the bank promises to pay on behalf of the importer when a bank is used as third party in
international transactions.
life expectancy at birth is one of the measures used by the human development index
(hdi) to measure the quality of human life in different nations.
the ppp theory is a strong predictor of short-run movements in exchange rates covering
time spans of five years or less.
rivals rarely imitate what a firm does in an oligopoly.
in a business setting, noblesse oblige is taken to mean benevolent behavior that is the
responsibility of successful enterprises.
mass customization facilitates product customization at low costs.
if a firm manufactures its product in a particular country, it can sell directly to the
consumer, to the retailer, or to the wholesaler. the same options are not available to a
firm that manufactures outside the country.
during the month, a company sells goods for a total of $106,000, which includes sales
taxes of $6,000; therefore, the company should recognize $100,000 in sales revenues
and $6,000 in sales tax expense.
a knowledge network is a network for transmitting information within an organization
that is based on formal organizational structure.
tangible property includes patents, designs, copyrights, and trademarks.
expatriate managers who have perceptual ability tend to treat foreign nationals as if they
were home-country nationals.
when a monthly mortgage payment is made and recorded, the debit to mortgage
payable represents the reduction in the principal balance.
A _____ is compensation for professional services or expertise supplied to a foreign
subsidiary by the parent company or another subsidiary.
A.fronting loan
B.fee
C.royalty
D.transfer price
A study published in 2011 by the OECD noted that:
A.the real household income of the unskilled workers in the U.S. increased more in
comparison to that of the skilled workers.
B.in almost all countries real income levels declined over the 20-year period studied.
C.falling unemployment rates brought gains to low-wage workers and fairly
broad-based wage growth.
D.the gap between the poorest and richest segments of society in some OECD countries
had widened.
economies that arise from performing a value creation activity in the optimal place for
that activity are referred to as:
a.factor economies
b.production economies
c.location economies
d.value creation economies
Which of the following is a valid observation of the cost of capital?
A.The cost of capital is typically higher in the global capital market.
B.Domestic capital markets have more liquidity than global markets.
C.Local debt financing raises the cost of capital if liquidity is limited.
D. A local sale of equity is preferred to global sale by international firms.
it has been observed in the aircraft industry that, each time cumulative output of
airframes was doubled, unit costs typically declined to 80 percent of their previous
level. this is an example of:
a.the core performance curve
b.the location curve
c.the strategic curve
d.the experience curve
sielert corporation borrowed $600,000 from national bank on may 31, 2011. the
three-year, 7% note required annual payments of $228,630 beginning may 31, 2012. the
total amount of interest to be paid over the life of the loan is
a.$42,000
b.$85,890
c.$167,602
d.$126,000
a country with high car ownership, a large number of households with refrigerators, and
a large number of two-income families tend to have:
a.retail division
b.retail dispersion
c.retail concentration
d.retail fragmentation
a retailer that collects sales taxes is acting as an agent for the
a.wholesaler
b.customer
c.taxing authority
d.chamber of commerce
_____ refers to a state where political power is monopolized by a party, group, or
individual that governs according to religious principles.
a.representative democracy
b.theocratic totalitarianism
c.tribal anarchism
d.monotheistic communism
which of the following is an example of a basic factor that a nation will possess as
proposed by porter?
a.communication infrastructure
b.skilled labor
c.natural resources
d.technological knowledge
a firm that is facing both strong cost pressures and strong pressures for local
responsiveness should follow a(n) _____ strategy.
a.localization
b.global standardization
c.international
d.transnational
assuming the 30-day forward exchange rate were $1 = ¥130 and the spot exchange rate
were $1 = ¥120, the dollar is selling at a _____ on the 30-day forward market.
a.premium
b.margin
c.discount
d.subsidy
an ethnocentric approach to staffing is appropriate for firms that are pursuing a(n):
a.localization strategy
b.international strategy
c.global standardization strategy
d.transnational strategy
which of the following is one of the important factors in determining the elasticity of
demand for a product in a given country?
a.personal selling
b.logistics
c.operating revenue
d.income level
Which of the following is NOT included in world merchandise trade?
A.Manufactured goods
B.Agricultural goods
C.Services
D.Mining products
The agreement reached at Bretton Woods established ____.
A.International Monetary Fund
B.World Economic Forum
C.United Nations
D.International Atomic Energy Agency
hindus believe:
a.that there is but the one true omnipotent god
b.in reincarnation, or rebirth into a different body, after death
c.in the importance of individual religious freedom
d.that material quest is more important than spiritual quest
what is double taxation in the context of fdi?
a.taxation at twice the normal rate for foreign companies
b.taxing the producers as well as suppliers
c.taxation of income in both home and host country
d.taxation of both income as well as dividends paid