regional economic integration involves agreements among countries in a geographic
region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of
goods, services, and factors of production between each other.
with an interest-bearing note, the amount of cash received upon issuance of the note
generally exceeds the notes face value.
the production possibility frontier will be convex if constant return to specialization is
observed.
gni per capita can be adjusted by purchasing power to account for differences in the
cost of living.
international businesses that are ill-informed about the practices of another culture are
likely to fail.
the use of price as a competitive weapon to drive weaker competitors out of a national
market is known as predatory pricing.
nearly every state in the u.s. maintains active trade commissions to promote exports.
Adopting a pegged exchange rate regime increases the inflationary pressures in a
country.
Accounting is shaped by the environment in which it operates.
there are no impediments to the free flow of goods and services in an efficient market.
the overall attractiveness of a country as a potential market or investment site for an
international business depends on balancing the benefits, costs, and risks associated
with doing business in that country.
the short-term movement of funds from one currency to another in the hopes of
profiting from shifts in exchange rates is known as:
a.currency arbitrage
b.currency speculation
c.currency hedging
d.currency risk mitigation
which of the following statements is true of the country factors that govern international
business?
a.relative factor costs should be considered when selecting a country for production
b.centralized production is the most suitable method of doing international business
c.exchange rates are not a significant factor that determines the selection of a country
d.decentralized manufacturing is the most suitable method of doing international
business
A _____ represents the remuneration paid to the owners of technology, patents, or trade
names for the use of that technology or the right to manufacture and/or sell products
under those patents or trade names.
A.fronting loan
B.fee
C.royalty
D.transfer price
an exchange rate of 1 = $1.30 indicates that:
a.$1 is worth 1.30 euros
b.one could get 1.30 euros for $1
c.one euro buys 1.30 dollars
d.one euro buys 0.77 dollars
According to Lessard-Lorange model, _____ is the spot exchange rate forecast for the
end of the budget period.
A.projected
B.initial
C.ideal
D.ending
Lessard and Lorange point out three exchange rates that can be used to translate foreign
currencies into the corporate currency in setting budgets and in the subsequent tracking
of performance. One of them is the projected rate, the spot exchange rate forecast for
the end of the budget period.
from an accounting standpoint, all of the following are contingencies that must be
evaluated for off-balance sheet purposes except
a.product warranties
b.general business risks
c.money-back guarantees for products
d.environmental cleanup obligations
the adjusted trial balance for beneteau corporation at the end of the 2011 included the
following accounts:
the total non-current liabilities reported on the statement of financial position at
december 31, 2011 are
a.9,380,000
b.9,530,000
c.9,620,000
d.9,860,000
if a producer sells through an import agent, a wholesaler, and a retailer, then:
a.a long channel exists
b.the retail system must be concentrated
c.the internet probably plays a big role in the economy
d.there is no channel
why is the european council said to be the ultimate controlling authority within the eu?
a.since it is responsible for implementing eu legislation and monitoring compliance
with eu laws by member states
b.since its role in setting competition policy is becoming increasingly important to
business
c.since it has the right to vote on the appointment of commissioners
d.since draft legislation from the commission can become eu law only if the council
agrees
since the late 1980s, there has been a spread of democracy. this is because ____.
a.a states ability to control access to uncensored information has increased
b.the socialist model failed to deliver economic progress to the vast bulk of their
populations
c.in many countries the middle and working classes have become less powerful
d.in many countries state-ownership of firms has encouraged innovation and
entrepreneurship
what is paul krugmans position on strategic trade policy?
what is intangible property? how can intangible property be protected in a licensing
agreement?
what is predatory pricing? describe how a firm might use predatory pricing.
how do flexible machine cells work? what is the advantage of incorporating this type of
technology into a strategy?
explain the concept of free trade.
a cash register tape shows cash sales of $5,000 and sales taxes of $250. the journal
entry to record this information is
discuss the nature of the foreign exchange market. how fast has it been growing? where
are the most important trading centers?
explain how governments use administrative trade policies to boost exports and restrict
imports. provide an example of an administrative trade policy.