练习6

Chapter 6Multiple Choice Quiz
1．The powers exercised by a state in relation to other countries and the supreme powers exercised over its own members is called:
A)government policy.B)control.C)sovereignty.主权国家D)domestication.E)none of the above. 2．The ideal political climate for a multinational firm is one where there is a __________________ government.
A)democraticB)socialistC)dictatorial D)stable, friendly governmen t E)bribable and corrupt
3．An awakening of a nation's people to pride in their country is best called:
A)democracy.B)socialism.C)fascism.D)nationalism.E)localism.
4．The most severe political risk is one of ____________ where a company's assets are seized without payment.
A)confiscation征用B)expropriationC)domesticationD)liquidationE)destruction
5．During a recent dictatorship in Chile, a United Fruit plant was ____________; however, the owners were paid about twenty five percent of the plant's value as compensation.
A)confiscated B)expropriated没收C)domesticatedD)liquidatedE)none of the above
6．Over time Brazil was able to take over and control most foreign coffee plantations. In each case, the government acquired the properties by decrees, increased involvement of Brazilian managers, and Brazilian take over of stock and options. Which of the following terms best describes the above situation?
A)confiscationB)expropriation C)domestication D)liquidationE)destruction
7．All of the following are considered to be economic risks of doing abroad EXCEPT:
A)exchange controls.B)local-content laws.C)import restrictions.D)tax controls.E)all of the above. 8．NAFTA requires 62 percent of parts and chassis of any cars coming from member countries be NAFTA-originated (in other words, there are limits on foreign cars and parts). This process is a reflection of which of the following economic risks of doing business abroad?
A)exchange controls B)local-content laws C)import restrictionsD)tax controlsE)price controls 9．Which of the following products are NOT subject to price controls?
A)pharmaceuticalsB)foodC)gasolineD)cars E)all of the above are subject to price controls 10．When the United States boycotted trade with Cuba, this was called a(n):
A)technological sanction.B)business sanction.C)social sanction.D)political sanction.E)none of th 11．When groups of people protested the WTO at a recent round of WTO meetings in Seattle, these ____________ served notice that actions of the WTO and IMF would get increasing attention from those that are seeking a redistribution of wealth in the world.
A)PSAs (political and social activists)B)communistsC)socialistsD)peaceniksE)consumers
12．_____________ is an attempt to forecast political instability to help management identify and evaluate political events and their potential on current and future international business decisions.
A)Poly measurement B)Political risk assessment C)Vulnerability modelingD)Sensitivity modeling E)Performance assessment
13．Relations between governments and MNCs are generally positive if the investment does any of the following EXCEPT:
A)provides for more direct control of a local market (thus stability) by the MNC.
B)creates jobs.C)makes tax contributions.D)transfers capital, technology, or skills.
E)improves the balance of payments by increasing exports.
14．Which of the following is a strategy that can be used by a MNC to minimize vulnerability and
risk?
A)expropriationB)boycottsC)joint venturesD)political payoffs E)C and D
15．All of the following are considered strategies that can be used by MNCs to reduce or minimize vulnerability and risk in the international arena EXCEPT:
A)planned domestication.B)licensing.C)expanding the investment base.D)political payoffs.
E)all of the above.。