according to porter, the way to create superior value is to drive down the cost structure
of the business and/or differentiate the product in some way so that consumers value it
more.
payroll taxes include the employers share of social security taxes as well as state and
federal unemployment taxes.
firms would prefer buying component parts, or an entire product, from independent
suppliers to protect proprietary product technologies.
economist martin feldstein has coined the term “hot money” to pertain to long-term
capital flows.
the european parliament is primarily a consultative rather than legislative body.
a joint venture is often politically more acceptable than a wholly owned subsidiary and
brings a degree of local knowledge to the subsidiary.
if the fdi is a substitute for imports of goods or services, the effect can be to improve the
current account of the host country’s balance of payments.
score is a nationwide group of international trade attorneys who provide free initial
consultations to small businesses on export-related matters.
market makers are companies that make large investments in governmental bonds.
which of the following decisions is typically centralized at a firm’s headquarters?
a.production decisions
b.human resource management
c.marketing decisions
d.overall firm strategy
a(n) ____ distribution channel is one that is difficult for outsiders to access.
a.selective
b.intensive
c.exclusive
d.multi-channel
the contractual rate of interest is usually stated as a(n)
a.monthly rate
b.daily rate
c.semiannual rate
d.annual rate
through its _____ program, the sba oversees about 850 volunteers with international
trade experience to provide one-on-one counseling to active and new-to-export
businesses.
a.matchmaker
b.score
c.elan
d.trade fair
the following totals for the month of march were taken from the payroll register of kern
company.
the journal entry to record the monthly payroll on march 30 would include a
a.debit to salaries and wages payable for $23,238
b.credit to salaries and wages payable for $25,326
c.debit to salaries and wages expense for $36,000
d.debit to salaries and wages expense for $23,238
which of the following is a consequence of subsidies?
a.subsidies make domestic producers vulnerable to foreign competition
b.subsidies lead to lowered production
c.subsidies protect inefficient domestic producers
d.subsidies produce revenue for the government
how has the adoption of just-in-time inventory systems, computer-aided design, and
computer-aided manufacturing impact firms’ associations with suppliers?
a.the bargaining power of the firms over their suppliers has increased enormously
b.it has reduced the level of data sharing between firms and their suppliers
c.firms are capable of switching suppliers often due to such technologies
d.it has increased pressures to establish long-term relationships with suppliers
stockholders of a company may be reluctant to finance expansion through issuing more
equity because
a.leveraging with debt is always a better idea
b.their earnings per share may decrease
c.the price of the stock will automatically decrease
d.dividends must be paid on a periodic basis
to increase the potential for a successful acquisition, a firm should:
a.always bid low to allow for partial failure
b.try to acquire a firm with a very different corporate culture so there is no forced
“overlap.”
c.screen the foreign enterprise to be acquired
d.seek companies only from similar national cultures
on january 1, 2012, keisler company, a calendar-year company, issued $500,000 of
notes payable, of which $125,000 is due on january 1 for each of the next four years.
the proper balance sheet presentation on december 31, 2012, is
a.current liabilities, $500,000
b.long-term debt , $500,000
c.current liabilities, $125,000; long-term debt, $375,000
d.current liabilities, $375,000; long-term debt, $125,000
the trips agreement was designed to:
a.exclude china from all intellectual property agreements
b.oversee a much stricter enforcement of intellectual property regulations
c.hold a firm and its officers responsible when a product causes injury, death, or
damage
d.support traded software and recorded property among developed markets
responding to pressure for _____ requires that a firm differentiate its product offering
and marketing strategy from country to country.
a.cost reductions
b.experience effects
c.lowering the costs of value creation
d.being locally responsive
which of the following statements is true about a product divisional structure?
a.in a product divisional structure, the responsibility for the financial control of the firm
is typically decentralized
b.a product divisional structure tends to be organized on geography
c.in a product divisional structure, each product division is set up as a self-contained,
largely autonomous entity with its own functions
d.in a product divisional structure, the responsibility for operating decisions is typically
centralized
which of the following would be a typical responsibility of a product division in a
product divisional structure?
a.operating decisions
b.overall strategic development of the firm
c.financial control of the various divisions
d.decisions regarding legal issues
if bonds are issued at a discount, it means that the
a.financial strength of the issuer is suspect
b.market interest rate is higher than the contractual interest rate
c.market interest rate is lower than the contractual interest rate
d.bondholder will receive effectively less interest than the contractual rate of interest
Which of the following is a common criticism against IMF?
A.IMF lacks any real mechanism for accountability.
B.It is hesitant to help banks when they are in crisis.
C.IMF has not intervened to resolve the Asian crisis.
D.It did not try to resolve the Mexican currency crisis.
research has long maintained that a major factor of success for new products is the
closeness of the relationship between:
a.finance and marketing
b.marketing and r&d
c.finance and materials management
d.finance and r&d
Discuss the criticism that IMF is exacerbating a problem called moral hazard.
why do so many firms take a reactive approach to exporting rather than a proactive
approach?
explain why barter is viewed as the most restrictive counter-trade arrangement.
how can firms reduce the bias in performance appraisals of expatriate managers?
what is performance ambiguity? discuss the relationships between strategy,
interdependence, and performance ambiguity.
Explain the impact of transaction costs in international business.
explain the concept of social stratification.
why does doing business in a country with a relatively unsophisticated economy result
in increased costs?
discuss how firms can reduce their economic exposure.
reducing economic exposure requires strategic choices that go beyond the realm of
financial management. the key to reducing economic exposure is to distribute the firm’s
productive assets to various locations so the firm’s long-term financial well-being is not
severely affected by adverse changes in exchange rates. this is a strategy that firms both
large and small sometimes pursue.
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. the entry made by
sadowski brick company on january 1 to record the proceeds and issuance of the note is