1. Government policies and regulations in host countries have a major effect on the operations of foreign companies. Which of the following does not reflect a typical regulation?

A. Obliging foreign companies to support operations of local companies by increasing vertical integration.

B. Implementing rules and policies that protect and prefer local companies over foreign firms.

C. Requiring prior approval of capital spending projects.

D. Establishing local content requirement on goods sold inside their borders by foreign companies.

E. Enacting deliberately burdensome customs procedures and requirements or imposing tariffs or quotas.

2. Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets are inaccurate?

A. Domestic companies under pressure from lower-cost imports are hurt even more when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made.

B. Fluctuating exchange rates pose significant risks to a company's competitiveness in foreign markets.

C. Exporters win when the currency of the country from which the goods are being exported grows weaker relative to the currencies of the countries that the goods are being exported to.

D. Exchange rate shifts can produce sometimes favorable and sometimes unfavorable effects on a company's competitiveness.

E. Domestic companies under pressure from lower-cost imports are benefited when their government's currency grows weaker in relation to the currencies of the countries where the imported goods are being made.

3. Which of the following is not among the hazards and difficulties associated with strategic alliances with foreign partners?

A. Dealing with diverse operating practices, conflicting objectives, and strategies.

B. Overcoming cultural and language barriers.

C. Getting alliance partners to reach decisions fast enough to stay abreast of rapid advances.

D. Capturing economies of scale in production and/or marketing.

E. Reaching mutual agreements to deal with key issues and resolve differences.