support activities are always less important than the primary activities in achieving a
competitive advantage.
according to rawls, inequalities are unjust even if the system that produces inequalities
is to the advantage of everyone.
aristotle argued that individual diversity and private ownership are undesirable.
A country is said to be in balance-of-trade equilibrium when it produces all the goods
needed for domestic consumption.
business firms that lobby their governments to engage in protectionism have an
opportunity to build a competitive advantage by constructing a globally disperse
production system.
A country that introduces a currency board commits itself to converting its domestic
currency on demand into another currency at a fixed exchange rate.
import agents are typically limited to independent trading houses.
jewish law is the most widely practiced theocratic legal system in the world today.
if the market rate of interest at the date of issuance of a bond is greater than the stated
interest rate, the bond will be issued at a premium.
straw men approaches to business ethics offer appropriate guidelines for ethical
decision making in a multinational enterprise.
which of the following statements is true of eurocurrency?
a.eurocurrency market is a relatively high-cost source of funds
b.it is produced and banked within european countries
c.eurocurrency can be created anywhere in the world
d.it is used only for internal transactions within european union
which of the following balance-of-payment accounts records one-time changes in the
stock of assets?
a.capital account
b.current account
c.financial account
d.monetary account
whitmore corporation issues a £1,200,000, 10%, 10-year mortgage on december 31,
2011. the terms call for semi-annual installment payments of £96,290.the entry to
record the first installment payment will include
a.a debit to interest payment of £96,290
b.a debit to mortgage notes payable of £23,710
c.a debit to interest expense of £120,000
d.a credit to cash of £96,290
what is the term for a company’s formal statement of the ethical priorities it expects all
of its employees to follow?
a.code of ethics
b.stakeholders pledge
c.moral courage
d.difference principle
which of the following best describes an industry composed of a limited number of
large firms?
a.an oligopoly
b.a monopoly
c.an oligarchy
d.a perfectly competitive market
which of the following is the reason why most economists prefer heckscher-ohlin
theory to ricardo’s theory?
a.heckscher-ohlin stresses on the differences in productivity between nations
b.ricardo’s theory considers factor endowments to describe national competitiveness
c.heckscher-ohlin theory makes fewer simplifying assumptions
d.ricardo’s theory considers the law of marginal returns
Firms use fronting loans to _____.
A.avoid host-country restrictions on the remittance of funds from a foreign subsidiary
B.implement a cost-based and fair pricing policy across an international business
C.increase the profit center revenue of a subsidiary functioning in another country
D.implement a market-driven and fair pricing policy across an international business
wittebury corporation retires its £5,000,000 face value bonds at 105 on january 1,
following the payment of annual interest. the carrying value of the bonds at the
redemption date is $5,187,250. the entry to record the redemption will include
a.a credit of £62,750 to gain on bond redemption
b.a debit of £62,750 to loss on bond redemption
c.a credit of £25,000 to bonds payable
d.a credit of £62,250 to bonds payable
according to the _____ view of fdi, mnes extract profits from the host country and take
them to their home country, giving nothing of value to the host country in exchange.
a.imperialist
b.conservative
c.free market
d.radical
local content regulations:
a.protect domestic producers by limiting foreign competition
b.lower the prices of imported components
c.tend to benefit consumers and not producers
d.encourage outsourcing of production units
Part of the benefit that a parent company receives by receiving payment through
royalties can be lost if the subsidiary’s _____.
A.combined tax rate is higher than the parent’s
B.local government views royalties as an expense
C.local tax rates on profits are extremely high
D.managers are controlled directly by the parent
warner company issued $1,600,000 of 6%, 10-year bonds on one of its interest dates for
$1,381,920 to yield an effective annual rate of 8%. the effective-interest method of
amortization is to be used. the journal entry to be recorded at the end of the second year
for the payment of interest and the amortization of discount will include a
a.debit to bond interest expense for $96,000
b.credit to cash for $111,718
c.credit to discount on bonds payable for $14,554
d.credit to discount on bonds payable for $15,718
the term _____ has been coined to describe the ability of companies to use flexible
manufacturing technology to reconcile the goals of low cost and product
personalization.
a.assembly-line production
b.product standardization
c.mass customization
d.six sigma production
a country rejects fdi proposals in certain industries. it does so because the tangible
advantages of such investments are lesser than potential costs like loss of employment
and reduction of overall well-being. however, it aggressively pursues inviting foreign
investments in sectors like infrastructure, education, and healthcare because of the
benefits that accrue with them. which political view of fdi is discussed in this example?
a.the pure market view
b.the free market view
c.the radical view
d.the pragmatic nationalist view
thayer company purchased a building on january 2 by signing a long-term $4,200,000
mortgage with monthly payments of $38,500. the mortgage carries an interest rate of 10
percent. the entry to record the mortgage will include a
a.debit to the cash account for $4,200,000
b.credit to the cash account for $4,200,000
c.debit to the mortgage payable account for $4,200,000
d.credit to the mortgage payable account for $4,200,000
the sale of state assets through an auction is most likely to lead to ____.
a.trade certification
b.privatization
c.nationalization
d.market regulation
explain why a well-functioning market economy requires strong legal systems?
How can international companies reduce their economic exposure in a world of
constantly fluctuating exchange rates?
what is the political case for integration? how did political arguments influence the
establishment of the european union?
explain how switch trading works.
discuss the advantages of using a joint venture to enter foreign markets.