a chinese firm borrows 1 million u.s. dollars from an american bank. the cost of this
loan will be less if u.s. dollar appreciates against the chinese currency.
according to the infant industry argument, many developing countries have a potential
comparative advantage in manufacturing, but new manufacturing industries cannot
initially compete with established industries in developed countries.
if bonds are issued at a discount, the issuing corporation will pay a principal amount
less than the face amount of the bonds on the maturity date.
confucianism is a religion.
using floating exchange rates will help countries reduce the risk of investing in foreign
assets.
use of technologies such as just-in-time inventory systems and computer-aided design
has reduced pressures for firms to establish long-term relationships with their suppliers.
to foster ethical behavior, many businesses draft a code of ethics, which is an informal
statement of the ethical priorities the company follows.
inadequate protections for intellectual property reduce the incentive for innovation.
Performance of international subsidiaries depends on the transfer price set-up by the
corporate.
the convergence hypothesis states that there is a slow but steady merging occurring
across different cultures towards some universally accepted values and norms.
Evidence suggests that technological change has had a bigger impact than globalization
on the declining share of national income enjoyed by labor.
the friedman doctrine is the belief that ethics are nothing more than a reflection of
culture and therefore, a firm should adopt the ethics of the culture in which it is
operating.
Which of the following observations is true of the current system of foreign exchange
market?
A.Most of the currencies can be converted to gold in the current system of foreign
exchange.
B.The current system is driven by fixed exchange rates.
C.Currencies float freely against others in the current system.
D.The current system is a combination of government intervention and speculative
activity.
in a concentrated retail system:
a.there are many retailers who have a major share of the market
b.there are many retailers, no one of which has a major share of the market
c.a few retailers supply a small segment of the market
d.a few retailers supply most of the market
when individuals gain knowledge of the most efficient ways to perform particular tasks,
they are saving costs through:
a.location economies
b.value creation effects
c.experience curve effects
d.learning effects
management development programs aims to:
a.facilitate an ethnocentric approach to staffing
b.reduce job rotations of managers
c.build a formal management network
d.build a unifying corporate culture
which of the following statements is true of foreign bonds?
a.such bonds must be underwritten by an international syndicate of banks
b.foreign bonds are placed only in the originating country
c.foreign bonds are issued by governments rather than corporations
d.such bonds are denominated in the issuing country’s currency
the effective-interest method of amortization of bond premiums and discounts is
considered superior to the straight-line method because it results in a(n)
a.interest rate that is close to the market interest rate
b.uniform rate of interest
c.more variable interest rate
d.interest rate that increases or decreases slightly over time
in which way can the source country’s balance of payments benefit from an fdi made in
a foreign country?
a.from cash outflow during the initial investment to finance the fdi
b.if the purpose of the foreign investment is to serve the home market from a low-cost
production location
c.from the inward flow of foreign earnings
d.if fdi is a substitute for direct exports
____ occurs when an individual or business capitalizes on a price differential for a
firm’s product between two countries by buying the product in the country where the
price is low and reselling it in the country where prices are higher.
a.arbitrage
b.strategic pricing
c.price discrimination
d.market pricing
_____ is the direct exchange of goods and/or services between two parties without a
cash transaction and is the simplest arrangement.
a.counterpurchase
b.barter
c.offset
d.switch trading
____, a nobel prize-winning economist, has argued that development is not just an
economic process, but it is a political one as well.
a.hernando de soto
b.karl marx
c.samuel huntington
d.amartyasen
Since the 1960s, which of the following has been a notable trend in the demographics
of the multinational enterprise?
A.The decline of multinational companies in the manufacturing sector
B.The growth of government-owned multinational enterprises
C.The decline of non-U.S. multinationals
D.The growth of mini-multinationals
which of the following summarizes the total amount of resources invested in factories,
stores, office buildings, and the like?
a.gross capital index
b.gross fixed capital formation
c.gross domestic product
d.gross national product
which of the following is a theory that can be used to justify limited government
intervention to support the development of certain export-oriented industries?
a.comparative advantage theory
b.ricardo’s theory
c.new trade theory
d.heckscher-ohlin theory
a situation in which none of the available alternatives seems morally acceptable is
called:
a.an ethical dilemma
b.noblesse oblige
c.the tragedy of the commons
d.the free rider problem
the current carrying value of pierces $600,000 face value bonds is $597,750. if the
bonds are retired at 102, what would be the amount pierce would pay its bondholders?
a.$597,750
b.$600,000
c.$603,000
d.$612,000
_____ strategy is most appropriate when there are substantial differences across nations
with regard to consumer tastes and preferences, and where cost pressures are not too
intense.
a.localization
b.transnational
c.global standardization
d.international
When the foreign exchange market determines the relative value of a currency, we say
that the country is adhering to a _____ regime.
A.currency board exchange
B.pegged exchange rate
C.fixed exchange rate
D.floating exchange rate
what is gross national income? is it related to purchasing power parity?
What are the considerations when seeking external financing for international business?
describe translation exposure. how can translation exposure be minimized?
How does a fixed exchange rate system work?
describe a typical international trade transaction.
compare and contrast push strategies and pull strategies.
discuss the three primary characteristics of a good ally.
Discuss the impact of technological change on global markets.
explain organizational structure.
what are the sources of economies of scale?