1) a consolidated financial statement combines the separate financial statements of two
or more companies to yield a single set of financial statements as if the individual
companies were really one.
2) by centralizing decision making, a firm can avoid the duplication of activities that
occurs when similar activities are carried on by various subunits within the
organization.
3) when we survey the systems that corporations use to control their subunits, we find
that not all multinational firms use output and bureaucratic controls.
4) the term social strata refers to the extent to which individuals can move out of the
strata into which they were born.
5) krugman has suggested that trade policy designed to retaliate against another
country’s trade policy would hurt the citizens of both countries.
6) the risk-reducing effects of international portfolio diversification would be lesser
were it not for the current floating exchange rate regime.
7) research into expatriate failure revealed that consistently one of the reasons for the
premature return of employees for u.s. multinationals was the inability of the spouse to
adjust.
8) according to the ppp, a country with a high inflation rate will see depreciation in its
currency exchange rate.
9) the bill of lading can act as collateral against which the exporter can draw funds.
10) the “millennium round” ended in 1999 with:
a.a successful record on agricultural products
b.a new agenda for the next round focusing on financial services
c.no agreement on the reduction of barriers to cross-border trade and investment
d.a decision to avoid fdi
11) a document that specifies the conditions under which an exchange is to occur and
details the rights and obligations of the parties involved is best known as a:
a.contract
b.business letter
c.memorandum
d.civil code
12) according to the _____ argument, governments should temporarily support new
industries until they have grown strong enough to meet international competition.
a.retaliatory action
b.human rights
c.infant industry
d.anti-dumping
13) which of the following is an impact of the growth of international communication
technology, on the financial industry?
a.the emergence of a segregated international capital market
b.complexity of the data volume restricts trading to “acceptable hours”
c.shocks that occur in one financial center now spread around the globe very quickly
d.lack of systems integration hinders real-time data transfer across different countries
14) a quota on trade imposed by the exporting country, typically at the request of the
importing country’s government is referred to as a(n):
a.voluntary export restraint
b.specific tariff quota
c.trade reconciliation
d.ad valorem tariff
15) these are the most popular form of regional economic integration, accounting for
almost 90 percent of regional agreements.
a.free trade areas
b.customs unions
c.common markets
d.economic unions
16) identify the correct statement about the rights theories.
a.human beings have fundamental rights and privileges that transcend national
boundaries
b.the moral worth of actions or practices is determined by their consequences
c.people should be treated as ends never purely as means to the ends of others
d.minimum levels of morally acceptable behavior should be established
17) when traders move as a herd in the same direction at the same time such as what
occurred when george soros betted against the british pound in 1992, a(n) _____ occurs.
a.efficient market
b.inefficient market
c.bandwagon effect
d.fisher effect
18) managers of international business can do all of the following to make sure ethical
issues are considered in business decisions except:
a.favor hiring and promoting people with a well-grounded sense of personal ethics
b.build an organizational culture that places a high value on ethical behavior
c.make sure that leaders within the business do not articulate the rhetoric of ethical
behavior
d.develop moral courage
19) most economists trace the breakup of the bretton woods fixed exchange rate system,
in 1973, to the:
a.rise of communism in eastern europe
b.economic integration movement sweeping western europe
c.macroeconomic policy package in the u.s. during 1965 to 1968
d.increase in inflation and the worsening of the british foreign trade position
20) in firms pursuing either global or transnational strategies, the usefulness of _____
controls is limited by substantial performance ambiguities.
a.bureaucratic
b.cultural
c.personal
d.output
21) mendenhall and oddou identified cultural toughness as one of the dimensions in
their study on dimensions that predict success in foreign jobs postings. this dimension
refers to:
a.the expatriate’s self-esteem, self-confidence, and mental well-being
b.the expatriate’s ability to interact effectively with host-country nationals
c.the expatriate’s ability to understand why people of other countries behave the way
they do
d.the relationship between the country of the assignment and how well an expatriate
adjusts to a particular posting
22) which theory stresses that in some cases countries specialize in the production and
export of particular products not because of underlying differences in factor
endowments, but because in certain industries the world market can support only a
limited number of firms?
a.balanced trade
b.heckscher-ohlin
c.new trade
d.product life-cycle
23) briefly describe the four main institutions that make up the political structure of the
eu.
24) discuss individualism. explain the key positions of the philosophy, it roots, and its
role in the modern economy.
25) describe how exchange rates have been since the collapse of the fixed exchange rate
system in 1973 . what factors account for the changes in exchange rates since that time?
26) define financial structure. is it the same across various countries, if not why?
27) what are economies of scale? why are they important in understanding trade
patterns?
28) consider the role of investor psychology and bandwagon effects on how well ppp
and the international fisher effect explain short-term movements in exchange rates.
29) discuss the benefits and costs of fdi from the perspective of a host country and from
the perspective of the home country.
30) in your opinion, are bribes ever acceptable? why or why not?
31) what is a greenfield investment? how does it compare to an acquisition? which form
of fdi is a firm more likely to choose? explain your answer.