upon meeting a foreign business executive, a japanese executive will hold his business
card in both hands and bow while presenting the card to the foreigner. this is an
example of ritual behavior.
the great depression had roots in the failure of the world economy to mount a sustained
economic recovery after the end of world war i in 1918.
organizational structure refers to the totality of a firm’s organization.
eurocurrency can be created anywhere in the world.
organizations are under pressure to produce products in the optimal location and to
serve the world market from there if their products have low value-to-weight ratios.
a key issue in the “millennium round” of the wto was to increase barriers to
cross-border trade in agricultural products.
new information and communication technologies have enabled the spread of
democratic ideals.
currency speculation typically involves the long-term movement of funds from one
currency to another in the hopes of profiting from shifts in exchange rates.
privatization refers to the process of hiring private management consultancy firms to
manage state-owned enterprises.
a push strategy makes sense when distribution channels are short.
the rate of new-product development seems to be lesser in countries where more money
is spent on basic and applied research and development.
material gains or losses on bond redemption are reported as an extraordinary item on
the income statement.
a firm’s strategy can be defined as the actions that managers take to attain the goals of
the firm.
The principles of multilateral netting and bilateral netting are different.
The price at which goods and services are transferred between subsidiary companies in
a multi-national firm is referred to as minimum retail price.
The international monetary system refers to the institutional arrangements that govern
____.
A.microeconomic parameters
B.exchange rates
C.gross domestic produce
D.foreign direct investment
which feature of a common market differentiates it from a customs union?
a.harmonization of members’ tax rates
b.a common currency
c.a common external trade policy toward nonmembers
d.ability of factors of production to move freely between members
a country’s balance-of-payments accounts keep track of the ____.
a.basic factor endowments and advanced factor endowments that the nation possesses
b.payments to and receipts from other countries for a particular time period
c.income taxes paid by domestic firms and the spending on the firms
d.total value of taxes paid by domestic firms and the spending on the firms
What will happen if a country increases its money supply rapidly under fixed exchange
rate regime?
A.Imports will become less attractive in that country.
B.The country will face negative inflation.
C.Trade deficit would widen in that country.
D.The country’s products will become more attractive in world markets.
if bonds have been issued at a discount, then over the life of the bonds the
a.carrying value of the bonds will decrease
b.carrying value of the bonds will increase
c.interest expense will increase, if the discount is being amortized on a straight-line
basis
d.unamortized discount will increase
which of the following is not an advantage of issuing bonds instead of common stock?
a.stockholder control is not affected
b.earnings per share on common stock may be lower
c.tax savings result
d.each of the above is an advantage
Which of the following is a risk associated with globalization?
A.Restrictions on competition
B.Global financial contagion
C.Excessive market regulation
D.Differentiation of markets
most companies pay current liabilities
a.out of current assets
b.by issuing interest-bearing notes payable
c.by issuing stock
d.by creating long-term liabilities
how does the nafta seem to increase the international competitiveness of u.s. and
canadian firms?
a.it gives them access to scarce natural resource hitherto unavailable
b.it increases tariff barriers making the north american market less attractive to asian
companies
c.it allows them to take advantage of lower labor costs in mexico
d.it gives them production bases in south american markets like brazil and argentina
bond discount should be amortized to comply with
a.the historical cost principle
b.the matching principle
c.the revenue recognition principle
d.conservatism
according to ricardo’s theory of comparative advantage, a country should produce goods
____.
a.for which it has access to raw materials
b.that it produces most efficiently
c.that have the highest domestic demand
d.for which it has an absolute advantage
The _____ was established on October 24, 1945, by 51 countries committed to
preserving peace through international cooperation and collective security.
A.World Trade Organization
B.United Nations
C.G20
D.World Bank
When using the projected spot exchange rate to translate both the budget and
performance figures into the corporate currency, the projected rate in such cases will
typically be the _____.
A.forward exchange rate as determined by the foreign exchange market
B.exchange rate that exists at the start of a project
C.exchange rate when the budget was prepared
D.transfer price that a firm will offer to one or more of its subsidiaries
Of the five combinations, Lessard and Lorange recommend that firms use the projected
spot exchange rate to translate both the budget and performance figures into the
corporate currency. The projected rate in such cases will typically be the forward
exchange rate as determined by the foreign exchange market or some
company-generated forecast of future spot rates, which Lessard and Lorange refer to as
the internal forward rate.
which of the following was the outcome of the treaty of lisbon signed in 2007?
a.it established the european community
b.it resulted in the adoption of the euro
c.it changed the name of the european community to the european union
d.it increased the power of the european parliament
the ____ industry is often thought of as one in which global standardization of the
marketing mix is the norm.
a.financial services
b.it
c.telecommunication
d.manufacturing
which of the following observations pertaining to the eu’s court of justice is incorrect?
a.it is comprised of one judge from each country
b.it is the supreme appeals court for eu law
c.its judges are required to act as representatives of national interests
d.a member country can bring other members to the court for failing to meet eu treaty
obligations
molina corporation issues 3,000, 10-year, 8%, $1,000 bonds dated january 1, 2012, at
103. the journal entry to record the issuance will show a
a.debit to cash of $3,000,000
b.debit to premium on bonds payable for $90,000
c.credit to bonds payable for $3,000,000
d.credit to cash for $3,090,000
textile industry in a nation is characterized by vigorous domestic rivalry. which of the
following observations of this nation’s international competency is most likely to be
true?
a.the nation will have access to such basic factors of textile industry as natural resources
b.the nation’s textile firms will have a competitive advantage in international trade
c.the domestic customers of the textile firms will be less demanding
d.the nation’s textile industry will lack the advanced factors that are necessary to be
internationally competent
Funds can be moved out of a particular country in which a parent country has set up a
subsidiary by _____.
A.setting high transfer prices for the goods supplied
B.removing royalties imposed on the subsidies
C.charging a discounted fee on the subsidiary
D.issuing loans to the subsidiary at discounted rate
explain the notion of economic exposure. how can economic exposure be minimized?
what are the political reasons for governments to intervene in markets?
what are the conditions required to encourage innovation and entrepreneurship?
Identify the multinational institutions that were established at the Bretton Woods
agreement. What were their roles in the international monetary system?
Explain why the evaluation of a subsidiary should be kept separate from the evaluation
of its manager.