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a key benefit resulting from the adoption of the euro is the ability to compare prices
across member markets.
firms pursuing a global standardization strategy must cope with a higher level of
performance ambiguity, and this raises their costs of control.
personal control is a type of control that tends to be most widely used in large firms.
one issue at the forefront of the current agenda of the wto is the increase in tariff rates
on nonagricultural goods and services in many nations.
the term switch trading refers to the use of a specialized third-party trading house in a
countertrade arrangement.
An effective business strategy to reduce economic exposure is to contract out high
value-added manufacturing.
violation of property rights done through legal mechanisms such as levying excessive
taxation and requiring expensive licenses or permits from property holders is called
_______.
a.private action
b.collective action
c.public action
d.copyright violation
international businesses use foreign exchange markets for all of the following reasons
except:
a.to receive payments from foreign investments that may be in foreign currencies
b.to pay a foreign company for its products or services in its countrys currency
c.to invest for short terms in money markets when they have spare cash
d.to cover themselves from all risks involved in currency speculation
which of the following is a problem that arises due to an international division
structure?
a.in an international division structure, a firms international division tends to be
organized on products
b.the heads of domestic functions are presumed to be able to represent the interests of
all countries to headquarters
c.the heads of foreign subsidiaries are not given as much voice in the organization as
the heads of domestic functions or divisions
d.the dual-hierarchy structure can lead to conflict and perpetual power struggles
between the areas and the product divisions
when bonds are retired before maturity,
a.only a loss on redemption can be recorded
b.only a gain on redemption can be recorded
c.either a gain or a loss on redemption can be recorded
d.neither a gain nor a loss on redemption can be recorded
many states in asia, latin america, and western europe have shifted away from a mixed
economy to a market-based economy. which of the following measures is most likely to
be promoted by such states?
a.state-ownership of enterprises
b.fixing of prices by the government
c.deregulation of the economy
d.lowering competition
banks offer higher interest rates on eurocurrency deposits than on deposits made in the
home currency because eurocurrency deposits ____.
a.are funded by the european union
b.lack government regulations
c.are associated with low risk
d.have minimum foreign exchange risk
if the market interest rate for a bond is higher than the stated interest rate, the bond will
sell at:
a.a premium
b.a discount
c.par
d.both a and b correct
managing an alliance successfully requires building interpersonal relationships between
the firms managers. this is sometimes referred to as ____.
a.relational capital
b.relational assets
c.operational assets
d.venture capital
paralleling the spread of democracy, since the 1980s there has been the transformation
from:
a.free-market economies to socialist economies
b.mixed economies to collectivist economies
c.open economies to closed economies
d.command economies to market-based economies
economic problems during the great depression were compounded in 1930 when the
u.s. congress passed the ____, aimed at avoiding rising unemployment by protecting
domestic industries and diverting consumer demand away from foreign products.
a.smoot-hawley act
b.antidumping act
c.helms-burton act
d.damato act
the way a product is delivered is determined by:
a.the firms entry strategy
b.the firms product positioning
c.the target market
d.the market segments
a measure of a companys solvency is the
a.acid-test ratio
b.current ratio
c.times interest earned ratio
d.asset turnover ratio
