Doing business in Russia involves risks because the country has shown signs of shifting
back toward greater state involvement in economic activity and authoritarian
government.
the strategy, operations, and organization of a firm must all be consistent with each
other if the firm is to attain a competitive advantage and achieve superior profitability.
systematic risk refers to the movements in a stock portfolios value that are attributable
to macroeconomic forces affecting all firms in an economy.
the choice of which markets to enter should be driven by an assessment of relative
long-run growth and profit potential.
A pegged exchange rate means the value of a currency is fixed relative to a reference
currency.
the establishment of the euro required participating countries to give up their monetary
policy.
the success of many multinational corporations is based not just upon the goods or
services that they sell in foreign nations, but also upon the core competencies that
underlie the development, production, and marketing of those goods or services.
if a firm is trying to enter a market where there are already well-established companies,
and where global competitors are also interested in establishing a presence, the firm
should choose a greenfield investment.
economies of scale are unit cost reductions associated with a large scale of output.
a nations legal system is usually of very little interest to international business
managers, because international businesses are headquartered in different countries.
web-based information systems play a minor role in modern materials management.
in a worldwide product divisional structure, each division is a self-contained, largely
autonomous entity with full responsibility for its own value creation activities.
in countries where the value of group identification is considered to be primary,
managers and workers are discouraged from moving from company to company.
which of the following statements is true of web-based edi systems?
a.web-based edi systems are more expensive than proprietary solutions
b.small firms will not be able to make use of web-based edi systems
c.web-based systems are much easier to install compared to proprietary solutions
d.most web-based systems are implemented to support proprietary solutions
A number of econometric studies have found consistent evidence of a hump-shaped
relationship between income levels and pollution levels. According to this, as an
economy grows and income levels rise:
A.initially the pollution levels remain low
B.after a while the pollution levels decrease
C.the pollution levels also rise in proportion to the economic growth
D.there is increasing industrialization which leads to greater pollution
when contemplating fdi, why do firms apparently prefer to acquire existing assets rather
than undertake greenfield investments?
a.greenfield investments are characterized by reduced management control
b.mergers and acquisitions are preferred because most greenfield investments fail
c.it is easier and less risky for a firm to build strategic assets than acquire similar assets
d.mergers and acquisitions are quicker to execute than greenfield investments
when the effective-interest method of amortization is used for a bond premium, the
amount of interest expense for an interest period is calculated multiplying the
a.face value of the bonds at the beginning of the period by the contractual interest rate
b.face value of the bonds at the beginning of the period by the effective interest rate
c.carrying value of the bonds at the beginning of the period by the contractual interest
rate
d.carrying value of the bonds at the beginning of the period by the effective interest rate
a quota rent is:
a.a quota on trade imposed by the exporting country
b.levied as a fixed charge for each unit of a good imported
c.levied as a proportion of the value of the imported good
d.the extra profit producers make when supply is artificially limited by an import quota
as a receipt, the bill of lading indicates that the carrier ____.
a.provides a written promise of payment before releasing the merchandise
b.has obtained the merchandise described on the face of the document
c.receives payment from a third-party such as a bank or trading house
d.is obligated to provide a transportation service in return for a certain charge
failure to record a liability will probably
a.result in an overstated net income
b.result in overstated total liabilities and owners equity
c.have no effect on net income
d.result in understated total assets
Contracting out manufacturing allows companies to reduce economic exposure because
____.
A.having multiple suppliers attracts subsidies from government
B.it reduces the pressure on them to maintain a trade surplus
C.it allows companies to shift suppliers from country to country
D.quality issues are insignificant when manufacturing is contracted to others
control through a system of rules and procedures that directs the actions of subunits is:
a.personal control
b.bureaucratic control
c.output control
d.cultural control
which of the following is an argument favoring decentralization?
a.it can facilitate coordination
b.it can help ensure that decisions are consistent with organizational objectives
c.it can give top-level managers the means to bring about needed major organizational
changes
d.it permits greater flexibility
which term refers to the rate at which one currency is converted into another?
a.basis point
b.spread
c.exchange rate
d.interchange rate
a bond with a face value of $100,000 and a quoted price of 104 has a selling price of
a.$104,250
b.$104,025
c.$100,425
d.$104,000
for privatization to work, it must also be accompanied by:
a.an increase in trade barriers and tariffs
b.an increase in government subsidies
c.stronger barriers to foreign competition
d.a general deregulation of the economy
over the term of the bonds, the balance in the discount on bonds payable account will
a.fluctuate up and down if the market is volatile
b.decrease
c.increase
d.be unaffected until the bonds mature
____ refers to the expertise, competencies, and skills of established retailers in a nation,
and their ability to sell and support the products of international businesses.
a.channel exclusivity
b.channel knowledge
c.channel quality
d.channel skill
the wto argues that removing tariff barriers and subsidies in the agricultural sector
could:
a.protect domestic agriculture in developed nations
b.lower the overall level of agricultural trade
c.restrict global economic growth
d.lower prices to consumers
a firm using a polycentric staffing policy:
a.is less likely to suffer from cultural myopia
b.seeks the best people for key jobs throughout the organization, regardless of
nationality
c.will most likely follow an ethnocentric strategy
d.is likely to have improved communication between host-country managers and
parent-country managers
according to adam smith, a country should specialize in the production of a good when
it has ____.
a.an absolute advantage in the production of the good
b.a strong domestic demand for the good
c.the ability to help country increase its national output
d.the necessary raw materials for production
switching costs:
a.drive early entrants out of the market
b.make it easy for later entrants to win business
c.make it difficult for later entrants to win business
d.give later entrants a cost advantage over early entrants
a corporation issues $400,000, 8%, 5-year bonds on january 1, 2012, for $416,800.
interest is paid annually on january 1. if the corporation uses the straight-line method of
amortization of bond premium, the amount of bond interest expense to be recognized in
december 31, 2012s adjusting entry is
a.$28,640
b.$32,000
c.$35,360
d.$3,360
how can firms successfully leverage the skills developed at the subsidiary level?
describe localization strategy.
susan jones works for trend press, a fairly large book publishing firm. her best friend
and rival, diane nilson, works for lifeline books, a smaller publisher. both companies
issue $100,000 in bonds on july trends bonds were issued at a discount, while lifelines
were issued at a premium. diane sent susan a fax the next day. she told susan that it was
obvious who the better publisher was and the market had shown its preference! she
reminded susan again of her recent increase in salary as further proof of the superiority
of lifeline books.
draft a short note for susan to send to diane. explain how such a result could occur.
west county bank agrees to lend drake builders company $100,000 on january 1. drake
builders company signs a $100,000, 6%, 6-month note. the entry made by drake
builders company on january 1 to record the proceeds and issuance of the note is
how can a firm protect its proprietary information in a joint venture arrangement?
explain the notion of predatory behavior with regard to dumping.
what are the basic principles for successful organizational change?
What is the Uruguay Round? List the measures implemented in the Uruguay Round?