Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
one of the sources of economies of scale is the ability to spread fixed costs over a large
volume.
a draft is the instrument normally used in international commerce to effect payment.
eurobonds fall within the regulatory domain of european economic community.
an inefficient market is one in which prices do not reflect all available information.
debt loans include cash loans from banks and funds raised from the sale of corporate
bonds to investors.
simple model of free trade assumed away transportation costs between countries.
The rise in the value of the dollar gave U.S goods a competitive advantage over others
between 1985 and 1988.
a market economy encourages innovation because ____.
a.state ownership of enterprises reduces risks of innovation
b.economic freedom leads to greater incentives for innovation
c.government-owned and funded research centers become hubs of innovation
d.the prices of goods and services, including new products, are fixed by government
which of the following products will most likely have high value-to-weight ratios?
a.pharmaceuticals
b.refined sugar
c.bulk chemicals
d.petroleum products
according to the _____ argument, governments should temporarily support new
industries until they have grown strong enough to meet international competition.
a.retaliatory action
b.human rights
c.infant industry
d.antidumping
Globalization is criticized because it increases the power of ____.
A.governments to own enterprises
B.unskilled labor to form labor unions
C.supranational organizations over nation-states
D.nation-states to regulate markets and reduce competition
which control system is most widely used by small firms?
a.personal
b.output
c.bureaucratic
d.cultural
which of the following occurs when traders start moving as a herd in the same direction
at the same time?
a.fisher effect
b.bandwagon effect
c.arbitrage
d.decoupling of markets
a $700,000 bond was retired at 98 when the carrying value of the bond was $721,000.
the entry to record the retirement would include a
a.gain on bond redemption of $21,000
b.loss on bond redemption of $21,000
c.loss on bond redemption of $35,000
d.gain on bond redemption of $35,000
which of the following statements is true of the deregulation of financial industry?
a.countries can strengthen the global capital market by encouraging strict regulations
b.financial services have historically been the most deregulated of all industries
c.deregulation helped the development of an international capital market
d.deregulation compels financial services companies to remain as domestic companies
which of the following is the prime reason why africa has attracted fdi in recent years?
a.growth of the services sector
b.complete deregulation of markets
c.wave of privatization
d.raw material availability
a retail store credited the sales account for the sales price and the amount of sales tax on
sales. if the sales tax rate is 5% and the balance in the sales account amounted to
$315,000, what is the amount of the sales taxes owed to the taxing agency?
a.$300,000
b.$315,000
c.$15,750
d.$15,000
a $600,000 bond was retired at 103 when the carrying value of the bond was $622,000.
the entry to record the retirement would include a
a.gain on bond redemption of $18,000
b.loss on bond redemption of $4,000
c.loss on bond redemption of $18,000
d.gain on bond redemption of $4,000
Which of the following arguments is in favor of floating exchange rates?
A.A countrys ability to expand or contract its money supply should be limited by the
need to maintain exchange rate parity.
B.Maintaining balance of trade equilibrium is not in the best interest of a country.
C.Countries can isolate themselves from uncertainties when they trade using a mutually
agreed on exchange rate.
D.Governments can restore monetary control by removing the obligation to maintain
exchange rate parity.
facilitating payments are:
a.a direct violation of the foreign corrupt practices act
b.permitted so long as they designed only to gain exclusive preferential treatment
c.used to secure contracts that would otherwise not be secured
d.permitted under the amended foreign corrupt practices act
obligations in written form are called ______________ and usually require the
borrower to pay interest.
explain the difference between a concentrated retail system and a fragmented one. why
is this distinction important to international businesses?
Describe three factors that complicate the process of an international business.
explain the changes observed in the risk of investments when an investor increases the
number of stocks in her portfolio.
How is a countrys accounting system affected by the providers of capital? Explain with
the help of suitable examples.
how easy is it for countries to integrate?
describe the concept of minimum efficient scale. discuss the implications of minimum
efficient scale.
what is a core competence? why is it essential to the success of the firm?
why do command economies tend to stagnate?
west county bank agrees to lend drake builders company $100,000 on january 1. drake
builders company signs a $100,000, 6%, 6-month note. what entry will drake builders
company make to pay off the note and interest at maturity assuming that interest has
been accrued to june 30?
