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a subsidy helps domestic producers to compete against foreign imports.
cross-licensing agreements can be used to formalize arrangements to swap skills and
technology in a strategic alliance.
if $180,000, 6%, bonds are issued on january 1, and pay interest annually, the amount
of interest paid will be $10,800.
the rate at which one currency is converted into another is known as the fluctuation rate.
commercial banks perform a direct connection function in capital markets.
a letter of credit states that an exporter has availed credit from the bank to manufacture
goods.
if $500,000 par value bonds with a carrying value of $476,000 are redeemed at 97, a
loss on redemption will be recorded.
in a customs union, trade barriers are eliminated among member countries, and each
country maintains its own external trade polices with nonmember countries.
when the effective-interest method of amortization is used, the amount of interest
expense for a given period is calculated by multiplying the face rate of interest by the
bonds carrying value at the beginning of the given period.
some of the arguments made by the product life-cycle theory seem ethnocentric and
increasingly dated when viewed from an asian or european perspective.
educating customers is a part of pioneering costs.
according to ____, some specific fraction of a good must be produced domestically.
a.import quotas
b.voluntary export restraints
c.local content requirements
d.antidumping duties
The World Trade Organization has estimated that the developed nations of the world
can raise global economic welfare by $128 billion by:
A.removing subsidies given to their agricultural producers.
B.increasing tariff barriers to trade in agriculture.
C.increasing outsourcing of manufacturing processes.
D.reducing defense expenditure.
which of the following statements is true of products with high value-to-weight ratios?
a.transportation costs usually account for a large percentage of their total costs
b.they are relatively inexpensive and weigh a lot
c.they are usually produced in multiple locations close to major markets
d.their transportation account for a very small percentage of the total costs
Which of the following arguments is against the use of fixed exchange rates?
A.Monetary discipline is the most important determinant of a strong economy.
B.Each country has the freedom to choose its own inflation rate.
C.Market speculation can cause fluctuations in exchange rates.
D.Governments are likely to expand the monetary supply far too rapidly due to political
pressures.
which of the following is a technological factor that affects international business?
a.exchange rates that govern the business
b.relative factors costs in the locality
c.availability of a skilled labor pool
d.fixed costs of setting up a production plant
fornelli corporation borrowed $360,000 from central bank on may 31, 2011. the
three-year, 7% note required annual payments of $137,178 beginning may 31, 2012.
interest expense for the year ended december 31, 2011 was
a.$14,700
b.$16,800
c.$25,200
d.$0
patents, inventions, formulas, processes, designs, copyrights, and trademarks are all
forms of ____.
a.licensing agreements
b.franchising agreements
c.intangible property
d.tangible property
when bonds are issued at a premium, the total interest cost of the bonds over the life of
the bonds is equal to the amount of
a.interest paid over the life of the bond
b.interest paid over the life of the bond plus the amount of premium at sale point
c.interest paid over the life of the bond minus the amount of premium at sale point
d.premium at sale point
Money management decisions attempt to manage a firms _____.
A.equity capital
B.fixed costs
C.working capital
D.equipment costs
as investors increase the number of stocks in their portfolio, the portfolios risk ____.
a.increases initially and declines later
b.declines slowly and steadily
c.increases exponentially beyond a point
d.declines rapidly in the beginning
deming, the proponent of total quality management, argued that _____.
a.work standards should be defined only as quotas and numbers
b.supervision is not essential for quality improvements
c.management should train employees in new skills
d.products should be certified with standards such as iso 9000
discuss the economic case for economic integration. how does it relate to trade theory?
frye company issued $500,000, 10%, 10-year bonds on january 1, 2012, at 105. interest
is payable annually. frye uses the effective-interest method of amortization and has a
calendar year end and the bonds were issued for an effective interest rate of 8%.
instructions
prepare all journal entries made in 2012 related to the bond issue.
how can a firm increase the probability of selecting a good partner?
what is private action?
some economists have expressed concerns that the benefits of regional integration have
been touted while the costs have been ignored. explain the view of these economists.
