domestic currency deposits are regulated in most industrialized countries.
markets can be segmented in only one way: by socio-cultural factors.
The Internet has developed into the information backbone of the global economy.
The Asian economic crisis was caused by high inflation rates.
fdi does not benefit the host country’s balance of payments if the foreign subsidiary
creates demand for home-country exports of capital equipment, intermediate goods, or
complementary products.
when a time draft is drawn on and accepted by a business firm, it is called a trade
acceptance.
Every time a firm changes cash from one currency into another currency it must bear a
transaction cost.
employees in a business often take their cue from business leaders, and if those leaders
do not behave in an ethical manner, they might not either.
premium on bonds payable may be amortized by the straight-line method if the results
obtained by its use do not materially differ from the results obtained by use of the
effective-interest method.
when a reciprocal tax treaty is in force, the firm typically pays the expatriate’s income
tax in the host country.
the foreign exchange market is a global network of banks, brokers, and foreign
exchange dealers connected by electronic communications systems.
interest expense on a note payable is only recorded at maturity.
a common market has no barriers to trade between member countries, includes a
common external trade policy, and allows factors of production to move freely between
members.
in a concentrated retail system, there are many retailers but none of them have a
significant share of the market.
the _____ is the rate at which a foreign exchange dealer converts one currency into
another currency on a particular day.
a.spot exchange rate
b.forward exchange rate
c.futures exchange rate
d.spread
david ricardo’s theory of comparative advantage explains global trade in terms of the
____.
a.first mover advantage that certain countries and firms enjoy
b.geographical differences between various countries
c.international differences in labor productivity
d.late mover advantage that certain countries and firms possess
trips regulations oblige wto members to do all of the following except:
a.grant and enforce patents lasting at least 20 years
b.grant and enforce copyrights lasting 50 years
c.comply with the rules within five years in the case of rich countries
d.comply with the rules within 10 years in the case of the poorest countries
which of the following is seen to be a consequence of the size of the eu from 15 nations
to 27 nations?
a.delays in the decision-making processes
b.elimination of the sovereign debt crisis
c.euro becoming the most traded currency in the world
d.huge initial impact on the overall economic welfare
in a recent year hart corporation had net income of $140,000, interest expense of
$30,000, and tax expense of $40,000. what was hart corporations times interest earned
ratio for the year?
a.7.00
b.4.66
c.5.67
d.6.00
import tariffs:
a.reduce the price of foreign goods
b.create efficient utilization of resources
c.reduce the overall efficiency of the world economy
d.are unambiguously pro-consumer and anti-producer
sparks company received proceeds of $211,500 on 10-year, 8% bonds issued on january
1, 2011. the bonds had a face value of $200,000, pay interest annually on december
31st, and have a call price of 102. sparks uses the straight-line method of amortization.
what is the carrying value of the bonds on january 1, 2013?
a.$200,000
b.$209,200
c.$190,800
d.$210,350
in the balance sheet, the account discounts on bonds payable is
a.added to bonds payable
b.deducted from bonds payable
c.classified as a stockholders’ equity account
d.classified as a revenue account
_____ separated national equity markets from each other historically.
a.substantial regulatory barriers
b.fixed exchange rates
c.financial similarities
d.desire for high levels of profit
stagnation can occur in planned economies because:
a.entrepreneurial individuals have few economic incentives for innovation
b.private ownership of means of production leads to exploitation of workers
c.prices of goods and services are fixed by market forces of demand and supply
d.lack of barriers to trade results in increased competition for domestic producers
which of the following is an argument that supports global advertising?
a.standardized advertising lowers the costs of value creation by spreading the fixed
costs of developing the advertisements over many countries
b.because of concerns about the scarcity of creative talent, some feel that smaller efforts
will produce better results than one large effort to develop a campaign
c.even though there are cultural differences between nations, a single advertising theme
that is effective worldwide can be easily developed
d.standardized advertising may be implemented even in the face of advertising
regulations
when two parties agree to exchange currency and execute the deal immediately, the
transaction is a:
a.futures exchange
b.carry trade
c.spot exchange
d.forward exchange
_____ are exchange rates governing some specific future date foreign exchange
transactions.
a.spot exchange rates
b.forward exchange rates
c.future exchange rates
d.currency swaps
Which of the following statements is true of pegged exchange rates?
A.A pegged exchange rate allows a country’s currency to be determined by market
forces.
B.A pegged exchange rate weakens the monetary discipline of a country.
C.Pegged exchange rates are popular among many of the world’s smaller nations.
D.Adopting a pegged exchange rate regime increases inflationary pressures in a
country.
the hdi is based on all of the following measures except:
a.life expectancy at birth
b.political freedom
c.educational attainment
d.whether average incomes are sufficient to meet the basic needs of life
a push strategy is appropriate when:
a.there are many choices of electronic media
b.the firm is selling consumer goods
c.distribution channels are long
d.the firm is selling complex new products
bonds that are issued against the general credit of the borrower are called
a.callable bonds
b.debenture bonds
c.secured bonds
d.term bonds
which of the following sociologists made a connection between protestant ethics and
“the spirit of capitalism”?
a.karl marx
b.max weber
c.amartyasen
d.adam smith
Describe the three exchange rates that Lessard and Lorange pointed out.
describe a fixed-rate bond.
what is an experience curve?
what has been the experience of the wto to date? what does the future look like for the
organization?
explain why a firm might adopt the just-in-time system. why might a firm choose a
different inventory system?
discuss the two main forms of fdi.
what is strategy? how does strategy relate to a firm’s profitability?