mercantilism supports the idea that countries should export more than what they import.
u.s. organizations can get financing aid from the export-import bank.
The theoretical framework for performing capital budgeting for a foreign project is
vastly different from domestic capital budgeting.
products sell well when their attributes match consumer needs.
the political, economic, and legal environments of a country influence the attractiveness
of that country as a market or investment site.
modern socialists trace their intellectual roots to karl marx (1818-83), although socialist
thought clearly predates marx.
the impact of currency exchange rates on the reported financial statements of a
company is called economic exposure.
notes payable usually require the borrower to pay interest.
licensing involves the establishment of a new operation in a foreign country.
a firms internal stakeholders include customers, suppliers, and lenders.
if bonds are issued at a premium, the carrying value of the bonds will be greater than
the face value of the bonds for all periods prior to the bond maturity date.
elasticity of demand for a product in a given country is determined by income level and
competitive conditions.
because of its individualistic mindset, japanese culture is more supportive of
entrepreneurial activities than american culture.
offshore production refers to fdi undertaken to serve the host market.
which of the following observations concerning knickerbockers theory is true?
a.it does not explain imitative fdi behavior by firms in oligopolistic industries
b.economists favor this theory as an explanation for fdi compared to the internalization
theory
c.it addresses the issue of whether fdi is more efficient than exporting or licensing for
expanding abroad
d.it does not explain why the first firm in an oligopoly decides to undertake fdi rather
than to export or license
the likelihood that a trading partner will opportunistically break a contract or
expropriate property rights is called a(n) ____.
a.economic risk
b.legal risk
c.cultural risk
d.political risk
Which of the following is a factor that initiated the collapse of the fixed exchange rate
system?
A.Worsening of Great Britains balance of trade
B.Recession in third world countries
C.Price inflation in Europe
D.Worsening of U.S. foreign trade position
which of the following would a follower of the inefficient market school of thought
agree with?
a.companies would be better off investing in foreign exchange forecasting services
b.forward exchange rates do the best possible job of forecasting future spot exchange
rates
c.companies can optimize their foreign exchange transactions by using forward markets
d.forward rates reflect all available information about likely future changes in exchange
rates
which of the following is a disadvantage of the localization strategy?
a.decrease in the value of the product in the local market
b.duplication of functions
c.inability to accommodate varying tastes and preferences in different markets
d.reduced customization
Those in favor of floating exchange rate claim that ____.
A.uncertainty in monetary markets dampens the growth of international trade
B.inflation is beneficial to a country if it is controlled closely
C.trade imbalances can be adjusted by using floating exchange rates
D.governments can have rigid control over monetary markets by using floating rates
sony was a pioneer in the portable music market segment. sonys walkman was an
innovative product which created a new category altogether and made sony a
technological leader. this gave the company an edge over other consumer electronics
brands that introduced portable music players for a very long time. in this example,
sony had the:
a.vertical integration advantage
b.purchasing power parity advantage
c.free-rider advantage
d.first-mover advantage
when a firm has a strategic goal of pursuing a low-cost strategy on a worldwide scale,
the firm should follow a(n) _____ strategy.
a.global standardization
b.localization
c.international
d.customization
the interest expense recorded on an interest payment date is increased
a.by the amortization of premium on bonds payable
b.by the amortization of discount on bonds payable
c.only if the bonds were sold at face value
d.only if the market rate of interest is less than the stated rate of interest on that date
why doesnt great britain use the euro as its national currency?
a.would have to convert its economic structure to the euro
b.would have to relinquish control of its monetary policy to the eu
c.would have to change its financial markets operations
d.would have to obtain approval from the u.s. federal reserve
_____ costs are incurred every time a firm changes cash from one currency into another
currency.
A.Dividend
B.Capital
C.Fixed
D.Transaction
Transaction costs are the cost of exchange. Every time a firm changes cash from one
currency into another currency it must bear a transaction cost-the commission fee it
pays to foreign exchange dealers for performing the transaction.
which of the following is a consequence of the emphasis on individual performance in
many western societies?
a.decreased entrepreneurship
b.high degree of managerial mobility
c.increased loyalty towards an individual company
d.executives are not exposed to different ways of doing business
according to islam, those who hold property are regarded as:
a.trustees
b.owners
c.tenants
d.speculators
firms pursuing a(n) _____ attempt to create value by transferring core competencies
from home to foreign subsidiaries.
a.localization strategy
b.international strategy
c.transnational strategy
d.global strategy
according to political scientist samuel huntington, the rise of islamic fundamentalism is
a response to ____.
a.the corruption prevalent in planned economies
b.the restricted access to formal education
c.the alienation produced by modernization
d.the restrictions associated with totalitarian regimes
the market value (present value) of a bond is a function of all of the following except
the
a.dollar amounts to be received
b.maturity date
c.market interest rate
d.type of bonds
what is dumping? how do governments respond to charges of dumping?
when does concentration of production make sense?
what are first-mover advantages? discuss the advantages associated with them.
discuss the strategic objectives of the production and logistics functions of an
international firm.
discuss the buy america act and its connection with local content requirements.
consider the firm in terms of a value chain. what is the difference between primary
activities and support activities? provide examples of each.
What is capital budgeting?
describe the three purposes of a bill of lading.