An exchange rate calculated using two other exchange rates is called a(n) ________.
A) interest arbitrage
B) forward contract
C) forward rate
D) cross rate
Eurobonds are popular because ________.
A) they are less risky than traditional bonds
B) they are always denominated in euros
C) governments of nations in which they are sold do not regulate them
D) European companies are considered very stable
The lines of authority in an organization that run from top management to individual
employees and specify internal reporting relationships is called ________.
A) grapevine communication
B) symbolic interactionism
C) value chain
D) chains of command
The gold standard is a ________ because it secured nations’ currencies to the value of
gold.
A) floating exchange-rate system
B) fixed exchange-rate system
C) linked exchange rate system
D) free float system
Scenario: Blickinstock at the Crossroads
Auto parts supplier, Blickinstock Ltd., would like to expand its presence in Latin
America. To that end, Blickinstock is trying to decide whether to purchase an existing
company in a remote region of Argentina or build its own subsidiary. Keith Moon,
Blickinstock’s vice president of global business development, will be making a
presentation to the board outlining the company’s options. In industries having a limited
number of small firms, foreign direct investment decisions frequently resemble a
“follow the leader” scenario.
If Gem Jewels wants its employees to get “under the skin” of the local people, it should
provide ________.
A) language training
B) sensitivity training
C) cultural orientations
D) field experience
________ are those that use outdated and obsolete technologies or employ low-wage
workers with few skills.
A) Business-agile enterprises
B) Sunset industries
C) Greenfield investments
D) Shell corporations
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
The first step in analyzing a nation’s potential for international business activity is to
examine its business climate.
Scenario: Frankfurter Friday
Betty Cleveland is the vice president of Frankfurter Friday, a highly successful hot dog
joint in Oceania. Her company decides to expand to Asia and identifies China as the
ideal market. Before she leaves for China, she studies their culture extensively and
discovers that the number four is considered extremely unlucky, that not everybody is
fluent in China’s official language-Mandarin-and that punctuality is a highly valued trait
in the country.
The cultural component that deals with elements of imagery and symbolism is known
as material culture.
The value of all goods and services produced by a country’s domestic and international
activities over a one-year period is the country’s ________.
A) gross domestic product (GDP)
B) gross world product (GWP)
C) gross national product (GNP)
D) gross state product (GSP)
Regulatory controls or bureaucratic rules designed to impair the rapid flow of imports
into a country are called ________.
A) local content requirements
B) administrative delays
C) voluntary export restraints
D) import quotas