the ethical obligations of a multinational corporation toward employment conditions,
human rights, environmental pollution, and the use of power are always clear-cut.
A foreign debt crisis is a situation in which a country cannot service its foreign debt
obligations.
the basic principle behind incentive systems is to ensure that the incentive scheme for
an individual employee is linked to an output target that he or she has some control over
and can influence.
global expansion offers companies the opportunity to generate greater profits than
companies that focus strictly on the domestic market.
both hindus and buddhists stress the afterlife and spiritual achievement rather than
involvement in this world.
if the spot rate is $1 = ¥120, and the 30-day forward rate is $1 = ¥130, the dollar is
selling at a discount in the forward market.
a firms performance appraisal systems are an important element of its control systems.
protecting industries deemed important for national security, and retaliating against
unfair foreign competition are economic arguments for intervention.
which of the following is not true regarding a worldwide area structure?
a.it tends to be favored by firms with a low degree of diversification
b.it facilitates local responsiveness
c.it tends to be favored by firms with a domestic structure based on functions
d.decision-making responsibilities are centralized
the japanese government was pressurized by the u.s. government to place limits on the
number of vehicles exported to the united states by japanese automobile producers in
1981. this is an example of:
a.tariff rate quota
b.specific tariffs
c.voluntary export restraint
d.ad valorem tariff
a firm that is pursuing a(n) _____ strategy is simultaneously trying to achieve low costs
through location economies, economies of scale, and learning effects, and trying to
differentiate its product offering across geographic markets.
a.global customization
b.international
c.localization
d.transnational
the following totals for the month of april were taken from the payroll register of metz
company.
the entry to record accrual of employers payroll taxes would include a
a.debit to payroll tax expense for $2,693
b.credit to payroll tax expense for $2,693
c.credit to fica taxes payable for $1,160
d.credit to payroll tax expense for $1,160
parker company issued ten-year, 9%, bonds payable in 2012 at a premium. during 2012,
the companys accountant failed to amortize any of the bond premium. the omission of
the premium amortization will
a.not affect net income for 2012
b.cause retained earnings at the end of 2012 to be overstated
c.cause net income for 2012 to be overstated
d.cause net income for 2012 to be understated
logistics is the activity that controls the _____.
a.transmission of physical materials through the value chain
b.customer contact points of a business
c.activities involved in creating a product
d.information exchange between a business and its customers
Supporters of globalization maintain that the apparent decline in real wage rates of
unskilled workers:
A.is due to technological changes that create greater demand for skilled workers.
B.is due to the migration of low-wage manufacturing jobs offshore.
C.can be checked by increasing government ownership of enterprises.
D.can be checked by limiting free trade and foreign investment.
global learning based on the multidirectional transfer of skills between subsidiaries and
the corporate center is a central feature of a firm pursuing a(n) _____ strategy.
a.localization
b.global standardization
c.transnational
d.international
a _____ allows for a delay in payment.
a.bill of lading
b.time draft
c.sight draft
d.letter of credit
_____ is the technique financial managers use to try to quantify the benefits, costs, and
risks of an investment.
A.Capital budgeting
B.External audit
C.Transfer pricing
D.Control system analysis
the following partial amortization schedule is available for courtney company who sold
$300,000, five-year, 10% bonds on january 1, 2012 for $312,000 and uses annual
straight-line amortization.
which of the following amounts should be shown in cell (iii)?
a.$6,000
b.$12,000
c.$2,400
d.$1,200
a hardship allowance is paid:
a.when the expatriate is being sent to a location where such basic amenities are grossly
deficient by the standards of the expatriates home country
b.to ensure that an expatriates children receive adequate schooling (by home-country
standards)
c.to ensure that the expatriate will enjoy the same standard of living in the foreign
posting as at home
d.to ensure that the expatriate can afford the same quality of housing in the foreign
country as at home
_____ can be defined as the rate of return that the firm makes on its invested capital,
which is calculated by dividing the net profits of the firm by total invested capital.
a.profitability
b.performance
c.cash flow
d.efficiency
Multilateral netting is used majorly to _____.
A.reduce the number of transactions between subsidiaries
B.avail tax credit from governments
C.establish a tax treaty amongst multiple countries
D.to reduce the fixed costs of establishing a subsidiary
a firm that adopts a polycentric approach to staffing is likely to suffer from cultural
myopia.
An international business, unlike a multinational enterprise, ____.
A.needs to have manufacturing units in at least two foreign nations
B.needs to manufacture products or provide services that target a global market
C.need not customize its products to the requirements of national markets
D.need not invest directly in operations in other countries
the relationship between current assets and current liabilities is
a.useful in determining income
b.useful in evaluating a companys liquidity
c.called the matching principle
d.useful in determining the amount of a companys long-term debt
describe some of the home country policies that encourage outward fdi.
what is the single european act? what was the effect of the single european act on the eu
economy? did the single european act achieve its goals?
describe the major arguments put forth by edward deming.
how can companies strengthen the moral courage of employees?
if bonds were issued at a premium, then the contractual rate of interest was
_______________ than the market rate of interest.
two sisters operate a bed and breakfast on the coast of maine. as customers make
reservations they are required to pay cash in advance equal to one-half of the rate for
their stay. how should the sisters account for the cash received as reservations are
made?
What are the nine possible combinations of the three exchange rates proposed by
Lessard and Lorange in the control process?