1) one criticism of the imf’s policy prescriptions is that its “one-size-fits-all” approach
to microeconomic policy is inappropriate for many countries.
2) the sight draft specifies that the bank will pay a specified sum of money to the
exporter upon the presentation of specified documents.
3) transaction costs arise when cash moves from one location to another.
4) eu directives have the power of law and so it can be assumed that the eu has a better
chance of harmonizing accounting standards than the iasb.
5) norms are abstract ideas about what a group believes to be good, right, and desirable.
6) fronting loans can circumvent host country restrictions on the remittance of funds
from a foreign subsidiary to the parent company.
7) mass customization describes the ability of companies to use flexible manufacturing
technology to reconcile low cost and product customization.
8) because differentiation across countries can involve significant duplication and a lack
of product standardization, it may reduce costs.
9) the globalization of markets and production and the resulting growth of world trade,
foreign direct investment, and imports all imply that firms are finding their home
markets protected from foreign competitors.
10) incentive problems that occur with independent suppliers do not arise with internal
suppliers.
11) by using the global capital market, investors can diversify their portfolios
internationally, thereby reducing their risk to below what could be achieved in a purely
domestic capital market.
12) the treaty of rome, signed in 1957, established the european free trade association.
13) historically, most outsourcing decisions have involved the manufacture of service
products.