* not completed

. A market-driven economy is designed to satisfy the needs of…

Consumers. correct incorrect

entrepreneurs. correct incorrect

the government. correct incorrect

managers. correct incorrect

* not completed

. Which of the following types of government is typical of countries that have a market oriented or capitalist economy?

Autocratic correct incorrect

Democratic correct incorrect

Totalitarian correct incorrect

Socialist correct incorrect

* not completed

. The political authority exercised at a higher level than the nation-state is termed:

national sovereignty. correct incorrect

sub-national governance. correct incorrect

supra-national governance. correct incorrect

globalization. correct incorrect

* not completed

. A policy of laissez faire is most likely to be found in:

a socialist economic system. correct incorrect

a capitalist economic system. correct incorrect

a mixed economic system. correct incorrect

a communist economic system. correct incorrect

* not completed

. Which of the following can be a problem with democracy?

Political power is monopolized correct incorrect

There may be difficulties in reaching consensus in decision making correct incorrect

Information flows are restricted by government controls correct incorrect

The media always supports government policy correct incorrect

* not completed

. The risk of dramatic changes in a country’s business environment which is the result of political instability is termed:

macro risk. correct incorrect

micro risk. correct incorrect

sovereignty risk. correct incorrect

political risk. correct incorrect

* not completed

. One way of reducing political risk exposure is to utilise superior or unique technology which would not be available to a host government. Such a strategy involves:

differentiating technology. correct incorrect

maximizing employment of local resources. correct incorrect

maximizing local capital. correct incorrect

adopting a short term horizon. correct incorrect

* not completed

. Defensive approaches to managing political risk focus on:

reducing the probability of an adverse political event. correct incorrect

maximizing the legal arguments that the MNE can mobilise. correct incorrect

mitigating the costs of an adverse political event. correct incorrect

extending risk insurance. correct incorrect

* not completed

. A complexity defence reduces the attractiveness of an affiliate operation in a host country by:

stressing the level of competition it faces. correct incorrect

focusing on the use of the most advanced technology. correct incorrect

maximizing dependence on other parts of the related corporate system. correct incorrect

externalizing service functions. correct incorrect

* not completed

. Political disagreement between a host country government and an investing MNE is more likely when:

the parties have divergent expectations. correct incorrect

the business climate favours investing firms. correct incorrect

the business climate favours government negotiators. correct incorrect

there is a very high level of economic activity. correct incorrect