Capital budgeting is the technique financial managers use to try to quantify the benefits,
costs, and risks of an investment.
resources always move easily from one economic activity to another.
hiring an emc will help a novice exporter identify opportunities and navigate the
paperwork involved in exporting.
most property in poor countries is owned legally by investors.
when the firm simultaneously faces both strong cost pressures and strong pressures for
local responsiveness, the ideal strategy to follow is the transnational strategy.
the increasing pace of technological change has resulted in a dramatic shortening of
product life cycles.
there are two main trading blocs in europe, the european union and the european free
trade association.
Studies have shown that a country’s relative inflation rates and changes in exchange
rates are not related to each other.
a major impediment to economic integration is the loss of sovereignty it entails.
which of the following accounts records transactions that involve the purchase or sale
of assets?
a.capital account
b.current account
c.principal account
d.financial account
if a firm can realize location economies by moving production elsewhere, it should
avoid:
a.exporting
b.turnkey contracts
c.licensing
d.wholly owned subsidiaries
_____ is a direct restriction on the quantity of some good that may be imported into a
country.
a.import tariff
b.import quota
c.import subsidy
d.ad valorem tariff
yanik corporation issues 1,000, 10-year, 8%, $1,000 bonds dated january 1, 2012, at 97.
the journal entry to record the issuance will show a
a.debit to cash of $1,000,000
b.debit to discount on bonds payable for $30,000
c.credit to bonds payable for $970,000
d.credit to cash for $970,000
Which of the following statements is true of tax havens?
A.Firms that export to tax havens get special tax concessions from home governments.
B.Firms would require huge capital investments to start business in tax havens.
C.Nations such as United States are widely regarded as tax havens.
D.Firms can save tax by establishing a non-operating subsidiary in the tax haven.
the need for coordination between subunits is lowest in firms pursuing a(n):
a.localization strategy
b.international strategy
c.global strategy
d.transnational strategy
company a entered the production of office software before its competitors. because of
this, the company’s products are more familiar among and favored by customers. this
situation exemplifies the ____.
a.first-mover advantage
b.diminishing marginal returns
c.economies of scale
d.constant marginal returns
dominic’s salon has total receipts for the month of $20,140 including sales taxes. if the
sales tax rate is 6%, what are dominic’s sales for the month?
a.$18,932.20
b.$21,348.80
c.$19,000.00
d.it cannot be determined
which of the following is not true regarding culture?
a.culture is static
b.culture varies across and within nations
c.culture is a system of values and norms that are shared among a group of people
d.culture involves the knowledge and beliefs of people
culture is not static. it can and does evolve, although the rate at which culture can
change is the subject of some dispute.
which of the following refers to the simultaneous purchase and sale of a given amount
of foreign exchange for two different value dates?
a.currency pairing
b.carry trade
c.currency exchange
d.currency swap
sparks company received proceeds of $211,500 on 10-year, 8% bonds issued on january
1, 2011. the bonds had a face value of $200,000, pay interest annually on december
31st, and have a call price of 102. sparks uses the straight-line method of amortization.
sparks company decided to redeem the bonds on january 1, 2013. what amount of gain
or loss would sparks report on their 2011 income statement?
a.$9,200 gain
b.$5,200 gain
c.$5,200 loss
d.$9,200 loss
hensley, inc. reports the following liabilities (in thousands) on its january 31, 2012,
balance sheet and notes to the financial statements.
instructions
prepare the liabilities section of hensley’s balance sheet as at january 31,2012.
payroll taxes include the employers share of ________________ taxes and both state
and federal ________________ taxes.
what are first-mover advantages?
discuss the failure of ppp theory to predict exchange rates accurately. what is the
purchasing power puzzle?
on january 1, 2012, hauke corporation issued $800,000, 6%, 10-year bonds at face
value. interest is payable annually on january hauke corporation has a calendar year
end.
instructions
prepare all entries related to the bond issue for 2012.
Recent policies of the IMF have drawn a lot of criticism. Discuss these criticisms.
What is a currency board? Why do countries choose this type of system? What are the
disadvantages of this type of arrangement?
what is deregulation? what are the steps involved in the deregulation of a command
economy?
a current liability is a debt that can be expected to be paid within ____________ year(s)
or the ______________, whichever is longer.
what are the two main issues that managers must be aware of when considering market
segmentation in foreign countries?