Differences between countries require that an international business vary its practices
country by country.
just-in-time systems help a firm respond quickly to increases in demand.
when a firm focuses on increasing profitability by customizing the product or service so
that they provide a good match to tastes and preferences in different national markets,
the firm is following a transnational strategy.
Companies hope to lower their overall cost structure or improve the quality or
functionality of their product offering through globalization of production.
The cost of microprocessors continues to fall, while their power increases. This
statement supports the predictions made by Moores Law.
The governments of some countries require or prefer foreign multinationals to finance
projects in their country by local debt financing or local sales of equity.
which of the following statements about price discrimination is true?
a.it exists whenever consumers in a country are charged different prices for the same
product
b.a necessary condition for profitable price discrimination is different price elasticities
of demand in different countries
c.it is the use of price as a competitive weapon to drive weaker competitors out of a
national market
d.it makes economic sense to charge the same prices across countries
the set of choices the firm offers to its targeted market is known as the ____.
a.marketing mix
b.marketing concept
c.marketing strategy
d.market promotion
the following totals for the month of march were taken from the payroll register of kern
company.
the entry to record the payment of net payroll would include a
a.debit to salaries and wages expense for $23,238
b.debit to salaries and wages payable for $25,326
c.debit to salaries and wages payable for $23,238
d.credit to cash for $23,238
many american firms that sold oil-refining technology to firms in the gulf now find
themselves competing with these firms in the world oil market. this is an example of:
a.a firm entering into a turnkey project with a foreign enterprise, inadvertently creating
a competitor
b.a firm entering into a turnkey deal having no long-term interest in the foreign country
c.a country subsequently proving to be a major market for the output of the process that
has been exported
d.a firm selling its process technology through franchisees in different countries
as interest is recorded on an interest-bearing note, the interest expense account is
a.increased; the notes payable account is increased
b.increased; the notes payable account is decreased
c.increased; the interest payable account is increased
d.decreased; the interest payable account is increased
just-in-time inventory systems _____.
a.are used when procurement is not organized
b.require large warehouses for storage
c.economize on inventory holding costs
d.maintain large buffer for inventory
a corporation issues $300,000, 10%, 5-year bonds on january 1, 2012, for $287,400.
interest is paid annually on january 1. if the corporation uses the straight-line method of
amortization of bond discount, the amount of bond interest expense to be recognized in
december 31, 2012s adjusting entry is
a.$32,520
b.$30,000
c.$27,480
d.$2,520
which of the following accounts for about 55 percent of the worlds gnp and 49 percent
of world trade?
a.nafta
b.apec
c.asean
d.efta
the influential peruvian development economist hernando de soto has argued that much
of the developing world will fail to reap the benefits of capitalism until ____.
a.they have political stability
b.they invest in infrastructural development
c.they have better defined and secure property rights
d.they have adequate market regulation
in a recent year garvey corporation had net income of $130,000, interest expense of
$20,000, and tax expense of $30,000. what was garvey corporations times interest
earned ratio for the year?
a.6.50
b.7.50
c.8.00
d.9.00
if bonds are originally sold at a discount using the straight-line amortization method:
a.interest expense in the earlier years of the bonds life will be less that the interest to be
paid
b.interest expense in the earlier years of the bonds life will be the same as interest to be
paid
c.unamortized discount is subtracted from the face value of the bond to determine its
carrying value
d.unamortized discount is added to the face value of the bond to determine its carrying
value
_____ imply that when a firm already has significant value built into its product
offering, increasing value by a relatively small amount requires significant additional
costs.
a.efficiency matrixes
b.diminishing returns
c.cost plus curves
d.strategy convex curves
*on january 1, sewell corporation issues $1,000,000, 5-year, 12% bonds at 96 with
interest payable on january 1. what is the carrying value of the bonds at the end of the
third interest period?
a.$984,000
b.$976,000
c.$944,000
d.$928,000
if a firms core competency is based on control over proprietary technological
know-how, _____ and _____ arrangements should be avoided if possible to minimize
the risk of losing control over that technology.
a.licensing; joint-venture
b.wholly owned subsidiary; exporting
c.turnkey contracts; exporting
d.exporting; joint-venture
a bankers acceptance ____.
a.is payable to the drawee immediately on presentation in a bank
b.is a time draft that has been drawn on and accepted by a bank
c.is a sight draft that can be used as a negotiable instrument in banks
d.allows a buyer possession of the merchandise without signing any formal documents
x
which of the following is a disadvantage of using a letter of credit (l/c)?
a.a letter of credit does not give protection to the importer
b.a letter of credit does not give protection to the exporter
c.the exporter cannot avail pre-export financing when using a l/c
d.the importer must pay a bank fee for the letter of credit
since the 1980s, there has been a transformation from centrally planned command
economies to market-based economies. what is the rationale for this transformation?
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. what is the adjusting entry
required if drake builders company prepares financial statements on march 30?
mohling company typically sells subscriptions on an annual basis, and publishes eight
times a year. the magazine sells 60,000 subscriptions in january at $10 each. what entry
is made in january to record the sale of the subscriptions?
discuss the type of firm that uses the worldwide product division structure.
when determining the value of a bond using present value, what are the two
components used in the calculation?
what are foreign bonds?