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1) a firm's organizational culture refers to the values and norms that are shared among
employees of an organization.
2) according to lessard and lorange, the three exchange rates that can be used to
translate foreign currencies into the corporate currency are the historical rate, the spot
rate, and the forward rate.
3) the strategy, operations, and organization of a firm must all be consistent with each
other if the firm is to attain a competitive advantage and achieve superior profitability.
4) the heckscher-ohlin theory gains predictive power once the impact of differences of
technology on productivity is controlled for.
5) in an international business setting, the most common ethical issues involve
employment practices, human rights, environmental regulations, corruption, and the
moral obligation of multinational companies.
6) when using capital budgeting techniques to evaluate a potential foreign project, cash
flows to the project and cash flows to the parent must be considered as one.
7) it is possible to have a democratic state where collective values predominate.
8) import agents are typically limited to independent trading houses.
9) if a country tries to hold the value of its currency within some range against an
important reference currency, the country has a dirty float system.
10) expatriate managers may experience more than the usual degree of pressure to
violate their personal ethics.
11) corporations can contribute to the global tragedy of the commons by not pumping
pollutants into the atmosphere or dumping them in oceans or rivers.
12) an advantage of joint ventures with a local partner is the knowledge of the local
environment the local partner contributes to the venture.
13) a firm that has integrated horizontally is making all or part of a product in-house.
14) commercial banks take cash deposits from corporations and individuals and pay
them a rate of interest in return.
15) the threat of antidumping action limits the ability of a firm to use aggressive pricing
to gain market share in a country.
