ethics officers are hired by many businesses to make sure that all employees are trained
to be ethically aware and that ethical considerations enter the business decision-making
process at all levels of the organization.
inflation occurs when output increases faster than the money supply.
the smoot-hawley act raised tariff barriers in the hope of protecting jobs and diverting
consumer demand away from foreign products.
porter contends that government has little or no effect on the four components that
shape the environment in which firms compete.
local content regulations provide protection for a domestic producer of parts by limiting
foreign competition.
mercantilist doctrine advocates unrestricted free trade between countries.
economic risks are independent of political risk.
the buy america act specifies that government agencies must give preference to
american products when putting contracts for equipment out to bid unless the foreign
products have a significant price disadvantage.
the majority of cross-border investment in the developed world is in the form of
greenfield investments rather than mergers and acquisitions.
eurobonds are normally underwritten by an international syndicate of banks.
the righteous moralist approach to ethics is typically associated with managers from
developing and under-developed nations.
Transnational financing occurs when a firm based in one country enters another country
to raise capital _____.
A.by borrowing from financial institutions
B.from the sale of stocks or bonds
C.by borrowing from banks
D.through exchange policies of governments
a bond with a face value of $200,000 and a quoted price of 97 has a selling price of
a.$194,500
b.$194,050
c.$194,004
d.$195,000
which of the following arises when a country is importing more goods and services than
it is exporting?
a.current account surplus
b.trade deficit
c.trade surplus
d.trade balance
what is the primary advantage of licensing?
a.it helps a firm avoid the development costs associated with opening a foreign market
b.it gives a firm the tight control over manufacturing, marketing, and strategy
c.it helps a firm achieve experience curve and location economies
d.it increases a firms ability to utilize a coordinated strategy
in an international transaction involving bank as a third party, the exporter ships the
product after ____.
a.the bank receives materials from the importer
b.receiving cleared payment through bank
c.the importer has paid the bank
d.the bank promises to pay on the importers behalf
in a recent year ley corporation had net income of $150,000, interest expense of
$40,000, and a times interest earned ratio of 6. what was ley corporations income before
taxes for the year?
a.$280,000
b.$240,000
c.$200,000
d.none of the above
until 1995, gatt rules applied to all of the following except:
a.manufactured goods
b.services
c.textiles
d.agricultural products
fdi undertaken to serve the home market is known as:
a.outsourcing.
b.fdi substitution.
c.offshore production.
d.home market fdi.
the _____ suggests that given relatively efficient markets, the price of a “basket of
goods” should be roughly equivalent in each country.
a.random walk theory
b.theory of competitive advantage
c.theory of price inflation
d.purchasing power parity theory
collins company borrowed $500,000 from banktwo on january 1, 2011 in order to
expand its mining capabilities. the five-year note required annual payments of $130,218
and carried an annual interest rate of 9.5%. what is the amount of expense collins must
recognize on its 2012 income statement?
a.$47,500
b.$39,642
c.$35,129
d.$31,037
In late 2001, the WTO launched a new round of talks in Doha aimed at:
A.helping member states to cope with financial crisis.
B.further liberalization of the global trade and investment framework.
C.protecting national economies from global competition.
D.promoting higher standards of living in all member states.
which of the following is not an action taken by organized labor to respond to the
increased bargaining power of multinational corporations?
a.trying to establish international labor organizations
b.increasing competition between national unions
c.lobbying for national legislation to restrict multinationals
d.trying to achieve international regulations on multinationals through such
organizations as the united nations
dynamic capabilities describe skills that _____.
a.are used to perform the day-to-day activities in a firm
b.refer to extrinsic capabilities of an employee
c.become more valuable over time through learning
d.are used by managers to make transactional decisions
cultural relativism suggests that:
a.a firm should adopt the ethics of the culture in which it is operating
b.the only social responsibility of a firm is to increase profits
c.a firms ethical policies should remain the same in all cultures
d.a multinational should follow its home-country cultural practices in all the
host-countries where it has operations
the swiss made” label has leveraged several watch-making companies (for example, tag
heuer) for decades now. this is an example of a ____ effect.
a.linguistic
b.country of origin
c.noise
d.cultural
what are the three types of staffing policies in international business? briefly describe
each one. which is the most attractive approach and why?
what is human resource management? why is hrm an important strategic component?
explain how mercosur has changed over time. what are the implications of these
changes?