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100
__________ issues often take such forms as industry regulation, taxes on specific types of business activity, and restrictive local laws.
Micro risk
100
Based upon the experience described in the case about Royal Dutch Shell, __________ is one of the most challenging countries in which to do business.
Russia
100
Tied with New Zealand and Finland in the 2012 Transparency International Corruption Perceptions Index. All are ranked #1.
Denmark
100
The use of force or violence against others to promote political or social views
Terrorism
100
In _________, the European Commission issues its decision regarding allegations of anticompetitive practices by Microsoft, finding that Microsoft had engaged in such practices and issuing a sweeping set of penalties, including the biggest fine it has ever levied, $613 million.
2004
200
Government policies and procedures that directly constrain management and performance of local operations
Operational risks
200
__________ must be able to evaluate and manage political risks on a global scale and contemplate the potential of alliances and other long-term cooperative relationships to help mitigate risks.
MNCs
200
The seizure of businesses by a host country with little, if any, compensation to the owners
Expropriation
200
__________ laws require nationals to hold a majority interest in an operation.
Indigenization
200
The unanticipated likelihood that a business’s foreign investment will be constrained by a host government’s policy.
Political risk
300
The __________ sector includes transportation, finance, insurance, and related industries.
Service
300
Government policies that limit the transfer of capital, payments, production, people, and technology in and out of the country.
Transfer risks
300
Differences in the cultural backgrounds of partners can potentially cause problems in __________.
Alliances
300
In __________, American steel makers filed more than 80 complaints against 20 nations on a single day, charging that foreign steel makers were dumping their products in the U.S. market at artificially low prices.
1992
300
Interventions designed to shape and influence political decisions prior to their impact on the firm
Proactive political strategies
400
In __________, the communist government earned a bad name among foreign investors because of all the pitfalls they have to face.
Vietnam
400
Government policies or actions that inhibit ownership or control of local operations
Ownership-control risks
400
The Alliance _________ consists of start up, hockey stick growth, professional, mature, sustaining, and declining.
Life cycle
400
The __________ sector consists of agriculture, forestry, and mineral exploration and extraction.
Primary
400
A type of high-risk investment in which goods or services produced are not similar to those produced at home
Conglomerate investment
500
Both domestic and international political developments have a major impact on MNCs'_________.
strategic plans
500
Interpretation of rules and regulations by officials, industrial piracy, and restrictions on foreign exchange transactions raise the political risk of doing business in ____.
China
500
Power struggles among the elite, ethnic confrontations, regional struggles are _________ which MNCs may use to evaluate political risk.
Internal factors
500
There are three sectors of economic activity: (1) the _____ sector, which consists of agriculture, forestry, and mineral exploration and extraction; (2) the _____ sector, consisting of manufacturing operations; and (3) the _____ sector, which includes transportation, finance, insurance, and related industries.
Primary, industrial, service
500
Examples of these techniques include doing as little local manufacturing as possible and conducting all research and development outside the country, limiting the responsibility of local personnel and hiring only those who are vital to the operation, raising capital from local banks and the host government as well as outside sources, and diversifying production of the product among a number of countries.
Protective and defensive
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