the spread between the eurocurrency deposit rate and the eurocurrency lending rate is
more than the spread between the domestic deposit and lending rates.
since the late 1980s, there has been a strong move away from a more free market
economic model and toward a more centrally planned and mixed economies.
source effects occur when the receiver of the message evaluates the message based on
the status or image of the sender.
concentrated retail systems tend to promote the growth of wholesalers to serve retailers,
which lengthens channels.
r&d, production, marketing and sales, and customer service are all examples of primary
activities.
liquidity ratios measure a companys
a.operating cycle
b.revenue-producing ability
c.short-term debt paying ability
d.long-range solvency
which of the following statements about barrier to international communication is true?
a.source effects occur when the receiver of the message evaluates the message on the
basis of the location of the sender
b.the best way for a firm to overcome cultural barriers is to use local input
c.source effects and country of origin effects are always negative
d.noise is extremely high in highly developed countries such as the united states
a firm benefits by basing each value creation activity it performs at that location where
economic, political, and cultural conditions, including relative factor costs, are most
conducive to the performance of that activity. firms that pursue such a strategy can
realize:
a.differentiation
b.location economies
c.vertical integration
d.horizontal integration
the interest charged on a $50,000 note payable, at the rate of 6%, on a 90-day note
would be
a.$3,000
b.$1,500
c.$750
d.$500
when the straight-line method of amortization is used for a bond premium, the amount
of interest expense for an interest period is calculated by
a.adding the amount of premium amortized for that period to the amount of cash paid
for interest during the period
b.subtracting the amount of premium amortized for that period from the amount of cash
paid for interest during the period
c.multiplying the face value of the bonds by the stated interest rate
d.multiplying the face value of the bonds by the market interest rate
if a corporation issued $6,000,000 in bonds which pay 5% annual interest, what is the
annual net cash cost of this borrowing if the income tax rate is 30%?
a.$3,000,000
b.$90,000
c.$300,000
d.$210,000
The technical process by which an independent person gathers evidence for determining
if financial accounts conform to required accounting standards is known as _____.
A.standardization
B.an audit
C.reporting
D.a benchmark
An audit is the technical process by which an independent person (the auditor) gathers
evidence for determining if financial accounts conform to required accounting
standards and if they are also reliable.
in many countries entrepreneurs and other business leaders, eager to protect their
property rights and ensure the dispassionate enforcement of contracts, had pushed for
____. this contributed to a wave of democratic revolutions during the late 1980s and
early 1990s.
a.state ownership of productive resources
b.regulated markets
c.democratic reforms
d.planned economies
Which of the following is an exchange rate policy where the exchange rate is
determined completely by market forces?
A.Managed float
B.Fixed peg
C.Free float
D.Currency board
liabilities are classified as current or long-term based on their
a.description
b.payment terms
c.due date
d.amount
A _____ is a loan between a parent and its subsidiary channeled through a financial
intermediary, usually a large international bank.
A.fronting loan
B.equity loan
C.direct loan
D.security loan
if the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest
annually would sell at an amount
a.less than face value
b.equal to face value
c.greater than face value
d.that cannot be determined
_____ activities of the value chain provide inputs that allow the primary activities to
occur.
a.complementary
b.basic
c.core
d.support
a caste system differs from a class system because:
a.a caste system is an open system of stratification, while a class system is a closed
system of stratification
b.it is not possible for an individual to change his or her caste, while a class system
allows people to change their class through individual achievement
c.the social mobility in caste systems varies from society to society, while in a class
system there is no social mobility
d.a caste system is a less rigid form of social stratification, while a class system is a
comparatively more rigid form of social stratification
which of the following is a reason why the european union is considered an imperfect
economic union?
a.factors of production are not allowed to move freely between member countries
b.not all members of the union have adopted the euro
c.almost all markets are heavily regulated
d.products and services are not allowed to move freely between member countries
suppose the price of a big mac in new york is $3.00 and the price of a big mac in paris
is equivalent to $3.75 at the prevailing euro/dollar exchange rate. using the concept of
purchasing power parity, the euro is:
a.undervalued by 25 percent against the dollar
b.overvalued by 25 percent against the dollar
c.appreciating relative to the dollar
d.depreciating relative to the dollar
a company receives $88, of which $8 is for sales tax. the journal entry to record the sale
would include a
a.debit to sales tax expense for $8
b.credit to sales tax payable for $8
c.debit to sales for $88
d.debit to cash for $80
The relative decline of the United States in the share of world output and world exports
reflects ____.
A.an increase in the barriers to foreign trade in the U.S.
B.the deepening of the global financial crisis
C.the reduced industrialization in developing nations
D.the growth in the economic development of the world economy
discuss why naftas most significant impact has been a political one, not an economic
one.
Explain the notion of the Internet emerging as an equalizer.
why does education lead to economic development?
imagine that you are meeting with your superiors to discuss entering a foreign market.
your boss has asked you to analyze a joint venture prospect. why might you tell your
boss that the joint venture is not a good idea?
compare and contrast time drafts and sight drafts.
manuel company had cash sales of $65,100 (including taxes) for the month of june.
sales are subject to 8.5% sales tax. prepare the entry to record the sale.
Describe the different exchange rate policies that are in practice today.
what is countertrade? why would a firm engage in countertrade?
compare and contrast a free trade area and a common market. provide examples.
what prompted the formation of the european union?