Chapter 7 Government Intervention in International Business
1. Governments intervene in international trade and investments in order to protect the interests
of foreign investment firms.
(False; p. 194; concept
Chapter 8 Regional Economic Integration
REGIONAL INTEGRATION AND ECONOMIC BLOCS
1. National economic integration refers to the economic interdependence experienced by
closely associated countries that have formed an alliance.
Chapter 10 The International Monetary and Financial Environment
CURRENCIES AND EXCHANGE RATES IN INTERNATIONAL BUSINESS
1. Companies have a tendency to prefer handling international business transactions with their
own currency rather
Chapter 5: RM framework and process
Components of a RM framework?
o There are 4:
1. Lead and Establish Accountability
2. Align and Integrate
3. Allocate resources
4. Communicate and report
Components of the RM process?
o There are 5:
October 10, 2013
PROJECT 1 - Classifying Risks
Classifying the various types of risk can help an organization understand and manage its risks. In this
first project, your task is to classify the risks shown in ITEM 1A of HAVERTYS 2012 annual repo
Chapter 9 Understanding Emerging Markets
THE DISTINCTION BETWEEN ADVANCED ECONOMIES, DEVELOPING
ECONOMIES, AND EMERGING MARKETS
1. An economy is categorized as advanced, developing, or emerging based on per capita income
and level of
Chapter 6 Political and Legal Systems in National Environments
WHAT IS COUNTRY RISK?
1. Corporate managers must adhere to the laws of the country in which they do business.
(True; p. 160; concept; Learning Objective 1; easy)
2. Hong K
Sofitel Tower Karachi (Accor Hotels)
Accors new venture of business started in Pakistan with the introduction of its luxury
hotel brand Sofitel in Pakistan. Sought to build a sofitel hotel in Karachi, its first project
in the country. Pakistan has been a
Exam #2 Review
I. Objective Questions
1. As a director of a public company, you owe a duty of:
a. Undivided time.
b. Guaranteed profitability.
c. Undivided loyalty.
d. Good decisions, regardless of the process used.
2. As a market force to help a
RMI 4300 Net Income Loss Notes
Types of Risk leading to Net Income Loss
1. Primary business risks
a. price risk
b. production risk
2. General business risk
a. economic decline
b. change in consumer demand
c. change in technology
RMI 4300- Assessing Personnel Loss Exposures
Personnel Exposed to Loss
B. Owners, Officers, and Managers
C. Groups of Employees
Causes of Loss
Mortality rates death rates per 1,000 persons
Assessing Property Loss Exposures
Property Exposed to Loss
Unimproved land land in its natural state
Buildings and other structures
RMI 4300- Cash Flow Notes
Importance of Net Cash Flows
II. Time Value of Money
A. Present Value
1. Opportunity Cost
2. Cost of Capital
Present Value Calculations
Role of Corporate Governance
Separation of Ownership and Control
1. Agency Costs
a. monitoring costs
b. bonding costs
c. incentive alignment costs
2. Mechanisms used to align management and
B. Value Maximization and S
Exam #1 Review
The inability of an insurer to pay a valid claim is an example of a(n) _ risk to the claimant.
2. The post-loss goals of a risk management
Exam 1 Study Guide
Compare the following classes of business risks:
a. Hazard risks.
b. Operational risks.
c. Financial risks.
d. Strategic risks.
What are the elements of the cost of risk?
Compare the pre-loss goals to the post-loss goals of ris
Study Guide Exam 2
1. Discuss the following common law duties of directors:
2. What can corporations do to better align the interest of management with that of the
3. Compare business risk to
Introduction to Risk Management
Upon completion of this assignment you should be able to:
Describe the nature of risk and risk management
Discuss the benefits and costs of risk management to (a) a business organization and (b)
RMI 4300-Assessing Management Liablity
Directors and Officers Liability
The Corporation and the Role of Directors and Officers (D&O)
Types of Lawsuits Made Against D&Os