International Marketing 18Th Edition By Philip Cateora – Test Bank

International Marketing 18Th Edition By Philip Cateora – Test Bank

International Marketing, 18e (Cateora)
Chapter 6 The Political Environment: A Critical Concern

1) Sovereignty is exclusive to the supreme powers exercised by a nation over its own members.

2) Sovereignty may be threatened by foreign investment.

3) Adherence to the World Trade Organization (WTO) does not result in the loss of national sovereignty.

4) Foreign businesses no longer need to be concerned about the stability or instability of prevailing government policies.

5) Pressure from nationalist and self-interest groups affect the stability of a government.

6) Saudi Arabia began permitting women to vote in 2015.

7) Nationalism supports foreign business because it improves local economies.

8) Nationalistic feelings in general bear no relation to the domestic economy.

9) Property may legally be seized by the government with or without compensation.

10) The most severe political risk of global business is the government action of domestication.

11) The ultimate goal of domestication is to require companies to produce more products to export than was the case before domestication.

12) Through expropriation and nationalization, nationalized businesses have become more efficient, technologically strong, and competitive in world markets.