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exporting is advantageous because it avoids the cost of establishing manufacturing
operations in the host country and because it may help a firm achieve experience curve
and location economies.
for transnational enterprises to be successful, they must focus on leveraging the skills
found at their subsidiaries around the world.
Pooling the cash of all the subsidiaries reduces the earning potential for firms.
the more fragmented the retail system, the more expensive it is for a firm to make
contact with each individual retailer.
investors who purchase a fixed-rate bond receive cash payoffs only at maturity.
which of the following is a reason why turkey is not yet a member of the eu?
a.because only about 10 percent of turkeys international trade is with the eu
b.because of concerns over human rights issues in the country
c.because the country has yet to form a customs union with the eu
d.because of turkeys weak economy
_____ is an alternative means of structuring an international sale when conventional
means of payment are difficult, costly, or nonexistent.
a.floating exchange system
b.countertrade
c.letter of credit trade
d.fixed exchange system
when the receiver of a message evaluates a message based on the status or image of the
sender, ____ are said to have occurred.
a.sender effects
b.noise effects
c.source effects
d.communication effects
norlan company does not ring up sales taxes separately on the cash register. total
receipts for october amounted to $14,700. if the sales tax rate is 5%, what amount must
be remitted to the state for octobers sales taxes?
a.$700
b.$735
c.$35
d.it cannot be determined
the benefits of doing business in a country are a function of all of the following except:
a.the size of the market
b.its present wealth
c.its past growth
d.its future growth prospects
which of the following is true regarding approaches to labor relations?
a.international businesses use mostly similar approaches to international labor relations
b.the trend is toward greater decentralized control of international labor relations
c.historically, most international businesses have centralized the labor relations function
d.many firms are now using the threat to move production to another country in their
negotiations with unions
a common law system is different from a civil law system because:
a.a common law system is based on religious teachings, while a civil law system is
based on cultural traditions
b.a common law system is very rigid, while a civil law system tends to be more flexible
c.in a common law system a judge relies on legal codes to make rulings, while in a civil
law system a judge relies on his intuition and moral reasoning to make judgments
d.in a common law system a judge has the power to interpret the law, while in a civil
law system a judge has the power only to apply the law
The G20 was originally established to ____.
A.preserve peace through international cooperation and collective security
B.maintain order in the international monetary system
C.formulate a coordinated policy response to financial crises in developing nations
D.manage, regulate, and police the global marketplace
a currency is said to be freely convertible when:
a.its exchange rate with respect to other currencies is decided by the central bank of the
country
b.residents alone are allowed to convert it into a foreign currency without any
limitations
c.neither residents nor nonresidents are allowed to convert it into a foreign currency
d.both residents and nonresidents are allowed to purchase unlimited amounts of a
foreign currency with it
which of the following is a desired outcome of flexible manufacturing technology?
a.minimizing the utilization of individual machines
b.reducing setup times for complex equipments
c.standardizing the output of a system
d.implementing specialized equipments in production
_____ arises when two or more enterprises encounter each other in different regional
markets, national markets, or industries.
a.horizontal integration
b.multipoint competition
c.an oligopoly
d.vertical integration
which of the following is a common difficulty that traders face when exporting goods or
services to other countries?
a.small firms tend to be more aggressive than larger firms in global trade
b.governments do not provide much assistance to exporters
c.growth opportunities are often limited in global markets
d.exporters often face voluminous paperwork and complex formalities
By pooling cash resources centrally firms can _____.
A.better handle short-term cash needs of subsidiaries
B.increase liquidity of independent subsidiaries
C.reduce the total size of the cash pool it must hold
D.avoid government-imposed restrictions on capital flows
By pooling its cash reserves, the firm can reduce the total size of the cash pool it must
hold in highly liquid accounts, which enables the firm to invest a larger amount of cash
reserves in longer-term, less liquid financial instruments that earn a higher interest rate.
The monetary autonomy argument holds that ____.
A.each country should be allowed to choose its own inflation rate
B.inflation is beneficial to a countrys economy and growth
C.inflation is detrimental to a countrys economy and growth
D.countries should restrict inflation based on the global standards
in providing accounting services to small business, you encounter the following
situations pertaining to cash sales.
(1)kushner company rings up sales and sales taxes separately on its cash register. on
april 10 the register totals are sales $30,000 and sales taxes $2,100.
(2)grant company does not segregate sales and sales taxes. its register total for april 15
is $19,080, which includes a 6% sales tax.
instructions
prepare the entries to record the sales transactions and related taxes for (a) company and
(b) grant company.
the extent to which the income from individual transactions is affected by fluctuations
in foreign exchange values is known as:
a.economic exposure
b.financial exposure
c.translation exposure
d.transaction exposure
political scientist samuel huntington argues that modernization in non-western societies
can result in a retreat toward the traditional. this is exemplified by ____.
a.the islamic resurgence
b.the popularization of modern gadgets
c.the adoption of western culture
d.the higher levels of literacy and education
_____ uses price and volume data to determine past trends, which are expected to
continue into the future.
a.technical analysis
b.fundamental analysis
c.efficient market theory
d.value investing
wal-mart makes bulk purchases from its vendors and hence it is able to get better deals
than its competitors. this allows wal-mart to offer greater discounts to its customers. in
this case, wal-mart benefits from ____.
a.first-mover advantage
b.constant marginal returns
c.economies of scale
d.absolute advantage of production
