according to the righteous moralist, if a manager of a multinational sees that firms from
other nations are not following ethical norms in a host nation, that manager should not
either.
many firms of all national origins increasingly depend on globally dispersed production
systems for their competitive advantage.
investors can reduce the level of risk by diversifying a portfolio internationally.
a lag strategy involves attempting to collect foreign currency receivables early when a
foreign currency is expected to depreciate and paying foreign currency payables before
they are due when a currency is expected to appreciate.
depositors are not protected against bank failures in the eurocurrency market.
universal needs exist when the tastes and preferences of consumers in different nations
are similar if not identical.
The initial rate, in the Lessard-Lorange Model, refers to the spot exchange rate when
the budget is adopted.
the council of the european union is responsible for proposing eu legislation,
implementing it, and monitoring compliance with eu laws by member states.
deregulation involves prohibiting private enterprises from operating in most sectors of
the economy.
hedge funds position themselves to make “long bets” on assets that they think will
increase in value.
friedmans arguments suggest that improving working conditions beyond the level
required by the law and necessary to maximize employee productivity will reduce
profits and are therefore not appropriate.
eurocurrency market is characterized by lack of government regulation.
in a command economy, enterprises have little incentive to control costs and be
efficient, because they cannot go out of business.
predatory pricing refers to the fact that a firms pricing strategy in one market may have
an impact on its rivals pricing strategy in another market.
a current liability must be paid out of current earnings.
_____ occurs when a firm exports goods or services to consumers in another country.
A.International trade
B.Foreign direct investment
C.Inward investment
D.Outsourcing
a japanese firm prefers expatriate japanese managers to head its foreign operations
because these managers have been socialized into the firm while employed in japan.
this indicates that the firm:
a.believes that such managers cannot progress beyond middle-manager positions in
their parent company
b.follows an ethnocentric staffing policy to maintain a unified corporate culture
c.is trying to create value by transferring core competencies to a foreign operation
d.requires host-country nationals to be recruited to manage subsidiaries
According to Lessard-Lorange model, _____ rate refers to the spot exchange rate when
the budget is adopted.
A.ending
B.initial
C.ideal
D.projected
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 initial rate, the spot exchange rate when the budget
is adopted.
_____ refer(s) to systematic reductions in production costs that have been observed to
occur over the life of a product.
a.experience curve
b.economies of scale
c.location economies
d.production possibility
the value of a product to an average consumer is v; and the average price that the firm
can charge a consumer for that product is p. here, v – p can be termed as:
a.consumer surplus per unit
b.producer surplus per unit
c.profit growth
d.profit per unit sold
a citizen of france who moves to the u.s. to work at ford is a(n):
a.host-country national
b.local
c.inpatriate
d.acquired citizen
which of the following statements about mores is true?
a.mores are the routine conventions of daily life
b.mores are actions of little moral significance
c.in many societies, certain mores have been enacted into law
d.people who violate mores may be thought of as ill-mannered, but they are not
considered to be evil
which of the following statements is true of six sigma?
a.it is a statistically based philosophy to reduce defects and boost productivity
b.at six sigma, a production process will have 6.6 defects per million units
c.at six sigma, a production process would be 100 percent accurate
d.a company can achieve six sigma perfection by reducing the number of defects to one
in six thousand
restoration company issued bonds that had the following data associated with them:
interest to be paid is $40,000.
interest expense to be recorded is $45,000.
which of the following characteristics is true?
a.the bonds are sold at a premium
b.after recording the interest expense, the amortization will decrease the bond carrying
value
c.the difference between the interest expense and the interest to be paid is the bonds par
value
d.after recording the interest expense, the amortization will increase the bond carrying
value
which of the following is not an example of intellectual property?
a.a music score
b.a video game
c.a software business
d.a screenplay
the extent to which the place of manufacturing influences product evaluations is known
as ____.
a.source effects
b.country of origin effects
c.noise effects
d.location effects
a wholly owned subsidiary is appropriate when:
a.the firm wants to share the cost and risk of developing a foreign market
b.the firm wants 100 percent of the profits generated in a foreign market
c.the firm wants a plant that is ready to operate
d.the firm wants to test a market
the move toward economic union raises the issue of how to make a coordinating
bureaucracy accountable to the citizens of member nations. which of the following
offers a solution to this problem?
a.a common market
b.a free trade area
c.a customs union
d.a political union
explain how the principle of diminishing returns weakens the ricardian model.
wishbone company maintains two separate accounts payable computer systems. one is
known to all the users, and is used to process payments to vendors. employees enter the
vendor code, or the name and address of new vendors, the amount, the account, and so
on. the other system is a secret one. it is used to cross-check the vendors against an
approved vendor list. if a vendor is not listed as approved, the payment process is
halted. internal audit employees seek to verify the existence of a bona fide claim by the
vendor. all inquiries are made at the top management level, and very discreetly. no one
but top management, the internal audit staff, and the board of directors of the company
is even aware of the second system.
explain how companies using jit systems can reduce risks associated with a global
supply chain that operates on just-in-time principles.
how do levels of economic development affect consumer behavior? what are the
implications for marketing strategy?
discuss the advantage of establishing a greenfield venture in a foreign country.
describe the process involved in financing imports and exports using a letter of credit.
why has this system developed? what is the advantage of using this system?