in ethnocentric firms, the lack of managers mobility among national operations implies
that pay can and should be kept country-specific.
Recent evidence indicates that the solution to the problem of stagnant incomes among
the unskilled is to be found in increasing government regulation of markets.
counterpurchase occurs when a firm agrees to purchase a certain amount of materials
back from a country to which a sale is made.
the two most common methods of restricting inward fdi are ownership restraints and
performance requirements.
the most important trading centers for currencies are zurich, frankfurt, paris, hong kong,
and sydney.
which of the following is not associated with firms following the global standardization
strategy?
a.low pressures for local responsiveness
b.use cost advantage to support aggressive pricing in world markets
c.high pressures for cost reductions
d.customize product offering and marketing strategy to local conditions
when an investor purchases a corporate bond, he purchases the right to receive a ____.
a.share of the overall revenues that the company generates
b.part of the title for the assets that the corporate holds
c.specified fixed stream of income from the corporation
d.share of the profits that the company generates through operations
firms pursuing a transnational strategy:
a.have a low need for coordination
b.require very few integrating mechanisms
c.have a very high need for cultural controls
d.operate with a worldwide product division structure
the need for coordination is high in transnational firms. this is reflected in the use of an
array of formal and informal integrating mechanisms, including formal matrix
structures and informal management networks. in addition to output and bureaucratic
controls, firms pursuing a transnational strategy need to cultivate a strong culture.
the price a firm charges for a good or service is typically less than the value placed on
that good or service by the customer. this is because:
a.the customers disposable income is significantly higher than what the market
demands
b.the customer captures some of that value in the form of a consumer surplus
c.regulatory mechanisms ensure that the customer is not overcharged for
products/services
d.marketers implement psychological pricing tactics to ensure that customers perceive
the prices to be low
winrow company received proceeds of $377,000 on 10-year, 8% bonds issued on
january 1, 2011. the bonds had a face value of $400,000, pay interest annually on
december 31st, and have a call price of 101. winrow uses the straight-line method of
amortization. what is the carrying value of the bonds on january 1, 2013?
a.$400,000
b.$381,600
c.$395,400
d.$379,300
under a tariff rate quota, a higher tariff rate is applied to imports within the quota than
those over the quota.
all of the following are key components of a countrys legal system except:
a.establishing a mixed economy
b.regulating business practices
c.defining the rights and obligations of those involved in business transactions
d.monitoring the way business transactions are executed
_____ exists when the tastes and preferences of consumers in different nations are
similar if not identical.
a.universal needs
b.homogenous needs
c.basic needs
d.bundled needs
x
abb bank is a financial corporation located in england and uses euro as its official
currency. the company borrows 1 million u.s. dollars from a bank based in united states.
abb will be at a disadvantage if ____.
a.euro appreciates against all currencies
b.u.s. dollar appreciates against euro
c.u.s. dollar depreciates against euro
d.fixed exchange rates are used for the transaction
when a firm emphasizes personal selling rather than mass media advertising in the
promotional mix, the firm is using a:
a.standardized strategy
b.pull strategy
c.push strategy
d.localized strategy
unearned rental revenue is
a.a contra account to rental revenue
b.a revenue account
c.reported as a current liability
d.debited when rent is received in advance
for a company whose core competency is management know-how, explain which entry
mode would be optimal.
a cash register tape shows cash sales of $2,000 and sales taxes of $160. the journal
entry to record this information is
discuss the two schools of thought on exchange rate forecasting.
What is the Bretton Woods agreement? How was it different from the gold standard?
explain the problem of trust that persists in international business.
what is the difference between a spot exchange rate and a forward exchange rate?