladia. The government is voted out of power shortly after. The new government cancels all contracts it has all oil companies but not contracts with firms in other industries. This is an example of __. |
Micropolitical risk |
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Intelligentia is attempting to do business in Bazania, but the bazanian government purposely delays granting Intelligentia the necessary licenses and permission required to conduct business in the country. Which of the following best describes this situation? |
Creeping Expropriation |
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Micropolitical risk events are those that affect __. |
One industry or company or a few companies |
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Loss of technology and interference in managerial decision making are forms of __. |
Political risk events |
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Expropriation of corporate assets without prompt and adequate compensation is an example of __. |
Political Risk |
