Global Business Test 2

· Which of the following are the two main bodies of the World Bank?

International Bank for Reconstruction & Development and International Development Association

· Which of the following is NOT a key element of human resource management?

Job training

· An exchange rate system in which a currency is permitted to float only within the limits established by that country is called:

Managed float system of exchange rates

· Which of the following is the best definition for a high-performance work system?

Set of practices to create an environment where employees have more involvement

· Which of the following best defines reserve currency?

The main currency that many entities hold as part of their foreign exchange reserves

· Which of the following is the term used for the price at which a bank is willing to buy a specific currency

bid

A ________ is the most common type of debt instrument.

bond

· Which of the following terms is defined as the exchange rate between two currencies, neither of which is the official currency of the country in which the quote is provided?

cross rate

Currency on deposit outside its country issue is called:

eurocurrency

Which of the following is the term used to describe the way that a venture capitalist or other investor can liquidate their investment?

exit strategy

· This office lays out the rules of accounting transparency and principles in the US:

financial accounting standards board

· International account fundamentals are developed by:

international accounting standards board

· A measure of the ease by which holders of securities can convert them into cash is called:

liquidity

· A managed float system of exchange rates was established by which of the following?

o Jamaica Agreement

· Which of the following is NOT a consideration when expanding internationally?

o Needs of current employees and managers

Which of the following best describes the balanced scorecard method?

o Performance management tool to define strategic performance categories that relate to a company's strategy

· Which of the following are the four key elements of human resources management?

o Selection and placement, diversity management, job design, and compensation/rewards

· Which of the following is a line of credit controlled by the D... (picture cut off)

o Special Drawing Rights

· Which of the following is NOT a component of the CAGE Framework?

o Technological Distance

· Which of these is NOT a category of globalization factors?

o Technology

· Which of the following best defines transfer pricing?

o The price one subsidiary charges another subsidiary for a product or service

· The more _____ a venture is, the great the reward should be commensurate with the risk being taken.

speculative

· The difference between the bid and ask price called:

spread

· Which of the following best defines a third-country national?

An individual who is a citizen of neither a parent company's home country nor the host country in which he or she is working

Since 1971, there has been an annual meeting of the World Economic Forum in ___ Switzerland attended by economists, politicians, business leaders, and journalist.

Davos

· In 1944, Bretton Woods aimed to achieve which of these goals?

Establish a new monetary system to encourage trade

Which term reflects decreases/increases in the value of currency based on supply/demand?

Float

· Which of the following best describes a bonus?

Form of variable pay where the employee earns additional compensation

Which of the following is the best definition for strategic human resources management?

Organizational approach to human resources management with a focus on the effects of such management on firm performance

· The components of a PESTEL Analysis are:

Political, Economic, Sociocultural, Technological, Environmental, and Legal

· Which of the following best defines succession planning?

Process in which an organization ensures that employees are recruited and developed to fill key roles within the company

· Which of the following best defines job design?

Process of combining tasks to form a whole job while considering health and safety

· Currency hedging is defined as which of the following?

Steps taken to protect against losses resulting from adverse changes in exchanges rates

· Which of the following best defines hedging?

Using financial instruments to offset adverse price movements

· Which of these terms is sued to describe the simultaneous and instantaneous buying and selling of currency for a profit?

arbitrage

· Which of the following is the term used for the price at which a bank is willing to sell a specific currency?

ask

· Borrowing of money by insuring securities to investors in the capital market is called:

direct finance

· Which of the following best defines a trend?

o A force for change whose direction, and sometimes timing, can be predicted

· Which of the following best defines an expatriate?

o A person who is living in a country other than his or her home country

· Which of the following did NOT contribute to the collapse of the Gold System?

o A series of economic/financial decisions made by President Nixon

Which of the following is one of the major provisions of the FCPA (Foreign Corrupt Practices Act)

o Accounting transparency requirements under the Securities Exchange Act of 1934

Which of the following best defines a job evaluation?

o Analysis of the general productivity of either an individual employee or a department and how that productivity impacts the profitability of an organization

· Which of the following best defines international market due diligence?

o Analyzing markets for size, accessibility, cost of operations, and buyer practices

· ___________ generally refers to the contracting of a firm's payroll, human resources, accounting, and customer relations to a third-party provider.

o Business-process outsourcing

· Anita is tasked with developing a company's plan for expanding into a particular foreign market. She decides to analyze cultural, administrative, geographic, and headquarters. What kind of analysis is Anita engaging in?

o CAGE analysis

Maria determines her firm's future site acquistionis and other long-term planning. She examines the investments that will be necessary, all of the costs involved in each project(including opportunity cost), and the estimated future cash flow that will be generated by each project, what type of activities does Maria engage in?

o Capital budgeting

This is the model by which all finance decisions are made at a firm's global headquarters

o Centralized financial organization structure

· A single financial statement that brings together all the financial statements of a parent company and its subsidiaries is called:

o Consolidated financial statements

· Which of the following is the method in which subsidiaries or regions of a global firm make relevant financing/investment decisions for themselves and/or their region?

o Decentralized financial organization structure

· Which of the following is a method of financing that involves selling shares of stock?

o Equity financing

· By adhering to the Gold Standard, countries were utilizing a ___

o Fixed exchange rate system

· Money denominated in the currency of another country or group of countries is called:

o Foreign exchange

· Which of the following is defined as the rate at which two parties agree to trade currency on some specified date in the future?

o Forward exchange rate

· Which system of exchange does not allow for government intervention in the mechanism?

o Free floating exchange rate system

What is the general name for the world's stock exchanges where firms can buy and sell shares of stock for financing investments?

o Global equity market

· Which of the following pay systems involves a bonus paid when specific performance objectives are met?

o Incentive pay

· Which of the following pay systems includes insurance, retirement benefits, or housing?

o Indirect pay

Digital currencies differ from standard banknote currencies in that they allow for ____ and ____

o Instantaneous transactions, borderless transfer-of-ownership

· A company-generated forecast of future spot currency exchange rates, which may differ from the rate quoted by a foreign exchange market, is called:

o Internal forward rate

Which of the following is the name for the forum in which governments, people, and companies borrow and/or invest across national boundaries?

o International capital markets

Which of these terms encompasses the system and rules that govern the use of money around the world and between countries?

o International monetary system

· Which of the following best defines human capital?

o The stock of habits, knowledge, social and personality attributes embodied in the ability to produce economic value

· Which of the following is NOT a reason a company would expand its operations?

o To expend capital

· This allows defence of payment for goods/services for a specified period of time

o Trade credit

Which of the following best defines the current-rate method of currency translation?

o Translating financial statements into a single currency at the current exchange rate

· Which of the following is a method of financing which involves looking for capital from foreign souces?

o Transnational financing

· Which of these is a relevant question for the political portion of the PESTEL Analysis?

o What are the local taxation policies?