IB Final

At the end of World War II, the UN called for the conference that set up the World Bank and the IMF. This conference was held in

Bretton Woods, New Hampshire.

Once a firm has determined there is a need for the firm's products in a foreign market, the next step is to

Draft the export marketing plan

ASEAN, whose initial, political goal was to foster peaceful relations among members, includes China as its core member.

False

In a currency board arrangement, a country's government commits to adopt the currency of another.

False

Intellectual property includes patents and trademarks, but not copyrights.

False

On an open account, the buyer assumes all of the payment risk.

False

Permanent members of the UN Security Council vote on Security Council measures and only the Secretary-General of the UN has veto power.

False

The Bretton Woods system led to minimal growth in international trade but helped to reduce inflation levels.

False

The EU is administered by the European Commission, a group composed of six commissioners, elected at the EU level.

False

The European Patent Organization (EPO) makes filing for a patent in all 28 EU member states more difficult than it was previously.

False

The International Monetary Fund uses the U.S. dollar as its unit of account.

False

The United States in recent years has had a significant deficit in its current account. This means that the U.S. citizens are exporting more than they are importing.

False

The World Bank is made up of one large institution, the International Development Association, and three smaller institutions.

False

The balance of payments (BOPs) is a record of a country's transactions with its major trading partners.

False

The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm.

False

The law of one price states that in an efficient market, like products will never have like prices.

False

Unrecorded transactions in an economy, such as goods and services that are bartered, are said to be part of which economy?

Informal

Arbitration is a private solution that is

More private than litigation

Managers generally mention three areas in which they lack knowledge related to exporting, including identification of foreign markets, export procedures, and

Payment and financing procedures

Who took the United States off the gold system?

President Nixon

Problems of the gold standard include

Storage cost, weight, doesn't earn interest.

The International Monetary Fund would characterize a developing economy as one in which

Technology is not as developed

A measure of the degree to which family income within a country is distributed equally is called

The GINI index

A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.

True

A straight bill of lading is nonnegotiable.

True

CIBER is an international business research and education program located at U.S. universities.

True

Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.

True

Free trade zones are areas designated by the government of a country for duty-free entry of imported goods.

True

International economic analyses should provide economic data on both actual and prospective markets.

True

Often new exporters think that they won't have to localize their approach, assuming that a marketing technique or distribution system that works in one country will work in another.

True

One of the significant differences between formal and informal institutions is how they gain compliance.

True

The International Finance Corporation (IFC) invests in companies and financial institutions in developing countries.

True

The International Monetary Fund is a source of economic data that analysts can access to assess economic conditions.

True

The U.S. enforcement of Equal Employment Opportunity Commission (EEOC) law in U.S. companies operating abroad is an example of extraterritoriality.

True

The United Nations operates with voluntary agreements, so it is essentially an informal institution.

True

The WTO has negotiated a TRIPS agreement whereby property rights do not take precedence over public health.

True

The logo that allows consumers to identify a company or product is an example of a trademark.

True

The sales agreement should specify as simply as possible the duties of the buyer and the firm.

True

Which organization offers a matching service, bringing potential exporters together with business partners in specific markets?

U.S. Department of Commerce

Extraterritoriality refers to

a nation's attempt to enforce its law beyond its borders.

Trademarks are defined as

a shape, color, design, sound, phrase, abbreviation by which a product is designated.

With respect to the current state of global problems, Mark Malloch Brown, former deputy secretary-general of the United Nations, suggests that

as the world becomes more closely connected, it becomes less governable at the national level.

A patent gives the inventor

exclusive rights to manufacture, exploit, use, and sell the invention for a given time period.

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or

gold exchange standard

The World Bank categorizes countries based on GNI per capita, using the following categories:

high-income economies, middle-income economies, low-income economies.

GNI/capita, a crude estimate of purchasing power, must be further refined by

incorporating data on how the national income is actually distributed

Arbitration is often preferred when the contract stipulates U.S. law and one of the litigants is foreign because it is

quicker, cheaper, and more private than litigation.

A business would rely on the GINI Index to understand

the degree to which family income is distributed equally within a country.

When an international manager is considering where to do business, one of the first considerations is

the size of the economy

If two English multinational companies had a dispute arising in New York City, and there were no choice of law or choice of forum clauses in their contract, it is likely that

they would bring their dispute to an English court.