culture is not static.
the production possibility frontier will be parabolic if constant return to specialization is
observed.
in theory, wto rules should ensure that a free trade agreement results in trade diversion.
economies that arise from performing a value creation activity in the optimal location
are known as location economies.
franchising enables a firm to quickly build a global presence.
the amount of fdi undertaken over a given time period is known as the flow of fdi.
the cost of capital is the difference between cost of inputs and outputs.
the wto does not have the power to impose trade sanctions.
if a firm is serious about building an international cadre, it may have to pay its
international executives the same basic salary irrespective of their country of origin or
assignment.
a japanese car manufacturer acquires an italian producer of car tires. this is an example
of a greenfield investment.
The quality of investments declined significantly in the Asian countries during the
1990s.
a citizen of japan who moves to the united states to work at microsoft would be
classified as an inpatriate.
new trade theory suggests that nations cannot benefit from trade when they do not differ
in resource endowments or technology.
global learning refers to the idea that valuable knowledge does not reside just in a firms
domestic operations.
the following totals for the month of march were taken from the payroll register of kern
company.
the entry to record accrual of employers payroll taxes would include a
a.debit to payroll tax expense for $4,320
b.debit to payroll tax expense for $12,240
c.credit to fica taxes payable for $2,232
d.credit to payroll tax expense for $4,320
the percentage increase in net profits over time measures:
a.capital return
b.profitability
c.market growth
d.profit growth
a multinational company is accused of paying bribes to the government of a host
country to obtain permission to build a production factory. the public relations manager
of the company defends the companys actions as being ethically sound; he states that in
the host country, paying bribes to government officials is the accepted norm and is in
keeping with the social practices in the host country. the public relations manager is
using which of the following philosophical doctrines to defend the actions of the
company?
a.the friedman doctrine
b.righteous moralist
c.noblesse oblige
d.cultural relativism
brewer company has the following selected accounts after posting adjusting entries:
instructions
(a)prepare the current liability section of brewer companys balance sheet, assuming
$12,000 of the mortgage is payable next year.
(b)comment on brewers liquidity, assuming total current assets are $450,000.
which of the following is true of wholly owned subsidiaries?
a.it is the least expensive method of serving a foreign market from a capital investment
standpoint
b.it the most feasible entry mode due to the political considerations
c.it is required if a firm is trying to realize location and experience curve economies
d.it is particularly useful where fdi is limited by host-government regulations
warner company issued $1,600,000 of 6%, 10-year bonds on one of its interest dates for
$1,381,920 to yield an effective annual rate of 8%. the effective-interest method of
amortization is to be used. the journal entry on the first interest payment date, to record
the payment of interest and amortization of discount will include a
a.debit to bond interest expense for $96,000
b.credit to cash for $110,554
c.credit to discount on bonds payable for $14,554
d.debit to bond interest expense for $128,000
country a and country b entered into a free trade agreement recently. after this, country
a starts importing heavy machinery from country b. country a used to previously import
such machinery at lower rates from another country. which of the following has
occurred in this scenario?
a.trade creation
b.efficiency gain
c.trade deficit
d.trade diversion
a geocentric staffing policy _____.
a.requires host-country nationals to be recruited to manage subsidiaries, while
parent-country nationals occupy key positions at corporate headquarters
b.leads to ineffective use of human resources
c.requires extensive documentation
d.is compatible with both international and localization strategy
which of the following is a disadvantage of the integration facilitated by technology?
a.segregated international capital markets will emerge as a result of technology
b.complexity in processing large volumes of data will increase
c.shocks that occur in one financial center will spread globally
d.systems integration hinders real-time data transfer across different countries
a _____ has no barriers to trade between member countries, includes a common
external trade policy, and allows factors of production to move freely between
members.
a.common market
b.customs union
c.free trade area
d.bonded market
secured bonds are bonds that
a.are in the possession of a bank
b.can be converted into common stock
c.have specific assets of the issuer pledged as collateral
d.mature in installments
moss county bank agrees to lend the sadowski brick company $400,000 on january 1.
sadowski brick company signs a $400,000, 6%, 9-month note. what entry will sadowski
brick company make to pay off the note and interest at maturity assuming that interest
has been accrued to september 30?
discuss the trade-offs associated with large-scale entry versus small-scale entry.
discuss the ways in which public action to violate property rights can occur.
define market segmentation. what is its goal?
describe the situations when licensing is not a good option for a firm.
what is a code of ethics?
discuss the location of decision-making in a firm that is following a transnational
strategy.
explain the paul samuelsons critique.
What are the criticisms against adjusting discount rates to reflect a locations riskiness?