a worldwide product division structure tends to be adopted by firms that are reasonably
diversified and originally had domestic structures based on product divisions.
common law is primarily a moral rather than a commercial law and is intended to
govern all aspects of life.
The projected rate will typically be the forward exchange rate as determined by the
foreign exchange market when firms use the projected spot exchange rate to translate
both the budget and performance figures into the corporate currency.
a common market entails even closer economic integration and cooperation than an
economic union.
flexible manufacturing technologies enable companies to customize products to the
demands of small consumer groups.
the most attractive staffing policy is the ethnocentric approach.
Globalization critics argue that the decline in unskilled wage rates is due to the
migration of low-wage manufacturing jobs offshore and a corresponding reduction in
demand for unskilled workers.
the worldwide product division structure facilitates local responsiveness.
a sight draft allows for a delay in payment.
Market forces have produced a stable dollar exchange rate under a floating exchange
rate regime.
tight cross-functional integration between r&d, production, and marketing maximizes
the time to market.
World Bank offers low-interest loans to risky customers whose credit rating is often
poor.
A fronting loan is a loan between a parent and its subsidiary channeled through a
financial intermediary.
exporting is most appropriate when lower-cost locations for manufacturing the product
can be found abroad.
as competition intensifies, global standardization strategies and transnational strategies
tend to become less viable, and managers need to orientate their companies toward
either an international strategy or a localization strategy.
the most important determinant of channel length is the degree to which a retail system
is ____.
a.concentrated
b.fragmented
c.decentralized
d.globalized
The financial crisis in the U.S. in 2009 was triggered by ____.
A.the global hike in the price of crude oil
B.the slowdown in U.S. imports
C.the problems in the U.S. subprime mortgage lending market
D.the artificial fixing of currency rate by China
learning effects:
a.tend to be less significant when a technologically complex task is repeated
b.will be less significant in an assembly process involving 1,000 complex steps than in
one of only 100 simple steps
c.typically disappear after a while, in spite of the complexity of the task
d.are more significant after two or three years of the introduction of a new process
the contractual interest rate on a bond is often referred to as the:
a.callable rate
b.the maturity rate
c.market rate
d.stated rate
diminishing returns to specialization occurs when ____.
a.each additional unit is produced with lesser number of laborers
b.a nations gross domestic product declines for a few years
c.production possibility frontier appears as a rectangle
d.more units of resources are required to produce each additional unit
Which of the following is the exchange rate policy where the government intervenes in
the exchange rate system only in a limited way?
A.Managed float
B.Fixed peg
C.Free float
D.Currency board
which of the following is the main principle of mercantilism?
a.protection of domestic industries is not essential for a nations welfare
b.government intervention is not required in global trade
c.countries should encourage absolute free trade
d.it is in a countrys best interests to maintain a trade surplus
which political view allows fdi so long as the benefits outweigh the costs?
a.the traditional view
b.the pragmatic nationalist view
c.the radical view
d.the free market view
A _____ between two countries is an agreement specifying what items of income will
be taxed by the authorities of the country where the income is earned.
A.tax deferral agreement
B.fixed-rate treaty
C.tax treaty
D.free trade agreement
cultural myopia refers to a firms failure to:
a.adapt to certain ethnocentric cultures
b.act confidently in host-countries
c.understand host-country cultural differences
d.prevent gender discrimination within the firm
_____ is variously defined as selling goods in a foreign market at below their costs of
production or as selling goods in a foreign market at below their “fair” market value.
a.export restraint
b.dumping
c.local content requirement
d.ad valorem
the following totals for the month of april were taken from the payroll register of metz
company.
the entry to record the payment of net payroll would include a
a.debit to salaries and wages payable for $12,107
b.debit to salaries and wages payable for $13,267
c.debit to salaries and wages payable for $12,267
d.credit to cash for $12,267
which of the following statements is true about the murabaha contract?
a.under the murabaha contract, when an islamic bank lends money to a business it takes
a share in the profits that are derived from the investment
b.under the murabaha contract, money deposited in a savings account is treated as an
equity investment in whatever activity the bank uses the capital for
c.the murabaha contract is widely used among the worlds islamic banks because it is the
easiest to implement
d.the murabaha contract is a more efficient system than the western banking system
since it encourages both long-term savings and long-term investment
which of the following is a drawback of the polycentric approach to staffing?
a.firms are likely to suffer from cultural myopia
b.host-country nationals are vulnerable to cultural misunderstandings
c.this approach increases the cost of value creation
d.host-country nationals have limited opportunities for advancement beyond senior
positions in their subsidiary
bonds that are secured by real estate are termed
a.mortgage bonds
b.serial bonds
c.debentures
d.convertible bonds
which of the following statements is true of countertrade?
a.countertrade reduces the profitability of competing firms and is considered an
unethical practice
b.countertrade is a conventional means to pay exporters
c.smaller organizations commonly use countertrade in international transactions
d.countertrade occurs when goods and services are traded for other goods and services
according to the friedman doctrine:
a.ethics are nothing more than the reflection of culture
b.a multinationals home-country standards of ethics are inappropriate to follow in
foreign countries
c.businesses should not undertake social expenditures beyond those mandated by the
law and required for the efficient running of a business
d.if a manager of a multinational sees that firms from other nations are not following
environmental legislation in a host nation, that manager should not either
expatriate failure refers to:
a.expatriates who follow host-country norms instead of their home-country norms
b.the inability of expatriate managers to treat foreign nationals as if they were
home-country nationals
c.the premature return of an expatriate manager to his or her home-country
d.the ethical drawbacks of the ethnocentric staffing approach
describe the information sources that are available to american companies to learn
about export opportunities?
the terms of a bond issue are set forth in a formal legal document called a bond
________________.
what are the two methods of entering foreign marketing using a wholly owned
subsidiary?
discuss bartlett and ghoshals perspective on how firms from developing countries
should approach international expansion.
briefly describe the six sigma methodology.