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Political/Legal Environment Quiz

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Questions and Answers

What is the primary concern of a company facing the risk of embargoes and sanctions?

Termination of trade flow for political reasons (correct)

Expropriation of goods by adversaries

Restriction in profits due to tax laws

Loss of assets due to government policies

Which countries are known for being highly restricted dual-use item destinations?

Brazil, Mexico, and South Africa

Japan, South Korea, and Australia

Cuba, Iran, and North Korea (correct)

Russia, China, and India

How can import controls affect companies operating internationally?

By levying fees or taxes on exported goods

By limiting the quantity or value of a particular type of imported goods (correct)

By imposing specific unit or dollar limits on exported goods

By restricting the free flow of trade in goods

What is the main purpose of tariffs imposed by countries on imported goods?

To protect domestic markets from foreign intrusion Signup and view all the answers

In which situation would a company face legal implications related to bribery and corruption?

When attempting to bribe a foreign official for business purposes Signup and view all the answers

What is a common factor contributing to political risks in host countries?

Changes in the host country's political structure Signup and view all the answers

What is the purpose of anti-dumping laws?

To prohibit below-cost sale of products Signup and view all the answers

How does urbanization impact marketing strategies?

High urbanization levels may make the population more receptive to marketing Signup and view all the answers

What does GDP PPP measure?

The purchasing power of a country's currency compared to another Signup and view all the answers

What do Points of Parity refer to in branding?

Common features that brands share with competitors Signup and view all the answers

Why is it challenging for new brands with innovative products to fit into an established frame?

Innovative products find it harder to match existing brand characteristics Signup and view all the answers

What is the key consideration for brand differentiation according to the text?

Creating unique brand experiences for customers Signup and view all the answers