poor product quality and low productivity are hidden costs associated with basing
production in a foreign location.
ethical systems may be defined as a system of shared beliefs and rituals that are
concerned with the realm of the sacred.
when communism collapsed, many of the communist countries lacked the legal
structure required to protect property rights because all the property was earlier held by
the state.
the political systems of a country raise ethical issues that have implications for the
practice of international business.
current liabilities are expected to be paid within one year or the operating cycle,
whichever is longer.
governments allow convertibility to preserve their foreign exchange reserves.
Accounting information is the means by which firms communicate their financial
position to the providers of capital.
the systematic risk is the level of diversifiable risk in an economy.
generally, convertible bonds do not pay interest.
societal business ethics are divorced from personal ethics.
the most important aspect of a countrys cultural differences, particularly important in
foodstuffs and beverages, is the impact of ____.
a.values
b.traditions
c.norms
d.attitudes
collins company borrowed $500,000 from banktwo on january 1, 2011 in order to
expand its mining capabilities. the five-year note required annual payments of $130,218
and carried an annual interest rate of 9.5%. what is the balance in the notes payable
account at december 31, 2012?
a.$500,000
b.$326,706
c.$417,282
d.$405,000
under the mudarabah banking system, when an islamic bank lends money to a business:
a.it charges that business interest on the loan
b.the business needs to pay back the loan with an additional markup
c.it has to donate the interest received on the loan to a charitable trust
d.it takes a share in the profits that are derived from the investment
the sale of bonds above face value
a.is a rare occurrence
b.will cause the total cost of borrowing to be less than the bond interest paid
c.will cause the total cost of borrowing to be more than the bond interest paid
d.will have no net effect on interest expense by the time the bonds mature
which of the following is the most common approach to expatriate pay?
a.balance sheet approach
b.net-to-net approach
c.host-country approach
d.cost-based approach
which of the following statements is true about samuel huntington?
a.samuel huntington argues that there is a universal civilization based on widespread
acceptance of western democratic ideals
b.samuel huntington argues that the rise of islamic fundamentalism is a response to the
alienation produced by modernization
c.samuel huntington argues that global terrorism is a product of the static nature of
traditional values and religious systems
d.samuel huntington argues that many societies, by adopting the material paraphernalia
of the modern world, are becoming more western
which of the following occurs when the quantity of money in circulation in a country
rises faster than the countrys stock of goods and services?
a.inflation
b.credit squeeze
c.deflation
d.production surplus
which of the following is a reason for the pressure for greater protectionism that
occurred during the 1980s and early 1990s?
a.the u.s. congress erected an enormous wall of tariff barriers
b.japanese economic failure strained the world trading system
c.the persistent trade surplus in the united states strained the world trading system
d.many countries found ways to get around gatt regulations
which of the following observations about subsidies is true?
a.government subsidies must be paid for, typically by taxing individuals and
corporations
b.subsidies are used to reduce exports from a sector, often for political reasons
c.whether subsidies generate national benefits that exceed their national costs is
debatable
d.subsidies help foreign producers gain a competitive advantage over domestic
producers
_____ is a quota on trade imposed by the exporting country, typically at the request of
the importing countrys government.
a.voluntary export restraint
b.specific tariff quota
c.trade reconciliation
d.ad valorem tariff
bonds are not always categorized as
a.callable or convertible
b.term or serial
c.secured or unsecured
d.secured or debenture
what are the advantages of the geocentric staffing policy?
what are first-mover advantages? explain with an example.
what are the three actions taken by organized labor to respond to the increased
bargaining power of multinationals? how successful have these efforts been?
explain the dynamic gains that are generated by opening an economy to trade.
what are the factors that contribute to the attractiveness of a country as a market or
investment site?