1) if $1 bought more yen with a spot exchange than with a 30-day forward exchange it
indicates the dollar is expected to depreciate against the yen in the next 30 days. when
this occurs, we say the dollar is selling at a premium on the 30-day forward market.
2) for a firm, all positions on the efficiency frontier are viable.
3) the level of output at which most plant-level scale economies are exhausted is
referred to as the minimum efficient scale of output.
4) since english is often thought of as the global language of business, it is not
important for an american business executive to learn foreign languages.
5) as competition intensifies, global standardization strategies and transnational
strategies tend to become less viable, and managers need to orientate their companies
toward either an international strategy or a localization strategy.
6) transformation from centrally planned command economies to market-based
economies can be attributed to the fact that command and mixed economies failed to
deliver the sustained economic performance achieved by countries adopting
market-based systems.
7) designing for manufacturing increases not only product quality, but also costs
involved.
8) the identification of distinct groups of consumers whose purchasing behavior differs
from others in important ways is known as:
a.market segmentation
b.market penetration
c.diversification strategy
d.differentiation
9) the hdi is based on all of the following measures except:
a.political freedom
b.life expectancy at birth
c.educational attainment
d.whether average incomes are sufficient to meet the basic needs of life
10) foreign subsidiaries of multinational firms normally:
a.keep their accounting records in the currency of the country in which they are located.
b.do not prepare their financial statements
c.prepare their financial statements in us dollars
d.keep their accounting records in us dollars
11) the way a product is delivered is determined by:
a.a firm’s entry strategy
b.a firm’s product positioning
c.the target market
d.market segmentation
12) learning effects:
a.tend to be less significant when a technologically complex task is repeated
b.will be less significant in an assembly process involving 1,000 complex steps than in
one of only 100 simple steps
c.typically disappear after a while, in spite of the complexity of the task
d.are more significant after two or three years of the introduction of a new process
13) the different combinations of two goods that an economy could efficiently produce
with limited productive resources can be referred to as a country’s:
a.economic output
b.efficiency graph
c.productivity curve
d.production possibility frontier
14) when a company has some intangible property that might have business
applications, but the firm does not want to develop those applications itself, _____
makes sense.
a.exporting
b.a turnkey project
c.licensing
d.a wholly owned subsidiary
15) the main types of control systems used in mnes include all of the following, except:
a.personal controls
b.bureaucratic controls
c.input controls
d.cultural controls
16) which event was initially responsible for london becoming the leading center of
eurocurrency trading?
a.regulations that discouraged british banks from trading in the eurocurrency market
b.strengthening of the british pound against major european currencies in the 1960s
c.collapse of the bretton woods system
d.prohibition of british banks from lending british pounds to finance non-british trade
17) a group of people who share a common set of values and norms form a:
a.culture
b.society
c.country
d.caste
18) when a company charges whatever the market will bear, the company is using:
a.strategic pricing
b.price discrimination
c.a push strategy
d.a pull strategy
19) _____ activities are basically concerned with creating the product, marketing and
delivering the product to buyers, and providing support and after-sales service.
a.support
b.subordinate
c.ancillary
d.primary
20) _____ position themselves to make “long bets” on assets that they think will
increase in value, and ‘short bets” on assets that they think will decline in value.
a.growth funds
b.arbitrageurs
c.hedge funds
d.debt funds
21) discuss the factors that lead to pressure for local responsiveness.
22) what are ethical dilemmas? why do they exist?
23) how do countries with representative democracies ensure that their elected officials
are held responsible for their actions?
24) what is the world trade organization? what is its role in the world economy?
25) explain how the koran views business.
26) how can a firm increase its profitability?
27) discuss the infant industry argument for intervention in markets. what is gatt’s
position on the argument?
28) what has been the experience of the wto to date? what does the future look like for
the organization?
29) discuss the establishment of gatt. what was gatt’s objective?