the structure of market segments may differ significantly from country to country.
if the law of one price were true for all goods and services, the purchasing power parity
(ppp) exchange rate could be found from any individual set of prices.
the state can expropriate the profits from innovation through legal means.
the foreign credit insurance association does not provide coverage against political risks
faced by exporters.
learning effects tend to be more significant when a technologically simple task is
repeated.
once barriers to trade and investment are removed, companies can treat a group of
integrated countries like the eu as a single market and produce standardized products
for it.
the relatively low correlation between the movements of stock markets in different
countries indicates that countries face different economic conditions.
from a strategic perspective, the key issue in international labor relations is the degree
to which organized labor can limit the choices of an international business.
the helms-burton act of 1996 was aimed at foreign companies that were undermining
u.s. trade sanctions against libya and iran.
The most global markets currently are markets for consumer products.
Throughout the 1990s, the amount of foreign direct investment directed at both
developed and developing nations increased dramatically. This trend reflects:
A.a slowdown in global economic activity.
B.the increasing share of the U.S. in the total FDI stock.
C.the decline in cross-border flows of foreign direct investment.
D.the increasing internationalization of business corporations.
what kind of retail systems do rural india and china have?
a.fragmented
b.direct
c.indirect
d.concentrated
what is the most important advantage of using a geocentric staffing policy?
a.it enables the firm to build a cadre of international executives who feel at home
working in a number of cultures
b.it may be less expensive to implement than other policies, reducing the costs of value
creation
c.the higher pay managers on an international fast track enjoy is a source of inspiration
within a firm
d.it reduces the need for futile and time consuming documentation
in a letter of credit transaction, the importer secures the letter of credit ____.
a.before product shipment
b.after product shipment
c.from the exporters bank
d.after receiving the product
_____ refers to a range of barter-like agreements by which goods and services can be
traded for other goods and services.
a.countertrade
b.carry trade
c.dumping
d.capital flight
what are the two main functions of the foreign exchange market?
a.trading of equities of foreign companies and currency conversion
b.reducing currency volatility and setting interest rates
c.insuring companies against interest rate risk and enabling imports and exports
d.currency conversion and providing some insurance against foreign exchange risk
a _____ structure encourages fragmentation of the organization into highly autonomous
entities.
a.worldwide area
b.global matrix
c.worldwide product
d.global network
a firm that operates with matrix-type structures in which both product divisions and
geographic areas have significant influence would use which of the following
strategies?
a.international strategy
b.transnational strategy
c.global strategy
d.localization strategy
assume that the interest rate on borrowings in japan is 1 percent, while the interest rate
on deposits in australian banks is 5 percent. a trader borrows in yen and then converts
the money into australian dollars and deposits it in an australian bank to make a 4
percent margin. which type of trade is this an example of?
a.swing trade
b.carry trade
c.channel trade
d.price action trade
the interest charged on a $200,000 note payable, at the rate of 6%, for a year would be
a.$12,000
b.$6,000
c.$3,000
d.$1,000
the _____ states that a countrys “nominal” interest rate is the sum of the required “real”
rate of interest and the expected rate of inflation over the period for which the funds are
to be lent.
a.ppp theory
b.efficient market theory
c.law of one price
d.fisher effect
according to the _____ policy, subsidies can help a firm achieve a first-mover
advantage in an emerging industry.
a.strategic trade
b.antidumping
c.tariff quota
d.free trade
identify a major disadvantage of the product life-cycle theory.
three thousand bonds with a face value of $1,000 each, are sold at 102. the entry to
record the issuance is
discuss some of the disadvantages of establishing greenfield venture in a foreign
country.
explain the two basic factors reflected by the relatively low correlation between the
movements of stock markets in different countries.
discuss why there is inefficiency in a monopoly situation. what is the role of the
government in such a situation?
briefly describe the four main institutions that make up the political structure of the eu.