Question

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Answer 1

21. d. Political risk

Political risk is when the international company is affected due to political decisions and actions while operating in a foreign country.

22. a. is a cause of political risk

When the political risk is high, the foreign business cannot invest in the environment, then the process of nationalization takes place in which the government takes over the private industries with or without compensation.

23. d. all of the above   

Environmental scanning is done to monitor the internal and external environment. It informs about the weaknesses of the market which the business can take advantage of and plan strategies based on it. It gives information about the opportunities and threats in the external environment for the business.

24. d. all of the above

The cultures of different countries vary in many ways hence to keep good relations with the countries business people should have knowledge and information of the culture, have the knowledge of facts and figures regarding the country's data and be sensitive to accept the cultural differences.