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bureaucratic control involves personal contact with subordinates.
because differentiation across countries can involve significant duplication and a lack of
product standardization, it may reduce costs.
centralization gives top-level managers the power and authority to be able to bring
about needed major organizational changes.
World Bank gives an aid of 100 million dollars to Kenya for creating rural health care
facilities. This is an example of foreign direct investment.
decentralization of production is appropriate when location externalities are important.
licensing is usually a good option for firms in high-tech industries where protecting
firm-specific expertise is of paramount importance.
variety of goods that a country can produce is limited by the size of the market in
industries where economies of scale are important.
financial services is an information-intensive industry.
Interest rates adjust automatically under a strict currency board system.
which of the following is a major flaw associated with mercantilism?
a.mercantilists do not support government intervention in trade
b.mercantilists view trade as a zero-sum game
c.mercantilists recommend policies to maximize imports
d.mercantilists recommend countries to maintain a negative trade balance
on january 1, weatherholt inc. issued $3,000,000, 9% bonds for $2,817,000. the market
rate of interest for these bonds is 10%. interest is payable annually on december 31.
jean loptein uses the effective-interest method of amortizing bond discount. at the end
of the first year, weatherholt should report unamortized bond discount of
a.$164,700
b.$171,300
c.$154,830
d.$153,000
which of the following is a closed system of stratification in which social position is
determined by the family into which a person is born, and change in that position is
usually not possible during an individuals lifetime?
a.caste system
b.class system
c.social system
d.cultural system
describe the state of economic integration in africa. what factors have hindered the
process?
an economy in which the interaction of supply and demand determines the quantity in
which goods and services are produced is called a ____.
a.planned economy
b.command economy
c.closed economy
d.market economy
Which of the following is a consequence of globalization?
A.Decreasing interdependence between national economies
B.Increasing outsourcing of services
C.Differentiation of material culture
D.Increase in barriers to cross-border trade
A country is said to be in balance-of-trade equilibrium when ____.
A.it has the potential to produce all goods that its residents want without engaging in
foreign trade
B.the income its residents earn from exports is equal to the money its residents pay for
imports
C.the country import all goods that its residents want by engaging in foreign trade
D.it has the potential to balance the production and procurement of the basic amenities
that it needs
which of the following statements is true of emcs?
a.an emc is a transportation company that engages in international business
b.emcs are export-import banks that manage foreign exchanges
c.emcs are export specialists that act on behalf of their client firms
d.an emc is an intermediary that facilitates talks between two nations
according to hernando de soto, which of the following factors is essential for the
developing world to be able to reap the benefits of innovation and entrepreneurship?
a.detailed state planning
b.restricting direct investment by foreign enterprises
c.strong property rights
d.market regulation
a theocratic law system is one in which the law is based on:
a.religious teachings
b.tradition, precedent, and custom
c.a detailed set of laws organized into codes
d.cultural and social norms
which of the following is referred to as the purchasing power parity puzzle?
a.reduced levels of inflation in countries where the growth in the money supply is faster
than the growth in its output
b.the reason why countries with high inflation rates see depreciation in their currency
exchange rates
c.identical products being sold in different countries for the same price when their price
is expressed in terms of the same currency
d.the failure to find a strong link between relative inflation rates and exchange rate
movements
United States had large and growing trade deficit between 1980 and 1985. Despite this,
the value of U.S. dollar rose during this period. Which of the following is a factor that
caused this occurrence?
A.United States attracted heavy inflows of capital from foreign investors during this
period.
B.Banks in the United States offered low interest rates to investors during this period.
C.Markets across the world witnessed strong economies during this period.
D.Developed countries in Europe maintained trade equilibrium and supplied goods to
underdeveloped countries.
if foreigners suddenly reduced their investments in the united states, what would
happen?
a.the value of the dollar on foreign exchange markets would increase
b.the action would have no impact on the u.s. economy
c.the foreigners would sell u.s. dollars for another currency
d.the price of u.s. exports would increase
finney company borrowed 800,000 from banktwo on january 1, 2011 in order to expand
its mining capabilities. the five-year note required annual payments of 208,349 and
carried an annual interest rate of 9.5%. what is the balance in the notes payable account
at december 31, 2012?
a.800,000
b.522,729
c.667,651
d.648,000
a foreign service premium is:
a.paid when the expatriate is being sent to a difficult location
b.the extra pay that an expatriate receives for working outside his or her country of
origin
c.normally given to ensure that the expatriate can afford the same quality of housing in
the foreign country as at home
d.paid to ensure that the expatriate enjoys the same standard of living in the foreign
posting as at home
the _____ is responsible for proposing eu legislation, implementing it, and monitoring
compliance with eu laws by member states.
a.european parliament
b.european commission
c.council of the european union
d.court of justice
which of the following areas of international trade is regulated by the foreign corrupt
practices act?
a.making and performance of commercial contracts in international trade
b.preventing bribery and unethical acts in the conduct of international business
c.establishing a set of safety standards to which a new product must adhere
d.controlling the mafia activity that hinders trade in russia, japan, and the u.s
country x and country y reach an agreement to boost bilateral trade. they agree to
remove all barriers to the trade of goods and services. they, however, are free to
determine their own trade policies with regard to nonmembers. which level of economic
integration is this an example of?
a.a customs union
b.an economic union
c.a common market
d.a free trade area
which of the following is a major limitation of the simple ricardian model of
comparative advantage?
a.the model ignores the principle of diminishing marginal returns
b.the model recommends excessive governmental intervention in trade
c.the outcome of the model suggested by ricardo is a zero-sum game
d.the model is against the idea of engaging in free trade with nations
before a firm is allowed access to the european marketplace, the european union
requires that the quality of the firms manufacturing processes and products be certified
under a quality standard known as _____.
a.six sigma
b.iso 9000
c.kaizen
d.total quality management
if bonds are issued at face value (par), it indicates that the ________________ rate of
interest must be equal to the ________________ rate of interest.
steiner sales company has the following selected accounts after posting adjusting
entries:
instructions
prepare the current liability section of steiner sales companys balance sheet, assuming
$15,000 of the mortgage is payable next year.
what happened to gatt during the 1980s and early 1990s?
what type of firms favor the worldwide area structure and why? what are the
disadvantages of this type of structure?
What are some of the issues a manager of an international business must confront that a
manager of a domestic business never confronts?
discuss the impact of technology on the growth of the global capital market.
discuss the free trade area of the americas. what is hindering its progress? what is the
position of the u.s. on the agreement? how does brazil feel about the ftaa?
what is an oligopoly?
what is channel length? what is the most important determinant of channel length?
mention two factors that shorten channel length.
explain the concept of location economies.
