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