a key assumption in the heckscher-ohlin theory is that technologies are the same across
countries.
firms pursuing a global standardization strategy are more centralized than enterprises
pursuing a localization or international strategy.
IASB is a major proponent of international accounting standards.
when transportation costs are added to production costs, it becomes unprofitable to ship
some products over a large distance. this is particularly true of products that have a high
value-to-weight ratio.
first-mover advantages are the advantages that accrue to early entrants into a market.
the liquidity of the market is limited in a purely domestic capital market.
on march 1, cooper company borrows $90,000 from new national bank by signing a
6-month, 8%, interest-bearing note.
instructions
prepare the necessary entries below associated with the note payable on the books of
cooper company.
(a)prepare the entry on march 1 when the note was issued.
(b)prepare any adjusting entries necessary on june 30 in order to prepare the semiannual
financial statements. assume no other interest accrual entries have been made.
(c)prepare the entry to record payment of the note at maturity.
when value of u.s. dollars goes down, ____.
a.bonds that are denominated in dollar will produce more returns
b.foreign depositors in the u.s will benefit
c.foreign borrowers will garner benefits
d.investors tend to favor bonds that are denominated in dollar
if bonds are issued at a premium, the stated interest rate is
a.higher than the market rate of interest
b.lower than the market rate of interest
c.too low to attract investors
d.adjusted to a higher rate of interest
according to the 1986 uruguay round, the _____ was to be created to implement the gatt
agreement.
a.world trade organization
b.international monetary fund
c.united nations
d.world bank
which of the following is a first-mover advantage?
a.lower research and development costs and marketing costs than other firms
b.ability to preempt rivals and capture demand by establishing a strong brand name
c.ability to capitalize on the work done by other firms
d.creation of innovative products at lower costs than other firms
a _____ is issued to the exporter by the common carrier transporting the merchandise
and serves as a receipt, a contract, and a document of title.
a.bill of lading
b.sight draft
c.time draft
d.letter of credit
interest expense on an interest-bearing note is
a.always equal to zero
b.accrued over the life of the note
c.only recorded at the time the note is issued
d.only recorded at maturity when the note is paid
mendenhall and oddou identified cultural toughness as one of the dimensions in their
study on dimensions that predict success in foreign jobs postings. this dimension refers
to the:
a.expatriates self-esteem, self-confidence, and mental well-being
b.expatriates ability to interact effectively with host-country nationals
c.expatriates ability to understand why people of other countries behave the way they
do
d.relationship between the country of the assignment and how well an expatriate adjusts
to a particular posting
three countries agree to remove barriers to trade between member countries and adopt a
common external trade policy toward nonmembers. they also agree to allow people and
other factors of production to move freely across their borders. which level of economic
integration is this an example of?
a.bonded market
b.customs union
c.free trade area
d.common market
the manner in which decisions are made and work is performed within the organization
is known as the firms:
a.organizational culture
b.incentives
c.control systems
d.processes
which of the following terms refers to the metrics used to measure the performance of
subunits and make judgments about how well managers are running those subunits?
a.key processes
b.control systems
c.knowledge networks
d.job assignments
the six sigma methodology _____.
a.is used to compare and benchmark the performances of competing firms
b.gives more importance to productivity than product quality
c.is a direct descendant of the total quality management philosophy
d.recommends that only one product should be defective in thousand products
Moral hazard arises when people behave recklessly because ____.
A.of the restrictions that exist in a countrys monetary policy
B.of the restrictions that IMF has imposed on them
C.they know they will be saved if things go wrong
D.they face financial difficulties arising out of external factors
the current carrying value of kennetts $800,000 face value bonds is $797,000. if the
bonds are retired at 102, what would be the amount kennett would pay its bondholders?
a.$797,000
b.$800,000
c.$804,000
d.$816,000
which treaty, signed in december 1991, committed ec members to adopting a common
currency by january 1, 1999?
a.the maastricht treaty
b.the treaty of rome
c.the single european act
d.the treaty of lisbon
downs company issued $800,000 of 8%, 5-year bonds at 106, which pays interest
annually. assuming straight-line amortization, what is the total interest cost of the
bonds?
a.$368,000
b.$272,000
c.$224,000
d.$320,000
which dimension of mendenhall and oddous study suggests that an expatriate with high
self-esteem, self-confidence, and mental well-being is likely to succeed in a foreign job
posing?
a.self-orientation
b.others-orientation
c.cultural toughness
d.perceptual ability
the amount of sales tax collected by a retail store when making sales is
a.a miscellaneous revenue for the store
b.a current liability
c.not recorded because it is a tax paid by the customer
d.recorded as an operating expense
what are the economic implications of the caste system supported by hinduism?
unsecured bonds that are issued against the general credit of the borrower are called
________________ bonds.
what are the arguments for standardized advertising across international markets?
Briefly differentiate accounting standards and auditing standards.
on january 1, 2011, powell corporation issued $800,000, 5%, 5-year bonds dated
january 1, 2011, at 95. the bonds pay annual interest on january the company uses the
straight-line method of amortization and has a calendar year end.
instructions
prepare all the journal entries that powell corporation would make related to this bond
issue through january 1, 2012. be sure to indicate the date on which the entries would
be made.
what are late-mover disadvantages?