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a firms vertical differentiation determines where in its hierarchy the decision-making
power is concentrated.
Rivers Inc., a U.S. based sports apparel manufacturer, sets up a production unit in China
to take advantage of the lower labor costs there. This is an example of foreign direct
investment.
a strategic commitment can be reversed by the top management according to their
convenience.
The agreement reached at Bretton Woods established the International Monetary Fund
(IMF) and the World Bank.
research supports the view that multinational firms often transfer significant technology
when they invest in a foreign country.
the preeminent strategic goal for most firms is to maximize the value of the firm for its
owners.
which of the following theories suggests that first mover advantage is significant in the
export of a good?
a.product life-cycle theory
b.ricardos theory
c.new trade theory
d.theory of comparative advantage
which of the following is an advantage of countertrade?
a.countertrade uses instruments such as time draft and sight draft
b.it is an effective way of doing business with developing nations
c.it provides exporters and opportunity to obtain direct revenue
d.countertrade prevents exchange of unusable or poor-quality goods
during the month of march, preston companys employees earned wages of $60,000.
withholdings related to these wages were $4,590 for social security (fica), $9,500 for
federal income tax, $4,100 for state income tax, and $400 for union dues. the company
incurred no cost related to these earnings for federal unemployment tax, but incurred
$900, for state unemployment tax.
instructions
(a)prepare the necessary march 31 journal entry to record wages expense and wages
payable. assume that wages earned during march will be paid during april.
(b)prepare the entry to record the companys payroll tax expense.
____ occurs whenever a firm sells a product for a price that is less than the cost of
producing it.
a.resale
b.plunging
c.bootlegging
d.dumping
which of the following is not one of the main instruments of trade policy?
a.tariffs
b.credit portfolios
c.local content requirements
d.administrative policies
____ refers to the number of intermediaries between the producer (or manufacturer) and
the consumer.
a.channel length
b.channel exclusivity
c.channel quality
d.channel speed
sales taxes collected by a retailer are reported as
a.contingent liabilities
b.revenues
c.expenses
d.current liabilities
organizational structure means all of the following, except:
a.the establishment of integrating mechanisms to coordinate the activities of subunits
b.the location of decision-making responsibilities with a structure
c.the manner in which decisions are made and work is performed by individuals
d.the formal division of the organization into subunits such as product divisions and
functions
What is the main reason that managing an international business differs from managing
a domestic business?
A.Because international managers are more experienced.
B.Because countries differ in their cultures and systems.
C.Because countries want to do business with their neighbors.
D.Because countries want to keep their transactions simple.
the following partial amortization schedule is available for courtney company who sold
$300,000, five-year, 10% bonds on january 1, 2012 for $312,000 and uses annual
straight-line amortization.
which of the following amounts should be shown in cell (ii)?
a.$32,400
b.$27,600
c.$31,200
d.$28,800
In 2008 and 2009, the GATT became the forum though which major nations attempted
to launch a coordinated policy response to the global financial crisis, which started in
America.
a(n) _____ tends to be adopted by firms that are reasonably diversified.
a.worldwide area structure
b.international division structure
c.worldwide product division structure
d.global matrix structure
a polycentric approach may be effective for firms pursuing a(n):
a.international strategy
b.localization strategy
c.transnational strategy
d.global standardization strategy
A(n) _____ allows an entity to reduce the taxes paid to the home government by the
amount of taxes paid to the foreign government.
A.indirect tax
B.tax haven
C.tax credit
D.internal tax
the state can expropriate the profits from innovation through legal means, such as ____.
a.bureaucratic kickbacks
b.excessive taxation
c.black market transactions
d.privatization
which of the following statements is true of market makers?
a.commercial banks are not allowed function as market makers
b.market makers are large investors who drive an economy
c.market makers facilitate only equity based loans
d.market makers connect investors and borrowers in a capital market
which of the following specifically reduces the viability of an exporting strategy
specifically for products with low value-to-weight ratios?
a.foreign exchange controls
b.trade barriers
c.transportation costs
d.output quality
a _____ is payable on presentation to the drawee.
a.bill of lading
b.time draft
c.sight draft
d.letter of credit
which of the following is an example of deregulation?
a.a country that implements a simplified income tax filing system
b.a country that takes over a leading private bank to prevent it from filing for
bankruptcy
c.a country that provides agricultural subsidies to farmers
d.a country that encourages foreign direct investment
what is multipoint competition? how do firms respond to multipoint competition?
explain ppp. use an example to show how ppp can help explain exchange rates.
Describe the structure of the International Accounting Standards Board (IASB).
discuss michael porters interpretation of value creation and competitive advantage.
match the items below by entering the appropriate code letter in the space provided.
1>bonds subject to retirement at a stated dollar amount prior to maturity.
2>a legal document that sets forth the terms of a bond issue.
3>bonds that mature in installments.
4>a measure of a companys short-term liquidity.
5>the time that the final payment on a bond is due from the bond issuer.
6>a measure of a companys solvency.
7>the rate investors demand for loaning funds to a corporation.
8>unsecured bonds issued against the general credit of the borrower.
9>occurs when the contractual rate of interest is less than the market rate of interest.
10>produces a periodic interest expense that is the same amount each interest period.
