Sual: Which of the following would be an example of foreign direct investment from the United States to Taiwan? (Çəki: 1)
|
A U.S. bank buys bonds issued by a Taiwan computer manufacturer
|
|
A U.S. car manufacturer enters into a contract with a Taiwan firm for the latter to make and sell its spark plugs.
|
|
Microsoft hires a Taiwanese computer programmer to debug some software for it.
|
|
The state of California rents space in Taipei for one of its employees to use promoting tourism in California.
|
|
Warren Buffet (a U.S. citizen) buys a controlling share in a Taiwanese electronics firm.
|
Sual: If a German manufacturer of household appliances wants to take advantage of the cheaper labor available in the Czech Republic, which of the following actions will not serve that purpose? (Çəki: 1)
|
Build a manufacturing subsidiary there and employ Czech workers
|
|
Build a plant in the Czech republic and send all German workers to operate it.
|
|
License a Czech firm to produce its products under its own label.
|
|
Contract for a Czech firm to do some of the processing for it.
|
|
Buy a Czech firm that produces similar products and adapt it to produce its own products.
|
Sual: _______ is an investment that does not involve obtaining a degree of control in a company. (Çəki: 1)
|
Foreign Direct Investment
|
|
Bonds
|
|
EU investment
|
|
Portfolio investment
|
|
Stocks
|
Sual: What is the relationship between mergers and acquisitions (M&A) and FDI, if any? (Çəki: 1)
|
M&As are decreasing FDI.
|
|
M&As are not related to FDI in any ways.
|
|
Number of M&As and their exploding values are creating long-term growth in FDI.
|
|
M&As are done by pharmaceuticals companies only, while FDI is not industry specific.
|
|
None of the above.
|
Sual: Which of the following is NOT a pattern of global FDI flows? (Çəki: 1)
|
International flows of FDI have exploded with the lowering of trade barriers after the Uruguay Round of GATT.
|
|
Developed countries account for majority of the FDI globally.
|
|
Among developing countries, China is attracting most FDI in Asia.
|
|
Outflows of FDI from developing countries are rising.
|
|
International Product Life Cycle
|
Sual: International Product Life Cycle Theory states that: (Çəki: 1)
|
a company will begin by exporting its product in the new product stage, and can undertake FDI when a product is in the later, standardized product stage.
|
|
FDI happens in response to market imperfections
|
|
Firms consider FDI when location advantages are combined with ownership and internationalization advantages.
|
|
None of the above.
|
|
All of the above.
|
Sual: __________ describe progressive outsourcing by lead firms in developed countries of their peripheral, and frequently low-value, productive functions to low-cost countries and regions, while keeping the core nodes of value creation and retention in their home countries. (Çəki: 1)
|
Global value chains (GVCs) theory
|
|
Global production networks (GNP) theory
|
|
Market power theory
|
|
Both a and b
|
|
None of the above
|
Sual: ______ states that a firm tries to establish a dominant market presence in an industry by undertaking FDI, because with FDI the firm is better able to dictate the cost of its inputs and/or the price of its output. (Çəki: 1)
|
International Product Life Cycle Theory of FDI
|
|
Market Power Theory of FDI
|
|
Eclectic Theory of FDI
|
|
Market Imperfections Theory of FDI
|
|
None of the above.
|
Sual: A Greenfield investment is (Çəki: 1)
|
purchasing an existing business
|
|
purchasing a majority of shares of a successful business
|
|
building a subsidiary abroad from the ground up
|
|
purchasing government bonds
|
|
none of the above.
|
Sual: Which of the following is NOT a motivation triggering FDI for companies: (Çəki: 1)
|
decreasing transportation costs
|
|
preventing spread of specialized knowledge
|
|
avoiding import taxes
|
|
balance-of-payments
|
|
all of the above
|
Sual: __________ is one of the reasons for government intervention in FDI: (Çəki: 1)
|
Balance of Payments
|
|
International Product Life Cycle
|
|
Absolute advantage
|
|
None of the above
|
|
All of the above
|
Sual: _________ is defined as a record of a country’s payments to and receipts from other countries. (Çəki: 1)
|
Current account
|
|
Balance-of-payment account
|
|
FDI account
|
|
Externalities account
|
|
National sovereignty account
|
Sual: Record of a country’s export and import of goods and services is tracked by: (Çəki: 1)
|
current account
|
|
balance-of-payment account
|
|
FDI account
|
|
Externalities account
|
|
National sovereignty account
|
Sual: Extraction, production, distribution, consumption, and disposal are stages of __________. (Çəki: 1)
|
business
|
|
materials economy
|
|
social economy
|
|
production
|
|
none of the above
|
Sual: Another term for extraction is ______________. (Çəki: 1)
|
corporate investment
|
|
start-up investment
|
|
portfolio investment
|
|
natural resource exploitation
|
|
consumption.
|
Sual: Which country has 5% of the world’s population, and is consuming 30% of the world’s resources and creating 30% of the world’s waste? (Çəki: 1)
|
China
|
|
Russia
|
|
Canada
|
|
USA
|
|
Germany
|
Sual: According to Annie Leonard in the “Story of Stuff”, which percentage of our planets original forests is now destructed? (Çəki: 1)
Sual: How many of global fisheries are now fished at or beyond capacity? (Çəki: 1)
Sual: How many trees are lost to the extraction stage every minute, in the Amazon alone? (Çəki: 1)
Sual: How many of the 100,000 synthetic chemicals in commerce today have been tested for synergistic health impacts? (Çəki: 1)
|
10%
|
|
25%
|
|
50%
|
|
100%
|
|
None of them
|
Sual: Brominated flame retardants (BFRs) are commonly used on computers, appliances, couches, mattresses, and some pillows to make them fireproof. What is the problem with this? (Çəki: 1)
|
There is no problem.
|
|
BFRs are very costly raw materials.
|
|
There is a global monopoly over BFRs production.
|
|
BFRs are not effective in protecting computers from fire.
|
|
BFRs are a neurotoxin—they are toxic to the human brain.
|
Sual: Who is physically affected most from the toxic chemicals used in global production: (Çəki: 1)
|
Factory workers
|
|
CEOs of the global production firms
|
|
Shareholders of the Multinational companies
|
|
Bankers
|
|
Customers
|
Sual: What is a carcinogen? (Çəki: 1)
|
a substance that is known to produce cancer
|
|
an element of global transportation
|
|
food additive
|
|
a substance that is known to increase productivity
|
|
none of the above
|
Sual: How many tons toxic chemicals are released into the air each year by the US industry only? (Çəki: 1)
|
100
|
|
1000
|
|
10,000
|
|
100,000
|
|
Nearly 2 million
|
Sual: What is the problem with the structure and speed of extraction and waste-production in our global production system? (Çəki: 1)
|
it is not fast enough
|
|
it has not yet achieved economies of scale
|
|
it is not large enough
|
|
The structure and speed of extraction and waste-creation of the global production system cannot be sustained, because we are running out of resources on the planet, increasing toxic overload, and damaging human health for many generations.
|
|
There is no problem.
|
Sual: According to Annie Leonard in the “Story of Stuff”, the main way of defining people has become: (Çəki: 1)
|
what good contribution they make to the community—who has contributed to the community/society most
|
|
emotional stability and patience—who is most patient
|
|
kindness –who is most kind
|
|
consumption-- who buys what, who owns what
|
|
education –who has most useful knowledge
|
Sual: Two strategies used to increase the rate of consumption are: (Çəki: 1)
|
planned obsolescence and perceived obsolescence
|
|
healthcare and education
|
|
Stewardship and resourcefulness
|
|
Economic and social
|
|
City and rural strategies
|
Sual: “Designed for the dump” is another name for: (Çəki: 1)
|
planned obsolescence
|
|
perceived obsolescence
|
|
marketing
|
|
ecological considerations
|
|
all of the above
|
Sual: Planned obsolescence is: (Çəki: 1)
|
A strategy for designing a product for fast breaking-up that still leaves the consumer with enough faith in the product to go and buy another
|
|
a strategy for reducing waste on the planet
|
|
planning minimum waste
|
|
designing a product that does not break up.
|
|
None of the above.
|
Sual: Which of the following is an example of perceived obsolescence? (Çəki: 1)
|
changing a perfectly working cell-phone to a new touch-based screen phone
|
|
taking a broken car to the mechanic
|
|
buying food when there is no food at home
|
|
buying new clothes for growing child
|
|
replacing a broken light bulb
|
Sual: According to the polls cited by Annie Bernard in “The Story of Stuff”, the main point of advertisements is: (Çəki: 1)
|
To show the wasteful extraction and chemical production of a new product
|
|
To be ethical and reveal real costs and effects of products from consumers
|
|
To induce people to buy more products, by saying that “what you have is not enough for happiness”
|
|
To serve customers, not producers
|
|
All of the above
|
Sual: ___________ explain geographical patterns of value creation, retention and capture in the global economy primarily through the concepts of chain governance and network dynamics. (Çəki: 1)
|
Market Imperfections theory
|
|
Eclectic theory
|
|
International competition theories
|
|
Global value chains and global production networks theories
|
|
None of the above
|
Sual: According to a 2010 World Bank report on the post-2008 world economy: “given that production processes in many industries have been fragmented and moved around on a global scale, __________ have become the world economy’s backbone and central nervous system.” (Çəki: 1)
|
Foreign Direct Investments
|
|
International currency transactions
|
|
Labor migrations
|
|
Global Value Chains
|
|
Economic theories
|
Sual: Please indicate which one or ones of the below statements are true: I. State action and inaction creates the enabling conditions for Global value chains (GVCs) and Global production networks(GPNs). II. State action and inaction shapes whether and how firms, regions, and nations are able to engage with global markets, and their capacities to upgrade these engagements. III. States can affect GVCs and GPNs through policy arenas like wage setting, tariffs, taxes and tax concessions, infrastructure provision, education, training and research, and spatial planning (the establishment of free trade zones and business hubs). IV. State action cannot affect GVCs and GPNs. (Çəki: 1)
|
I
|
|
II and III
|
|
IV
|
|
I and II
|
|
I, II, and III
|
Sual: Processes of global competition associated with participating in GVCs and GPNs may: (Çəki: 1)
|
place pressures on the state to dilute or liberalize wages policies
|
|
inspire states to improve their research and training capacities
|
|
inspire states to provide tax breaks to companies to capture a better place in a GVC/GPN
|
|
all of the above
|
|
none of the above
|
Sual: In the GVC context, which country is known as the “factory to the world”? (Çəki: 1)
|
Russia
|
|
China
|
|
India
|
|
Argentina
|
|
Indonesia
|
Sual: In the GVC/GPN context, which country is known as the “world’s back office”? (Çəki: 1)
|
India
|
|
China
|
|
Russia
|
|
Japan
|
|
Azerbaijan
|
Sual: Consider the following case of Nutella®. Nutella® is a famous hazelnut and cocoa spread sold in 75 countries. About 250 000 tons of Nutella® are produced each year. The food processing company Ferrero International SA is headquartered in Italy and has nine factories producing Nutella®: five are located in Europe, one in Russia, one in North America, two in South America and one in Australia. Some inputs are locally supplied, for example the packaging or some of the ingredients, like skimmed milk. There are, however, ingredients that are globally supplied: hazelnuts come from Turkey, palm oil from Malaysia, cocoa from Nigeria, sugar mainly from Brazil (but also from Europe) and the vanilla flavour from China (the manufacturer of vanillin is a French company that also produces in France). Nutella® is then sold in 75 countries through sales offices. Why is Nutella case an example of a global value chain? (Çəki: 1)
|
Because of the number of countries it services: the spread is sold in 75 countries.
|
|
Because of the quantity and scale: the spread is produced in hundreds of thousands of tons.
|
|
Because it is headquartered in a European country, Italy.
|
|
Because it is produced using different processes in different parts of the world that each add value to the final product.
|
|
Because Nutella is a branch of Ferrero International SA.
|
Sual: Consider Automobile industry as an example of a global value chain with following components: Design (High Value Added) - After researching consumer wants and needs, automakers begin designing models which are tailored to the public demand. In the past, this design process has taken up to five years. Today, however, through the extensive use of computers, it is possible to develop prototypes, or "concept cars," from sketches in less than a year. Raw Materials (Low Value Added) - These include rubber, glass, steel, plastic, and aluminum. Over the past few years, the cost of raw materials has increased significantly, mostly due to the price increase of oil and natural rubber. Also, companies are now using aluminum and plastic in place of steel whenever possible in order to lessen the weight of the automobiles, which in turn improves fuel efficiency. Parts (Medium Value Added) - Tires, windshields, and air bags are examples of parts. These are outsourced from original equipment manufacturers (Delphi and General Electric), replacement parts manufacturing (Cooper Tire and Rubber and Federal-Mogul), replacement parts distribution (NAPA), and rubber fabricating (Goodyear and Cooper) partners. Assembly (Medium Value Added)- putting shipped parts together at an auto plant site. Marketing (High Value Added) - Marketing is an integral part of the value chain, since it is the primary basis for consumers' perceived values. Distribution and Sales (High Value Added) - After production is complete, automobiles are shipped to dealerships around the world to be sold. Based on what you read about the role of high-cost and low-cost countries in global value chains which of the following is most UNLIKELY: (Çəki: 1)
|
Airbags and windshields are produced in the USA.
|
|
The rubber for Toyota is bought from Thailand.
|
|
Japan’s role in Toyota cars’ global value chain is limited to the extraction of rubber, glass, steel, and aluminum.
|
|
Toyota has an assembly plant in China.
|
|
The price of oil directly affects the manufacturing costs of Toyota.
|
Sual: Recently, McKinsey Global Institute identified a number of technologies that have the potential to transform the global economy and how business is conducted globally. They used a number of criteria to identify which technologies can have most impact. Which of the following was NOT a criteria for selecting the technologies with most potential? (Çəki: 1)
|
The technology is rapidly advancing or experiencing breakthroughs.
|
|
The potential scope of impact of the technology is broad.
|
|
The technology could affect significant economic value.
|
|
The economic impact of the technology is potentially disruptive.
|
|
The age of technology.
|
Sual: Automation of knowledge work refers to: (Çəki: 1)
|
intelligent software systems that can perform knowledge work tasks involving unstructured commands and subtle judgments
|
|
automobile industry design
|
|
the cloud
|
|
renewable energy technologies
|
|
all of the above
|
Sual: __________ is the linking of physical objects with embedded sensors. (Çəki: 1)
|
The “Cloud”
|
|
Internet of all things
|
|
Energy storage
|
|
Advanced robotics
|
|
All of the above
|
Sual: ________ has the ability to deliver digital power at low cost and in small increments. (Çəki: 1)
|
The “Cloud”
|
|
Internet of all things
|
|
Energy storage
|
|
Advanced robotics
|
|
Autonomous vehicle
|
Sual: Which of the following could be an economic impact of mobile internet globally: (Çəki: 1)
|
It could lead new oil exploration technologies
|
|
It is a basis for autonomous vehicle use.
|
|
It would be a new basis for cancer research.
|
|
Up to three billion new consumers could join the global economy as digital participants
|
|
Mobile internet could have no economic impact.
|
Sual: Which of the following are ways in which social technologies are used globally by businesses? (Çəki: 1)
|
Many organizations rely on tapping the brain power of customers and experts from within and outside the company for breakthrough thinking.
|
|
Social networking is used to decrease employees’ email time.
|
|
Social networking is used for faster knowledge sharing, shorter product development cycles, and faster competitive response times.
|
|
All of the above.
|
|
None of the above.
|
Sual: Increasing digitalization of the economy and business world suggests that: (Çəki: 1)
|
companies must have a data strategy
|
|
companies should design analytic and visualization tools for frontline managers’ effectiveness
|
|
companies should hire data scientists
|
|
All of the above
|
|
None of the above
|
Sual: With cloud technology, any computer application or service can be________ (Çəki: 1)
|
Delivered over a network or the Internet, with maximal local software or processing power required.
|
|
Delivered over a network or the Internet, with minimal local software or processing power required.
|
|
Delivered over a network or the Internet, with no local software or processing power required.
|
|
Delivered over a network or the Internet, with minimal or no local software or processing power required.
|
|
None of the above.
|
Sual: The cloud can also improve the economics of IT for companies and governments, as well as_______ (Çəki: 1)
|
Enable entirely new business models, including all kinds of pay-as-you-go service models.
|
|
Provide greater flexibility and responsiveness.
|
|
Provide extra profits for the company.
|
|
All of the above
|
|
None of the above.
|
Sual: The potential benefits of autonomous cars and trucks include________ (Çəki: 1)
|
Increased safety
|
|
Reduced CO2
|
|
Hands-off driving
|
|
All of the above.
|
|
None of the above.
|
Sual: At nanoscale (less than 100 nanometers), ordinary substances take on new properties, greater reactivity, unusual electrical properties, enormous strength per unit of weight. This can enable (Çəki: 1)
|
new types of medicine
|
|
stronger composites
|
|
super-slick coatings
|
|
All of the above
|
|
Nothing new
|
Sual: Eventually, improving technology for oil and gas exploration and recovery could even unlock new types of reserves, such as __________, and usher a new energy revolution. (Çəki: 1)
|
methane clathrates
|
|
tight sandstones,
|
|
Coalbed methane
|
|
All of the above
|
|
None of the above
|
Sual: Culture is the sum total of beliefs, rules, techniques, institutions and artifacts that characterize human populations. Culture is all of the following EXCEPT: (Çəki: 1)
|
learned
|
|
shared
|
|
composed of various aspects
|
|
defines boundaries of different groups
|
|
universal
|
Sual: The belief in the superiority of one’s own ethnic group is referred to as: (Çəki: 1)
|
ethnocentricity
|
|
egotism
|
|
biocentricity
|
|
culturalism
|
|
selfishness
|
Sual: Consider the following case: The United Parcel Service –UPS is a global shipping company. Its signature brand image is tied to its brown trucks for delivering mail and packages. When UPS opened its office in Spain it found out that brown is the color of funeral cars in the country. Brown trucks delivering UPS shipments would be “competing” with death news vehicles in Spain. Which of the following was MOST APPROPRIATE business response? (Çəki: 1)
|
The UPS should not care about the local customs, its global image and brand was stronger than local culture.
|
|
The UPS sponsored a campaign to change the color of funeral cars in Spain. (The company actually did it.)
|
|
The UPS had to repaint its brown trucks in Spain (The company actually did it.)
|
|
The UPS should have left Spain.
|
|
The UPS could sponsor a campaign to change the meaning of colors for Spanish people.
|
Sual: Pepsodent tried to sell its toothpaste in Southeast Asia by emphasizing that it “whitens your teeth”. They found out that the local natives chew betel nuts to blacken their teeth which they find attractive. This finding: (Çəki: 1)
|
Has no relevance to the success of Pepsodent business in Southeast Asia.
|
|
Is an example of how culture shapes marketing
|
|
Is an example of how culture shapes exporting, business expansion, and marketing.
|
|
Is not related to cultural specificities.
|
|
All of the above.
|
Sual: A golf ball manufacturing company packaged golf balls in packs of four for convenient purchase in Japan. Unfortunately, pronunciation of the word “four” in Japanese sounds like the word “death” and items packaged in four are unpopular. This true example from the history of international marketing shows that: (Çəki: 1)
|
The Japanese are unreasonable people.
|
|
Nothing can affect a strong brand.
|
|
Culture shapes production and packaging.
|
|
Culture is irrelevant to business.
|
|
All of the above.
|
Sual: Which of the following demonstrates how language can shape customer base? (Çəki: 1)
|
To enjoy a productcustomers must speak the native language of the producer.
|
|
Only people with grammatically correct language can be customers.
|
|
The general manager of Pepsi in Azerbaijan uses humorous language at home with his children.
|
|
An Italian mineral water brand, Traficante, found a great reception in Spain’s underworld when it came to Spain. In Spanish the word translates as “drug dealer”.
|
|
All of the above.
|
Sual: Consider the following case from international marketing: A company advertised eyeglasses in Thailand by a variety of cute animals wearing glasses. The ad was a poor choice since animals are considered to be a form of low life and no self-respecting Thai would wear anything worn by animals. Should the company do anything? (Çəki: 1)
|
The case has no relevance to culture in global context.
|
|
The company should not do anything, Thai people will get used to seeing animals wearing glasses.
|
|
The company should discontinue the advertisement, and should work on a marketing strategy to repair the damage done to the company’s image.
|
|
The company should change the language of its advertisements.
|
|
The company should give up Thai market.
|
Sual: American Motors tried to market its new car, the Matador, based on the image of courage and strength. However, in Puerto Rico the name means the “killer” and was not popular on the hazardous roads in the country. Which of the following would be the MOST APPROPRIATE action for American Motors to take? (Çəki: 1)
|
Rename the car model for Puerto Rico. Not considering language subtleties earlier will result in costly changes to the production and marketing, but future successful sales depend on incorporating local language into the company strategy.
|
|
Refuse selling cars in Puerto Rico. Mistakes in language mean that a company cannot operate in that country anymore.
|
|
Keep the name Matador, and continue trying to sell the car in Puerto Rico. Maybe Puerto Ricans will change their mind and think that it is cool to drive a car that kills.
|
|
Keep the name Matador, and explain its meaning for American Motors to Puerto Ricans. Strong marketing can overcome any problems with language.
|
|
Any of the above.
|
Sual: In 1987, Branff Airlines installed leather seats in its coach class in order to bolster lagging sales. Allegedly, the airline used the slogan “Fly in Leather” in their English advertising. When the slogan was translated into Spanish, “vuela en cuero”, Branff failed to realize that “en cueros” is slang for being naked. In other words, the airline was encouraging clients in Spanish speaking countries to “fly naked”. The airline eventually went bankrupt. This historical case shows that:al] (Çəki: 1)
|
Language can be funny in the global business context
|
|
A company should continue sticking to the language of the headquarter country.
|
|
Language can profoundly affect the success of marketing, sales, and company reputation.
|
|
Language only affects marketing campaigns.
|
|
Any of the above.
|
Sual: Which of the following is a component of culture? (Çəki: 1)
|
Customs and values
|
|
Religion
|
|
Language
|
|
Attitudes towards authority
|
|
All of the above
|
Sual: The baby food manufacturer Gerber has had a problem in France as “gerber” can be translated from French as “to vomit”. This is an example of: (Çəki: 1)
|
How language can affect business expansion, company branding, and marketing
|
|
French sense of humor.
|
|
Cultural theory.
|
|
How language can affect a nation’s self-esteem.
|
|
All of the above.
|
Sual: Which of the following is a cultural factor affecting international business? (Çəki: 1)
|
attitudes towards time
|
|
short-run/long run focus on business success and evaluation
|
|
attitudes towards authority
|
|
attitudes towards achievement and work
|
|
All of the above
|
Sual: Which of the following is not one of the four value dimensions for measuring cultural differences according to Hofstede? (Çəki: 1)
|
Individualism versus collectivism
|
|
Large versus small power distance
|
|
Strong versus weak uncertainty avoidance
|
|
Masculinity versus femininity
|
|
Generosity versus selfishness
|
Sual: What is the difference or relationship between gifts and bribes in the international business context? (Çəki: 1)
|
Bribes have higher monetary value than gifts.
|
|
Bribes have lower monetary value than gifts.
|
|
Bribes are gifts or payments to induce the receiver to do something illegal for the giver.
|
|
Any gift is a bribe.
|
|
Bribes are gifts given to non-state officials.
|
Sual: Which of the following is an example of how cultural differences can affect human resource management? (Çəki: 1)
|
Foreign manager’s attitude towards time may be different than his local workers’ attitude.
|
|
Cultural differences with regard to authority can make a foreign management style seem as too weak.
|
|
Employees may be evaluated according to different criteria of achievement, than they themselves have.
|
|
There may be different expectations about gift-giving.
|
|
All of the above.
|
Sual: Speaking the local language: (Çəki: 1)
|
is not relevant to international business
|
|
solves all problems in the host location
|
|
creates many problems in the host location
|
|
provides a competitive advantage in business
|
|
None of the above.
|
Sual: Labor quality refers to: (Çəki: 1)
|
the number of available employees with the skills required to meet an employer’s business needs.
|
|
The skills, education and attitudes of available employees
|
|
The general working conditions that employees are subject to.
|
|
The best employees at the lowest wage rates.
|
|
None of the above
|
Sual: Labor quantity refers to: (Çəki: 1)
|
the number of available employees with the skills required to meet an employer’s business needs.
|
|
The skills, education and attitudes of available employees
|
|
The general working conditions that employees are subject to.
|
|
The best employees at the lowest wage rates.
|
|
None of the above
|
Sual: HR management in a global context has to deal with: (Çəki: 1)
|
Cultural differences
|
|
Immigration regulations
|
|
Only things that local HR management includes
|
|
A and B above applied to all HR functions
|
|
None of the above
|
Sual: Which of the following cultures have a more demanding approach to time: (Çəki: 1)
|
Azerbaijan
|
|
USA
|
|
Argentina
|
|
Saudi Arabia
|
|
Peru
|
Sual: _______ refers to all man-made objects. (Çəki: 1)
|
Economies
|
|
Material culture
|
|
Technology
|
|
Man-made culture
|
|
None of the above
|
Sual: Aesthetics is a culture’s sense of: (Çəki: 1)
|
religion
|
|
beauty and good taste
|
|
man-made objects
|
|
human interaction
|
|
none of the above
|
Sual: An expatriate (or in short, “expat”) is: (Çəki: 1)
|
a term for all employees of multinational corporations
|
|
a term for corporate employees who used to work for government
|
|
a term for employees on maternity leave
|
|
a term for those working in companies outside of their home country
|
|
none of the above.
|
Sual: Under the gold standard, what would happen to a country’s currency if it ran a trade deficit? (Çəki: 1)
|
Gold would flow out of that country to balance the trade deficit, decreasing the price of national currency, and making exports cheaper and imports more expensive.
|
|
Gold would flow into that country raising the price of its currency, making its exports more expensive and its imports cheaper.
|
|
The currency would be linked to US dollars
|
|
The currency would appreciate relative to UK pounds
|
|
There would be no changes to the country’s currency.
|
Sual: Why did the countries at Bretton Woods agree on the necessity of fixed exchange rates? (Çəki: 1)
|
To return to the gold standard
|
|
To restart the world trade and global investment
|
|
To end the gold standard
|
|
To slow the world trade and global investment
|
|
None of the above.
|
Sual: Which currency was the main currency the international monetary system designed at Bretton Woods? (Çəki: 1)
|
UK sterling
|
|
US dollar
|
|
Euro
|
|
Japanese Yen
|
|
Russian ruble
|
Sual: How are the exchange rates for national currencies determined after the fall of the Bretton Woods? (Çəki: 1)
|
Through Forex market demand and supply only
|
|
Through government regulation only
|
|
Through pegging to the US dollar only
|
|
Through all of the above methods mixed around the world, differing from one country to another
|
|
None of the above
|
Sual: A fixed or pegged exchange rate is: (Çəki: 1)
|
a type of exchange rate regime where a currency’s value is fixed against the value of another single currency, or to another measure of value, such as gold
|
|
a type of exchange rate regime where a currency’s value is determined by demand and supply on the Forex market
|
|
a type of exchange rate regime where a currency’s price is set and maintained by the central bank.
|
|
an outcome of trade theories
|
|
none of the above.
|
Sual: Purchasing Power Parity (PPP): (Çəki: 1)
|
helps determine the relative ability of two countries’ currencies to buy the same “basket” of goods in those two countries
|
|
refers to the level of consumerism in a country
|
|
is an acronym for purchase association of the USA
|
|
is not related to exchange rates
|
|
none of the above.
|
Sual: When the dollar decreases in value against the Euro, one result is that the price of goods from Europe (Çəki: 1)
|
will be less expensive for American consumers
|
|
will not change much
|
|
will be more expensive for American consumers
|
|
will be more expensive for some imports and less for others
|
|
will not change.
|
Sual: What kind of a foreign exchange condition occurs when the domestic producer benefits, but the foreign exporter is hurt? (Çəki: 1)
|
a strong currency
|
|
a fluctuating currency
|
|
a weak currency
|
|
a mixed currency
|
|
none of the above.
|
Sual: Which of the following are exchange rate forecasting techniques? (Çəki: 1)
|
fundamental analysis forecasting
|
|
technical analysis forecasting
|
|
purchasing power parity
|
|
b and c
|
|
a and b.
|
Sual: Which of the following are NOT a good method that transnational companies can use to cope with exchange rate uncertainty according to Richard Hise and James Kolari? (Çəki: 1)
|
Forecasting
|
|
Conducting Research
|
|
Determining tolerance for risk
|
|
Marketing-based operating methods
|
|
Isolated finance department dealing with exchange rate uncertainty without input from the marketing department
|
Sual: Financial crises are often preceded by: (Çəki: 1)
|
an asset boom that then turns into busts
|
|
a credit boom that then turns into busts
|
|
theoretical and empirical studies of market stability
|
|
appreciation of the main currency
|
|
Both a and b
|
Sual: What is asset bust? (Çəki: 1)
|
a sharp and rapid decrease in asset prices
|
|
a massive increase in asset prices that is unexplainable based on fundamentals
|
|
a sharp increase in national currency prices
|
|
a rapid increase in the availability of credit
|
|
none of the above.
|
Sual: What is sudden stop crisis? (Çəki: 1)
|
a speculative attack on the currency resulting in a devaluation, or forcing the authorities to defend the currency
|
|
a large fall in international capital flows to a country.
|
|
A country cannot or does not want to service its foreign debt
|
|
Bank runs and failures induce banks to suspend the convertibility of their liabilities or compel the government to intervene to prevent this by capital assistance.
|
|
A country does not honor its domestic fiscal obligations.
|
Sual: What are deeper causes of banking crises? (Çəki: 1)
|
funding
|
|
liquidity
|
|
triggers
|
|
problems in asset markets
|
|
panic
|
Sual: Absolute advantage, comparative advantage, and competitive advantage are: (Çəki: 1)
|
the main theories of trade
|
|
the theories of foreign exchange
|
|
explanations of financial crises
|
|
examples of market shock
|
|
currency manipulation methods.
|
Sual: In 1817, Ricardo demonstrated that even though a nation held an absolute advantage in the production of two goods, the two countries could still trade with advantages for each as long as the less efficient nation was not equally less efficient in the production of both goods. This is known as the theory of: (Çəki: 1)
|
competitive advantage
|
|
equal advantage
|
|
absolute advantage
|
|
comparative advantage
|
|
unfair advantage
|
Sual: According to Michael Porter, strategic management should be concerned with: (Çəki: 1)
|
exchange rates
|
|
human resources
|
|
the international monetary system
|
|
building and sustaining competitive advantage
|
|
writing
|
Sual: Which of the following is NOT one of the strategies that companies can employ to gain and maintain competitive advantage? (Çəki: 1)
|
innovation strategy
|
|
operational effectiveness strategy
|
|
cost leadership strategy
|
|
differentiation strategy
|
|
monopolization strategy
|
Sual: The purpose of the international monetary system is: (Çəki: 1)
|
To set means of payment between buyers and sellers, including deferred payment
|
|
To create conditions for gold standard
|
|
To support barter economics
|
|
To create a common currency zone
|
|
none of the above.
|
Sual: Under the gold standard, what would happen to a country’s currency if it ran a trade surplus? (Çəki: 1)
|
The currency would be linked to US dollars
|
|
The currency would appreciate relative to UK pounds
|
|
Gold would flow into that country raising the price of its currency, making its exports more expensive and its imports cheaper.
|
|
There would be no changes to the country’s currency.
|
|
Gold would flow out of that country, decreasing the price of national currency, and making exports cheaper and imports more expensive.
|
Sual: The Smithonian agreements in 1971: (Çəki: 1)
|
were agreements made between 10 major countries with the aim of restoring stability to the international monetary system.
|
|
Revalued key currencies and set new par values against dollar
|
|
Raised the dollar price of gold
|
|
Allowed currencies to fluctuate + or -2.25% around their new par values
|
|
All of the above
|
Sual: When did the Bretton Woods system collapse completely? (Çəki: 1)
Sual: How is the value of currency determined in floating exchange regimes? (Çəki: 1)
|
Through market demand and supply
|
|
Through government pegging
|
|
Through government intervention
|
|
All of the above
|
|
None of the above.
|
Sual: Devaluation: (Çəki: 1)
|
Is a decrease in the price of a currency
|
|
Is an increase in the price of a currency
|
|
Lowers the price of a country’s exports on world markets and increases the price of imports
|
|
Increases the price of exports and reduces the price of imports
|
|
Both a and c.
|
Sual: Calculating the value of GDP of two countries using the Purchasing Power Parity (PPP) method involves: (Çəki: 1)
|
Expressing the value of both country’s output in US dollars
|
|
Finding out what can be bought in each country with a unit of the local currency
|
|
Comparing the inflation rates in each country
|
|
Taking into account the exchange rate of each country’s currency
|
|
None of the above
|
Sual: What does the efficient market view say about the price of national currencies? (Çəki: 1)
|
Prices of financial instruments reflect all publicly available information at any given time. As applied to exchange rates, this means that forward exchange rates are accurate forecasts of future exchange rates.
|
|
Prices of financial instruments do not reflect all publicly available information. Proponents of this view believe that forecasts can be improved by information not reflected in forward exchange rates.
|
|
The price of national currencies circulates without logic.
|
|
The price of national currencies does not change.
|
|
All of the above.
|
Sual: What does the inefficient market view say about the price of national currencies? (Çəki: 1)
|
Prices of financial instruments reflect all publicly available information at any given time. As applied to exchange rates, this means that forward exchange rates are accurate forecasts of future exchange rates.
|
|
Prices of financial instruments do not reflect all publicly available information. Proponents of this view believe that forecasts can be improved by information not reflected in forward exchange rates.
|
|
The price of national currencies circulates without logic.
|
|
The price of national currencies does not change.
|
|
All of the above.
|
Sual: What is the main idea of Richard Hise and James Kolari in “Foreign Fluctuations”? (Çəki: 1)
|
Finance departments should deal with exchange rate uncertainty alone
|
|
Multinational companies (MNCs) can incur serious profit losses from foreign fluctuations.
|
|
Input from marketing would improve the ability of firms to cope with exchange rate uncertainty.
|
|
Forecasting, research, and risk evaluation are some methods that companies use to deal with currency fluctuations.
|
|
None of the above.
|
Sual: Which of the following is NOT one of four types of financial crises discerned by Claessens and Kose in the IMF report on financial crises? (Çəki: 1)
|
currency crisis
|
|
sudden stop
|
|
debt crisis
|
|
banking crisis
|
|
management crisis
|
Sual: Credit boom is: (Çəki: 1)
|
a rapid increase in credit
|
|
a rapid decrease in credit
|
|
a theory of advantage
|
|
the name for the international monetary system before 1973
|
|
none of the above
|
Sual: What are real effects of financial crises? (Çəki: 1)
|
recessions
|
|
liquidity
|
|
problems in asset markets
|
|
prosperity
|
|
public confidence in banking system
|
Sual: The capacity of a nation to produce more of a good with the same amount of input than another country is known as: (Çəki: 1)
|
competitive advantage
|
|
perfect competition
|
|
absolute advantage
|
|
economies of scales
|
|
opportunity cost
|
Sual: Which of the following are NOT methods that governments use to promote international trade? (Çəki: 1)
|
Free Trade Zones
|
|
Subsidies
|
|
Export Financing
|
|
Tariffs
|
|
All of the above
|
Sual: Who is the author of competitive advantage theory? (Çəki: 1)
Sual: During the era of the gold standard, what quality of exchange regime was believed to support international trade? (Çəki: 1)
|
Flexibility
|
|
Stability
|
|
Volatility
|
|
Petrodollars
|
|
All of the above
|
Sual: When did the international monetary system based on the gold standard collapse? (Çəki: 1)
Sual: What started the demise ofthe Bretton Woods system? (Çəki: 1)
|
Vietnam war and US domestic programs →US Federal budget deficit→ inflation→ dollar is viewed as overvalued in international markets
|
|
US trade surplus→increase in gold reserves→ increase in the price of dollar
|
|
US agreement with Saudi Arabia
|
|
World War II
|
|
All of the above
|
Sual: Which process(es) characterized the international currency and gold markets in the year of the final collapse of the Bretton Woods regime? (Çəki: 1)
|
markets sell off dollars, central banks intervene and buy dollars, but cannot prevent its devaluation
|
|
The price of the US dollar rises and the dollar strengthens against all major currencies.
|
|
European countries decide to create Euro zone
|
|
Central banks sell US dollars in an effort to bring it down.
|
|
None of the above.
|
Sual: How is the value of currency determined in managed float regimes? (Çəki: 1)
|
exchange rates fluctuate freely
|
|
exchange rates fluctuate, but central banks buy and sell currencies in order to affect the price of national currencies
|
|
exchange rates are pegged to gold reserves of the country
|
|
All of the above
|
|
None of the above
|
Sual: Revaluation: (Çəki: 1)
|
Is a decrease in the price of a currency
|
|
Is an increase in the price of a currency
|
|
Lowers the price of a country’s exports on world markets and increases the price of imports
|
|
Increases the price of exports and reduces the price of imports
|
|
Both b and d.
|
Sual: Which of the following is an example of how exchange rates affect the profits that a company earns from its international subsidiaries? (Çəki: 1)
|
Translating subsidiary earnings from a weak host country currency into a strong home currency reduces the amount of these earnings when stated in the home currency.
|
|
Translating subsidiary earnings from a strong host country currency into a weak home currency increases the amount of these earnings when stated in the home currency.
|
|
Subsidiary earnings are traded on foreign exchange markets.
|
|
A and B
|
|
B and C.
|
Sual: What factors affect exchange rates in purchasing power parity? (Çəki: 1)
|
interest rates
|
|
inflation
|
|
human capital
|
|
Both a and b
|
|
None of the above
|
Sual: How does currency volatility affect the management of global companies? (Çəki: 1)
|
Currency fluctuations in our current international monetary system are beneficial to the management of global companies
|
|
Currency volatility can cause serious profit losses. Strategic planning from the management of global companies combining insights from the marketing department can be used to prevent such losses.
|
|
Currency volatility decreases risk involvement in the management of global companies.
|
|
All of the above.
|
|
None of the above.
|
Sual: Financial crisis is: (Çəki: 1)
|
a situation in which the value of financial institutions or assets drop rapidly
|
|
an interchange of economic sanctions between countries
|
|
a sudden revaluation of the currencies of dominant countries
|
|
b and c
|
|
none of the above
|
Sual: Credit bust is: (Çəki: 1)
|
A rapid increase in credit
|
|
A rapid decrease in credit
|
|
A theory of advantage
|
|
The name for the international monetary system before 1973
|
|
None of the above
|
Sual: What is a currency crisis? (Çəki: 1)
|
a speculative attack on the currency resulting in a devaluation, or forcing the authorities to defend the currency
|
|
A large fall in international capital flows to a country.
|
|
A country cannot or does not want to service its foreign debt
|
|
Bank runs and failures induce banks to suspend the convertibility of their liabilities or compel the government to intervene to prevent this by capital assistance.
|
|
A country does not honor its domestic fiscal obligations.
|
Sual: Which of the following is NOT a method through which governments restrict international trade? (Çəki: 1)
|
Tariffs
|
|
Import quotas
|
|
Import licensing
|
|
Free Trade Zones
|
|
Export duties
|
Sual: By implementing policies called for by the theory of comparative advantage, what is meant to happen between the two countries? (Çəki: 1)
|
One country is able to out produce and sell more than the other country
|
|
Production increases in one country while consumption decreases in the other
|
|
Consumption drops in both countries while production remains constant
|
|
Consumption increases in both countries
|
Sual: Under a gold standard: (Çəki: 1)
|
Domestic money supply changes are independent of gold flows.
|
|
Dollars are directly exchangeable for gold at a preset price.
|
|
Gold discoveries create inflation.
|
|
Exchange rates between countries are free to float.
|
|
All of the above.
|
Sual: Between 2008 and mid 2011 the value of the UK sterling slumped by 30% against the dollar and by 17% against the euro. Which of the following most accurately reflects the effects of this on business? (Çəki: 1)
|
German exporters to the UK will reap benefits from movements in the euro against sterling.
|
|
US firms importing from the UK will reap benefits from movements in the dollar against sterling
|
|
UK importers will reap benefits from movements in sterling against the euro.
|
|
Eurozone firms will find it more expensive to produce goods and services in the UK.
|
|
None of the above.
|
Sual: Suppose that $1 Canadian dollar can buy $0.65 U.S. dollar and $1 U.S. dollar can buy $1.54 Canadian dollars. These are examples of (Çəki: 1)
|
foreign exchange rates
|
|
purchasing power parity
|
|
changes in the prices of net exports
|
|
inflation
|
|
None of the above.
|
Sual: Important factors that affect the demand for dollars include which of the following? I. Interest rates II. The current exchange rate III. The expected future exchange rate (Çəki: 1)
|
I an II
|
|
II
|
|
III
|
|
I,II, and III
|
|
I
|
Sual: World currencies began floating freely in: (Çəki: 1)
Sual: Petrodollar is a result of which historical agreement? (Çəki: 1)
|
The creation of the European Union and euro zone
|
|
President Nixon negotiated a strategic deal with Canada and Venezuela in 1971 according to which these countries would only sell their oil for US dollars on the global market, thus giving stability to the US dollars.
|
|
Bretton Woods agreement and the creation of the International Monetary Fund
|
|
When President Richard Nixon took the U.S. off the gold standard in 1971, this started a massive devaluation of the U.S. dollar. In an effort to prop up the value of the dollar Nixon negotiated a deal with Saudi Arabia that in exchange for arms and protection they would denominate all future oil sales in U.S. dollars. Subsequently, the other OPEC countries agreed to similar deals thus ensuring a global demand for U.S. dollars.
|
|
All of the above
|
Sual: The theory of comparative advantage illustrates that specialization can lead to (Çəki: 1)
|
A rise in poverty among many groups of people
|
|
An increase in overall consumption and efficiency
|
|
Greater equality among all people
|
|
Rise of powerful international organizations
|
|
Rise in exchange rates
|
Sual: A subsidy is a (Çəki: 1)
|
Limit on the number of goods that are imported
|
|
Tax on imports
|
|
Direct payments to producers to help them remain profitable
|
|
Foreign aid directed to developing countries
|
|
None of the above
|
Sual: Competitive advantage refers to (Çəki: 1)
|
An acquired capacity
|
|
Natural resources such as petroleum
|
|
Opportunity cost of specializing in one product
|
|
Absolute advantage
|
|
All of the above
|
Sual: Which of the following is false? (Çəki: 1)
|
Social websites are gathering information (data) on people that can be sold to companies and governments.
|
|
Smartphones are gathering information (data) on people that can be sold to companies and governments.
|
|
Your Google search history is kept by Google even after you delete in your computer.
|
|
Store loyalty cards are used to gather information /data on customers.
|
|
Any of the above.
|
Sual: Monitoring Tweets can: (Çəki: 1)
|
detect subtle shifts in sentiment about a product
|
|
be used for product strategy
|
|
be used for pricing strategy
|
|
All of the above
|
|
None of the above.
|
Sual: Culture affects: (Çəki: 1)
|
marketing
|
|
production
|
|
human resources
|
|
all business functions
|
|
none of the above
|
Sual: What is a quota? (Çəki: 1)
|
collective mispricing
|
|
a method for forecasting exchange rates
|
|
a numerical limit placed on a specific kind of good that a country will permit to be imported without restriction during a specified period.
|
|
tax on certain products imported into a country
|
|
tax on certain products exported from a country.
|
Sual: Which of the following can lead to credit booms? (Çəki: 1)
|
credit busts
|
|
rational market behavior
|
|
market shocks
|
|
labor theory of value
|
|
advantage theory
|
Sual: Which of the following is true about the organization of Global Value chains? (Çəki: 1)
|
low-cost countries have more control and power over the GVC organization.
|
|
low-cost countries have no control in the organization of Global Value chains
|
|
Countries with highest value added activities have more control and power in the Global Value Chains.
|
|
All of the above
|
|
None of the above
|
Sual: Which theory sees trade barriers as the main trigger of FDI? (Çəki: 1)
|
Market imperfections theory
|
|
Comparative advantage theory
|
|
Competitive Advantage theory
|
|
Fundamental analysis
|
|
Asset price theory
|
Sual: Which of the following is false? (Çəki: 1)
|
US-based company Acxiom offers clients, from banks to auto companies around the world, profiles of 500 million customers—each profile enriched by more than 1,500 data points gleaned from the analysis of up to 50 trillion transactions.
|
|
Shopping at a virtual store is an example of an experience where digital meets physical.
|
|
Social websites and sensors are all gathering information (data) on people that can be sold to companies and governments.
|
|
All of the above
|
|
None of the above
|
Sual: What is asset price bubble? (Çəki: 1)
|
a massive increase in asset prices that is unexplainable based on market fundamentals
|
|
a massive decrease in asset prices that is unexplainable based on market fundamentals
|
|
a small increase in asset prices that is unexplainable based on market fundamentals
|
|
a small decrease in asset prices that is unexplainable based on market fundamentals
|
|
none of the above
|
Sual: What does fundamental analysis use to forecast exchange rates? (Çəki: 1)
|
statistical models based on fundamental economic indicators
|
|
charts of past trends in currency prices and other factors
|
|
theoretical models of exchange rate volatility
|
|
political analysis
|
|
median inflation rates only
|
Sual: How does technical analysis forecast exchange rates? (Çəki: 1)
|
statistical models based on fundamental economic indicators
|
|
charts of past trends in currency prices and other factors
|
|
theoretical models of exchange rate volatility
|
|
political analysis
|
|
median inflation rates only
|
Sual: Which of the following is a trigger of FDI? (Çəki: 1)
|
fear of future competition from sharing specialized knowledge
|
|
labor theory of value
|
|
exchange rate volatility
|
|
pegged exchange rate regime
|
|
all of the above
|
Sual: What is the purpose of the international monetary system? (Çəki: 1)
|
It is a convenient, but useless innovation of the modern economy.
|
|
It sets means of payment between buyers and sellers including deferred payment.
|
|
It is another name for international economic flows.
|
|
All of the above.
|
|
None of the above.
|
Sual: What is an exchange rate regime? (Çəki: 1)
|
Current price of the world currencies on foreign exchange markets
|
|
Past prices of the world currencies on foreign exchange markets
|
|
The way in which a country manages its currency and the arrangement by which the price of that country’s currency is determined on foreign exchange markets.
|
|
All of the above.
|
|
None of the above.
|
Sual: Which of the following statements is true about exchange rate regime arrangements? (Çəki: 1)
|
Floating rate regime is an exchange rate regime.
|
|
Absolute advantage is an exchange rate regime
|
|
Comparative advantage is an exchange rate regime.
|
|
Forex market is an exchange rate regime.
|
|
None of the above.
|
Sual: Which of the following statements is true about exchange rate regime arrangements? (Çəki: 1)
|
Exchange rate regimes are determined by public vote.
|
|
Managed float is a name for an exchange rate regime
|
|
Exchange rate is another name for market imperfections theory.
|
|
Exchange rates are determined by culture.
|
|
All of the above.
|
Sual: Which of the following statements is true about exchange rate regime arrangements? (Çəki: 1)
|
The currencies were not convertible to gold during the gold standard.
|
|
Exchange rates regimes only exist in democratic countries.
|
|
Pegged rate is a name for a type of exchange rate regime.
|
|
All of the above
|
|
None of the above
|
Sual: Which of the following statements are true about exchange rate regime arrangements. (Çəki: 1)
|
Exchange rate regime arrangements are determined by governments.
|
|
Exchange rate regime arrangements are determined by a referendum.
|
|
Exchange rate regimes cannot be changed.
|
|
Azerbaijan has a pegged rate regime.
|
|
None of the above.
|
Sual: 1816-1914 is the period of which international monetary arrangement? (Çəki: 1)
|
Gold Standard
|
|
Bretton Woods
|
|
Mixed System
|
|
All of the above
|
|
None of the above
|
Sual: 1945-1973 is the period of which international monetary arrangement? (Çəki: 1)
|
Gold Standard
|
|
Bretton Woods
|
|
Mixed system
|
|
All of the above
|
|
None of the above
|
Sual: 1973-present is the period of which international monetary arrangement? (Çəki: 1)
|
Gold standard
|
|
Mixed system
|
|
Bretton Woods
|
|
All of the above
|
|
None of the above
|
Sual: Petrodollars are associated with which historical period? (Çəki: 1)
|
19th Century
|
|
1914-1945
|
|
1945-1973
|
|
1973-current
|
|
All of the above
|
Sual: Which of the following statements are true about the gold standard period? (Çəki: 1)
|
The prices of national currencies were linked (pegged) to the amount of gold in the country’s reserves.
|
|
Only UK and France had gold reserves.
|
|
Only USA had gold reserves.
|
|
Only US currency was convertible to gold and pegged to the country’s gold reserves.
|
|
None of the above.
|
Sual: Which of the following statements is true about the international monetary system for the period of World War I and World War II? (Çəki: 1)
|
The international monetary system operated according to the principles of Bretton Woods
|
|
The international monetary system operated according to the principles of gold standard.
|
|
There was no uniform international arrangement because of the wars and political distrust in the interim period.
|
|
None of the above
|
|
All of the above.
|
Sual: Which of the following statements is true about the Bretton Woods system? (Çəki: 1)
|
Only US dollar was pegged to gold.
|
|
Only British pound was pegged to gold.
|
|
Only Western European currencies were pegged to gold.
|
|
All European currencies were pegged to gold.
|
|
None of the above.
|
Sual: Which of the following statements is true about the Bretton Woods system? (Çəki: 1)
|
All other countries pegged their currencies to the US dollar.
|
|
All other countries pegged their currencies to the British pound.
|
|
All other countries pegged their currencies to Western European currencies.
|
|
All other countries pegged their currencies to EU currencies.
|
|
None of the above.
|
Sual: Select the correct chronological order of the international monetary system arrangements: (Çəki: 1)
|
Mixed system →Bretton Woods system→ Gold standard→ World Wars and Interwar period
|
|
World Wars and the interwar period→ Gold Standard→ Bretton Woods → Mixed system
|
|
Gold standard →World Wars and interwar period → Bretton Woods system→ Mixed system
|
|
None of the above
|
|
All of the above
|
Sual: Which of the following associations is correct? (Çəki: 1)
|
Bretton Woods = petrodollars
|
|
Gold Standard = petrodollars
|
|
Interwar period = petrodollars
|
|
Post-Bretton Woods = petrodollars
|
|
None of the above.
|
Sual: Which of the following played role in the demise of the Bretton Woods system? (Çəki: 1)
|
US balance of payments deficit and international perception of dollar as overvalued
|
|
US balance of payments surplus and international perception of dollar as undervalued
|
|
President Barack Obama
|
|
The gold standard regime
|
|
None of the above.
|
Sual: What does the term petrodollar refer to? (Çəki: 1)
|
linking of the US dollar to the price of oil
|
|
sale of Saudi oil for dollars only
|
|
Dollars washed with petroleum
|
|
Both a and b
|
|
None of the above.
|
Sual: Which of the following is true about exchange rates in the post-Bretton Woods period? (Çəki: 1)
|
Exchange rates around the world have become much more volatile and less predictable.
|
|
Exchange rates around the world have become more stable and more predictable.
|
|
Exchange rates have lost their significance.
|
|
Exchange rates have been linked to gold.
|
|
None of the above.
|
Sual: Which of the following is true about currency volatility? (Çəki: 1)
|
It eases the management of global companies
|
|
It complicates the management of global companies.
|
|
It has no relevance to the management of global companies.
|
|
All of the above.
|
|
None of the above.
|
Sual: Which of the following is NOT one of the four types of financial crises? (Çəki: 1)
|
sudden stop crisis
|
|
banking crisis
|
|
debt crisis
|
|
situation crisis
|
|
currency crisis
|
Sual: Which of the following is true about predicting financial crises? (Çəki: 1)
|
Quantitative methods (statistics) can be used to identify all financial crises.
|
|
Quantitative methods (statistics) can be used to identify currency and sudden stop crises.
|
|
Quantitative methods (statistics) can be used to identify debt and banking crises.
|
|
All of the above.
|
|
None of the above.
|
Sual: Which of the following is true about predicting financial crises? (Çəki: 1)
|
Typically, qualitative and judgmental (not statistical) analyses are used for identifying all types of financial crises.
|
|
Typically, qualitative and judgmental (not statistical) analyses are used for identifying sudden stop and currency crises.
|
|
Typically, qualitative and judgmental (not statistical) analyses are used for identifying debt and banking crises.
|
|
All of the above
|
|
None of the above
|
Sual: Which of the following is NOT one of the phenomena associated with financial crises? (Çəki: 1)
|
substantial changes in credit volume and asset prices
|
|
severe disruptions in financial intermediation and the supply of external financing to various actors in the economy
|
|
large scale balance sheet problems
|
|
large scale language and culture issues
|
|
large scale government support –liquidity support and recapitalization
|
Sual: Which of the following is one of the factors driving financial crises? (Çəki: 1)
|
sudden run on banks
|
|
comparative advantage
|
|
iPhones
|
|
nanotechnology
|
|
None of the above
|
Sual: Which of the following is one of the factors driving financial crises? (Çəki: 1)
|
contagion and spillovers among financial markets
|
|
the existence of financial markets
|
|
the existence of money.
|
|
absolute advantage
|
|
none of the above
|
Sual: Which of the following is a factor driving financial crises? (Çəki: 1)
|
Emergence of new accounting system
|
|
Emergence of asset busts
|
|
Emergency medical crisis
|
|
Competitive advantage
|
|
Any of the above
|
Sual: Which of the following is NOT one of the factors driving financial crises? (Çəki: 1)
|
credit crunches
|
|
limits to arbitrage during times of stress
|
|
emergence of asset busts
|
|
market correction
|
|
All of the above
|
Sual: Which of the following statements is true about financial crises? (Çəki: 1)
|
Initial, small-scale financial disruptions can spread and become large-scale national, region, or even global crises.
|
|
Initial small-scale financial disruptions turn into global crises in all cases.
|
|
Financial crises do not have scale.
|
|
Any of the above.
|
|
None of the above.
|
Sual: Many of the insecurities of the national financial systems is tied to fractional reserve banking system. What is fractional reserve banking? (Çəki: 1)
|
a practice where a bank holds reserves much less than the amount of its customers’ deposits
|
|
a practice where a bank holds reserves equal to the amount of its customers’ deposits.
|
|
Banking operating on fraction mathematics
|
|
Banking of the Federal Reserve
|
|
Any of the above.
|
Sual: Asset price bubble describes a situation where (Çəki: 1)
|
agents invest in/accumulate a certain asset expecting it to rise in price
|
|
agents intensively sell a certain asset expecting it to fall in price.
|
|
Calculation of asset prices result in a mathematical bubble.
|
|
All of the above
|
|
None of the above
|
Sual: Which of the following statements about asset busts is true? (Çəki: 1)
|
Asset busts follow asset bubbles.
|
|
Asset busts precede asset bubbles
|
|
Asset busts are not related to asset bubbles.
|
|
All of the above.
|
|
None of the above
|
Sual: Which of the following statements about asset busts is true? (Çəki: 1)
|
Asset busts may be triggered by small shocks.
|
|
A small change in the price of an asset may raise fears about its investment value and trigger its sale leading to a bust.
|
|
Asset busts are not related to asset bubbles.
|
|
Both a and b.
|
|
None of the above.
|
Sual: Credit boom refers to a situation in which (Çəki: 1)
|
Credit rapidly becomes widely available
|
|
credit availability decreases
|
|
a credit bubble bursts
|
|
All of the above
|
|
None of the above.
|
Sual: Which of the following is true about credit boom? (Çəki: 1)
|
Credit booms often precede financial crises and are one of the signs of upcoming crisis.
|
|
Credit booms follow financial crises and signal the end of the crisis.
|
|
Credit booms are not related to financial crises
|
|
Any of the above.
|
|
None of the above.
|
Sual: Which of the following statements about asset busts is true? (Çəki: 1)
|
A small change in asset prices due to changes in people’s fundamental values or sentiments, can lead to asset busts and trigger a financial crisis.
|
|
Only large-scale changes in asset prices can bring about asset busts.
|
|
Asset busts cannot be affected by changes in people’s values.
|
|
Any of the above.
|
|
None of the above.
|
Sual: What is the relationship between modern technology and currency transactions? (Çəki: 1)
|
Modern technology increases currency transaction costs.
|
|
Modern technology decreases currency transaction costs
|
|
Modern technology is not related to currency transactions.
|
|
Both a and c.
|
|
None of the above.
|
Sual: The Bretton Woods system created____. (Çəki: 1)
|
The World Bank and the IMF.
|
|
The World Trade Organization.
|
|
The World Exchange Organization.
|
|
The General Agreement on Trade and Tariffs (GATT).
|
|
All of the above.
|
Sual: Which of the following is not one of the instruments that governments use to promote trade? (Çəki: 1)
|
subsidies
|
|
export financing
|
|
trade sanctions
|
|
foreign trade zones
|
|
special government agencies.
|
Sual: What is a subsidy? (Çəki: 1)
|
Government assistance to domestic producers in need, in the form of cash payments, low-interest loans, product price supports, tax breaks, or by some other means.
|
|
Government guarantee of payments to any companies exporting to a foreign purchaser, and only if the foreign buyer defaults on payment.
|
|
A sectioned off geographic region in which goods and out of country merchandise are allowed to pass through into a nation, with lower customs duties imposed.
|
|
Tax for certain mineral, petroleum, and agricultural products
|
|
All of the above.
|
Sual: Which of the following is an example of financing? (Çəki: 1)
|
Government assistance to domestic producers in need, in the form of cash payments, low-interest loans, product price supports, tax breaks, or by some other means.
|
|
Government guarantee of payments to any companies exporting to a foreign purchaser, and only if the foreign buyer defaults on payment.
|
|
A sectioned off geographic region in which goods and out of country merchandise are allowed to pass through into a nation, with lower customs duties imposed.
|
|
Tax for certain mineral, petroleum, and agricultural products
|
|
All of the above.
|
Sual: Which of the following describes Free Trade Zones? (Çəki: 1)
|
Government assistance to domestic producers in need, in the form of cash payments, low-interest loans, product price supports, tax breaks, or by some other means.
|
|
Government guarantee of payments to any companies exporting to a foreign purchaser, and only if the foreign buyer defaults on payment.
|
|
A sectioned off geographic region in which goods and out of country merchandise are allowed to pass through into a nation, with lower customs duties imposed.
|
|
Tax for certain mineral, petroleum, and agricultural products
|
|
All of the above.
|
Sual: Which of the following is not one of the methods governments use to restrict trade? (Çəki: 1)
|
Tariffs
|
|
Quotas
|
|
Exchange controls
|
|
Import financing
|
|
Export taxes
|
Sual: Different national quality standards for imported goods is an example of: (Çəki: 1)
|
Tariffs
|
|
Quotas
|
|
Foreign Exchange controls
|
|
Import license
|
|
Administrative barriers to trade.
|
Sual: A tax on imports or exports is: (Çəki: 1)
|
Tariff
|
|
Quota
|
|
Foreign exchange control
|
|
Import license
|
|
Free Trade Zone
|
Sual: A limit on the quantity of a good that can be produced abroad and sold domestically is known as ____. (Çəki: 1)
|
Tariff
|
|
Quota
|
|
Foreign exchange control
|
|
Import license
|
|
FTZs
|
Sual: Government regulations on the purchase/sale of foreign currencies by residents is an example of: (Çəki: 1)
|
Tariff
|
|
Quota
|
|
Foreign exchange controls
|
|
Import license
|
|
FTZs
|
Sual: Government regulations on the purchase/sale of local currency by non-residents is an example of: (Çəki: 1)
|
Tariff
|
|
Quota
|
|
Foreign exchange control
|
|
Import license
|
|
FTZs
|
Sual: A document issued by a national government authorizing the importation of certain goods into its territory would be ______: (Çəki: 1)
|
Tariff
|
|
Quota
|
|
Foreign exchange control
|
|
Import license
|
|
Export duties
|
Sual: This trade control method was common in the past and a major source of revenue for several resource-rich countries: (Çəki: 1)
|
Tariff
|
|
Quota
|
|
Foreign exchange control
|
|
Import license
|
|
Export duties
|
Sual: Which of the following is a reason for governments to restrict trade? (Çəki: 1)
|
Protection against dumping
|
|
Protection against logistics
|
|
Protection against marketing
|
|
All of the above
|
|
None of the above.
|
Sual: Which of the following is a reason for governments to restrict trade? (Çəki: 1)
|
To protect new domestic industries (infant industries) against foreign competition in the domestic market
|
|
To protect infants of the country against foreign invasion.
|
|
To promote immigration
|
|
Any of the above
|
|
None of the above.
|
Sual: Which of the following is another reason for governments to restrict trade? (Çəki: 1)
|
The danger of the establishment of foreign-based monopoly
|
|
Tarrifs
|
|
Quotas
|
|
FTZs
|
|
All of the above
|
Sual: Governments can also restrict trade to: (Çəki: 1)
|
protect local culture against negative influences
|
|
protect local consumers from harmful goods
|
|
protect absolute advantage
|
|
both a and b
|
|
none of the above
|
Sual: The international organization devoted to the decrease and elimination of trade restrictions is: (Çəki: 1)
|
World Bank
|
|
The Economist
|
|
The IMF
|
|
The WTO
|
|
Forex
|
Sual: Trade penalties imposed by a country or group of countries on another country or group of countries are called: (Çəki: 1)
|
GATT
|
|
Import duties
|
|
Quotas
|
|
Trade sanctions
|
|
FTZs
|
Sual: Which of the following is an effect of the imposition of a tariff? (Çəki: 1)
|
It raises prices
|
|
It causes consumers to reduce their purchases of the tariffed good below efficient levels.
|
|
It raises revenues for the domestic government.
|
|
All of the above.
|
|
None of the above.
|
Sual: Which of the following is a free-trade agreement between the USA, Canada, and Mexico? (Çəki: 1)
Sual: Adam Smith is most associated with: (Çəki: 1)
|
the theory of absolute advantage
|
|
the theory of comparative advantage
|
|
the theory of competitive advantage
|
|
All of the above
|
|
None of the above.
|
Sual: David Ricardo is most associated with: (Çəki: 1)
|
the theory of absolute advantage
|
|
the theory of comparative advantage
|
|
the theory of competitive advantage
|
|
All of the above
|
|
None of the above.
|
Sual: Michael Porter of Harvard University is known for: (Çəki: 1)
|
the theory of absolute advantage
|
|
the theory of comparative advantage
|
|
the theory of competitive advantage
|
|
All of the above
|
|
None of the above.
|
Sual: The principle of comparative advantage states that: (Çəki: 1)
|
each country will benefit if it specializes in the production and export of those goods that it can produce at relatively low cost.
|
|
each country will benefit if it produces everything by itself.
|
|
each country will benefit if it produces only one good and imports everything else.
|
|
Trading is not important
|
|
None of the above.
|
Sual: What is the goal of theories –theories of trade, FDI, global commodity chains? (Çəki: 1)
|
to provide an interesting, but not useful framework of analysis
|
|
to help scientists understand how the world works.
|
|
To demonstrate that the developer of the theory is capable of logical thinking
|
|
To provoke stimulating debate in scientific journals.
|
|
All of the above.
|
Sual: Which of the following is NOT correct? (Çəki: 1)
|
Trade allows for specialization
|
|
Trade is good for nations.
|
|
Trade is based on absolute advantage
|
|
Trade allows individuals to consume more than they could if they produced everything themselves.
|
|
Trade can be fair or unfair.
|
Sual: According to Ricardo’s theory, trade is based on: (Çəki: 1)
|
absolute advantage
|
|
comparative advantage
|
|
production costs
|
|
relative dollar prices
|
|
market imperfections.
|
Sual: Kenya produces 150 tons of soybeans and 50 robots. Laos produces 100 tons of soybeans and 25 robots. As a result, (Çəki: 1)
|
There are no possible gains from trade.
|
|
There are gains from trade, but only for Laos.
|
|
There are gains from trade, but only for Kenya.
|
|
There are gains from trade, both for Laos and Kenya.
|
|
None of the above
|
Sual: One issue that global HR management deals with but local HR management does not is: (Çəki: 1)
|
McDonaldization
|
|
Loss of culture
|
|
Immigration
|
|
Fair Wage system
|
|
Global HR management is not different from local HR management.
|
Sual: The existence of money is beneficial to international business because: (Çəki: 1)
|
Each country has its own currency
|
|
Each country has its own exchange rate.
|
|
Every country’s money is acceptable in exchange for goods and services.
|
|
Money avoids costly cross-border bartering of goods and services.
|
|
None of the above.
|
Sual: Between 2009 and mid 2011 inflation was globally on the rise. By June 2011 it was at an annual rate of 6.4% in China and 3.6% in the US. Given China’s desire to maintain a stable exchange rate against the US dollar, this means that: (Çəki: 1)
|
Chinese firms will find it easier to compete with their US rivals in world markets.
|
|
US firms importing from China will be more competitive in the US market.
|
|
US exporters to China will find it easier to sell there.
|
|
US firms producing and selling in China will find it less expensive to source supplies of goods and service locally.
|
|
None of the above.
|
Sual: Which of the following characterize the early stages of a financial crisis? (Çəki: 1)
|
Excessive euphoria about the future price of certain assets
|
|
Excessive pessimism about future asset prices.
|
|
Falling house prices
|
|
Stagnating share prices.
|
|
None of the above.
|
Sual: Which of the following are characteristic of the period when financial bubbles burst? (Çəki: 1)
|
Excessive optimism about future asset prices
|
|
Excessive pessimism about future asset prices.
|
|
Rising house prices.
|
|
Rising share prices.
|
|
None of the above.
|
Sual: The financial crisis of 2007/2008 started in the USA. It spread to other countries because: (Çəki: 1)
|
Foreign banks had bought securities based on US sub-prime mortgages.
|
|
Bank of China had lent massively to sub-prime borrowers in the USA.
|
|
European banks were taken into public ownership.
|
|
Bank in developing economies had invested heavily in US sub-prime mortgages.
|
|
None of the above.
|
Sual: How do financial institutions facilitate trade and investment? (Çəki: 1)
|
They are reluctant to lend for projects involving foreign trade and investment
|
|
They bundle up assets with varying degrees of risk and sell them on.
|
|
They offer payment systems making it easier to export and import goods and services.
|
|
They charge low rates of interest on their loans.
|
|
None of the above.
|
Sual: What is the process all of our ‘stuff’ moves through? (Çəki: 1)
|
Production, Warehouses, Stores, Homes
|
|
Production, Wholesalers, Retailers, Homes
|
|
Extraction, Production, Distribution, Consumption, Disposal
|
|
Production, Distribution, Retailers, Homes
|
|
None of the above
|
Sual: How many of the top 100 economies in the world are corporations, according to Annie Leonard in the “Story of Stuff”? (Çəki: 1)
Sual: The USA has 5% of the world’s population. What percentage of the world’s resources does it consume? (Çəki: 1)
Sual: Dioxin is one of the most poisonous chemicals produced from manufacturing. What is its source? (Çəki: 1)
|
incinerators
|
|
landfills
|
|
the soil
|
|
the cars
|
|
none of the above
|
Sual: What percent of total materials that flow through the economic system in North America are still in use 6 months after they are sold? (Çəki: 1)
Sual: What is the point of most advertisements according to the Story of Stuff? (Çəki: 1)
|
To help inform people about new products
|
|
To help people make informed decisions about what they need
|
|
To help people see what is popular
|
|
To make people unsatisfied with what they have
|
|
None of the above
|
Sual: For every garbage can of waste we throw away, how many garbage cans of waste was made to create what we are throwing away? (Çəki: 1)
Sual: Externalized cost means: (Çəki: 1)
|
Real costs of the production not reflected in the price
|
|
Real costs of production reflected in the price.
|
|
real costs of producing things paid by the producing company
|
|
culture
|
|
None of the above
|
Sual: Using water, dumping waste, paying sick workers’ medical care, contributing to environmental pollution and climate change are examples of: (Çəki: 1)
|
Externalized production costs
|
|
Balance-sheet production costs
|
|
Company costs
|
|
Comparative advantage
|
|
none of the above
|
Sual: Which of the following are examples of externalizing the costs? (Çəki: 1)
|
A forest products corporation obtains rights to clear-cut Forest Service land at give away prices and leaves behind a devastated habitat. The company reaps the immediate profit and the society bears the long-term cost.
|
|
Logging companies are contracted by the Mitsubishi corporation to cut the forests of Penan tribes of Sarawak in Malaysia. The corporation bears no cost for devastating native culture and ways of life.
|
|
Dow Chemical externalizes production costs when it dumps wastes without adequate treatment, thus passing the resulting costs of air, water and soil pollution onto the community in the form of additional health costs, discomfort, and the need to buy filtered water.
|
|
Supermarket externalizes costs when it buys from Chinese contractors who pay their workers too little to maintain their basic physical and mental health or fail to maintain adequate safety standards and then dismiss without compensation those workers who are injured.
|
|
All of the above.
|
Sual: Some British and US firms seem to assume that, since English is the international language of business, their staff can safely ignore foreign languages. This approach could be problematic where: (Çəki: 1)
|
Prospective foreign customers can not understand English technical or legal terms.
|
|
Prospective foreign suppliers are fluent in written English but do not speak it very well.
|
|
English is an official language e.g. in India.
|
|
All of the above
|
|
None of the above.
|
Sual: Hofstede argues that: (Çəki: 1)
|
International firms can easily transfer their ways of working from one country to another.
|
|
Business does not need to take into account the norms and values of the countries where they operate.
|
|
Each country has a single culture.
|
|
National culture is more influential than organizational culture.
|
|
None of the above.
|
Sual: Different cultures sometimes vary in their attitudes to time. In cultures where people follow event time people at work are likely to spend more time on social activities. An example is Azerbaijan. Which of the following apply more to the cultures where people follow event time: (Çəki: 1)
|
It is important to turn up for meetings on time.
|
|
Much time is devoted to having a chat over a cup of tea or coffee during the working day.
|
|
People get irritated if meetings do not start on time.
|
|
Where an event is running over time, people do not wait for it to finish before moving on to the next event.
|
|
None of the above.
|
Sual: Researchers have found that attitudes to contracts vary from one culture to another. Which of the following is correct? (Çəki: 1)
|
Western cultures see contracts, once signed, as changeable.
|
|
Eastern cultures see contracts, once signed, as unchangeable.
|
|
Western cultures see contracts, once signed, as set in stone.
|
|
Both western and eastern cultures see contracts, once signed, as set in stone.
|
|
none of the above
|
Sual: Hofstede found that some countries have a long-term orientation while others focus on the short term. His results mean that: (Çəki: 1)
|
US business would be happy to invest in nuclear power and space exploration without any government help.
|
|
British businesses prefer investments with a quick return.
|
|
Firms in Brazil shy away from ten year investment projects.
|
|
Indian business is impatient for a return on its investments.
|
|
None of the above.
|
Sual: Which of the following best describes “brain drain”? (Çəki: 1)
|
A country’s most highly educated workers emigrate to rich countries
|
|
A country has such a poor education system that knowledge is lost over time.
|
|
The population of a country grows so fast that the educational system cannot keep up
|
|
A country steals patented technology from another country
|
|
None of the above.
|
Sual: Which of the following is an example of “brain drain”? (Çəki: 1)
|
illegal Turkish workers stealing jobs from more qualified European citizens by agreeing to work for lower wages
|
|
the taxing intellectual effort required to pass the test for naturalization to become a U.S. citizen
|
|
the potential population explosion caused by immigration
|
|
the immigration to the United States of skilled workers, professionals, and technicians who are desperately needed by their home countries.
|
|
None of the above.
|
Sual: If your Azerbaijan-based firm opens and operates a new watch factory in Kazakhstan, your firm is engaging in: (Çəki: 1)
|
foreign portfolio investment
|
|
foreign financial investment
|
|
foreign direct investment
|
|
indirect foreign investment
|
|
none of the above
|
Sual: Which of the following is an example of reverse brain drain? (Çəki: 1)
|
Increasing quality of a country’s education system
|
|
Matching of the education system improvements with the population growth
|
|
A country paying back for stealing patented technology from another country
|
|
Because of the economic growth in developing countries, for example Azerbaijan or Kazakhstan, many highly trained professionals are lured back to their home country.
|
|
None of the above.
|
Sual: Which of the following does not illustrate a cultural aspect of technology? (Çəki: 1)
|
Technology also includes skill in marketing, finance and management
|
|
There may be differences between an international firm’s technology and the local culture.
|
|
New technology or process usually requires a major change where the technologies are newly introduced.
|
|
Technology is not related to culture. The two issues have no connections.
|
|
None of the above.
|
Sual: Which of the following is Not true about technological dualism? (Çəki: 1)
|
Technological dualism is the side-by-side presence of advanced and primitive technologies.
|
|
Technological dualism usually results from government action to attract new industry.
|
|
Technological dualism represents countries valuing long-term focus.
|
|
Technological dualism is prominent in many developing countries.
|
|
All of the above.
|
Sual: When technology sold to a country is used to produce goods that compete with the initial seller, this is called: (Çəki: 1)
|
the boomerang effect
|
|
the brain drain effect
|
|
the patent problem
|
|
technological dualism
|
|
technological failure
|
Sual: Which of the following is not an aspect of national cultures in which a global business operates? (Çəki: 1)
|
Language
|
|
Religion
|
|
Education levels
|
|
Architecture
|
|
All of the above are aspects of national culture.
|
Sual: Foreign direct investment occurs when a Chinese corporation (Çəki: 1)
|
purchases stock issued in China
|
|
opens a new French factory
|
|
purchases 1000 shares of stock issued by an American company
|
|
opens a new Chinese factory
|
|
All of the above.
|
Sual: Which of the following statements is false about cultural attitudes towards change? (Çəki: 1)
|
Americans are used to rapid change.
|
|
Europeans favor traditions.
|
|
International firms are agents of change for many different aspects of culture.
|
|
Cultural attitudes towards change are the same everywhere in our globalized world.
|
|
New ideas are more readily acceptable in many cultures the more closely they are tied to traditional ideas.
|
Sual: Which of the following about statements is /are true? (Çəki: 1)
|
English currently is a common language of business. A Swede and a Japanese may find themselves communicating in English.
|
|
By 1996 more than half of European adults spoke some English.
|
|
Even with the spread of English business people should acquire the local language of the culture.
|
|
All of the above.
|
|
None of the above.
|
Sual: What language is currently serving the role of common language? (Çəki: 1)
|
Japanese
|
|
French
|
|
Spanish
|
|
English
|
|
Chinese
|
Sual: Which of the following is true about culture? (Çəki: 1)
|
Nonverbal communication is important. Meaning associated with a gesture in one country has a different, and perhaps contradictory, meaning in another country.
|
|
Where a person’s office is located and its size says different things in different cultures about the business person.
|
|
A nod and a “yes” in Japanese may mean that the person hears you, not that he agrees with you.
|
|
The physical distance between us the people we communicate with differs from culture to another.
|
|
All of the above.
|
Sual: Age structure of a country’s population is considered a cultural factor important for business because: (Çəki: 1)
|
It could lead to a falling tax burden.
|
|
It will increase the supply of labor.
|
|
It could change the pattern of demand for goods and services.
|
|
It could increase economic growth.
|
|
None of the above.
|
Sual: According to Richard Hise and James Kolari in the “Foreign Fluctuations” article companies should involve their marketing department in dealing with foreign currency fluctuations. Marketing department can contribute to a company’s forex management with which of the below? (Çəki: 1)
|
Forecasting techniques
|
|
Marketing intelligence systems (MIS)
|
|
Determining tolerance for risk
|
|
Using operating methods to cope with exchange rate uncertainty.
|
|
All of the above.
|
Sual: The risks that arise from volatile changes in exchange rates are known as (Çəki: 1)
|
Interest rate risks
|
|
Basis risks
|
|
Operational risks
|
|
Foreign exchange risks
|
|
Marketing risks
|
Sual: The foreign exchange market serves two main functions. These are (Çəki: 1)
|
Collect duties on imported products and convert the currency of one country into the currency of another
|
|
Insure companies against foreign exchange risk and set interest rates charged to foreign investors
|
|
Collect duties on imported products and set interest rates charged to foreign investors
|
|
Convert the currency of one country into the currency of another and provide some insurance against foreign exchange risk
|
|
None of the above
|
Sual: A pair of shoes costs £30 in Britain. The identical pair costs $45 in the U.S. The exchange rate is £1=$1. 80. In terms of cost of the shoes, (Çəki: 1)
|
The U.S. offers a better deal
|
|
The deal is same in both the countries
|
|
Britain offers a better deal
|
|
The US deal is comparatively worse
|
|
The information given is insufficient for calculation.
|
Sual: The _____ helps us to compare the relative prices of goods and services in different countries. (Çəki: 1)
|
Interest rate
|
|
Customs rate
|
|
Exchange rate
|
|
Tariff rate
|
|
Advantage rate
|
Sual: An exchange rate of €1=$1.30 specifies that (Çəki: 1)
|
One dollar is worth 1.30 euros
|
|
One could sell 1.30 euros for one dollar
|
|
One euro buys 1.30 dollars
|
|
There are 1.30 euros for every dollar
|
|
130 euros equal 100 dollars.
|
Sual: International businesses use foreign exchange markets for all of the following reasons, except (Çəki: 1)
|
To receive payments from foreign investments that may be in foreign currencies
|
|
To pay a foreign company for its products or services in its country's currency
|
|
To invest for short terms in money markets when they have spare cash
|
|
To cover themselves from all risks involved in currency speculation
|
|
None of the above is applicable.
|
Sual: The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates is best known as (Çəki: 1)
|
Currency arbitrage
|
|
Currency speculation
|
|
Currency supposition
|
|
Short selling
|
|
Dumping
|
Sual: If lots of people want euros and euros are in short supply and a few people want Japanese yen and yen are in plentiful supply, the euro is likely to _____ against the yen. (Çəki: 1)
|
Depreciate
|
|
Appreciate
|
|
Devalue
|
|
Stabilize
|
|
Sell
|
Sual: The most important foreign exchange trading centers include all of the following, except (Çəki: 1)
|
London
|
|
New York City
|
|
Tokyo
|
|
Seoul
|
|
None of the above are important forex trading centers.
|
Sual: Although a foreign exchange transaction can involve any two currencies, some 89% of transactions in 2004 involved the (Çəki: 1)
|
Japanese yen
|
|
British pound
|
|
U.S. dollar
|
|
French franc
|
|
Chinese yuan
|
Sual: If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen? (Çəki: 1)
|
The dollar will appreciate against the yen
|
|
The dollar will depreciate against the yen
|
|
The exchange rates will remain the same
|
|
The yen will appreciate against the dollar
|
|
None of the above is applicable.
|
Sual: The _____ argues that forward exchange rates do the best possible job of forecasting future spot rates and therefore investing in forecasting services would be a waste of money (Çəki: 1)
|
Inefficient market school
|
|
Efficient market school
|
|
Fisher Effect
|
|
International Fisher Effect
|
|
All of the above.
|
Sual: _____ is one in which prices reflect all available public information. (Çəki: 1)
|
An efficient market
|
|
An inefficient market
|
|
A market economy
|
|
A capitalist economy
|
|
A socialist economy
|
Sual: _____ draws on economic theory to construct sophisticated econometric models for predicting exchange rate movements. (Çəki: 1)
|
Efficient market theory
|
|
Inefficient market theory
|
|
Fundamental analysis
|
|
Technical analysis
|
|
All of the above.
|
Sual: _____ uses price and volume data to determine past trends, which are expected to continue into the future. (Çəki: 1)
|
Technical analysis
|
|
Fundamental analysis
|
|
The Fisher Effect
|
|
The International Fisher Effect
|
|
None of the above.
|
Sual: FDI occurs when a (Çəki: 1)
|
Domestic firm imports products and services from another country
|
|
Firm ships its product from one country to another
|
|
Firm invests in the stock of another company
|
|
Firm invests directly in facilities to produce and/or market a product in a foreign country.
|
|
All of the above.
|
Sual: A Greenfield investment: (Çəki: 1)
|
is a form of FDI that involves the establishment of a new operation in a foreign country.
|
|
Involves a 7 percent stock in an acquired foreign business entity.
|
|
Involves a merger with a foreign business.
|
|
Occurs when a firm acquires another company in a foreign country.
|
|
None of the above.
|
Sual: The amount of FDI undertaken over a given time period is: (Çəki: 1)
|
The flow of FDI
|
|
The stock of FDI
|
|
The FDI outflow
|
|
The FDI inflow
|
|
None of the above
|
Sual: The stock of FDI is: (Çəki: 1)
|
The amount of FDI undertaken over a given period of time
|
|
The total accumulated value of foreign owned assets at a given time
|
|
The flow of FDI out of a country
|
|
The flow of FDI into a country.
|
|
None of the above.
|
Sual: FDI has been rising for all of the following reasons, except: (Çəki: 1)
|
The globalization of the world economy
|
|
The general increase in trade barriers over the past 30 years.
|
|
Firms are trying to circumvent trade barriers
|
|
There is a shift toward democratic political institutions and free market economies
|
|
All of the above.
|
Sual: Historically, most FDI has been directed at the ___ nations of the world as firms based in advanced countries invested in _______. (Çəki: 1)
|
Underdeveloped, underdeveloped countries
|
|
Developed, underdeveloped countries
|
|
Developed, each other’s markets
|
|
Underdeveloped, each other’s markets
|
|
Asian, Asian markets.
|
Sual: The US has been an attractive target for FDI because of all of the following reasons, except (Çəki: 1)
|
Its small and wealthy domestic markets
|
|
Its dynamic and stable economy
|
|
Its favorable political environment
|
|
Its openness to FDI
|
|
All of the above.
|
Sual: Identify the incorrect statement regarding the direction of FDI. (Çəki: 1)
|
Historically, most FDI has been directed at the developing nations of the world
|
|
During the 1980s and 1990s, the United States was often the favorite target for FDI inflows
|
|
The developed nations of the EU have received significant FDI inflows
|
|
Recent inflows into developing nations have been targeted at the emergin economies of South, East, and Southeast Asia.
|
|
All of the above.
|
Sual: Africa is not a popular destination for FDI because of all of the following reasons, except (Çəki: 1)
|
political unrest in the region
|
|
Armed conflict in the region
|
|
Liberalization of FDI regulations
|
|
Frequent policy changes in the region.
|
|
All of the above are applicable reasons.
|
Sual: The largest source country for FDI since World War II has been (Çəki: 1)
|
Japan
|
|
China
|
|
The United States
|
|
The United Kingdom
|
|
Korea
|
Sual: Most cross-border investment is (Çəki: 1)
|
In the form of Greenfield investment
|
|
Made via mergers and acquisitions
|
|
Between American and Japanese companies
|
|
Involved in building new facilities
|
|
All of the above
|
Sual: Which of the following is NOT a reason why firms prefer to acquire existing assets rather than undertake Greenfield investment? (Çəki: 1)
|
Foreign firms are acquired because those firms have valuable strategic assets
|
|
Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital, technology or management skills
|
|
Even though Greenfield investments are comparatively less risky for a firm, acquisitions always yield higher profits.
|
|
Mergers and acquisitions are quicker to executive than Greenfield investment
|
|
All of the above.
|
Sual: The sector composition of FDI shows that by 2004 approximately _______ of FDI stock was in service industries. (Çəki: 1)
|
One fourth
|
|
One third
|
|
Two third
|
|
Half
|
|
75%
|
Sual: When strategic assets such as brand loyalty, customer relationships or distribution systems are important, _____investments are more appropriate. (Çəki: 1)
|
Merger and acquisition
|
|
Geenfield
|
|
Portfolio
|
|
New construction
|
|
Indirect
|
Sual: ________ involves granting a foreign entity the right to produce and sell the firm’s product in return for a royalty fee on every unit sold. (Çəki: 1)
|
Horizontal FDI
|
|
Licensing
|
|
Vertical FDI
|
|
Greenfield investment
|
|
Portfolio investment
|
Sual: In a licensing arrangement, the ____ bears the risk and cost of opening a foreign market. (Çəki: 1)
|
Licensee
|
|
Licensor
|
|
Acquiring firm
|
|
Greenfield investor
|
|
Portfolio investor.
|
Sual: Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets. (Çəki: 1)
|
Internationalization theory
|
|
Internalization theory
|
|
Perfect markets theory
|
|
Small markets theory
|
|
Absolute advantage theory
|
Sual: ___ is also known as market imperfections theory. (Çəki: 1)
|
Internationalization theory
|
|
Internalization theory
|
|
Perfect markets theory
|
|
Small markets theory
|
|
Information theory
|
Sual: According to the internalization theory, all of the following are drawbacks of licensing as a strategy for exploiting foreign market opportunities, except (Çəki: 1)
|
Licensing does not grant control over manufacturing, marketing and to a licensee in return for a royalty fee
|
|
Licensing may result in a firm’s giving away its know-how to a potential foreign competitor
|
|
Licensing does not give the firm the tight control over manufacturing, marketing and strategy that may be required to profitably exploit its advantage
|
|
A firm’s capabilities such as the management, marketing and manufacturing are often not amenable to licensing.
|
|
B and C.
|
Sual: If four firms control 80% of a domestic market, then _____ exists. (Çəki: 1)
|
an oligopoly
|
|
a monopoly
|
|
an oligarchy
|
|
Vertical integration
|
|
Horizontal integration
|
Sual: The product life cycle suggests that (Çəki: 1)
|
Often the same firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in foreign markets
|
|
When a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments
|
|
Combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI
|
|
Impediments to the sale of know-how increase the profitability of FDI relative to licensing
|
|
FDI theorizing is irrelevant.
|
Sual: The ___ suggests that a firm will establish production facilities where foreign assets or resource endowments that are important to the firm are located. (Çəki: 1)
|
Product life cycle
|
|
Strategic behavior theory
|
|
Multipoint competition theory
|
|
Eclectic paradigm
|
|
Portfolio theory
|
Sual: FDI undertaken to serve the home market is known as: (Çəki: 1)
|
Greenfield investment
|
|
FDI substitution
|
|
Offshore production
|
|
Home market FDI
|
|
All of the above
|
Sual: When jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE, the MNE has a ________ effect on employment. (Çəki: 1)
|
Direct
|
|
Indirect
|
|
Inward
|
|
Outward
|
|
Pressure
|
Sual: A ____ keeps track of a country’s payments to and its receipts from other countries. (Çəki: 1)
|
Federal payments ledger
|
|
Current accounting system
|
|
Checks and balances account
|
|
Balance of payments account
|
|
All of the above.
|
Sual: The _______ tracks the export and import of goods and services. A current account deficit or trade deficit as it is often called, arises when a country is importing more goods and services than it is exporting. (Çəki: 1)
|
Current account
|
|
Debit account
|
|
Surplus account
|
|
Capital account
|
|
Share account
|
Sual: Double taxation is: (Çəki: 1)
|
Charging double taxes in the home country
|
|
Charging double taxes in the host country
|
|
Taxation of income in both home and host country
|
|
Paying income taxes at twice the normal rate
|
|
Irrelevant
|
Sual: ____ are controls over the behavior of the MNE’s local subsidiary. (Çəki: 1)
|
Performance requirements
|
|
Ownership restraints
|
|
Double taxation laws
|
|
Greenfield restrictions
|
|
Tariffs.
|
Sual: ________ is essentially the service industry version of licensing, although it normally involves much longer term commitments. (Çəki: 1)
|
Franchising
|
|
Subsidizing
|
|
Greenfield investment
|
|
Patenting
|
|
Fragmenting
|
| 
