unlike other trade policies, local content regulations tend to benefit consumers and not
producers.
to conform to local content regulations, a firm may have to locate more production
activities in a given market than it would otherwise.
gni allows a more direct comparison of living standards in different countries.
the heckscher-ohlin theory predicts that countries will export those goods that make
intensive use of factors that are locally scarce.
acquisitions are quick to execute.
the costs of control can be defined as the amount of time top management must devote
to monitoring and evaluating subunits performance.
if a country has an externally convertible currency, neither residents nor nonresidents
are allowed to convert it into a foreign currency.
it may be more costly to do business in relatively primitive or undeveloped economies
because of the lack of infrastructure and supporting businesses.
in mixed economies, governments also tend to take into state ownership troubled firms
whose continued operation is thought to be vital to national interests.
making all or part of a product in-house is beneficial when the firm intends to build
valuable capabilities over time.
firms commonly employ a reputable bank as third party in international transactions.
Most subsidiaries of an international business operate in uniform environments.
countries with fragmented retail systems tend to have long channels of distribution.
which of the following statements about individualism is not true?
a.individualism promotes private entrepreneurship
b.individualism promotes free market economics
c.individualism creates an anti-business environment
d.individualism advocates for a democratic political system
why do governments limit currency convertibility?
a.to preserve foreign exchange reserves
b.to spend foreign exchange reserves
c.to keep domestic companies from investing abroad
d.to allow nonresidents to convert money to foreign currencies
according to geert hofstedes study, which of the following cultural dimensions would be
characterized by a greater readiness to take risks and less emotional resistance to
change?
a.high power distance cultures
b.low uncertainty avoidance
c.high collectivism
d.low power distance cultures
Which of the following is a disadvantage of using a rigid policy of fixed exchange
rates?
A.It is likely to create high unemployment in some cases.
B.It will lead to inflationary economies across the world.
C.It is likely to bring about trade wars between nations.
D.It will instigate competitive devaluations and intense competition.
the probability of effective communications is reduced by:
a.noise
b.location effects
c.country of origin effects
d.source effects
a eurocurrency is any currency ____.
a.banked outside of its country of origin
b.that is traded in european countries
c.that originates in european countries
d.used to buy gold and related commodities
when evaluating expatriates, home-country managers usually rely on:
a.the managers ability to develop cross-cultural awareness
b.hard data such as market share
c.the ability of the expatriate to work with local managers
d.a set of subjective criteria such as interpersonal skills
the trips regulations established at the 1995 uruguay round:
a.establishedregulations on patents and copyrights
b.set a new level of agriculture subsidies
c.organized oecd countries to eliminate tariffs on textiles
d.established new tariff levels on technology
according to the concept of economies of scale, as plant output expands, _____.
a.productivity decline
b.total costs decrease
c.unit costs decrease
d.utilization of capital decline
the concept of economies of scale tells us that as plant output expands, unit costs
decrease. the reasons include the greater utilization of capital equipment and the
productivity gains that come with specialization of employees within the plant.
_____ is the impact of short-run currency exchange rates changes on the reported
financial statements of a company.
a.economic exposure
b.financial exposure
c.translation exposure
d.transaction exposure
which of the following is a major disadvantage of the product life-cycle theory
introduced by vernon?
a.the theorys arguments seem ethnocentric and increasingly dated
b.the theory failed to explain the dominance of developed nations
c.the theory applies only when a poor nation invents a new product
d.the theory cannot be used to explain the production of luxury products
a measure of the responsiveness of demand for a product to change in price is referred
to as:
a.arbitrage demand
b.predatory pricing
c.price elasticity of demand
d.experience curve pricing
which of the following is a major source of the improvement in the capabilities of a
foreign site?
a.increasing abundance of advanced factors of production in the nation where the
factory is located
b.changes in the labor costs associated with the foreign site
c.fluctuations in the quality of the product coming out of the foreign site
d.sudden changes in the currency exchanges rates with the nation in which the factory is
located
identify the risks associated with global capital markets.
discuss the doha round of trade talks.
what is the key issue strategic issue in international labor relations and how can the hrm
function ensure that the issue is addressed?
discuss efficiency frontier. how does strategic positioning relate to the efficiency
frontier?
when a bond sells at a discount, what is probably true about the market interest rate
versus the stated interest rate? discuss.
what are the factors that determine the costs of doing business in a country?
differentiate between multipoint pricing and experience curve pricing strategies.
discuss the advantages and disadvantages of a polycentric approach to staffing.