MGT 3150 Final

Worldwide volume of foreign exchange trading is about _____ per day.

$4trillion

approximately _______ of the world's current economic activity is concentrated in North America, the EU and Japan.

57%

What percentage of all foreign-exchange trading involves the U.S. dollar?

85%

Which statement is asserted by the theory of absolute advantage?

A country should export those goods for which it is more productive than other countries and trade for those goods for which other countries are more productive

_____ attempt to exploit small, differences in the price of a currency between markets by buying currencies in lower-priced markets and selling in high-priced markets.

Arbitrageurs

the rising value of the Canadian dollar relative to the U.S. dollar has which of the following effects?

Canadian retailers in border towns lose customers to U.S. stores.

In which country is nepotism valued?

China

In the 21st century, growth rates in ________ have outpaced those in _________

China and India; germany and japan

_____ are investments made for the purpose of actively controlling property, assets, or companies located in host countries.

FDI

____ is the money sent out of a politically or economically unstable country to one perceived as a safe haven

Flight capital

_____ is a commodity that consists of currencies issued by countries other than one's own.

Foreign exchange

The _______ consists of foreign-exchange transactions that are to occur sometime in the future.

Forward market

The world's largest trading markets include which one of the following?

Frankfurt

What is the most likely reason that Germany is considered the most important member of the EU?

Germany has the world's fourth largest economy

Three employees of Martin Enterprises have flown to China to meet a potential business partner. The three employees cannot agree about giving a gift to the potential partner. James, an American manager, believes that gift-giving is an ethical violation. Eun Hee, a South Korean manager, and Evan Lee, a Japanese manager, assert that gift-giving would be appropriate. This situations most likely illustrates which of the following statements?

Gift exchanges are a more important way of doing business in high-context cultures

________ is the buying of products made in other countries for use or resale in one's own country.

Importing

Mick has been padding his expense account on business trips. However, it seems fair to him because the company refuses to provide him with comp time despite long hours he works on these business trips. Which ethical generalization does this most likely illustrate?

Individuals can rationalize behavior in various circumstances

Which of the following was created by the Bretton Woods Agreement to facilitate the expansion and balanced growth of international trade and to promote exchange stability?

International Monetary Fund

In which of the following countries are interest-bearing transactions not allowed?

Iran

just-in-time systems were created in ________

Japan

which country listed below is a group-focused society?

Japan

Statutory Law is primarily based on

Legislative actions

Which of the following statements is most likely true?

Nearly all countries have some neomercantilist policies

Which of these countries is NOT a member of the EU?

Norway

One country in which a lack of the rule of law appears to be affecting FDI is

Russia

Which of the following aspects about canada is a concern to many international investors?

Separatist movement

Which of the countries listed below is considered one of the Four tigers?

Taiwan

_____ are things a person feels to be important

Values

civil law is primarily based on

a codification of what is and is not permissible

Who is the father of free market economics

adam smith

the primary purpose of conducting a backtranslation is to

avoid communications mistakes

The ________ records international transactions.

balance of payments accounting system

Why does the international monetary system exist?

because most countries have their own currencies

Of the laws that may form the basis for a country's legal system, which one is considered the riskiest for international businesses?

bureaucratic law

Social stratification refers to how people in a society are

categorized by attributes

Under a managed float

central banks sometime manipulate exchange rates

Samsung, Hyundai, Daewoo Group, and LG are all examples of _____

chaebol

________ is based on a codification of what is and is not permissible

civil law

lingua franca means

common language

Which of the following is a foundation for legal systems.

common law

the foundation of the legal system in India is

common law

Which theory incorporates the concept of opportunity cost?

comparative advantage

Which theory suggests that a country should produce and export those goods and services for which it is relatively more productive than other countries and import those goods and services for which other countries are relatively more productive?

comparative advantage

Braxton Clothing Company most likely forbids its buyers from accepting gifts from potential suppliers because the firm wants to avoid a(n) ________.

conflict of interest

Which term refers to a decision that benefits an individual to the possible detriment of the organization?

conflict of interest

communication senders and receivers from different cultures use_______ to encode or decode the message.

cultural filters

Which term refers to the collection of values, beliefs, behaviors, customers, and attitudes that distinguish one society from another?

culture

The price of foreign exchange is set by _____

demand and supply in the market place

A(n) _______ shows the demand for a currency that is derived from foreigners' desire to acquire the country's goods, services, and assets.

derived demand curve.

When behavior conforms to generally accepted norms, it is referred to as _______ behavior

ethical

Which term refers to an individual's personal beliefs about whether a decision, behavior, or action is right or wrong?

ethics

BP's program to prepare managers at headquarters for assignments in Russia is an example of

ethics training

A(n) __________ is the price of one currency in terms of a second currency.

exchange rate

From what source do cultural changes usually occur?

external forces

Under a __________, the price of a given currency does not change relative to other currency.

fixed exchange rate system

The term ___ means that a currency's value is determined by the forces of supply and demand.

float

McDonald's has licensed its brand name, operational systems and trademarks to individual restaurant owners in Europe. This is called international

franchising

According to the CAGE Model, which of the following refers to the physical, communications, and transportation links between countries?

geographic distance

Currencies that are freely tradable are called

hard currencies

The Protestant ethic stresses which of the following?

hard work

Which of the following is not a sanction?

high-interest loans

Siemens is headquartered in Germany but maintains operations in the U.S. The US is the ________ country.

host

Ellis, a manager at an MNE, is studying international trade theories. In his current position, Ellis would most likely use this knowledge to

identify promising export and investment opportunities

Which of the following best explains why looting was uncommon in Japan after the country's 2011 earthquake and tsunami?

importance of group membership

which country listed below is considered socially immobile

india

Ethical beliefs are primarily _______ in nature

individual

The first theories of international trade used ____ as a unit of analysis

individual countries

The international business activity called ____________ occurs when capital is supplied by residents of one country to residents of another country

international investment

The _____ establishes the rules by which countries value and exchange their currencies.

international monetary sytem

______ is the currency in which the sale of goods and services is dominated

invoicing currency

an inconvertible currency

involves currencies that are not freely tradable

Quadro tires is an mne with facilities in Australia, Ireland, Canada, and the US. Which of the following is the least likely problem that quadro experiences in global management?

language complications

Mercantilism ________

maintains that a country's wealth is measured by its holdings of gold and silver

just-in-time systems are used by firms to

manage inventory

What term recognizes that in addition to private sector market forces, exchange rates are also affected by central banks buying or selling currencies on the foreign-exchange market?

managed float

a(n) __________ involves a firm in one country agreeing to operate facilities for a firm in another country for an agreed fee.

management contract

The theory of ___________ maintains that a country's wealth is measured by its holdings of gold and silver.

merchantilism

Russia's major natural resources include which of the following?

natural gas

The Four Tigers are also called:

newly industrialized countries

The _____ of a good is the value of what is given up to get the good.

opportunity cost

social structures is best defined as the

overall framework that determines the roles of individuals within a society

special drawing rights, SDRs, are sometimes called

paper gold

Which of the following is most influential on an individual's ethics?

peers

What is the primary purpose of the International Finance Corporation?

promote private sector development in developing countries.

According to mercantilism, what should a country's primary goal be?

promoting exports to enlarge gold and silver holdings

The internet has helped small businesses compete in global markets because it

reduces entry costs

Individuals should most likely study international business to ____

remain current on the latest business methods

religion ________

shapes the attitudes its adherents have toward work, consumption, individual responsibility, and planning for the future

Which of the following would be considered an international business transaction?

shipping finished products from one country to another for retail sale

which of the following is NOT a component of social structure?

societal dress codes within regions

______ assume exchange rates risks by acquiring positions in a currency and hoping that they can correctly predict changes in the currency's market value

speculators

The ____ consists of foreign-exchange transactions that are to be consummated.

spot market

the U.S. Freedom of Information Act is an example of

statutory law

Common law is primarily based on

the cumulative wisdom of judges' decisions on individual cases through history

The term _______ refers to the voluntary exchange of goods, services, assets, or money between one person or organization and another.

trade

Expropriation is best defined as the

transference of ownership from private to public sector with compensation to private owners for their losses

In the world of spot markets, what is the meaning of immediately?

two days after the trade date

companies doing international business are more likely to be successful when they _________

understand local market characteristics

Behavior that fails to conform to generally accepted social norms is considered

unethical

The international bank for reconstruction and development is also know as the

world bank