IMF members formalized the existing system of floating exchange rates as the new
international monetary system by drafting the so-called ________.
A) Bretton Woods Agreement
B) Smithsonian Agreement
C) Plaza Accord
D) Jamaica Agreement
A(n) ________ is the most restrictive nontariff trade barrier and is typically applied to
accomplish political goals.
A) tariff-quota
B) subsidy
C) embargo
D) voluntary export restraint
Which of the following constitutes the most basic level of training to prepare managers
for international assignments?
A) environmental briefings
B) language training
C) cultural assimilation
D) field experience
Both Pat and Terry believe that social and economic equality can be obtained only by
establishing an economic system in which the government owns and controls all types
of economic activity. Which of the following statements proves that Pat is a communist
and Terry is a socialist?
A) Unlike Terry, Pat believes that the government should decide the prices at which
goods are sold.
B) Unlike Pat, Terry does not believe in the elimination of political opponents.
C) Unlike Terry, Pat believes that the means of production should be owned only by the
public.
D) Unlike Pat, Terry believes that a violent revolution is necessary to seize control over
resources.
Scenario: ABC Software
ABC Software is a producer of educational software for children below the age of
twelve. The company has operations in Switzerland and would like to expand its
foreign operations with a new facility in China.
All of Europe’s currencies combined are referred to as Eurocurrency.
________ measures the indirect carbon dioxide emissions from the whole life cycle of
products-from their manufacture to eventual breakdown.
A) Primary footprint
B) Secondary footprint
C) Tertiary footprint
D) Internalized footprint
A ________ joint venture is formed when each partner requires the same component in
its production process.
A) backward
B) multistage
C) forward
D) buyback
The ________ theory states that countries produce and export goods that require
resources available in abundance and import goods that require resources in short
supply.
A) new trade
B) absolute advantage
C) international product life cycle
D) factor proportions
The profit-motivated purchase and sale of interest-paying securities denominated in
different currencies is called ________.
A) currency conversion
B) currency hedging
C) interest arbitrage
D) interbank interest rates
One of the main goals of the World Trade Organization is to ________.
A) encourage dumping among trading nations
B) restrict the free flow of trade
C) provide favorable terms of trade to a few selected countries
D) settle trade disputes among its members
A(n) ________ channel provides buyers with location convenience because of the large
number of outlets through which a product is sold.
A) intensive
B) exclusive
C) one-level
D) zero-level
Scenario: ABC Software
ABC Software is a producer of educational software for children below the age of
twelve. The company has operations in Switzerland and would like to expand its
foreign operations with a new facility in China.
Interest arbitrage is the profit-motivated purchase and sale of interest-paying securities
denominated in different currencies.
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
________ is a system in which a supervisor walks an employee through every step of
an assignment or task, monitoring the results at each stage.
A) Situational attribution
B) Situational management
C) Social mobility
D) Social stratification
When creating a market-potential indicator for an emerging market, an estimate of the
wealth or buying power of a market can be formed by examining the ________.
A) market intensity
B) market growth rate
C) market size
D) market receptivity