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MultiNational Final Exam
Terms in this set (10)
Nationalization refers to _______________________.
The Government's takeover of a private corporation
A multinational corporation would be primarily exposed to ___________________ if its business model is divergent from the goals of the Government of the host country
Micro political risk
A multinational corporation seeking to do business in a foreign country for which it is unfamiliar with the foreign country's native language would be exposed to _______________.
If the host country's Central Bank decided to convert from a fixed exchange rate system to a floating exchange rate system, the conversion would primarily expose the multinational corporation to ________________.
Which of the following is the BEST example of Political risk?
The host country government's nationalist views
A multinational corporation's training of expatriates, who are employed in its foreign subsidiary, to better understand the dynamics of the host country environment, is seeking to manage its _______________________.
A multinational corporation with operations in a foreign country that has a high propensity for mudslides is exposed to ____________________.
A multinational corporation that is accustomed to operating Sundays through to Saturdays is seeking to open operations in Country X where it is prohibited to engage in commercial activity on weekends is exposed to _____________________
All the following exposes a multinational corporation to social risk EXCEPT Changes in interest rate. B. An untrained/unskilled labor market. C. A strong and active trade union movement. D. Minimum wage standards. E. Minimum working condition standards.
Changes in Interest Rates
Which of the following can be used to manage a multinational corporation's political risk exposure?
Purchasing political risk insurance
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