Which of the following statements is true about the political risks in a global marketing environment?

Corporate sustainability starts with a company’s value system and a principles-based approach to doing business. This means operating in ways that, at a minimum, meet fundamental responsibilities in the areas of human rights, labour, environment and anti-corruption. Responsible businesses enact the same values and principles wherever they have a presence, and know that good practices in one area do not offset harm in another. By incorporating the Ten Principles of the UN Global Compact into strategies, policies and procedures, and establishing a culture of integrity, companies are not only upholding their basic responsibilities to people and planet, but also setting the stage for long-term success.

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Human Rights
Environment
Anti-Corruption
Which of the following are examples of political risk actions?
Which of the following are types of political risk?
Which of the following is a political risk that affects all businesses within a country?
What are the main types of political risks that are global in origin?

The Ten Principles of the United Nations Global Compact are derived from: the Universal Declaration of Human Rights, the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United Nations Convention Against Corruption.

Human Rights

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Labour

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Anti-Corruption

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

63) Country risk is considered similar to ________.A) political riskB) commercial riskC) currency riskD) cross-cultural riskAnswer:A

64) Rockwall Enterprises is planning to expand the firm by establishing operations outside of theU.S. In which of the following countries would Rockwall most likely be able to establishoperations most quickly?D

65) Which of the following statements is true about the political risks in a global marketingenvironment?C

66) An individual from a country with a high degree of political risk would most likely be from________.C

67) An individual from a country with a low degree of political risk would most likely be from________.A) VenezuelaB) CanadaC) ZimbabweD) IraqAnswer:B

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68) Guanxi, in the Chinese business context, means ________.C

69) Russia is in transition from ________.B

70) The Foreign Corrupt Practices Act forbids U.S. companies from bribing government officialsor political candidates in other nations.

71) Managers who take an active approach to political risk management are likely to rely onstatistical modeling to quantify the precise degree of political risk.

72) International companies often must customize products to comply with local standards ifthey are to do business in a particular country.

73) Expropriation is the term used to describe a host-country government seizing the assets of aforeign corporation and providing no compensation in return.

74) Managers who take an active approach to political risk management are likely to rely onstatistical modeling to quantify the precise degree of political risk.

Which of the following are examples of political risk actions?

These include taxes, spending, regulation, currency valuation, trade tariffs, labor laws such as the minimum wage, and environmental regulations.

Which of the following are types of political risk?

Types of political risk. There are many kinds of political risks which can affect business: potential political and economic instability, labour problems, local product safety and environmental laws.

Which of the following is a political risk that affects all businesses within a country?

Macro-political risk is a risk that inconveniences the perfect performance of businesses within a country. The government's actions that cause macro-political risks include a change in exchange and interest rates.