1) in a common law system, judges have the power to interpret the law.
2) the heckscher-ohlin theory argues that free trade is not beneficial to most nations.
3) while popular in its time, ricardo’s theory is no longer a major intellectual weapon for
those who argue for free trade.
4) where an expatriate community exists, firms often devote lesser effort to ensuring
that the new expatriate family is quickly integrated into that group.
5) the financial crisis that erupted across southeast asia during the fall of 1997 emerged
as the biggest challenge to date for the imf.
6) a regional free trade agreement will benefit the world only when the amount of trade
it diverts exceeds the amount of trade it creates.
7) because of the lack of trust in international transactions, payment or a formal promise
to pay is required before the buyer can obtain the merchandise.
8) developed nations tend to have small, complex organizations, whose accounting
problems are far more difficult than those of large organizations.
9) formulating strategy, deciding how to allocate resources within a firm, and evaluating
the performance of managers and giving feedback are examples of control systems.
10) tariffs on industrial goods remain higher than tariffs on services.
11) according to the righteous moralist, if a manager of a multinational sees that firms
from other nations are not following ethical norms in a host nation, that manager should
not either.
12) an advantage of buying component parts, or even an entire product, from
independent suppliers is that:
a.the firm can maintain its flexibility of switching orders between suppliers as
circumstances dictate
b.it can make planning, coordination, and scheduling of adjacent processes easier for
the firm
c.it reduces the risk for the firm that suppliers will expropriate the technology for their
own use
d.the firm is able to maintain firm control over its proprietary technology
13) the _____ writes the generally accepted accounting principles (gaap) that govern
the financial statements of u.s. firms.
a.office of economic analysis
b.us securities and exchange commission
c.international accounting standards board
d.financial accounting standards board
14) a state where political power is monopolized by a party, group, or individual that
governs according to religious principles is best described as following:
a.theocratic totalitarianism
b.tribal totalitarianism
c.right-wing totalitarianism
d.communist totalitarianism
15) which of the following statements is not true?
a.the way to increase the profitability of a firm is to create more value
b.the amount of value a firm creates is measured by the difference between its costs of
production and the value that consumers perceive in its products
c.the more value customers place on a firm’s products, the higher the price the firm is
able to charge for those products
d.the price a firm charges for a good or service is typically more than the value the
customer places on that good or service
16) according to the _____, top managers typically overestimate their ability to create
value from an acquisition.
a.misvaluation theory
b.performance extrapolation hypothesis
c.market timing theory
d.hubris hypothesis
17) international trade secretariats (itss) have not enjoyed much success for all of the
following reasons except:
a.national unions compete with each other to attract investment from international
businesses
b.the structure and ideology of unions tend to vary significantly from country to country
c.organized labor has had only limited success in its efforts to get national and
international bodies to regulate multinationals
d.the codes of conduct developed by international labor organization and the
organization for economic cooperation and development prevented the itss from
exercising absolute power
18) which of the following statements about products with high value-to-weight ratios
is true?
a.they are relatively inexpensive and weigh a lot
b.they are expensive and do not weigh very much
c.transportation costs usually account for a large percentage of their total costs
d.they must be produced in multiple locations close to major markets
19) according to sociologists, which of the following branches of christianity has the
most important economic implications?
a.catholic
b.orthodox
c.protestant
d.mormon
20) under the veil of ignorance, everyone is imagined to be ignorant of:
a.all of his/her particular characteristics
b.fundamental rights and privileges
c.the moral worth of actions or practices
d.the minimum levels of morally acceptable behavior
21) lessard and lorange refer to company-generated forecasts of future spot rates as the:
a.ending rate
b.future rate
c.domestic rate
d.internal forward rate
22) the norms and values systems that are shared among the employees of a company
are referred to as:
a.processes
b.control systems
c.incentives
d.organizational culture
23) what is the most common approach to expatriate pay? explain what comprises this
form of compensation. what is the advantage of this approach?
24) what are the two types of competitive pressures that firms competing in the global
marketplace face? how do firms respond to these pressures?
25) trace the genesis and growth of the eurocurrency market.
26) what is logistics? discuss the relationship between production and logistics.
27) explain the notion of a floating exchange rate regime. give examples.
28) discuss the notion of a product being a bundle of attributes. how can approaching a
product in this manner help a firm reach its target market?
29) discuss the market imperfections explanation of fdi. what is its relationship with
internalization theory?
30) what are the benefits of a global capital market as compared to a purely domestic
capital market?