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hofstedes concept of power distance focused on the extent to which different cultures
socialized their members into tolerating uncertainty.
plato, to whom the advocacy of collectivism is traced back, did not equate collectivism
with equality.
if any portion of a long-term debt is to be paid in the next year, the entire debt should be
classified as a current liability.
bond interest paid by a corporation is an expense, whereas dividends paid are not an
expense of the corporation.
from a profit perspective, it makes sense for firms to disperse their productive activities
to those countries where they can be performed most efficiently.
the skills within the firm that a competitor cannot easily match or imitate are known as
core competence.
because of the fact that everyone benefits from economic integration, it is easy to
achieve and sustain.
which of the following is seen as a disadvantage of the euro?
a.higher foreign exchange and hedging costs
b.national authorities losing control over monetary policy
c.it becomes difficult to compare prices across europe
d.it undermines the development of a pan-european capital market
herman company received proceeds of 188,500 on 10-year, 8% bonds issued on january
1, 2010. the bonds had a face value of 200,000, pay interest semi-annually on june 30
and december 31, and have a call price of 101. herman uses the straight-line method of
amortization.
herman company decided to redeem the bonds on january 1, 2012. what amount of gain
or loss would herman report on its 2012 income statement?
a.9,200 gain
b.11,200 gain
c.11,200 loss
d.9,200 loss
which of the following terms refers to the unit cost reductions associated with large
sized outputs?
a.absolute advantage of production
b.economies of scale
c.constant marginal returns
d.diminishing marginal returns
the u.s. government has used the threat of punitive trade sanctions to try to get the
chinese government to enforce its intellectual property laws. this is an example of
government intervention based on:
a.human rights protection
b.national security
c.consumer protection
d.retaliation
which of the following observations is correct?
a.the economic principles established in the koran are against free enterprise
b.the economic principles of islam prohibit the payment or receipt of interest
c.the koran speaks disapprovingly of earning legitimate profit through trade and
commerce
d.protection of the right to private property is not embedded within islam
hulse corporation retires its $800,000 face value bonds at 105 on january 1, following
the payment of annual interest. the carrying value of the bonds at the redemption date is
$829,960. the entry to record the redemption will include a
a.credit of $29,960 to loss on bond redemption
b.debit of $29,960 to premium on bonds payable
c.credit of $10,040 to gain on bond redemption
d.debit of $40,000 to premium on bonds payable
in the classic global matrix structure, horizontal differentiation proceeds along two
dimensions. these dimensions are:
a.hierarchy and overall strategy
b.target returns and sales potential
c.marketing strategy and sales potential
d.product division and geographic area
identify the theory that argues that advanced nations have an incentive to develop a new
offering and hence such nations always tend to create a good or service for the first
time.
a.absolute advantage
b.ricardo
c.product life-cycle
d.heckscher-ohlin
which of the following statements about fragmented retail systems is true?
a.countries with fragmented retail systems tend to have short channels of distribution
b.the more fragmented the retail system, the less expensive it is for a firm to make
contact with each individual retailer
c.fragmented retail systems tend to promote the growth of wholesalers to serve retailers
d.when the retail sector is very fragmented, it makes sense for the firm to deal directly
with retailers
a purely domestic capital market faces the problem of ____.
a.foreign exchange risk
b.limited liquidity
c.lack of regulation
d.deregulated markets
According to Lessard-Lorange model, ending rate is the spot exchange rate:
A.forecast for the end of the budget period.
B.when the budget is adopted.
C.when no formal exchange rate exists.
D.when the budget and performance are being compared.
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 ending rate, the spot exchange rate when the budget
and performance are being compared.
which of the following is the most widely practiced theocratic legal system in the world
today?
a.hindu law
b.sikh law
c.islamic law
d.jewish law
winrow company received proceeds of $377,000 on 10-year, 8% bonds issued on
january 1, 2011. the bonds had a face value of $400,000, pay interest annually on
december 31st, and have a call price of 101. winrow uses the straight-line method of
amortization. what is the amount of interest expense winrow will show with relation to
these bonds for the year ended december 31, 2012?
a.$32,000
b.$30,160
c.$34,300
d.$29,700
what are the drawbacks of the eurocurrency market?
consider a transnational strategy. why would a firm choose this strategic alternative?
what are the disadvantages of this strategy?
what are the three types of training for expatriate managers?
what is theodore levitts contribution to international business?
what are the ways in which host governments restrict inward fdi?
