Question : 71. (p. 180) Meteora Inc. planning to enter the African market through its : 1242246

71. (p. 180) Meteora Inc. is planning to enter the African market through its mobile phone manufacturing operations in Kenya. Which of the following could favor a positive relation with the host country? 
A. Meteora Inc. plans to use their manufacturing unit as an export base.
B. Meteora Inc. plans to import phone components from China.
C. Meteora has an R & D centre in California and all technology will be patented there.
D. Most of Meteora Inc.’s middle and upper management are expatriates.
E. Meteora has bargained for a tax holiday for the next five financial years.

72. (p. 180-181) All of the following would be considered to be strategies that multinational corporations can use to minimize vulnerability and risk EXCEPT: 
A. joint ventures.
B. sole-proprietorship.
C. expanding the investment base.
D. planned domestication.
E. licensing.

73. (p. 181) Juliet is concerned with the potential for political harassment when her company enters a new international market. To reduce the risk of political harassment she will consider using _____ to enter the market. 
A. importing
B. sole-proprietorships
C. multinational corporations
D. joint ventures
E. trade bloc memberships

74. (p. 181) Which of the following strategies minimizes political risks for the multinational corporation in situations in which the technology is unique and the risk is high? 
A. Joint ventures
B. Licensing
C. Expanding the investment base
D. Planned domestication
E. Multi-facilities

75. (p. 180-181) All of the following strategies can be effective in forestalling or minimizing the effect of a total takeover of a multinational corporation’s holdings by a foreign government EXCEPT: 
A. joint ventures.
B. licensing.
C. expanding the investment base.
D. advertising.
E. planned domestication.

76. (p. 181) The most effective solution to a situation where a foreign government is demanding local participation in a multinational corporation’s business activities in the host country is: 
A. joint ventures.
B. licensing.
C. expanding the investment base.
D. planned domestication.
E. political payoffs.

77. (p. 181) While expanding the investment base of a company, which of the following can be used as a powerful ally in dealing with threats of government takeovers or harassment? 
A. Lender banks to host government
B. World Trade Organization
C. International Labour Organization
D. Regional trade blocs
E. Opposing political parties

78. (p. 181) Which of the following is used by MNCs as a political bargaining tool with foreign publics and governments? 
A. Corporate social responsibility
B. Trade union negotiations
C. Political liaisons and tie-ups with other countries
D. Membership in trade blocs and international trade bodies
E. Planned domestication strategy

79. (p. 181) One approach to dealing with political vulnerability is the _____ an attempt to lessen political risks by paying those in power to intervene on behalf of the multinational company. 
A. subornation
B. protection money
C. political payoff
D. perjury
E. rake-off

80. (p. 182) Which of the following best describes the U.S. government’s policy toward multinational corporations that are confronted with situations where bribery is an issue? 
A. A bribe may be paid as long as it is not a domestic situation.
B. A bribe is justified is if is the documented traditional practice in a country.
C. A bribe may be paid in a foreign country if there is a tie to national security.
D. It is illegal for a U.S. citizen to pay a bribe–period.
E. The issue revolves around the customs of the country and each issue is decided separately.