core competencies enable a firm to reduce the costs of value creation and/or to create
perceived value in such a way that premium pricing is possible.
an organizational culture can be strong but bad.
heckscher-ohlin theory stresses that comparative advantage arises from differences in
productivity.
the simple comparative advantage model assumed that trade does not change a countrys
stock of resources or the efficiency with which it utilizes those resources.
a currency swap deal enables companies to insure themselves against foreign exchange
risk.
for a product development team to function effectively and meet all its development
milestones, the team should be composed of at least one member from each key
function.
if a retailer sells goods for a total price of $200, which includes a 5% sales tax, the
amount of the sales tax is $9.52.
a company that depends on mass media advertising to communicate its marketing
message to potential consumers is using a push strategy.
a key goal of the 1986 uruguay round was to extend gatt to cover trade in commodities.
Currencies of countries with currency boards will become uncompetitive and
overvalued if local inflation rates are lower than the inflation rate in the country to
which the currency is pegged.
make-or-buy decisions are decisions that concern the components to be used in a
production process.
governments normally are concerned when their country is running a surplus on the
current account of their balance of payments.
A country that introduces a currency board commits itself to converting its domestic
currency on demand into ____.
A.another currency at a fixed exchange rate
B.gold or silver at a fixed exchange rate
C.gold or silver at a floating exchange rate
D.another currency at a floating exchange rate
a major difference between buddhism and hinduism is that unlike hinduism, buddhism:
a.does not support the cast system.
b.emphasizes wealth creation.
c.promotes blind loyalty to employers.
d.supports extreme ascetic behavior.
google launched google plus to gain a foothold in the social media market. however,
given that there are numerous social networking platforms and facebook is already a
leader in social media, google plus found it challenging to generate brand loyalty and
establish itself in the market. this was because of ____.
a.incumbent disadvantage
b.disintermediation disadvantage
c.late-mover disadvantage
d.horizontal integration disadvantage
which of the following is true of fixed-rate bonds?
a.returns from fixed-rate bonds are dependent on the profitability of the issuing
company
b.investors get back the face value of the bond at maturity of fixed-rate bonds
c.fixed-rate bonds issue cash payoffs only at maturity of fixed-rate bonds
d.investors get a share of the companys profit when using fixed-rate bonds
which of the following statements is true of export credit insurance?
a.exporter will require more insurance if a letter of credit is used in transactions
b.the fcia provides coverage against commercial risks and political risks
c.private associations cannot offer export insurance in the united states
d.organizations do not receive coverage against political risks of global trade
tariffs do not benefit:
a.consumers
b.domestic producers
c.governments
d.domestic firms
regardless of a firms domestic structure, its international division tends to be organized
on:
a.product
b.geography
c.people
d.economy
winrow company received proceeds of $377,000 on 10-year, 8% bonds issued on
january 1, 2011. the bonds had a face value of $400,000, pay interest annually on
december 31st, and have a call price of 101. winrow uses the straight-line method of
amortization. winrow company decided to redeem the bonds on january 1, 2013. what
amount of gain or loss would winrow report on its 2012 income statement?
a.$18,400 gain
b.$22,400 gain
c.$22,400 loss
d.$18,400 loss
in 1997, two south korean manufacturers of semiconductors, lg semicon and hyundai
electronics, were accused of selling dynamic random access memory chips (drams) in
the u.s. market at below their costs of production. it was alleged that the firms were
trying to unload their excess production in the united states. this is an example of:
a.ad valorem tariff
b.subsidy
c.dumping
d.import quota
the 2012 financial statements of harper co. contain the following selected data (in
millions).
the debt to total assets ratio is
a.53.1%
b.44.4%
c.1.88%
d.6.2 times
_____ exchange rates were declared as acceptable in the Jamaica agreement of IMF.
A.Pegged
B.Fixed
C.Floating
D.Gold standard
_____ is essentially the service-industry version of licensing, although it normally
involves much longer term commitments.
a.franchising
b.subsidizing
c.greenfield investment
d.patenting
the finance minister of a country considers several large, state-owned iron
manufacturing units to be inefficient and a source of corruption. to generate resources
for public expenditure and promote economic growth, the government decides to
auction an entire iron manufacturing plant to sell it to a strategic investor. this process
exemplifies ____.
a.nationalization
b.industrialization
c.liberalization
d.privatization
in which of the following situations does the internalization theory recommend fdi as
opposed to licensing?
a.when the firm has know-how that can be adequately protected by a licensing contract
b.when the firm produces products that have a low value-to-weight ratio
c.when a firms skills and know-how are amenable to licensing
d.when the firm needs tight control over a foreign entity
identify the theory that supports the view that in some cases countries export for the
reason that the world market can support only a limited number of firms.
a.heckscher-ohlin theory
b.smiths theory
c.ricardos theory
d.new trade theory
design and names by which merchants or manufacturers designate and differentiate
their products are known as ____.
a.trademarks
b.copyrights
c.patents
d.licenses
a production process would create just 1 defect per six thousand products at six sigma.
what is the difference between profitability and profit growth?
what is the main principle of mercantilism?
Present the common arguments that favor fixed exchange rates.
what are the three dimensions of organizational structure?
why are tariff rates on agricultural products generally higher than tariff rates on
manufactured products or services?
what is licensing? how does it work?