firms based in less-developed nations tend to build a lot of extra performance attributes
into their products.
recent years have seen a marked increase in the number of countries that adhere to a
radical ideology regarding fdi.
unlike joint ventures, strategic alliances require the firm to bear all the costs and risks of
foreign expansion.
the calculation of interest to be paid each interest period in connection with a bond
payable is not influenced by any premium or discount upon issuance.
moral courage enables managers to walk away from a decision that is profitable but
unethical.
political scientist samuel huntington predicts that there will be a more harmonious
world dominated by a universal civilization characterized by democratic regimes and
free market capitalism.
the ppp theory tells us that a country with a high inflation rate will see depreciation in
its currency exchange rate.
_____ is viewed as the most restrictive countertrade arrangement and is primarily used
for one-time-only deals in transactions with trading partners who are not creditworthy
or trustworthy.
a.switch trading
b.offset
c.barter
d.buyback
a firm that needs greater flexibility should choose _____ for its decision-making.
a.horizontal differentiation
b.decentralization
c.localization strategy
d.control systems
in which of the following organizational structures are the domestic operations and
foreign operations isolated from each other leading to coordination problems?
a.global matrix structure
b.international division structure
c.worldwide product division structure
d.worldwide area structure
identify the incorrect statement about trade barriers.
a.they raise the costs of exporting products to a country
b.they may put a firm at a competitive advantage to indigenous competitors
c.they may limit a firms ability to serve a country from locations outside of that country
d.to conform to local content regulations, a firm may have to locate more production
activities in a given market than it would otherwise
the main factor that makes the eurocurrency market attractive to both depositors and
borrowers is that it ____.
a.is separated from the foreign exchange market
b.lacks government regulation
c.is associated with low-risk
d.gives high levels of investor protection
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 amount of interest expense sparks will show with relation to these bonds for
the year ended december 31, 2012?
a.$16,000
b.$16,920
c.$14,850
d.$12,550
the present value of a $10,000, 5-year bond, will be less than $10,000 if the
a.contractual rate of interest is less than the market rate of interest
b.contractual rate of interest is greater than the market rate of interest
c.bond is convertible
d.contractual rate of interest is equal to the market rate of interest
with a concentrated retail sector:
a.a relatively large sales force is required
b.the orders generated from each sales call can be large
c.there are long channels of distribution
d.it is expensive for the firm to make contact with each individual retailer
the following partial amortization schedule is available for courtney company who sold
$300,000, five-year, 10% bonds on january 1, 2012 for $312,000 and uses annual
straight-line amortization.
which of the following amounts should be shown in cell (v)?
a.$314,400
b.$313,200
c.$309,600
d.$310,800
in order for price discrimination to be successful:
a.there must be a strong case for arbitrage
b.national markets must be kept separate
c.demand must be very elastic
d.a large change in demand must be triggered by a small change in price
which of the following is mainly concerned with the selection of employees for
particular jobs?
a.retention policy
b.staffing policy
c.incentive policy
d.appraisal policy
consider the role of investor psychology and bandwagon effects on how well ppp and
the international fisher effect explain short-term movements in exchange rates.
what is a joint venture? what type of joint venture is most common? provide an
example of a joint venture.
compare and contrast the export assistance provided to german and japanese companies
with that given to american companies. discuss the implications of the differences
between the countries.
explain the idea of a turnkey project. why should a firm use this arrangement to expand
internationally? in what industries are turnkey arrangements most common?
what is strategic trade policy? provide an example.