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Worksheets

Macro and Micro Foreign Risk

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

If China restricts foreign trade transactions it is

a)

Macro risk

b)

Micro risk

2.

If India restricts foreign investment in the textile industry it is an example of

a)

Macro risk

b)

Micro Risk

3.

You can protect your company from some risks through

a)

insurance

b)

good legal advisors

c)

hedging ( e.g. buy stocks that will rise when yours fall)

d)

all the above

4.

In Vietnam a MNC must find a Vietnamese partner before it can do business. That is

a)

Macro risk

b)

Micro risk

5.

If no company can get any government approvals done without bribing officials, it is a macro risk

a)

True

b)

False

6.

According to the corruption index in Chapter 10, Denmark is the most corrupt country in the world

a)

True

b)

False

7.

The EU’s denied Volvo and Scania an approval to merge. That is an example of

a)

Macro risk

b)

Micro risk

8.

Microsoft was recently fined by the EU, for US$731 million, for ignoring previous promises and failing to give customers a choice of web browser. That is

a)

Macro risk

b)

Micro risk

9.

If you do business in Afghanistan, you should know that there could be

a)

terrorism acts

b)

macro risks

c)

political instability

d)

All the above

10.

In communist countries you could face the risk of

a)

expropriation

b)

government control of price

c)

many restricting regulations

d)

all the above