an integrated international capital market is less volatile compared to a nonintegrated
market.
in a matrix structure all roles are viewed as integrating roles.
democracy is one of the consequences of economic growth and progress.
diminishing returns imply that when a firm already has significant value built into its
product offering, increasing value by a relatively small amount requires significant
additional costs.
Banks are the most important source of external capital for business enterprises in the
United States.
the international fisher effect states that for any two countries, the spot exchange rate
should change in an equal amount but in the opposite direction to the difference in
nominal interest rates for the two countries.
Most international businesses require all budgets and performance data within the firm
to be expressed in the currencies of the countries where its subunits are located.
products such as electronic components and pharmaceuticals have low value-to-weight
ratios.
one way to reduce risks associated with a jit global supply chain is to source inputs
from several suppliers located in different countries.
The IMFs original function was to provide a pool of money from which members could
borrow in the short term.
small-scale entry allows a firm to learn about a foreign market while limiting the firms
exposure to that market.
government limitations are more severe for securities denominated in foreign currencies
than for domestic securities.
which of the following statements is true regarding management development?
a.historically, most international businesses have been more concerned with
management development than with training
b.management development facilitates the creation of an informal network for sharing
knowledge within the multinational enterprise
c.management development refers to specific training efforts to prepare home-country
nationals for foreign postings
d.typically, management development programs use standard psychological tests to
select managers for specific foreign postings
with an interest-bearing note, the amount of assets received upon issuance of the note is
generally
a.equal to the notes face value
b.greater than the notes face value
c.less than the notes face value
d.equal to the notes maturity value
tinas boutique has total receipts for the month of $16,170 including sales taxes. if the
sales tax rate is 5%, what are tinas sales for the month?
a.$15,362
b.$15,400
c.$16,170
d.it cannot be determined
bonds that may be exchanged for common stock at the option of the bondholders are
called
a.options
b.stock bonds
c.convertible bonds
d.callable bonds
on january 1, 2012, hannigan company issued bonds with a face value of $800,000. the
bonds carry a stated interest of 7% payable each january
a.prepare the journal entry for the issuance assuming the bonds are issued at 97.
b.prepare the journal entry for the issuance assuming the bonds are issued at 102.
according to the buy america act, if a company wishes to win a contract from a u.s.
government agency to provide some equipment, it must ensure that at least 51 percent
of the product by value is manufactured in the united states. this is an example of:
a.antidumping duties
b.voluntary export restraints
c.import quotas
d.local content requirements
selling the bonds at a premium has the effect of
a.causing the total cost of borrowing to be higher than the bond interest paid
b.causing the total cost of borrowing to be lower than the bond interest paid
c.raising the effective interest rate above the state interest rate
d.increasing the amount of cash paid for interest each 6 months
The World Bank was established at the at Bretton Woods conference to ____.
A.establish an international monetary system
B.promote general economic development
C.establish gold standard across the world
D.fund the initiatives of the United Nations
assume that the law of one price holds. a shirt that retails for $120 in new york sells for
£60 in london. the exchange rate between the british pound and the dollar is £1 = $1.50.
assuming away transportation costs and trade barriers, this creates a profit-making
opportunity called ____.
a.currency swap
b.arbitrage
c.carry trade
d.straddle
sielert corporation borrowed $600,000 from national bank on may 31, 2011. the
three-year, 7% note required annual payments of $228,630 beginning may 31, 2012.
interest expense for the year ended december 31, 2011 was
a.$24,500
b.$28,000
c.$42,000
d.$0
which of the following is a drawback of a just-in-time system?
a.transport costs are high when using a just-in-time system
b.it leaves a firm without a buffer stock of inventory
c.it increases the warranty costs associated with products
d.it leaves a firm with high scrap costs associated with defective products
which of the following refers to a situation where a government does not attempt to
influence through quotas or duties what its citizens can buy from another country?
a.economic patriotism
b.protectionism
c.free trade
d.offshoring
if a high-tech firm sets up operations in a foreign country to profit from a core
competency in technological know-how, which of the following entry strategy is best?
a.joint ventures
b.licensing
c.wholly owned subsidiaries
d.turnkey contacts
consumers in highly developed countries value ____ as compared to their counterparts
in less developed nations.
a.product price
b.product reliability
c.product attributes
d.product value
the international trade secretariats (its) have had virtually no real success. which of the
following is not a cause of the itss ineffectiveness?
a.national unions compete with each other to attract investment from international
businesses
b.the structure and ideology of unions tend to vary significantly from country to country
c.organized labor has had only limited success in its efforts to get national and
international bodies to regulate multinationals
d.the codes of conduct developed by international labor organization and the
organization for economic cooperation and development prevented the itss from
exercising absolute power