the forward exchange market does not provide adequate coverage for long-term
borrowings.
a wholly owned subsidiary limits a firms control over operations in different countries.
once a firm has established a low-cost position, it can act as a barrier to new
competition.
A multinational enterprise (MNE) is any business that exports or imports products from
other countries.
to leverage subsidiary skills, companies should establish incentive systems that
encourage local employees to acquire new skills.
the adjusted trial balance for helton corporation at the end of 2011 contained the
following accounts:
instructions
(a)prepare the long-term liabilities section of the balance sheet.
(b)indicate the proper balance sheet classification for the accounts listed above that do
not belong in the long-term liabilities section.
_____ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain
amount of materials back from a country to which a sale is made.
a.counterpurchase
b.barter
c.offset
d.switch trading
Which of the following countries has been the largest recipient of foreign direct
investment and received about $60 billion to $100 billion a year in inflows in
2004-2009?
A.Brazil
B.Russia
C.India
D.China
a strategy that focuses on increasing the attractiveness of a product is referred to as a(n):
a.differentiation strategy
b.low cost strategy
c.effectiveness strategy
d.efficiency strategy
identify the theory that predicts that countries will export those goods that make
intensive use of factors that are locally abundant.
a.theory of comparative advantage
b.ricardo theory
c.new trade theory
d.heckscher-ohlin theory
in a(n) ____, one party agrees to purchase goods and services with a specified
percentage of the proceeds from the original sale and this party can fulfill the obligation
with any firm in the country to which the sale is being made.
a.switch trade
b.offset
c.barter
d.buyback
which of the following involves borrowing in one currency where interest rates are low,
and then using the proceeds to invest in another currency where interest rates are high?
a.carry trade
b.swing trade
c.channel trade
d.price action trade
Lessard and Lorange refer company-generated forecast of future spot rates as _____
rate.
A.forward exchange
B.internal forward
C.initial exchange
D.ending exchange
Company-generated forecast of future spot rates are used as projected rate in some
instances. Lessard and Lorange refer to which as the internal forward rate.
trade diversion occurs when higher-cost external producers are replaced by lower-cost
external producers within the free trade area.
which of the following statement pertaining to innovation and entrepreneurship is not
true?
a.they are the engines of growth
b.they require strong property rights
c.they require state ownership of means of production
d.they require a market economy
a ____ retail system is one in which there are many retailers, no one of which has a
major share of the market.
a.concentrated
b.consolidated
c.focused
d.fragmented
the carrying value of bonds will equal the market price
a.at the close of every trading day
b.at the end of the fiscal period
c.on the date of issuance
d.every six months on the date interest is paid
what factors affect the rate of new-product development in countries?
describe global learning with reference to foreign subsidiaries of a firm.
what are the three factors that contribute to the trend toward greater retail concentration
in developed countries? how have these factors promoted retail concentration?
explain how the concept of production efficiency has changed with the rise of flexible
manufacturing technologies.
Discuss the pegged exchange rate regime.
discuss the cultural relativism approach to business ethics. what is the connection
between this approach and the phrase “when in rome do as the romans”? how well does
this approach hold up ethically?
what is the law of one price?
what are state-owned companies? why do they usually perform poorly?
what are factor endowments?