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Understanding Micropolitical Risk Events
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Understanding Micropolitical Risk Events

Created by
@WellEducatedDjinn

Questions and Answers

Micropolitical risk events are those that affect _____.

  • multiple industries and companies
  • one industry or company or a few companies (correct)
  • domestic industries or companies
  • several other nations in the same region

    • The Paris Union was established for the purpose of _____.

  • protecting patents (correct)
  • enforcing contract laws
  • reducing pollution
  • reducing trade barriers

    • In which of the following groups of trade blocs does most of today's world trade take place?

  • Western Europe, Asia, and the Americas (correct)
  • North America, Africa, and Canada
  • Saudi Arabia, Western Europe, and the Gulf
  • Middle East, China, and India

    • Which of the following is an example of a macropolitical risk event?

    <p>a terrorist attack</p> Signup and view all the answers

    Firms use e-business to help build new relationships between businesses and retailers.

    <p>False</p> Signup and view all the answers

    Under civil law, past court decisions act as precedents to the interpretation of the law and to common custom.

    <p>False</p> Signup and view all the answers

    Which type of country is most likely to use its investment laws to acquire appropriate technology?

    <p>less-developed country</p> Signup and view all the answers

    If a foreign-based firm borrows money from a host country bank as a hedge against being forced out of operation without adequate compensation, the firm is managing political risk with ________.

    <p>local debt financing</p> Signup and view all the answers

    Emerson is a global manufacturing company headquartered in St. Louis, Missouri. The company employs almost 130,000 workers at its 250 manufacturing facilities located on five different continents. Emerson manufactures a wide range of products including air-conditioning compressors, garbage disposers, and automotive parts. Emerson's Asian operations employ over 50,000 people at manufacturing facilities in Asia. Emerson needs to build a new manufacturing facility to produce automotive parts for cars manufactured in Detroit. Emerson executives are considering whether to build the new facility in China or in the United States. Which of the following, if true, undermines the argument to build a new Emerson facility in China?

    <p>Fuel costs in China have risen sharply and are not expected to drop.</p> Signup and view all the answers

    Which is the fourth largest trading bloc after the EU, NAFTA, and ASEAN and established in 1991?

    <p>MERCOSUR</p> Signup and view all the answers

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