1) regulated domestic currency deposits ensure that banks have enough liquid funds to
satisfy demand if large numbers of domestic depositors should suddenly decide to
withdraw their money.
2) the iasb has enough regulatory muscle to enforce its standards.
3) international transactions are usually settled using drafts.
4) tariffs are unambiguously pro-consumer and anti-producer.
5) unlike hinduism, buddhism does not support the caste system.
6) the bill of lading acts as a receipt, a contract, and a document of title.
7) when political risk is high, sourcing products from independent suppliers can be
advantageous.
8) declining barriers to cross-border trade and investment cannot be taken for granted.
9) domestic currency deposits are regulated in all industrialized countries.
10) facilitating payments are also known as speed money or grease payments.
11) many small and medium-sized firms tend to go out into the world to seek
opportunities, rather than wait for the world to come to them.
12) the ethical obligations of a multinational corporation toward employment
conditions, human rights, environmental pollution, and the use of power are always
clear-cut.
13) in a concentrated retail system, there are many retailers, no one of which has a
significant share of the market.
14) when a company brings capital and/or technology to a host country, the host
country benefits from the:
a.competitive effect of fdi.
b.resource-transfer effect of fdi.
c.balance-of-payments effect of fdi.
d.effect on competition and economic growth.
15) decisions a firm must make about whether to perform a certain value creation
activity themselves, or outsource it to another entity are best known as:
a.outsource potential decisions
b.in-house potential decisions
c.make-or-buy decisions
d.integration decisions
16) which control system is most widely used by small firms?
a.personal
b.output
c.bureaucratic
d.cultural
17) in all of the following scenarios, the costs of doing business in a country tend to be
greater, except where:
a.political payoffs are required to gain market access
b.supporting infrastructure is lacking
c.adhering to local laws and regulations is costly
d.there is a highly developed infrastructural support
18) consolidated financial statements:
a.provide accounting information about a group of companies that recognize their
economic interdependence
b.record transactions among the members of a corporate family
c.show assets, liabilities, revenues, and expenses of members of a corporate family
d.issue individual financial statements for the parent company and each subsidiary
19) _____ are the highest rate that can be charged, which is often, but not always, the
rate that is charged.
a.ad valorem tariff rates
b.tariff rents
c.specific tariff rates
d.bound tariff rates
20) the historic cost principle:
a.assumes the currency unit used to report financial results is not losing its value due to
inflation
b.records sales, purchases, and the like at an adjusted transaction price and makes minor
adjustments in the amounts later
c.does not affect accounting in the area of asset valuation
d.overestimates a firm’s assets if inflation is high
21) there is low interdependence, performance ambiguity, and costs of control in firms
pursuing a(n):
a.localization strategy
b.international strategy
c.transnational strategy
d.global strategy
22) when the central bank of a country intervenes in the foreign exchange market to try
to maintain the value of its currency if it depreciates too rapidly against an important
reference currency, the country is said to be following a _____ system.
a.fixed exchange rate
b.clean float
c.floating exchange rate
d.dirty float
23) according to the naive immoralist:
a.a multinational’s home-country standards of ethics are the appropriate ones for
companies to follow in foreign countries
b.the social responsibility of business is to increase profits, so long as the company
stays within the rules of law
c.ethics are nothing more than the reflection of a culture
d.if firms in a host nation do not follow ethical norms then the manager of a
multinational should also not follow ethical norms there
24) the imf has been criticized because of all of the following reasons except:
a.it has a “one-size-fits-all” approach to macroeconomic policy is inappropriate for
many countries
b.its rescue efforts are exacerbating a problem known to economists as moral hazard
c.it has become too powerful for an institution that lacks any real mechanism for
accountability
d.its lax macroeconomic policies in the asian crisis were not well suited to countries
suffering from a private sector debt crisis with deflationary undertones
25) a class system:
a.is the same as a caste system
b.is a rigid form of social stratification that does not permit social mobility
c.allows an individual to change his/her position via personal achievements
d.is more rigid than the caste system
26) discuss the doha round of trade talks.
27) what is expatriate failure? how prevalent is the problem? what is the cost to a firm
of a failed assignment?
28) what is asean? what is its basic goal? how successful is asean?
29) how has the foreign direct investment picture changed since the 1960s?
30) briefly explain the advantages and disadvantages of franchising agreements.
31) compare and contrast currency crises, banking crises, and foreign debt crises.
32) how does the righteous moralist approach business ethics? who is likely to favor
this approach?
33) discuss the cultural relativism approach to business ethics. what is the connection
between this approach and the phrase “when in rome do as the romans do”? how well
does this approach hold up ethically?
34) what are the factors complicating the process of capital budgeting for an
international business?
35) what is licensing? how does it work?