the product life-cycle theory argues that a large proportion of the worlds new products
had been developed by u.s. firms.
Non-U.S. firms increasingly began to invest across national borders because they
wanted to disperse production activities to optimal locations and to build a direct
presence in major foreign markets.
the goal of market segmentation is to optimize the fit between the purchasing behavior
of consumers in a given segment and the marketing mix, thereby maximizing sales to
that segment.
the customer is able to garner the benefit of the consumer surplus because one firm is
competing with other firms for the customers business, so the firm must charge a lower
price than it could if it were a monopoly supplier.
in general, fdi in the form of greenfield investments should increase competition.
to maximize the learning benefits of an alliance, a firm must try to learn from its partner
and then apply the knowledge within its own organization.
a factor that makes the eurocurrency market attractive to both depositors and borrowers
is its lack of government regulation.
the worldwide area structure tends to be adopted by firms with a low level of
diversification whose domestic structures are based on functions.
each bondholder may vote for the board of directors in proportion to the number of
bonds held.
when a tourist goes to a bank in a foreign country to convert money into the local
currency, the exchange rate used is the forward rate.
firms may choose an ethnocentric approach to staffing as opposed to a polycentric
approach because of the cost savings it promotes.
foreign bonds sold in the united states are called bulldogs.
studies of privatization in central europe have shown that the process often fails to
deliver predicted benefits if the newly privatized firms continue to receive subsidies
from the state and if they are protected from foreign competition.
an installment note calling for equal total payments each period will result in a principal
portion that decreases in each successive period.
just-in-time systems reduce product quality although it brings about huge cost savings.
Transfer price refers to the _____.
A.price at which goods and services are transferred to a subsidiary
B.price at which the title of products is transferred to a customer
C.price at which a supplier provides raw materials to a firm
D.cost incurred when goods or services are transferred from one place to another
The price at which such goods and services are transferred to a subsidiary is referred to
as the transfer price.
market makers are ____.
a.financial service companies that connect investors and borrowers
b.nonbank financial institutions who want to invest money
c.high net worth individuals with surplus cash to reinvest
d.those who want to borrow money including individuals, companies, and governments
cross-licensing agreements are increasingly common in the _____ industries.
a.transportation
b.high-technology
c.construction
d.consumer durables
_____ occurs when high-cost domestic producers are replaced by low-cost producers
within the free trade area.
a.trade deficit
b.trade diversion
c.trade creation
d.trade distortion
which of the following is not an example of internal stakeholders?
a.employees
b.customers
c.stockholders
d.the board of directors
country a can produce product x, but it can also buy it at a cheap rate from country b.
which of the following courses of action is suitable in this situation according to adam
smiths theory of absolute advantage?
a.country a should import product x from country b and it should not attempt to produce
it at home
b.country a should partly import the product and produce it domestically
c.country a should produce more of product x and should attempt to obtain an absolute
advantage for the product
d.country a should subsidize the production of product x to obtain an absolute
advantage over country b
which of the following statements regarding the effective interest method of accounting
for bonds characteristics is false?
a.gaap requires use of the effective interest method
b.the amount of periodic interest expense decreases over the life of a discounted bond
issue when the effective interest method is used
c.over the life of the bond, the carrying value increases for discounted bonds when
using the effective interest method
d.the effective interest method applies a constant percentage to the bond carrying value
to compute interest expense
Which of the following has enabled globalization of markets?
A.Differentiation amongst national markets
B.Falling barriers to cross border trade
C.Reduced homogeneity of material culture across the world
D.Increased government ownership of factors of production
The globalization of markets refers to the merging of historically distinct and separate
national markets into one huge global marketplace. Falling barriers to cross-border
trade have made it easier to sell internationally.
at six sigma, a production process would be highly accurate and create just _____.
a.3.4 defects per hundred thousand units
b.6.8 defects per million units
c.3.4 defects per million units
d.6.8 defects per hundred thousand units
a firms _____ determines where in its hierarchy the decision-making power is
concentrated.
a.integrating mechanism
b.vertical differentiation
c.knowledge network
d.horizontal differentiation
which of the following theories emphasizes the interplay between the proportions in
which the factors of production are available in different countries and the proportions
in which they are needed for producing particular goods?
a.porters theory
b.smiths theory
c.ricardos theory
d.heckscher-ohlin theory
morales company issued $600,000 of 8%, 5-year bonds at 106, which pays interest
annually. assuming straight-line amortization, what is the carrying value of the bonds
after one year?
a.$636,000
b.$632,400
c.$628,800
d.$639,600
currency fluctuations can make seemingly profitable trade and investment deals
unprofitable and vice versa.
how does the type of technology a firm uses affect its decision of where to locate
production?
discuss the reasons why expatriate managers fail to complete their foreign assignment.
on october 1, sams painting service borrows $80,000 from national bank on a 3-month,
$80,000, 4% note. what entry must sams painting service make on december 31 before
financial statements are prepared?
what is expatriate failure?
what is a quota rent? provide an example of how an import quota affects price.
compare and contrast the fisher effect and the international fisher effect.
explain how geography of a nation influences its economic development.
what are the implications of cultural differences for international businesses?