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1) dunning, in the eclectic paradigm theory, suggests that a firm must establish
production facilities where foreign assets or resource endowments necessary to the
production of the product exist.
2) the global financial crisis of 2008 and 2009 focused attention on the need for new
regulations to govern certain sectors of the financial services industry.
3) r&d, production, marketing and sales, and customer service are all examples of
primary activities.
4) the free market view argues that fdi is a benefit to both the source country and to the
host country.
5) tangible property includes patents, designs, copyrights, and trademarks.
6) a company that sells its product in a foreign market below the cost of production may
be accused of dumping.
7) according to the law of one price, if the exchange rate between the british pound and
the dollar is £1 = $1.50, a jacket that retails for $75 in new york should sell for _____ in
london.
a.£40
b.£50
c.£60
d.£75
8) according to _____, socialism can only be achieved through violent revolution.
a.capitalists
b.communists
c.social democrats
d.democrats
9) which of the following statements about small-scale entry is true?
a.the commitment associated with a small-scale entry makes it possible for the
small-scale entrant to capture first-mover advantages
b.small-scale entry is a way to gather information about a foreign market before
deciding whether to enter on a significant scale
c.by giving a firm time to collect information, small-scale entry increases the risks
associated with a subsequent large-scale entry
d.small-scale entry limits a firms ability to learn about a foreign market thereby also
limiting the firm's exposure to that market
10) until recently, which of the following accounting practices has been true?
a.japanese law generally allowed revaluation
b.dutch standards prohibited revaluation and prescribes historic cost
c.capitalization of financial leases was required practice in france
d.german accountants have treated depreciation as a liability
11) which of the following is an example of a primary activity in a firm's value chain?
a.information systems
b.research and development
c.logistics
d.human relations
12) the product life-cycle theory:
a.remains a relevant theory of explaining international trade in the modern world
b.was useful for explaining the pattern of trade during the brief period of american
global dominance
c.proved to be a poor explanation of world trade patterns during the 1960s and 1970s
d.was a strong predictor of trade patterns during the 1800s
13) the trips agreement was designed to:
a.exclude china from all intellectual property agreements
b.oversee a much stricter enforcement of intellectual property regulations
c.lobby for more lax intellectual property rights for poor countries
d.support traded software and recorded property among developed markets
14) according to _____, the social responsibility of business is to increase profits, so
long as the company stays within the rules of law.
a.the naive immoralist
b.the righteous moralist
c.cultural relativism
d.the friedman doctrine
