Which of the following is NOT a good way to do business in China?ĭo not be concerned with cultural sensitivity.ĭo not meet the family members of business partners. United Nations' Human Development Index B. Which source should a company use to gain insight into local culture and politics?Ĭurrent employees who have worked in a country for an extended period Which one of the following is a type of adaptation that allows an international business to assist the host country or region in improving the quality of life for locals?Ĭurrent employees who have worked in a country for an extended period International firms attempt to gather information that will help them predict and manage political risk. To stabilize its currency against a stronger foreign currency B.ĭevelopment assistance Adaptation is one of the main methods of managing political risks. To invest in sectors, such as public utilities, that private companies cannot afford To block direct investment by foreign entities To disinvest in obsolete technologies, products, or services In general, a government may nationalize an industry for which one of the following reasons? Likely candidates for nationalization include industries important to a nation's security and those that generate large revenues. To invest in sectors, such as public utilities, that private companies cannot afford Nationalization is more common than confiscation and expropriation. Use subsidies to protect an industry for ideological reasonsĬontrol industry profits so they cannot be transferred to low tax-rate countries C. Save local jobs in an ailing industry to gain political clout Invest in sectors, such as public utilities, that private companies cannot afford companies that invest abroad against losses created by violent events, including war and terrorism, can also provide project financing?Įncourage globalization A government may nationalize an industry to do all EXCEPT _. Which type of insurance that insures U.S. Overseas Private Investment Corporation Insurance against political risk can be essential to companies entering risky business environments. Unfavorable and weak political relationships Unfavorable and weak political relationships Which of the following actions of business does NOT cause international relations to improve?įavorable and strong political relationships The level of development as international companies pursue business opportunities in emerging markets C. National production, the amount of exports in the form of industrial goods, and human development to the extent to which a government equitably provides its people with a long and healthy life, an education, and a decent standard of living National production, the portion of the degree of technological dualism, and overall economic structure National production, the portion of the economy devoted to agriculture, the amount of exports in the form of industrial goods, and overall economic structure National production, the portion of the economy devoted to agriculture, purchasing power parity, and the amount of exports in the form agriculture National production, the portion of the economy devoted to agriculture, the amount of exports in the form of industrial goods, and overall economic structure Nations are commonly classified as being developed, newly industrialized, or developing based on a quantifiable economic measure.
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