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?

<p>To protect domestic markets from foreign intrusion (B)</p> Signup and view all the answers

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

<p>When attempting to bribe a foreign official for business purposes (C)</p> Signup and view all the answers

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

<p>Changes in the host country's political structure (C)</p> Signup and view all the answers

What is the purpose of anti-dumping laws?

<p>To prohibit below-cost sale of products (A)</p> Signup and view all the answers

How does urbanization impact marketing strategies?

<p>High urbanization levels may make the population more receptive to marketing (B)</p> Signup and view all the answers

What does GDP PPP measure?

<p>The purchasing power of a country's currency compared to another (B)</p> Signup and view all the answers

What do Points of Parity refer to in branding?

<p>Common features that brands share with competitors (D)</p> Signup and view all the answers

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

<p>Innovative products find it harder to match existing brand characteristics (C)</p> Signup and view all the answers

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

<p>Creating unique brand experiences for customers (D)</p> Signup and view all the answers

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