education plays an important role, from an international business perspective, as a
determinant of national competitive advantage.
a debt loan requires a corporation to repay a predetermined portion of the loan amount
at regular intervals regardless of how much profit it is making.
the treaty of rome, signed in 1957, established the european free trade association.
knickerbockers theory explains why the first firm in an oligopoly decides to undertake
fdi rather than to export or license.
unintentional bias makes it difficult to evaluate the performance of expatriate managers
objectively.
which of the following philosophies can be traced back to the ancient greek philosopher
aristotle?
a.socialism
b.individualism
c.collectivism
d.anarchism
which feature of an economic union differentiates it from a common market?
a.free flow of products and factors of production between member countries
b.a common monetary and fiscal policy
c.a common external trade policy toward nonmembers
d.ability of factors of production to move freely between members
according to john rawlss difference principle,
a.certain people or institutions are obligated to provide benefits or services that secure
the rights of others
b.fundamental human rights should transcend national borders and cultures
c.the best decisions are those that produce the greatest good for the greatest number of
people
d.inequalities are justified if they benefit the position of the least-advantaged person
in ____, the contractor agrees to handle every detail of the project for a foreign client,
including the training of operating personnel.
a.exporting
b.licensing
c.franchising
d.turnkey projects
under the ____, cases are judged with reference to three characteristics: tradition,
precedent, and custom.
a.theocratic law system
b.civil law system
c.contract law system
d.common law system
according to the law of one price, if the exchange rate between the british pound and the
dollar is £1 = $1.50, a shirt that retails for $120 in new york should sell for _____ in
london.
a.£180
b.£50
c.£60
d.£80
in a ____, the firm owns 100 percent of the stock.
a.joint venture
b.wholly owned subsidiary
c.turnkey project
d.franchising agreement
The General Agreement on Tariffs and Trade (GATT) was responsible for ____.
A.protecting government owned enterprises
B.policing the global marketplace
C.limiting nuclear testing
D.promoting environment friendly technology
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 (iv)?
a.$13,200
b.$10,800
c.$14,400
d.$9,600
which of the following primarily explains why developing nations are characterized by
lower percentage of cross-border mergers and acquisitions compared to developed
nations?
a.fewer target firms to acquire in developing nations
b.fierce opposition to mergers and acquisitions in developed nations
c.unwillingness of foreign companies to invest in developing nations
d.presence of import quotas in developing nations
on january 1, 2011, michelin company, a calendar-year company, is issued 6,000,000 of
mortgage notes payable, of which 2,000,000 is due on january 1 for each of the next
three years. the proper statement of financial position presentation on december 31,
2011, is
a.current liabilities, 6,000,000
b.long-term debt, 6,000,000
c.current liabilities, 3,000,000; long-term debt, 3,000,000
d.current liabilities, 2,000,000; long-term debt, 4,000,000
describe how overinvestment led to the 1997-98 financial crises in southeast asia.
what is the most enduring free trade area in the world?
a.nafta
b.efta
c.asean
d.mercosur
a firm that depends more on mass media advertising to communicate the marketing
message to potential consumers is using a:
a.pull strategy
b.push strategy
c.standardized strategy
d.localized strategy
from the standpoint of the issuing company, a disadvantage of using bonds as a means
of long-term financing is that
a.bond interest is deductible for tax purposes
b.interest must be paid on a periodic basis regardless of earnings
c.income to stockholders may increase as a result of trading on the equity
d.the bondholders do not have voting rights
the identification of distinct groups of consumers whose purchasing behavior differs
from others in important ways is known as ____.
a.market segmentation
b.market penetration
c.diversification strategy
d.differentiation
the element of risk into investing in foreign assets is more with _____ exchange rates.
a.floating
b.pegged
c.fixed
d.managed
the journal entry to record the issuance of bonds at a discount will include a
a.debit to cash for the face amount of the bonds
b.debit to cash for the face amount of the bonds plus the amount of the discount
c.debit to cash for the face amount of the bonds minus the amount of the discount
d.credit to cash for the face amount of the bonds
corporations are granted the power to issue bonds through
a.tax laws
b.state laws
c.federal security laws
d.bond debentures
discuss the characteristics of a firm that is pursuing an international strategy.
what are the typical problems that novice exporters face when trying to export?
what is the foreign credit insurance association?
why did karl marx criticize capitalism? describe how he planned to correct those
shortcomings.
what are the drawbacks of government intervention?
explain eurobonds with an example.
describe the factors that make the eurobond market attractive.