According to supporters of free trade, as countries get richer they commit greater
violation of environmental and labor regulations.
the cold war was a war between collectivism and individualism.
some totalitarian regimes have fostered a market economy and strong property rights
protection and have experienced rapid economic growth.
pressures for local responsiveness imply that it may not be possible for a firm to realize
the full benefits from economies of scale, learning effects, and location economies.
The lowering of barriers to international trade enables firms to view the world, rather
than a single country, as their market.
new trade theorists stress the role of luck in giving a firm first-mover advantages.
totalitarian states promote human freedom and human development, which facilitates
economic progress.
the asia-pacific economic cooperation was established to increase multinational
cooperation in view of the economic rise of the pacific nations and the growing
interdependence within the region.
in firms pursuing a transnational strategy, some operating decisions are relatively
centralized, while others are relatively decentralized.
emcs are governmental agencies that help the u.s. department of commerce to promote
export in the united states.
borrowers can hedge against foreign exchange risks by entering into a forward contract.
the classification of a liability as current or noncurrent is important because it may
affect the evaluation of a companys liquidity.
A currency crisis occurs when investors lose confidence in a country’s banking system.
unearned revenues are received before goods are delivered or services are rendered.
analysts who believe globalization of capital has serious risks argue that ____.
a.capital does not shift in and out of countries as quickly as conditions change
b.individual nations are becoming more vulnerable to speculative capital
c.deregulation of trade is helpful for the economic growth in a country
d.most of the capital that moves internationally is pursuing long term gains
a(n) _____ is a grouping of various types of machinery, a common materials handler,
and a centralized cell controller.
a.flexible machine cell
b.six sigma
c.assembly line
d.minimum efficient scale
in its extreme viewpoint, _____ suggests that if a culture supports slavery, it is all right
to use slave labor in the country.
a.the friedman doctrine
b.noblesse oblige
c.righteous moralist
d.cultural relativism
neufeld company issued $1,000,000 of 6%, 5-year bonds at 98, which pays interest
annually. assuming straight-line amortization, what is the carrying value of the bonds
after one year?
a.$980,000
b.$982,000
c.$984,000
d.$988,000
Which of these statements pertaining to cross-border FDI flows is true?
A.There was a growth of FDI between 2004 and 2007.
B.A slump in FDI from 1998 to 2000 was followed by a surge from 2001 to 2003.
C.Among developing nations, the largest recipient of FDI has been Russia.
D.The dramatic increase in FDI reflects the decreasing internationalization of business
corporations.
which of the following statements is true about the united nations universal declaration
of human rights?
a.it transcends national borders
b.it states that human rights are culturally determined
c.it states that an action is judged desirable if it leads to the best possible balance of
good consequences over bad consequences
d.it states that the only social responsibility of business is to increase profits, so long as
the company stays within the rules of law
which of the following staffing approaches will be most effective for a firm that is
pursuing a transnational strategy?
a.a polycentric staffing policy
b.an ethnocentric staffing policy
c.a geocentric staffing policy
d.an internal staffing policy
a common hybrid of a quota and a tariff is known as a(n):
a.import tariff quota
b.voluntary export restraint
c.ad valorem tariff
d.tariff rate quota
all of the following are true regarding financial statement analysis ratios associated with
liabilities except
a.a high times interest earned ratio indicates that a company is more likely to meet
interest payments as scheduled
b.high liquidity ratios mean that lines of credit should be high to compensate
c.if a company’s current ratio is lower than the industry average, then it may lack
liquidity
d.unrecorded obligations causing sizeable differences between liquidity and solvency
ratios can be ignored
max weber theorized that there was a relationship between protestantism and the
emergence of modern capitalism because:
a.protestant ethics emphasize the importance of hard work and wealth creation and
frugality
b.protestantism promotes the hierarchical domination of religious and social life
c.protestantism states that spiritual growth is more important than material wealth
d.protestantism promotes blind loyalty to employers
which of the following statements is true?
a.firms in consumer goods industries that are trying to sell to a large segment of the
market generally favor a push strategy
b.mass communication has cost advantages for firms in consumer goods industries that
are trying to sell to a large segment of the market
c.direct selling may be the only way to reach consumers in poor nations with low
literacy levels
d.firms that sell industrial products or other complex products favor a pull strategy
gomez corporation issues 800, 10-year, 8%, $1,000 bonds dated january 1, 2012, at 96.
the journal entry to record the issuance will show a
a.debit to cash of $800,000
b.credit to discount on bonds payable for $32,000
c.credit to bonds payable for $768,000
d.debit to cash for $768,000
after the uruguay round of gatt extended global trading rules to cover trade in services,
the first two industries targeted for reform by the wto were:
a.textiles and technology
b.telecommunications and financial services
c.automotives and aerospace
d.agriculture and consulting services
wolford company borrowed $750,000 from u.s. bank on january 1, 2011 in order to
expand its mining capabilities. the five-year note required annual payments of $195,327
and carried an annual interest rate of 9.5%. what is the amount of expense wolford must
recognize on its 2012 income statement?
a.$71,250
b.$59,463
c.$52,694
d.$46,555
why should a firm be cautious about entering a licensing agreement?
discuss the establishment of gatt. what was gatt’s objective?
discuss the trend toward increased regional economic integration.
how do product factors affect the decision of where to locate production? where will
you locate your firm’s production plant if your firm produces refined sugar?
briefly explain the advantages and disadvantages of franchising agreements.
explain ricardo’s theory of comparative advantage.
Define tax credit and tax treaty.
what are the major drawbacks of licensing according to the internalization theory?
explain how fixed costs impact the decision to locate a plant.