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.