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90. In economic terms, the long-run monetary benefits of doing business in a country are most likely to be a
function of the:
91. Capricorn Creative Inc., a U.S.-based advertising firm, was the first in the advertising industry to identify
the growth potential of Brazil and to make huge investments in its economy. As a result, the firm was able to
build brand loyalty and gain experience in that country's business practices. In the language of business
strategy, Capricorn Creative has typically benefited from:
92. Which of the following best exemplifies a first-mover advantage?
93. When Galaxy Ventures, a real estate company, entered the low cost housing business, the market was
already saturated with other players. Thus, the company was forced to exit the market due to lack of customer
loyalty and substantial dividends. Which of the following is a term used to described the situation faced by the
company?
94. Both China and India have achieved high growth rates despite relatively weak property rights regimes and
high levels of corruption, because of:
95. Which of the following statements is most likely to be true about the economic prospects of a country?
96. The cost of doing business is most likely to be the lowest in:
97. Star Volans Inc. is planning on expanding its business globally. In terms of the costs involved in conducting
business in a country, it will be most economical for the company if it chooses a country:
98. In the context of cost, which of the following can be considered as the most attractive market or investment
site?
99. When social unrest and disorder in a country causes drastic changes in its business environment that
adversely affect the profit and other goals of a business enterprise, the business enterprise is said to be facing
which of the following type of risk?
100. Which of the following factors in a country is most likely to cause political risk for an international
business?
101. Lamboria Republic is facing a high rate of inflation, and the government debt in the country is also high.
As a result, the country's business environment is beginning to deteriorate, and the profits of the business
enterprises are hurt. According to this information, Lamboria Republic is facing which of the following type of
risk?
102. Which of the following statements is most likely to be true about the risks of doing business in a country?
103. The government of Ugania had been extending huge amounts of loans to the business enterprises in the
country. However, the borrowers failed to generate the profits necessary to repay their debts. As a result,
national banks in Ugania had a lot of nonperforming assets on their books, and the Uganian currency was
devalued. In this context, the business enterprises in Ugania are most likely to face which of the following type
of risk?
104. What type of risk can be defined as the likelihood that a trading partner will opportunistically break a
contract or expropriate property rights?
105. MedPlus Incorporated, based in the United States, hesitates to enter into a joint venture with Azpak
Limited, a Sri Lankan company, due to inadequate protection of intellectual property rights. MedPlus is trying
to avoid what type of risk?
106. The risks of doing business are most likely to be the highest in a country that:
107. Generally, the costs and risks associated with doing business in a foreign country are typically lower in:
108. Which of the following is most likely to be true about the overall attractiveness of a country as a potential
market or investment site for an international business?
109. The government of Nerumbia wants to open the country's economy to international business, and increase
its overall attractiveness as a potential market or investment site. Which of the following will facilitate this
decision of the Nerumbian government?
110. Describe Amartya Sen's conceptions of development.
111. List the three measures on which the Human Development Index (HDI) is based.
112. Why are market economies more conducive to innovation and entrepreneurship than planned or mixed
economies?
113. Discuss Jeffrey Sachs's conception of geography, education, and economic development.
114. What changes have occurred in the political economy of most of the world's nation-states since the late
1980s?
115. What are the various reasons that account for the spread of democracy?
116. How does Author Francis Fukuyama's vision of the new world differ from that of the late influential
political scientist Samuel Huntington?
117. Discuss Samuel Huntington's idea of the new world order. What are its implications for international
business?
118. Discuss the concept of deregulation.
119. When does the process of privatization fail to deliver predicted benefits? What economic conditions are
required for privatization to work?
120. Discuss the significance of legal systems in the context of shifting toward a market-based economic
system.
121. What are the implications of changing political economy for international business?
122. What are the various types of risks that a business enterprise could face in doing business in a particular
country?
123. Gamma Gene Incorporated has sought your opinion about the overall attractiveness of various countries as
potential markets and investment sites. What would you tell them?
