1) arbitrage opportunities abound in the foreign exchange markets and they tend to be
available for long periods of time.
2) when substantial investments in specialized assets are required to manufacture a
component, the firm will prefer to contract it out to a supplier.
3) the wto does not have the power to impose trade sanctions.
4) equal employment legislation is strongly pursued in all countries.
5) global expansion offers companies the opportunity to generate greater profits than
companies that focus strictly on the domestic market.
6) an advantage of utilitarianism is that the philosophy allows for the consideration of
justice.
7) the risk that arises from volatile changes in exchange rates is known as foreign
exchange risk.
8) a major impediment to economic integration is the loss of sovereignty it entails.
9) porter’s theory of national competitive advantage suggests that it is in the best
interest of business for a firm to invest in upgrading advanced factors of production.
10) china’s communist rule strengthened class divisions.
11) in general, managing an international business is a more complex task than
managing a business that serves only the local market.
12) culture is a constant; it does not evolve over time.
13) a strong organizational culture always leads to strong performance.
14) the impact of currency exchange rates on the reported financial statements of a
company is translation exposure.
15) folkways include rituals and symbolic behavior.