1. Expropriation of corporate assets without prompt and adequate compensation is an
example of _____.
a. economic risk
b. political risk
c. legal risk
d. cultural risk
2. What is political risk? Give an example of how political risk can
affect a MNC.
3. The planning phase of the strategic process consists of all of the following except _____.
a. clarifying mission
b. establishing an organizational structure
c. assessing the external environment
d. performing a SWOT analysis
4. Dell, with its worldwide sourcing and fully integrated production and marketing system is
considered to be_________________.
a. a multidomestic company
b. a regional company
c. a fully local company
d. a globally integrated company
5. When France’s Thomson combined with China’s TCL to form TCL-Thomson
electronics with Thomson owning 33% and TCL owning the remaining 67% of the
combined company, _____ was formed.
a. a non-equity strategic alliance
b. a manufacturing alliance
c. a global alliance
d. an equity strategic alliance
6. Which of the following is a stage in Stopford’s stages model?
a. a. domestic structure plus export department
b. domestic structure plus foreign subsidiary
c. international division
d. all of the above (moderate, page 266)
7. To ensure that expatriates do not lose out through their overseas assignment, the
_____ approach is often used to equalize the standard of living between the host
country and the home country and to add some compensation for inconvenience or
qualitative loss.
a. income statement
b. balance sheet
c. cafeteria
d. revenue generation