Which of the following is an example of a dual use product?
A) a blowdryer
B) a GPS navigation device
C) a food processor
D) a vacuum cleaner
________ is a payment method commonly used when there is an ongoing relationship
between the involved parties.
A) Advance payment
B) Documentary collection
C) Letter of credit
D) Open account
Today, the Southern Common Market (MERCOSUR) acts as a(n) ________.
A) economic union
B) political union
C) customs union
D) preferential trading area
Scenario: ABC Software
ABC Software is a producer of educational software for children below the age of
twelve. The company has operations in Switzerland and would like to expand its
foreign operations with a new facility in China.
The forces of supply and demand determine currency prices.
A designated geographic region in which merchandise is allowed to pass with lower
customs duties and/or fewer custom procedures is called a(n) ________.
A) foreign trade zone
B) free trade area
C) single market
D) open border
Countries belonging to a ________ maintain whatever policies they see fit against
nonmember countries.
A) economic union
B) customs union
C) common market
D) free trade area
Which of the following is the greatest extent of regional economic integration?
A) free trade area
B) political union
C) common market
D) customs union
One of the major forces responsible for the rapid growth rate of the international capital
market is ________.
A) economic nationalism
B) information technology
C) currency control
D) extensive regulation
The European Union plan that established its own central bank and currency in January
1999 is known as the ________.
A) Single European Act
B) European monetary union
C) Copenhagen Criteria
D) Southern Common Market
Which of the following financial companies in the United States is involved in activities
of selling of goods abroad, and offers insurance on foreign accounts receivable?
A) National Cooperative Bank
B) Overseas Private Investment Corporation
C) Export-Import Bank
D) Inter-American Development Bank
A form of countertrade that usually typifies long-term relationships between the
companies involved is called ________.
A) barter
B) franchising
C) offset
D) buyback
In a ________ government, the strongest political parties share power by dividing
government responsibilities among themselves.
A) coalition
B) bilateral
C) totalitarian
D) theocratic
The value of a currency expressed in terms of gold is called its ________.
A) book value
B) net asset value
C) par value
D) carrying value
Scenario: Beanstalk International
Beanstalk International is a rapidly growing company with well-established subsidiaries
in several nations. The company wants to follow a strategy of adapting its products and
marketing activities in each national market to suit local preferences. This strategy aims
at creating value for its customers.
Beanstalk managers know that the drawback of such an adaptive strategy is that it
________.
A) does not allow companies to exploit scale economies in product development,
manufacturing, and marketing
B) can cause a company to overlook important differences in buyer preferences across
various markets
C) is applicable only to industries in which price-competitiveness is a key success
factor
D) does not allow a company to modify its products except for the most superficial
features
When developing a market-potential indicator for an emerging market, market intensity
is typically estimated from the ________.
A) per capita private consumption
B) GDP
C) total population
D) percentage of a market’s population in the middle class
The physical path a product follows on its way to customers is called a(n) ________.
A) distribution channel
B) demand chain
C) critical path
D) external value network
An important advantage of polycentric staffing is that it ________.
A) re-creates local operations in the image of home-country operations
B) eliminates the high cost of relocating expatriate managers and their families
C) helps a company develop global managers who can adjust easily to any business
environment
D) employs managers from home who will look out for the company’s interests
Horizon Ltd. is a software company that, over the last year, incorporated social
responsibility into its core operations to create value and build competitive advantage.
Which layer of corporate social responsibility does Horizon Ltd. function at?
A) risk management
B) traditional philanthropy
C) strategic CSR
D) political CSR
The purchase or sale of a currency with the expectation that its value will change and
generate a profit is called ________.
A) currency hedging
B) currency arbitrage
C) currency speculation
D) currency conversion
Which of the following created a new international monetary system based on the value
of the U.S. dollar?
A) Plaza Accord
B) Bretton Woods Agreement
C) Louvre Accord
D) Jamaica Agreement