51. (p. 168) Which of the following is true regarding confiscation, expropriation, and domestication?
A. The ultimate goal of domestication is to force domestic investors to share more of the profits with the government.
B. Risks of confiscation and expropriation appear to have increased over the last two decades.
C. Expropriation and nationalization have led to technologically advanced and competitive businesses.
D. Nowadays, companies have to become domesticated as a condition for investment.
E. Nowadays, confiscation is viewed as a means of economic growth.
52. (p. 168) All of the following are considered to be economic risks that can be faced by international companies EXCEPT:
A. exchange controls.
B. local-content laws.
C. import restrictions.
D. tax controls.
E. production costs.
53. (p. 168-169) If there is a substantial amount of capital leaving the country, which of the following is the country likely to implement to control the situation?
A. Exchange controls
B. Local-content laws
C. Import restrictions
D. Tax controls
E. Price controls
54. (p. 169) In Thailand, it is required that any milk sold in the country must contain at least 50 percent milk from Thai dairy farmers. This would be an illustration of which of the following economic risks faced by international producers of milk?
A. Exchange controls
B. Local-content laws
C. Import restrictions
D. Tax controls
E. Price controls
55. (p. 169) When Toyota Motor Company built automobile manufacturing plants in Tennessee and Ohio, it faced economic risks associated with ___. This occurred because the United States required that 50 percent of all parts used in an automobile constructed in the United States must contain parts that were manufactured in the United States. The United States wanted to promote it “Buy American” policy.
A. exchange controls
B. local-content laws
C. import restrictions
D. tax controls
E. price controls
56. (p. 169) Since the government of Nigeria is strapped for cash, it has decided to tax all foreign investments (such as oil production equipment) by up to forty percent of appraised value. The Nigerian government has found that this is the handiest and quickest means of finding operating funds. The economic risk in discussion here is:
A. exchange controls.
B. local-content laws.
C. import restrictions.
D. tax controls.
E. price controls.
57. (p. 169) Price controls are used during inflationary periods to:
A. control the cost of living.
B. restrict exports to foreign countries.
C. negotiate trade contracts favoring the host country.
D. encourage imports.
E. avoid tax burden on essential items.
58. (p. 169) In North Korea there is little foreign investment. One of the reasons is the severe application of ___. Any foreign investor or producer is required to sell its products at prices stated by the North Korean government rather than letting market value and demand determine prices.
A. exchange controls
B. local-content laws
C. import restrictions
D. tax controls
E. price controls
59. (p. 169) Which of the following is more likely to be subjected to price control?
A. Leather garments
B. Mobile phone accessories
C. Aspirin and antacids
D. Handycams and lenses
E. Ceramic tiles
60. (p. 170) Stopping or refusing to trade with another nation for political reasons is called:
A. activism.
B. boycotting.
C. confiscation.
D. democratization.
E. expropriation.
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