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the number of intermediaries between the producer and the consumer is known as the
channel length.
the main advantage of greenfield investment is that it gives the firm a much greater
ability to build the kind of subsidiary company that it wants.
cultural relativism suggests that even if slavery is culturally acceptable in a country, a
foreign firm operating in that country should avoid using slave labor.
barter is a reciprocal buying agreement that occurs when a firm agrees to purchase a
certain amount of materials back from a country to which a sale is made.
Money management decisions attempt to manage the firms working capital most
efficiently.
to minimize the risk of an unanticipated change in exchange rates, a company can
protect itself by entering into a forward exchange contract.
property rights can be violated in two waysthrough private action and through public
action.
a firm may be prevented from using standardized advertising because of advertising
regulations.
the infant industry argument is the latest argument for government intervention in trade.
moving up the experience curve allows a firm to reduce its cost of creating value and
increase its profitability.
an expatriate needs to have language fluency to show willingness to communicate.
the free market view argues that fdi is a benefit to both the source country and to the
host country.
_____ is required for a business environment to be conducive to innovation and
entrepreneurial activity.
a.state ownership of means of production
b.strong legal protection of property rights
c.barriers to foreign trade and investment
d.government regulation of the market
Historically, financial reports prepared by firms in Germany _____.
A.reveal less information than reports of British or U.S. firms
B.contain detailed information required by individual investors
C.overvalued assets and undervalued liabilities
D.made more public disclosures compared to firms in other countries
which of the following helps in adjusting gni such that it accounts for the differences in
the cost of living?
a.purchasing power parity (ppp) adjustment
b.human development index
c.debt to gni ratio
d.consumer price index
a(n) _____ occurs when a firm builds a plant in a country and agrees to take a certain
percentage of the plants output as partial payment for the contract.
a.buyback
b.barter
c.offset
d.switch trade
Increasingly the _____ has been acting as macroeconomic police of the world economy,
insisting that countries seeking significant borrowings adopt certain macroeconomic
policies.
A.ECOSOC
B.IMF
C.UN
D.World Bank
Which of the following arguments strengthen the idea of floating exchange rates?
A.External agencies should not interfere in the monetary policies of a country.
B.Trade deficits can be corrected through changes in exchange rates.
C.Changes in exchange rates will not impact the trade balance in a country.
D.Governments should act in ways to minimize the uncertainty in monetary markets.
A deferral principle specifies that parent companies are not taxed on foreign source
income until _____.
A.the subsidiary providing income makes some profit
B.they actually receive a dividend
C.they acquire majority stake in the subsidiary
D.the subsidiary providing income is listed in the U.S.
which of the following is a step in the shift toward a market-based economic system?
a.increasing trade barriers
b.increasing price controls
c.nationalization
d.creation of a legal system to safeguard property rights
which of the following statements is true of debt loans?
a.management has the discretion in paying the amount to investors
b.debt loans should be repaid at regular intervals
c.returns from debt loans are variable in nature
d.corporations need not pay back the debt loans if they incur losses
the export-import bank ____.
a.is an international financial institution that provides loans for capital programs
b.provides finance to facilitate trade between united states and other countries
c.is an independent agency of the united nations
d.focuses on policies that have an impact on the exchange rate and the balance of
payments
if the market rate of interest is greater than the contractual rate of interest, bonds will
sell
a.at a premium
b.at face value
c.at a discount
d.only after the stated rate of interest is increased
why are expatriate managers at a greater risk of violating their personal code of ethics?
one thousand bonds with a face value of $1,000 each, are sold at 97. the entry to record
the issuance is
dons pharmacy has collected $600 in sales taxes during march. if sales taxes must be
remitted to the state government monthly, what entry will dons pharmacy make to show
the march remittance?
explain specialized assets with an example.
what is logistics? discuss the relationship between production and logistics.
compare and contrast licensing agreements and franchising agreements.
discuss the factors that lead to pressure for local responsiveness.
