TÂ Â F 1. Translation risk can be hedged against by using the forward market for currency exchange. TÂ Â F 2. Environmental scanning involves looking for changes in environmental forces in the global marketplace. TÂ Â F 3. The Total Product and the Physical Product mean the same thing. TÂ Â F 4. Transfer pricing is a form of intracorporate pricing that can be used to shift the tax burden from one subsidiary to another. TÂ Â F 5. A language trap, where a person can speak two languages, occurs because the person relies on their knowledge of a second language without seeking the assistance of a native speaker. TÂ Â F 6. Even with the development of the internet and the virtual capabilities it is still important to make a personal visit to a potential market before investing in the market. TÂ Â F 7. Market segment screening is based on needs across national borders. TÂ Â F 8. National borders may no longer be the relative unit of analysis for a firm in developing a global market plan. TÂ Â F 9. 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. TÂ Â F 10. An importer delays payment of the necessary currency exchange when she thinks her currency will devalue in terms of the foreign payment currency. TÂ Â F 11. When using a money market hedge, the hedger will immediately convert the currency borrowed into its own currency. TÂ Â F 12. JIT systems are more efficient than synchronous manufacturing in all situations. T FÂ Â 13. The US has adopted the International Financial Reporting Standards and they are now in effect in the US. T FÂ Â 14. A broad statement that defines the organization\'s purpose and scope is a values statement. T F 15. Most companies can enter a market in stages. The order listed in the textbook is establishment of a foreign sales company, exporting, local assembly, and manufacturing. Solution 1.T 2.F 3.F 4.T 5.F 6.T 7.T 8.F 9.T 10.F 11.F 12.T 13.F 14.T 15.T .