Quiz

Test yourself by working through the chapter quiz.

1. According to the OECD Convention on Bribery and Corruption it also does not matter whether the host country is tolerant of corrupt business practices. It is still an offence. True/False?

  1. True
  2. False

Answer:

a. True

2. The seizure of foreign assets by a government with payment of compensation to owners is called:

  1. Expatriation.
  2. Appropriation.
  3. Expropriation.
  4. Exhausting resources
  5. Confiscation

Answer:

c. Expropriation.

3. Which (if any) is a potential effect of bribery and corruption?

  1. Bribery and corruption may lead to other morality problems
  2. Bribery and corruption can reduce foreign direct investment flows to those countries viewed as corrupt
  3. Bribery and corruption may force companies to alter how they enter foreign markets e.g. making it necessary to have a local partner
  4. All of the above
  5. None of the above

Answer:

d. All of the above

4. The CEO of Rio Tinto, a global mining company, was interested in opening a mine in Northern Bolivia. He knew that the country was politically unstable but he was most worried about being able to repatriate profits earned back to the firm’s home country. Which sub-index of the Profit Opportunity Recommendation index (POR) would be most helpful to this CEO’s decision?        

  1. The Political Risk Index
  2. The R Factor
  3. The Operations Risk Index
  4. None of the above

Answer:

b. The R Factor

5. Business in Muslim countries is conducted under______________  law

  1. Shari’ah
  2. Common
  3. Code
  4. Antitrust

Answer:

a. Shari’ah