QUESTION 1There are three types of economic integration, namely.docx
QUESTION 1 There are three types of economic integration, namely: global, regional, and local. True False 4 points QUESTION 2 Purchasing power parity is the price of one currency in terms of another. True False 4 points QUESTION 3 When the United States sells products to China, US exporters often demand that they be paid in the Chinese yuan. True False 4 points QUESTION 4 Three EU members—Britain, Denmark and Sweden—do not use the euro as their currency. True False 4 points QUESTION 5 NAFTA is an example of a common market. True False 4 points QUESTION 6 Which of the following is NOT an advantage of a strong US dollar? US consumers benefit from low prices on imports. US tourists benefit from lower prices when traveling abroad. Lower prices on foreign goods help keep US prices level and inflation low. US firms in import-competing industries face more low-cost imports. 4 points QUESTION 7 Which does “ASEAN” stand for? Assembly of Southeast Asian Nations Assembly of South American Nations Association of Southeast Asian Nations Association of South American Nations 4 points QUESTION 8 In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan? More people demand the yuan domestically in China, so it is not used for imports and exports. The dollar is the common transaction currency between the two countries. The yuan is pegged to the US dollar. Formal institutions and regulations demand the trade be conducted in the dollar. 4 points QUESTION 9 Why was the US dollar chosen as the currency to which other currencies would be pegged? The US had high levels of productivity. The US was experiencing a large trade surplus. The US contributed approximately 70% of the global GDP. All of these answers 4 points QUESTION 10 Non-MNE firms can also do business abroad by: Licensing and franchising Outsourcing and engaging in FDI Exporting and importing All of these answers 4 points QUESTION 11 The motto of international business is location, location, location. True False 4 points QUESTION 12 Owners, managers, and employees at entrepreneurial firms tend to be more innovative and take more risks than those at large firms. True False 4 points QUESTION 13 Late movers face greater technological and market uncertainties. True False 4 points QUESTION 14 Sometimes foreign firms are discriminated against: Formally Informally Randomly Both formally and informally 4 points QUESTION 15 First-mover advantages include: Opportunity to free ride on first-mover investments Resolution of technological and market uncertainties Difficulty to adapt to market changes Avoidance of a clash with dominant firms at home 4 points QUESTION 16 Which item is not a late-mover advantage? Avoidance of a clash with a d.
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QUESTION 1There are three types of economic integration, namely.docx
- 1. QUESTION 1 There are three types of economic integration, namely: global, regional, and local. True False 4 points QUESTION 2 Purchasing power parity is the price of one currency in terms of another. True False 4 points QUESTION 3
- 2. When the United States sells products to China, US exporters often demand that they be paid in the Chinese yuan. True False 4 points QUESTION 4 Three EU members—Britain, Denmark and Sweden—do not use the euro as their currency. True False 4 points QUESTION 5 NAFTA is an example of a common market.
- 3. True False 4 points QUESTION 6 Which of the following is NOT an advantage of a strong US dollar? US consumers benefit from low prices on imports. US tourists benefit from lower prices when traveling abroad. Lower prices on foreign goods help keep US prices level and inflation low. US firms in import-competing industries face more low-cost imports.
- 4. 4 points QUESTION 7 Which does “ASEAN” stand for? Assembly of Southeast Asian Nations Assembly of South American Nations Association of Southeast Asian Nations Association of South American Nations 4 points QUESTION 8 In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan? More people demand the yuan domestically in China, so it is not used for imports and exports.
- 5. The dollar is the common transaction currency between the two countries. The yuan is pegged to the US dollar. Formal institutions and regulations demand the trade be conducted in the dollar. 4 points QUESTION 9 Why was the US dollar chosen as the currency to which other currencies would be pegged? The US had high levels of productivity. The US was experiencing a large trade surplus. The US contributed approximately 70% of the global GDP. All of these answers
- 6. 4 points QUESTION 10 Non-MNE firms can also do business abroad by: Licensing and franchising Outsourcing and engaging in FDI Exporting and importing All of these answers 4 points QUESTION 11 The motto of international business is location, location, location. True
- 7. False 4 points QUESTION 12 Owners, managers, and employees at entrepreneurial firms tend to be more innovative and take more risks than those at large firms. True False 4 points QUESTION 13 Late movers face greater technological and market uncertainties. True
- 8. False 4 points QUESTION 14 Sometimes foreign firms are discriminated against: Formally Informally Randomly Both formally and informally 4 points QUESTION 15 First-mover advantages include: Opportunity to free ride on first-mover investments
- 9. Resolution of technological and market uncertainties Difficulty to adapt to market changes Avoidance of a clash with dominant firms at home 4 points QUESTION 16 Which item is not a late-mover advantage? Avoidance of a clash with a dominant firm at home Opportunity to free ride on first mover investments Resolution of technological and market uncertainty First mover’s difficulty to adapt to market changes 4 points
- 10. QUESTION 17 Licensing/franchising agreements refer to: Outsourcing agreements in R&D firms A new corporate entity given birth to and jointly owned by two or more companies Efforts among a number of firms to jointly market their products and services The licensor/franchiser selling the rights to intellectual property 4 points QUESTION 18 ____ perform an important "middleman" function by linking sellers and buyers overseas. Export intermediaries
- 11. Indirect exporters Sporadic exporters Alliance partners 4 points QUESTION 19 Foreign firms crack new markets by: Undertaking actions deemed legitimate and appropriate by governing institutions Bribing government officials Hiring locals to manage the new entity Outsourcing production 4 points QUESTION 20
- 12. In a(n) ____, members coordinate and harmonize monetary, fiscal, and taxation policies. Monetary union Political union Economic union Custom union 4 points QUESTION 21 Non-native employees who work and reside in a foreign country are known as: Host-country nationals
- 13. Expatriates Multinationals Repatriates 4 points QUESTION 22 ___ is leading the world in managerial compensation. United States Britain Japan Germany 4 points QUESTION 23
- 14. In home replication strategy, knowledge flow is multidirectional, while in transnational strategy, it is one-way. True False 4 points QUESTION 24 The phrase “think global, act local” is a winning formula when it comes to leveraging multinational presence. True False 4 points QUESTION 25 Which of the following is NOT one of the four strategic choices for MNEs?