• Question 1

2 out of 2 points

A (_________) notifies the investor of the price movement of shares he or she holds in the security exchange.
Selected Answer: Trade alert
  • Question 2

2 out of 2 points

In the United States, the (____________) is responsible for regulating the growth of the economy.
Selected Answer: Federal Reserve Bank
  • Question 3

2 out of 2 points

Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are European.
Selected Answer: True
  • Question 4

2 out of 2 points

The economies of the world have become highly interdependent because of improvements in communication and transportation technologies and the lowering of barriers to trade.
Selected Answer: True
  • Question 5

2 out of 2 points

(__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.
Selected Answer: Inflation
  • Question 6

2 out of 2 points

If a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount.
Selected Answer: False
  • Question 7

2 out of 2 points

Speculators buy and sell commodities with the intention of making profits on price differentials across global markets.
Selected Answer: True
  • Question 8

2 out of 2 points

(_________) are used as an alternative to borrowing and lending in the Eurodollar and other offshore markets.
Selected Answer: FX swaps
  • Question 9

2 out of 2 points

(______) rates indicate the exchange rate of one currency in units of another currency immediately.
Selected Answer: Spot
  • Question 10

2 out of 2 points

In the United States, the Federal Reserve Bank is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of currency exchange.
Selected Answer: False
  • Question 11

2 out of 2 points

The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.
Selected Answer: Securities Exchange Commission
  • Question 12

2 out of 2 points

The role of the World Bank is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries.
Selected Answer: False
  • Question 13

2 out of 2 points

Global Financial Markets include both(__________) and (________) market places that make the cross-border exchange of goods and services between buyers and sellers possible.
Selected Answer: physical and virtual
  • Question 14

2 out of 2 points

While hedging may protect against (_________), it may eliminate a potential for unexpected (______).
Selected Answer: loss; gain
  • Question 15

2 out of 2 points

The USD remains the world’s leading currency.
Selected Answer: True
  • Question 16

2 out of 2 points

A bond is a certificate with a certain monetary value.
Selected Answer: True
  • Question 17

2 out of 2 points

Most currencies are quoted in relation to the British Sterling.
Selected Answer: False
  • Question 18

2 out of 2 points

The (________) of money in a nation can affect the price of goods and services and employment.
Selected Answer: Quantity
  • Question 19

2 out of 2 points

Signatory nations a part of CACM have not been able to achieve their wider aims of stronger economic and political unification because of a failure to settle (________).
Selected Answer: Trade disputes
  • Question 20

2 out of 2 points

Preferential Trade Areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each other.
Selected Answer: False
  • Question 21

2 out of 2 points

Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.
Selected Answer: China and India
  • Question 22

2 out of 2 points

(________) has been stripped of its member rights to Mercosur and must renegotiate its membership.
Selected Answer: Venezuela
  • Question 23

2 out of 2 points

Easier movement of labor between members is not an element addressed in the process of integration.
Selected Answer: False
  • Question 24

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of Great Britain and France.
Selected Answer: False
  • Question 25

2 out of 2 points

Opponents of (___________) have argued that the related agreements are dangerous because such agreements advance and establish procedures that protect participating nations from the benefits of free trade.
Selected Answer: Regional Economic Integration
  • Question 26

2 out of 2 points

At this time, the majority of nations on the coastline of the Pacific Ocean are organization members of SAARC.
Selected Answer: False
  • Question 27

2 out of 2 points

The decisions made by OPEC do not directly or indirectly affect the majority of consumer goods being produced, sold, or used.
Selected Answer: False
  • Question 28

2 out of 2 points

The (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.
Selected Answer: European Court of Justice
  • Question 29

2 out of 2 points

In a (_______) union, members have the same rights as in a free trade area, with the exception that they will now all have the same trade policy towards nonmembers.
Selected Answer: Customs
  • Question 30

2 out of 2 points

The Schengen Agreement abolished passport and border controls within the internal-national boundaries of the EU, with the aim to eliminate barriers to trade, investment, and the movement of labor.
Selected Answer: True
  • Question 31

2 out of 2 points

(_______) agreements are designed to reduce and ultimately remove tariff and non-tariff barriers to the free movement of goods, services, and factors of production between each other.
Selected Answer: Regional integration
  • Question 32

2 out of 2 points

The EU aims to enhance political, economic, and social cooperation through a process known as (___________).
Selected Answer: European integration
  • Question 33

2 out of 2 points

Non-tariff barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.
Selected Answer: False
  • Question 34

0 out of 2 points

Oil prices are set by OPEC.
Selected Answer: True
  • Question 35

2 out of 2 points

The SACU goals are to maintain the free interchange of goods between signatory nations and provide for a common external tariff and a common excise tariff.
Selected Answer: True
  • Question 36

2 out of 2 points

Mercosur ranks as one of the four largest trading blocs and one of the largest economies in the world.
Selected Answer: True
  • Question 37

2 out of 2 points

South America is one of the largest trading blocs in the world.
Selected Answer: False
  • Question 38

2 out of 2 points

Possibly the greatest proactive motivation for global expansion is the prospect of (__________).
Selected Answer: Increased profits
  • Question 39

2 out of 2 points

Joint ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity.
Selected Answer: True
  • Question 40

2 out of 2 points

Exporting also has its disadvantages, such as the high cost of transportation and the potential of (_________) being placed on incoming goods.
Selected Answer: tariffs
  • Question 41

2 out of 2 points

In formulating a (____________) entry plan, firms should research, assess, and analyze the external environments that exist in the foreign markets under consideration.
Selected Answer: Global strategic
  • Question 42

2 out of 2 points

(_______) markets support entry modes that have low break-even sales volumes, like indirect or agent exporting, licensing, and some contractual arrangements.
Selected Answer: Small
  • Question 43

2 out of 2 points

A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.
Selected Answer: Strategic alliance
  • Question 44

2 out of 2 points

Intermediaries can facilitate the transfer of goods and services from a company to the consumer in a new market.
Selected Answer: True
  • Question 45

2 out of 2 points

The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.
Selected Answer: Competitor knowledge process
  • Question 46

2 out of 2 points

Reactive reasons for motivation are based on the firm’s internal situation and are firm initiated.
Selected Answer: False
  • Question 47

2 out of 2 points

Establishment of a wholly owned subsidiary in a foreign country is a high-risk challenge for even the largest of multinational corporations.
Selected Answer: True
  • Question 48

2 out of 2 points

Environmental turbulence has two dimensions: technological turbulence and (____________).
Selected Answer: Market dynamism
  • Question 49

2 out of 2 points

(__________) includes the attractiveness of the geography of region, the socioeconomics of the population, proximity to required resources, labor costs, costs of living, and quality of life variables.
Selected Answer: Geography and socio-economic attributes
  • Question 50

2 out of 2 points

Two types of entry modes are available into a market:  (______) intensity or (______) intensity.
Selected Answer: Low or high
  • Question 51

2 out of 2 points

Low production cost in a country encourages local production.
Selected Answer: True
  • Question 52

2 out of 2 points

Intermediaries are often considered “coaches” or outside consultants brought in to help steer the firm in the right exporting direction.
Selected Answer: False
  • Question 53

2 out of 2 points

The (___________) is relatively free to establish additional subsidiary and contracting  relationships  with  other  partners  in  the host country.
Selected Answer: Wholly owned subsidiaries
  • Question 54

2 out of 2 points

To avoid obsolescence and promote innovation, a firm must be aware of (_________) changes that might influence the industry.
Selected Answer: Technological
  • Question 55

2 out of 2 points

Small businesses cannot compete in the global economy.
Selected Answer: False
  • Question 56

2 out of 2 points

Firms are better off selecting non-equity, (______)-investment entry modes in countries that have high environmental uncertainty.
Selected Answer: Low
  • Question 57

2 out of 2 points

Two basic manufacturing layout designs are typically used: (_________) or (_________).
Selected Answer: Process; product
  • Question 58

2 out of 2 points

In the (__________) step in the operations level decisions, the company draw from historical data, competition analysis and market research, cost, and time restraints to determine if the suggested plans will be profitable.
Selected Answer: demand forecasting
  • Question 59

2 out of 2 points

A process layout groups machines according to their roles in the production process.
Selected Answer: False
  • Question 60

2 out of 2 points

The overall success of the business is dependent upon the efficiency and effectiveness of every function within the (_______) process.
Selected Answer: Production
  • Question 61

2 out of 2 points

(____) is a codification or assurance of quality – an internationally recognized certification system or process.
Selected Answer: ISO
  • Question 62

2 out of 2 points

Becoming ISO certified requires the inspection of production processes, maintaining equipment, training workers, testing products, and dealing with customer complaints.
Selected Answer: True
  • Question 63

2 out of 2 points

In a (_____________), the most common centralized organizational structure, decision making is a top-down process.
Selected Answer: Bureaucratic hierarchy
  • Question 64

2 out of 2 points

In product-oriented firms, capacity is measured in terms of the total number of customers that can be served in a given amount of time.
Selected Answer: False
  • Question 65

2 out of 2 points

Factors that play into the make or buy decision include the following items except for: (______), (______), and (_________) of a product or component.
Selected Answer: Competition
  • Question 66

2 out of 2 points

(_________) refers to mechanized production, where human attention is needed only when a problem occurs.
Selected Answer: Automation
  • Question 67

2 out of 2 points

The intention behind (_________) management systems is to concentrate on eradicating waste and reducing warehouse inventories.
Selected Answer: Just in time
  • Question 68

2 out of 2 points

Cost savings only result from looking for the cheapest method.
Selected Answer: False
  • Question 69

2 out of 2 points

Strategic planning level decisions are the highest level of logistics decisions.
Selected Answer: True
  • Question 70

2 out of 2 points

The (__________) layout gives customers direct access to merchandise throughout the store.
Selected Answer: self-service
  • Question 71

2 out of 2 points

In a (__________) agreement, each party provides some part of the production process, and the profits are shared between the two organizations.
Selected Answer: Joint venture
  • Question 72

2 out of 2 points

The free-flow pattern provides customers ease of movement and is visually appealing.
Selected Answer: True
  • Question 73

2 out of 2 points

The ABC Classification System is used to categorize inventory items and is also known as (_____________).
Selected Answer: stock keeping units (SKU’s)
  • Question 74

2 out of 2 points

The selected type of transportation has no impact on the quality of the products.
Selected Answer: False
  • Question 75

2 out of 2 points

Kazan is a people-focused management system that aims at continual increase in customer satisfaction at continually lower real cost.
Selected Answer: False

 

 

  • Question 1

2 out of 2 points

OTC participants trade on a physical trading floor.
Selected Answer: False
  • Question 2

2 out of 2 points

(___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.
Selected Answer: Revaluation
  • Question 3

0 out of 2 points

Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another.
Selected Answer: False
  • Question 4

2 out of 2 points

Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are European.
Selected Answer: True
  • Question 5

2 out of 2 points

Speculation generally means buying a commodity when its price is low and then reselling it after prices rise in order to make a profit.
Selected Answer: False
  • Question 6

0 out of 2 points

A large percentage of all FX market transactions are spot transactions.
Selected Answer: False
  • Question 7

2 out of 2 points

The end result of the global competition is higher (_______) and lower (_________) for consumers.
Selected Answer: quality products; prices
  • Question 8

2 out of 2 points

A simpler way to calculate purchasing power parity between two countries is to compare the price of a (________) good that is in fact identical across countries.
Selected Answer: Standard
  • Question 9

2 out of 2 points

The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.
Selected Answer: Securities Exchange Commission
  • Question 10

2 out of 2 points

Global financial markets are important to borrowers for two reasons such as (1) to expand the supply of money, and (2) reduce the cost of money.
Selected Answer: True
  • Question 11

0 out of 2 points

The role of the World Bank is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries.
Selected Answer: True
  • Question 12

2 out of 2 points

The difference between a (_______) rate and a (________) rate is termed a forward discount.
Selected Answer: spot and forward
  • Question 13

2 out of 2 points

A currency board is a government’s bank and is capable of bailing out a failing bank.
Selected Answer: False
  • Question 14

2 out of 2 points

The majority of transactions on the FX include operations with (_________), where one party sells or buys dollars using other world currencies.
Selected Answer: the U.S. Dollar
  • Question 15

2 out of 2 points

(__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.
Selected Answer: Inflation
  • Question 16

2 out of 2 points

If a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount.
Selected Answer: False
  • Question 17

0 out of 2 points

In the United States, the (____________) is responsible for regulating the growth of the economy.
Selected Answer: Global Financial Market
  • Question 18

2 out of 2 points

(________) and (_________) quotation are also referred to as American and European Quotes.
Selected Answer: direct and indirect
  • Question 19

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of Great Britain and France.
Selected Answer: False
  • Question 20

0 out of 2 points

The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.
Selected Answer: True
  • Question 21

0 out of 2 points

Oil prices are set by OPEC.
Selected Answer: True
  • Question 22

2 out of 2 points

The main objective of one of the trade organizations in Africa, (________), was to integrate economies and partake in shared development of economic growth.
Selected Answer: Economic Community of West African States
  • Question 23

2 out of 2 points

The Schengen Agreement abolished passport and border controls within the internal-national boundaries of the (_______).
Selected Answer: European Union
  • Question 24

2 out of 2 points

Agreements between participating nations are managed and promoted through (__________).
Selected Answer: Trading blocs
  • Question 25

2 out of 2 points

History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.
Selected Answer: Price
  • Question 26

2 out of 2 points

In a (_______) union, members have the same rights as in a free trade area, with the exception that they will now all have the same trade policy towards nonmembers.
Selected Answer: Customs
  • Question 27

2 out of 2 points

The Council of Europe judges claims by member states that the European Commission has exceeded its authority.
Selected Answer: False
  • Question 28

2 out of 2 points

The goals of the (_________) are threefold: (1) the reduction and eventual eradication of poverty in signatory island and land-locked nations, (2) sustainable economic development in signatory island and land-locked nations, and (3) the gradual integration of signatory countries into the world economy.
Selected Answer: Cotonou Agreement
  • Question 29

2 out of 2 points

ASEAN association members also undertake to avoid interference in the internal affairs of one another and are committed to the settlement of differences or disputes by peaceful means.
Selected Answer: True
  • Question 30

0 out of 2 points

Easier movement of labor between members is not an element addressed in the process of integration.
Selected Answer: True
  • Question 31

0 out of 2 points

The (__________) approves the EU budget and seeks to coordinate the adoption of common economic, defense, and judicial policies across the EU.
Selected Answer: European Central Bank
  • Question 32

2 out of 2 points

Non-tariff barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.
Selected Answer: False
  • Question 33

0 out of 2 points

The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).
Selected Answer: Neither a or b
  • Question 34

2 out of 2 points

The first stage of economic integration is establishment of preferential or free trade agreements.
Selected Answer: True
  • Question 35

2 out of 2 points

OAPEC has implemented effective measures to ensure success in different areas of supplying petroleum to nations.
Selected Answer: True
  • Question 36

2 out of 2 points

Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.
Selected Answer: True
  • Question 37

2 out of 2 points

Freedom and the absence of random violence is not one of the five basic goals espoused by national governments.
Selected Answer: False
  • Question 38

2 out of 2 points

In formulating a (____________) entry plan, firms should research, assess, and analyze the external environments that exist in the foreign markets under consideration.
Selected Answer: Global strategic
  • Question 39

2 out of 2 points

One of the most important advantages in using an export management company is that it can handle all aspects of exporting a company’s product into the new market(s).
Selected Answer: True
  • Question 40

2 out of 2 points

Entering the market at the right time, or the wrong time can have tremendous effects on the success or failure of the expansion.
Selected Answer: True
  • Question 41

2 out of 2 points

Three questions are especially important to international expansion: (______), timing, and scale.
Selected Answer: Location
  • Question 42

2 out of 2 points

Joint ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity.
Selected Answer: True
  • Question 43

2 out of 2 points

Intermediaries can facilitate the transfer of goods and services from a company to the consumer in a new market.
Selected Answer: True
  • Question 44

2 out of 2 points

The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.
Selected Answer: Competitor knowledge process
  • Question 45

0 out of 2 points

Economic factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment.
Selected Answer: True
  • Question 46

2 out of 2 points

A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.
Selected Answer: Strategic alliance
  • Question 47

0 out of 2 points

The key factors that influence the entry mode selection are as follows:
Selected Answer: size of the market
  • Question 48

0 out of 2 points

(________) empowered United States banks to make equity investments in commercial ventures that qualify as export trading companies.
Selected Answer: The International Trade Division
  • Question 49

0 out of 2 points

Reactive reasons for motivation are based on the firm’s internal situation and are firm initiated.
Selected Answer: True
  • Question 50

2 out of 2 points

One advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.
Selected Answer: True
  • Question 51

2 out of 2 points

In a (___________), one client company contracts another company to build and deliver a ready to operate industrial plant or infrastructure facility, such as a power plant, a highway or a port. In such cases, the client can be a government agency.
Selected Answer: Turnkey projects
  • Question 52

2 out of 2 points

Intermediaries have limited financial resources and will usually rely on the contracting company to provide immediate financial support to finance and distribute the product and or service.
Selected Answer: True
  • Question 53

2 out of 2 points

Environmental turbulence has two dimensions: technological turbulence and (____________).
Selected Answer: Market dynamism
  • Question 54

2 out of 2 points

Franchise fees typically include an initial fee for the franchise and then a percentage of (______).
Selected Answer: Annual revenues
  • Question 55

2 out of 2 points

Exporting also has its disadvantages, such as the high cost of transportation and the potential of (_________) being placed on incoming goods.
Selected Answer: tariffs
  • Question 56

0 out of 2 points

(_________) enables a firm to penetrate markets that might not otherwise have been accessible because of foreign policy or laws.
Selected Answer: Franchising
  • Question 57

2 out of 2 points

(__________) provide(s) the additional benefit of tax breaks, resulting from depreciation.
Selected Answer: Fixed assets
  • Question 58

2 out of 2 points

Efficient supply chain management is considered critical to the long-term success of an organization.
Selected Answer: True
  • Question 59

2 out of 2 points

(________) defines the goal or purpose of the organization, while (_________) defines how personnel will collectively implement the strategy.
Selected Answer: Strategy; structure
  • Question 60

2 out of 2 points

The selected type of transportation has no impact on the quality of the products.
Selected Answer: False
  • Question 61

2 out of 2 points

Strategic planning level decisions are the highest level of logistics decisions.
Selected Answer: True
  • Question 62

2 out of 2 points

The problem with a (_________) model is the inevitability that divisional communication will break down, causing coordination efforts to become difficult and complicated.
Selected Answer: Decentralized
  • Question 63

2 out of 2 points

In the (__________) step in the operations level decisions, the company draw from historical data, competition analysis and market research, cost, and time restraints to determine if the suggested plans will be profitable.
Selected Answer: demand forecasting
  • Question 64

2 out of 2 points

(__________) involves both management and labor in finding and eliminating waste in machinery, labor, materials, and production methods.
Selected Answer: Continuous improvement or Kaizen
  • Question 65

0 out of 2 points

Two basic manufacturing layout designs are typically used: (_________) or (_________).
Selected Answer: Standardization; adaptation
  • Question 66

2 out of 2 points

Inventory growth may be both a cause and effect of a poorly aligned supply chain.
Selected Answer: True
  • Question 67

0 out of 2 points

A process layout groups machines according to their roles in the production process.
Selected Answer: True
  • Question 68

2 out of 2 points

When considering global outsourcing, a key concept is that the closer the supplier, the more the shipping costs will impact the raw material acquisition decision.
Selected Answer: False
  • Question 69

0 out of 2 points

Unlike the case of an acquisition, a (___________) requires only product adaptation rather than both product and process adaptation.
Selected Answer: Merger
  • Question 70

2 out of 2 points

The (__________) layout gives customers direct access to merchandise throughout the store.
Selected Answer: self-service
  • Question 71

0 out of 2 points

A (____________) provides for the establishment of raw material design teams that consist of representatives from a company and its suppliers.
Selected Answer: Centralized system
  • Question 72

2 out of 2 points

Factors that play into the make or buy decision include the following items except for: (______), (______), and (_________) of a product or component.
Selected Answer: Competition
  • Question 73

2 out of 2 points

Continuity is an important aspect of the (________) approach used by companies to acquire raw materials.
Selected Answer: KANBAN cluster
  • Question 74

0 out of 2 points

In product-oriented firms, capacity is measured in terms of the total number of customers that can be served in a given amount of time.
Selected Answer: True
  • Question 75

2 out of 2 points

The bureaucratic hierarchy is the most common centralized organizational structure.
Selected Answer: True

Friday, October 11, 2019 10:26:14 PM EDT

 

  • Question 1

2 out of 2 points

The major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.
Selected Answer: True
  • Question 2

2 out of 2 points

Most currencies are quoted in relation to the British Sterling.
Selected Answer: False
  • Question 3

2 out of 2 points

(___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.
Selected Answer: Revaluation
  • Question 4

2 out of 2 points

Global financial markets are important to borrowers for two reasons such as (1) to expand the supply of money, and (2) reduce the cost of money.
Selected Answer: True
  • Question 5

2 out of 2 points

Actual currencies change hands in FX Markets transactions and can also be completed electronically.
Selected Answer: False
  • Question 6

2 out of 2 points

In ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.
Selected Answer: insurance
  • Question 7

2 out of 2 points

Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another.
Selected Answer: True
  • Question 8

2 out of 2 points

The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.
Selected Answer: Securities Exchange Commission
  • Question 9

2 out of 2 points

(__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.
Selected Answer: Inflation
  • Question 10

2 out of 2 points

If a currency price is expected to rise in the future, a buyer pays a higher price, which is considered a forward discount.
Selected Answer: False
  • Question 11

2 out of 2 points

A large percentage of all FX market transactions are spot transactions.
Selected Answer: True
  • Question 12

2 out of 2 points

The FX swap of currency amounts is normally variable.
Selected Answer: False
  • Question 13

2 out of 2 points

The most important issue in understanding the effects of exchange rates on business is its (________).
Selected Answer: Volatility
  • Question 14

2 out of 2 points

Global financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).
Selected Answer: lending opportunities; risk
  • Question 15

0 out of 2 points

In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.
Selected Answer: True
  • Question 16

2 out of 2 points

Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.
Selected Answer: True
  • Question 17

0 out of 2 points

A currency board is a government’s bank and is capable of bailing out a failing bank.
Selected Answer: True
  • Question 18

2 out of 2 points

OTC participants trade on a physical trading floor.
Selected Answer: False
  • Question 19

0 out of 2 points

(________) gives every state the right to lead its existence free from external interference.
Selected Answer: Asia Pacific Economic Cooperation
  • Question 20

2 out of 2 points

The (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.
Selected Answer: Organization of Arab Petroleum Exporting Countries
  • Question 21

0 out of 2 points

Agreements between participating nations are managed and promoted through (__________).
Selected Answer: Economic integration
  • Question 22

2 out of 2 points

The Council of Europe judges claims by member states that the European Commission has exceeded its authority.
Selected Answer: False
  • Question 23

2 out of 2 points

(_________) is the largest agreement in the world (approximately 1.56 billion people).
Selected Answer: South Asian Association for Regional Cooperation
  • Question 24

2 out of 2 points

The Economic Union requires that member countries harmonize their tax, monetary and fiscal policies, create a common currency, and concede a certain amount of sovereignty to the supranational organization to which they belong.
Selected Answer: True
  • Question 25

0 out of 2 points

The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.
Selected Answer: True
  • Question 26

2 out of 2 points

The goals of the (_________) are threefold: (1) the reduction and eventual eradication of poverty in signatory island and land-locked nations, (2) sustainable economic development in signatory island and land-locked nations, and (3) the gradual integration of signatory countries into the world economy.
Selected Answer: Cotonou Agreement
  • Question 27

2 out of 2 points

The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.
Selected Answer: True
  • Question 28

0 out of 2 points

Freedom and the absence of random violence is not one of the five basic goals espoused by national governments.
Selected Answer: True
  • Question 29

2 out of 2 points

Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.
Selected Answer: True
  • Question 30

2 out of 2 points

History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.
Selected Answer: Price
  • Question 31

2 out of 2 points

Non-tariff barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.
Selected Answer: False
  • Question 32

2 out of 2 points

To become a member state in the ANCOM, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria.
Selected Answer: False
  • Question 33

2 out of 2 points

The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).
Selected Answer: Customs Union; Political Union
  • Question 34

2 out of 2 points

South America is one of the largest trading blocs in the world.
Selected Answer: False
  • Question 35

0 out of 2 points

Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.
Selected Answer: United States and China
  • Question 36

2 out of 2 points

The (______) operates as a common market, granting national treatment to all (___) firms and citizens in any other (____) country, as well as removing all barriers to cross country investment and services trade.
Selected Answer: Gulf Cooperation Council
  • Question 37

0 out of 2 points

The (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.
Selected Answer: European Commission
  • Question 38

2 out of 2 points

In a (___________), one client company contracts another company to build and deliver a ready to operate industrial plant or infrastructure facility, such as a power plant, a highway or a port. In such cases, the client can be a government agency.
Selected Answer: Turnkey projects
  • Question 39

2 out of 2 points

One advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.
Selected Answer: True
  • Question 40

0 out of 2 points

A company can keep itself flexible by following a (____________) which allows the firm to switch partners or exit the market altogether if the need arises.
Selected Answer: Non-equity, low-investment plan
  • Question 41

2 out of 2 points

As one of the primary government facilitators for small businesses, the (_____) agency will provide corporate services, which include financing, trade counseling, and commodity brokerage.
Selected Answer: United States Small Business Administration
  • Question 42

2 out of 2 points

A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.
Selected Answer: Strategic alliance
  • Question 43

2 out of 2 points

Small businesses cannot compete in the global economy.
Selected Answer: False
  • Question 44

2 out of 2 points

(________) entry is optimal for businesses that may not have enough financial capital to initiate operations in a new market.
Selected Answer: Low-intensity
  • Question 45

0 out of 2 points

In attractive markets, short-term profitability for a firm is expected to be provided through these investment modes.
Selected Answer: True
  • Question 46

2 out of 2 points

The (___________) is relatively free to establish additional subsidiary and contracting  relationships  with  other  partners  in  the host country.
Selected Answer: Wholly owned subsidiaries
  • Question 47

2 out of 2 points

Establishment of a wholly owned subsidiary in a foreign country is a high-risk challenge for even the largest of multinational corporations.
Selected Answer: True
  • Question 48

2 out of 2 points

(________) empowered United States banks to make equity investments in commercial ventures that qualify as export trading companies.
Selected Answer: Export Trading Company Act
  • Question 49

2 out of 2 points

(__________) constraints    are placed on firms through fair-trade decisions, antitrust laws, tax programs, minimum wage, legislation, pollution and pricing policies, administrative jawboning, and many other actions aimed at protecting employees, consumers, the general public, and the environment.
Selected Answer: Political
  • Question 50

0 out of 2 points

Licensing is when a company sells its name, business strategies, and standard operating procedures to another party for a fee.
Selected Answer: True
  • Question 51

2 out of 2 points

Two types of entry modes are available into a market:  (______) intensity or (______) intensity.
Selected Answer: Low or high
  • Question 52

2 out of 2 points

Intermediaries are often considered “coaches” or outside consultants brought in to help steer the firm in the right exporting direction.
Selected Answer: False
  • Question 53

2 out of 2 points

(______) and (________) generally requires a minimal initial investment and may allow a business to develop key relationships with export/import firms (intermediaries) that will aid in ensuring success into the new market.
Selected Answer: Exporting and importing
  • Question 54

2 out of 2 points

Openness to global trade is an attribute to consider in evaluating the business attractiveness of a location.
Selected Answer: True
  • Question 55

0 out of 2 points

Proactive reasons are based on the firm’s behavior with respect to the environment and adaptation to changes from outside the firm.
Selected Answer: True
  • Question 56

0 out of 2 points

The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.
Selected Answer: Openness to global trade
  • Question 57

0 out of 2 points

One popular option of environmentally friendly or “green” packaging is the use of (___________) – reusable containers that can be repeatedly used for refill by the supplier and in the transportation of materials.
Selected Answer: None of the above
  • Question 58

0 out of 2 points

Fixed assets includes items normally consumed in the course of business operation or production.
Selected Answer: True
  • Question 59

2 out of 2 points

(________) are horizontal in nature and include experts in each technical area within an organizational unit that cooperate to share information to determine best practices, rather than competing for accolades.
Selected Answer: Cross-functional teams
  • Question 60

2 out of 2 points

(____________) allows a producer to adapt its products to a particular group of consumers.
Selected Answer: Mass customization
  • Question 61

2 out of 2 points

Decisions in the (____________) area include such considerations as where to purchase and what to purchase.
Selected Answer: Procurement and supply management
  • Question 62

2 out of 2 points

The (__________) layout gives customers direct access to merchandise throughout the store.
Selected Answer: self-service
  • Question 63

0 out of 2 points

A process layout groups machines according to their roles in the production process.
Selected Answer: True
  • Question 64

2 out of 2 points

(______), in terms of production-oriented firms, refers to the total amount of products that can be produced by the entire operation in a given amount of time.
Selected Answer: Capacity
  • Question 65

2 out of 2 points

(____) is a codification or assurance of quality – an internationally recognized certification system or process.
Selected Answer: ISO
  • Question 66

2 out of 2 points

(__________) involves both management and labor in finding and eliminating waste in machinery, labor, materials, and production methods.
Selected Answer: Continuous improvement or Kaizen
  • Question 67

2 out of 2 points

Factors that play into the make or buy decision include the following items except for: (______), (______), and (_________) of a product or component.
Selected Answer: Competition
  • Question 68

0 out of 2 points

Two basic manufacturing layout designs are typically used: (_________) or (_________).
Selected Answer: Mass customization; standardization
  • Question 69

2 out of 2 points

The Theory of Constraints suggests that once the constraints are identified, the organization should focus improvement energy solely in  that  area.
Selected Answer: True
  • Question 70

2 out of 2 points

Logistic decisions are made primarily on three different levels: strategic planning, network, and (_________).
Selected Answer: Operations
  • Question 71

0 out of 2 points

Companies using a global outsourcing strategy mandate that their suppliers have a facility within a certain distance of the manufacturing facility.
Selected Answer: True
  • Question 72

2 out of 2 points

When considering global outsourcing, a key concept is that the closer the supplier, the more the shipping costs will impact the raw material acquisition decision.
Selected Answer: False
  • Question 73

2 out of 2 points

The goal of the JIT management system is eliminating waste, making best use of cost efficiency, and creating and sustaining competitive advantage.
Selected Answer: True
  • Question 74

2 out of 2 points

Unlike the case of an acquisition, a (___________) requires only product adaptation rather than both product and process adaptation.
Selected Answer: Greenfield Investment
  • Question 75

0 out of 2 points

(________) defines the goal or purpose of the organization, while (_________) defines how personnel will collectively implement the strategy.
Selected Answer: Strategic plan; organizational goals

 

Course 201830 Summer 2018 BUSI 604-B01 LUO
Time Elapsed 1 hour, 14 minutes out of 1 hour and 15 minutes
Instructions ·         Time limit: 1 hour and 15 minutes

·         75 true/false and multiple-choice questions

·         Open-book/open-notes

·         Do not hit the BACK button as this will lock you out of the test.

·         The timer will continue if you leave this test without submitting it.

Results Displayed Submitted Answers, Feedback
  • Question 1

0 out of 2 points

The most important issue in understanding the effects of exchange rates on business is its (________).
Selected Answer: Inflation
  • Question 2

2 out of 2 points

Speculation generally means buying a commodity when its price is low and then reselling it after prices rise in order to make a profit.
Selected Answer: False
  • Question 3

2 out of 2 points

The role of the World Bank is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries.
Selected Answer: False
  • Question 4

2 out of 2 points

Smaller nations that have limitations and restrictions on their currencies, are considered to possess (_____) currencies.
Selected Answer: weak
  • Question 5

2 out of 2 points

The FX swap of currency amounts is normally variable.
Selected Answer: False
  • Question 6

0 out of 2 points

(___________) is considered a sign of economic recovery and stabilization but makes the currency of a country more expensive compared to other currencies, having a direct inverse effect on exports and imports.
Selected Answer: Inflation
  • Question 7

2 out of 2 points

Global Financial Markets include both(__________) and (________) market places that make the cross-border exchange of goods and services between buyers and sellers possible.
Selected Answer: physical and virtual
  • Question 8

2 out of 2 points

Global financial markets are important to lenders for two major reasons: (1) expanding (________) and (2) reducing (________).
Selected Answer: lending opportunities; risk
  • Question 9

2 out of 2 points

The end result of the global competition is higher (_______) and lower (_________) for consumers.
Selected Answer: quality products; prices
  • Question 10

2 out of 2 points

After the Gold Standard was discontinued in 1971, the (___________) followed the rule of supply and demand, and currencies started to flow freely between sellers and buyers in currency markets.
Selected Answer: Foreign Exchange (FX) Market
  • Question 11

2 out of 2 points

OTC participants trade on a physical trading floor.
Selected Answer: False
  • Question 12

2 out of 2 points

Since the world thrives to trade and does not have a uniformed international currency, the exchange rate from one currency to another is determined by (______) and (________) on a given day on the FX Market.
Selected Answer: supply and demand
  • Question 13

2 out of 2 points

(______) rates indicate the exchange rate of one currency in units of another currency immediately.
Selected Answer: Spot
  • Question 14

2 out of 2 points

A bond is a certificate with a certain monetary value.
Selected Answer: True
  • Question 15

2 out of 2 points

The Federal Exchange Commission is the main authority issuing regulations over the American securities exchange markets.
Selected Answer: True
  • Question 16

2 out of 2 points

The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.
Selected Answer: Securities Exchange Commission
  • Question 17

2 out of 2 points

In ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.
Selected Answer: insurance
  • Question 18

2 out of 2 points

Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.
Selected Answer: True
  • Question 19

2 out of 2 points

In a (_______) union, members have the same rights as in a free trade area, with the exception that they will now all have the same trade policy towards nonmembers.
Selected Answer: Customs
  • Question 20

2 out of 2 points

Mercosur ranks as one of the four largest trading blocs and one of the largest economies in the world.
Selected Answer: True
  • Question 21

2 out of 2 points

The Schengen Agreement abolished passport and border controls within the internal-national boundaries of the (_______).
Selected Answer: European Union
  • Question 22

0 out of 2 points

Signatory nations a part of CACM have not been able to achieve their wider aims of stronger economic and political unification because of a failure to settle (________).
Selected Answer: Political unrest
  • Question 23

0 out of 2 points

Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.
Selected Answer: United States and China
  • Question 24

0 out of 2 points

(_________) is the largest agreement in the world (approximately 1.56 billion people).
Selected Answer: Association of Southeast Asian Nations
  • Question 25

0 out of 2 points

(________) was incorporated within the establishments of NAFTA.
Selected Answer: CFTA
  • Question 26

2 out of 2 points

European Parliament elections are held every five years, and all register EU citizens are allowed to vote.
Selected Answer: True
  • Question 27

2 out of 2 points

More than 60 percent of Africa’s people depend upon agriculture, with farming being mostly of the subsistence variety.
Selected Answer: True
  • Question 28

2 out of 2 points

The Caribbean Community and Common Market (CARICOM) is an example of a (___________).
Selected Answer: Common market
  • Question 29

2 out of 2 points

(________) gives every state the right to lead its existence free from external interference.
Selected Answer: Association of Southeast Asian Nations
  • Question 30

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of (______) and (______), which have been exempted under the terms of the Maastricht Treaty.
Selected Answer: A and B
  • Question 31

2 out of 2 points

According to its proponents, (_________) helps nations take advantage of the unprecedented wealth the global economy is producing.
Selected Answer: Free trade
  • Question 32

2 out of 2 points

South America is one of the largest trading blocs in the world.
Selected Answer: False
  • Question 33

0 out of 2 points

The main objective of (______) was to create a sustainable food source for the member countries of the ECOWAS.
Selected Answer: Economic Community of West African States
  • Question 34

2 out of 2 points

The (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.
Selected Answer: Organization of Arab Petroleum Exporting Countries
  • Question 35

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of Great Britain and France.
Selected Answer: False
  • Question 36

2 out of 2 points

The (_________) was established in 1960 as an economic counterpart to the North Atlantic Treaty Organization (NATO).
Selected Answer: Organization for Economic Cooperation and Development (OECD)
  • Question 37

2 out of 2 points

Agreements between participating nations are managed and promoted through (__________).
Selected Answer: Trading blocs
  • Question 38

2 out of 2 points

To avoid obsolescence and promote innovation, a firm must be aware of (_________) changes that might influence the industry.
Selected Answer: Technological
  • Question 39

0 out of 2 points

The key factors that influence the entry mode selection are as follows:
Selected Answer: international experience of the firm
  • Question 40

0 out of 2 points

Proactive reasons are based on the firm’s behavior with respect to the environment and adaptation to changes from outside the firm.
Selected Answer: True
  • Question 41

2 out of 2 points

Low production cost in a country encourages local production.
Selected Answer: True
  • Question 42

0 out of 2 points

The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.
Selected Answer: Openness to global trade
  • Question 43

2 out of 2 points

Firms are better off selecting non-equity, low-investment entry modes in    countries that have low environmental uncertainty.
Selected Answer: False
  • Question 44

2 out of 2 points

Joint ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity.
Selected Answer: True
  • Question 45

2 out of 2 points

Entering the market at the right time, or the wrong time can have tremendous effects on the success or failure of the expansion.
Selected Answer: True
  • Question 46

2out of 2 points

The primary private sector facilitator for intermediaries, outside of export management and trading companies, are (__________).
Selected Answer: Commercial Banks  (MAYBE)
  • Question 47

2 out of 2 points

A licensor must invest into the foreign market because the licensee (more than likely) is not established in the market.
Selected Answer: False
  • Question 48

2 out of 2 points

Intermediaries have limited financial resources and will usually rely on the contracting company to provide immediate financial support to finance and distribute the product and or service.
Selected Answer: True
  • Question 49

0 out of 2 points

A turnkey project allows a novice corporation immediate presence within a foreign country and ease the initiation process into the marketplace.
Selected Answer: True
  • Question 50

0 out of 2 points

Two types of entry modes are available into a market:  (______) intensity or (______) intensity.
Selected Answer: Proactive and reactive
  • Question 51

2 out of 2 points

When strong global competition is scarce, the global firm should perform well, even though it does not develop global-market-knowledge competencies or global responsiveness.
Selected Answer: True
  • Question 52

0 out of 2 points

An (_________) functions in foreign markets just as a sales representative or exclusive wholesaler functions for a manufacturer in the United States.
Selected Answer: The International Trade Division
  • Question 53

2 out of 2 points

The percentage increase and decrease of a population and the average life expectancy in a global market serve as indicators of the global-market potential.
Selected Answer: True
  • Question 54

0 out of 2 points

Franchise fees typically include an initial fee for the franchise and then a percentage of (______).
Selected Answer: Gross profit
  • Question 55

0 out of 2 points

Environmental turbulence has two dimensions: technological turbulence and (____________).
Selected Answer: Product dynamism
  • Question 56

2 out of 2 points

(__________) includes the attractiveness of the geography of region, the socioeconomics of the population, proximity to required resources, labor costs, costs of living, and quality of life variables.
Selected Answer: Geography and socio-economic attributes
  • Question 57

0 out of 2 points

In the (__________) step in the operations level decisions, the company draw from historical data, competition analysis and market research, cost, and time restraints to determine if the suggested plans will be profitable.
Selected Answer: Production
  • Question 58

2 out of 2 points

Companies using a global outsourcing strategy mandate that their suppliers have a facility within a certain distance of the manufacturing facility.
Selected Answer: False
  • Question 59

0 out of 2 points

Two basic manufacturing layout designs are typically used: (_________) or (_________).
Selected Answer: Mass customization; standardization
  • Question 60

2 out of 2 points

The value chain is generally considered to consist of the acquisition of raw materials, finished goods manufacturing, and distribution channels.
Selected Answer: True
  • Question 61

2 out of 2 points

In the physical inventory control category, calculations are made to maintain sufficient inventories for predetermined supply chain system needs.
Selected Answer: False
  • Question 62

0 out of 2 points

(__________) involves both management and labor in finding and eliminating waste in machinery, labor, materials, and production methods.
Selected Answer: KANBAN cluster
  • Question 63

0 out of 2 points

The overall success of the business is dependent upon the efficiency and effectiveness of every function within the (_______) process.
Selected Answer: Management
  • Question 64

2 out of 2 points

The ABC Classification System allows managers to focus   on the most important items when forecasting, controlling, and scheduling inventories.
Selected Answer: True
  • Question 65

0 out of 2 points

Decisions in the (____________) area include such considerations as where to purchase and what to purchase.
Selected Answer: Inventory management
  • Question 66

0 out of 2 points

(__________) is a total system approach (not a separate area or program) and an integral part of high-level strategy; it works horizontally across functions and departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain.
Selected Answer: KANBAN cluster
  • Question 67

0 out of 2 points

(____________) allows a producer to adapt its products to a particular group of consumers.
Selected Answer: Product layout
  • Question 68

2 out of 2 points

A process layout groups machines according to their roles in the production process.
Selected Answer: False
  • Question 69

2 out of 2 points

In a (_____________), the most common centralized organizational structure, decision making is a top-down process.
Selected Answer: Bureaucratic hierarchy
  • Question 70

2 out of 2 points

The (__________) layout gives customers direct access to merchandise throughout the store.
Selected Answer: self-service
  • Question 71

2 out of 2 points

The decentralized model allows decision-making authority to occur where the decisions are to be made, promoting innovation, initiative, and teamwork.
Selected Answer: True
  • Question 72

2 out of 2 points

The Theory of Constraints suggests that once the constraints are identified, the organization should focus improvement energy solely in  that  area.
Selected Answer: True
  • Question 73

2 out of 2 points

The selected type of transportation has no impact on the quality of the products.
Selected Answer: False
  • Question 74

0 out of 2 points

A (____________) provides for the establishment of raw material design teams that consist of representatives from a company and its suppliers.
Selected Answer: Value chain
  • Question 75

2 out of 2 points

Greenfield Investment requires only product adaptation rather than both product and process adaptation.
Selected Answer: True

 

 

 

  • Question 1

5 out of 5 points

The company’s value on the market is determined by the amount of (_____) that is traded.
Selected Answer: Stock
  • Question 2

5 out of 5 points

Trading in the OTC market occurs through a network of (_______) unlike in securities exchanges where the (_________) conducts trading by ordering matchmaking service on the floor on behalf of the investor.
Selected Answer: dealers; broker
  • Question 3

5 out of 5 points

Speculators buy and sell commodities with the intention of making profits on price differentials across global markets.
Selected Answer: True
  • Question 4

5 out of 5 points

While hedging may protect against (_________), it may eliminate a potential for unexpected (______).
Selected Answer: loss; gain
  • Question 5

5 out of 5 points

Many nations restrict hedging of their currencies due to their national and international policies and interests.
Selected Answer: False
  • Question 6

5 out of 5 points

Only the USD and Japanese Yen are quoted by one unit price; all other currencies are quoted in one hundred units.
Selected Answer: False
  • Question 7

5 out of 5 points

(______) rates indicate the exchange rate of one currency in units of another currency immediately.
Selected Answer: Spot
  • Question 8

5 out of 5 points

A currency board is a government’s bank and is capable of bailing out a failing bank.
Selected Answer: False
  • Question 9

5 out of 5 points

The USD remains the world’s leading currency.
Selected Answer: True
  • Question 10

5 out of 5 points

Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are European.
Selected Answer: True
  • Question 11

5 out of 5 points

The major function of (_______) is to help member countries coordinate oil production in an effort to stabilize the oil market, while achieving a reasonable return on oil investment.
Selected Answer: Organization of the Petroleum Exporting Countries
  • Question 12

5 out of 5 points

(_______) agreements are designed to reduce and ultimately remove tariff and non-tariff barriers to the free movement of goods, services, and factors of production between each other.
Selected Answer: Regional integration
  • Question 13

5 out of 5 points

Member nations of ECOWAS have tried to agree on a common currency: the Euro.
Selected Answer: False
  • Question 14

5 out of 5 points

Due to political and military tensions between India and Pakistan, SAARC has not been effective in integrating the economies of signatory nations.
Selected Answer: True
  • Question 15

5 out of 5 points

Despite extensive natural resources, there is only one developed country in Africa.
Selected Answer: False
  • Question 16

5 out of 5 points

The majority of economic growth and stability in the Middle East depends upon the natural resource of coal.
Selected Answer: False
  • Question 17

5 out of 5 points

The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.
Selected Answer: True
  • Question 18

5 out of 5 points

Signatory nations a part of CACM have not been able to achieve their wider aims of stronger economic and political unification because of a failure to settle (________).
Selected Answer: Trade disputes
  • Question 19

5 out of 5 points

OAPEC has implemented effective measures to ensure success in different areas of supplying petroleum to nations.
Selected Answer: True
  • Question 20

5 out of 5 points

ASEAN association members also undertake to avoid interference in the internal affairs of one another and are committed to the settlement of differences or disputes by peaceful means.
Selected Answer: True

 

 

Test    Quiz 3 – Course       201820 Spring 2018 BMAL 604-B01 LUO

Status            Completed

 

Question 1

In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.

Selected Answer:            False

 

Question 2

(_________) are used as an alternative to borrowing and lending in the Eurodollar and other offshore markets.

Selected Answer:            FX swaps

 

Question 3

Many nations restrict hedging of their currencies due to their national and international policies and interests.

Selected Answer:            False

 

Question 4

Only the USD and Japanese Yen are quoted by one unit price; all other currencies are quoted in one hundred units.

Selected Answer:            False

 

Question 5

Currency arbitrage means buying a currency in one market at a (_____) price and reselling moments later in another market at a (______) price.

Selected Answer:            low; higher

 

 

 

Question 6

The Foreign Exchange Market is a market place where the exchange rate is determined and where transactions take place.

Selected Answer:            True

 

Question 7

Forward rates are typically cheaper than spot rates.

Selected Answer:            False     True

 

Question 8

The end result of the global competition is higher (_______) and lower (_________) for consumers.

Selected Answer:            prices; exchange rates

 

Question 9

The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.

Selected Answer:            Securities Exchange Commission

 

Question 10

In ideal functioning markets, speculation and (_______) assist in the reduction of unavoidable risks associated with uncertainties, such as unemployment, catastrophic losses, and diminished business revenue.

Selected Answer:            insurance

 

Question 11

The (__________) approves the EU budget and seeks to coordinate the adoption of common economic, defense, and judicial policies across the EU.

Selected Answer:            Council of Europe

 

 

Question 12

The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.

Selected Answer:            True       False

 

Question 13

Preferential Trade Areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each other.

Selected Answer:            False

 

Question 14

The (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.

Selected Answer:            European Court of Justice

 

Question 15

OAPEC has implemented effective measures to ensure success in different areas of supplying petroleum to nations.

Selected Answer:            True

 

Question 16

Common market includes all of the elements of a (____________) and freedom of movement of the four factors of production.

Selected Answer:            Customs Union

 

Question 17

The SACU goals are to maintain the free interchange of goods between signatory nations and provide for a common external tariff and a common excise tariff.

Selected Answer:            True

 

Question 18

The major function of (_______) is to help member countries coordinate oil production in an effort to stabilize the oil market, while achieving a reasonable return on oil investment.

Selected Answer:            Organization of the Petroleum Exporting Countries

 

Question 19

The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).

Selected Answer:            Customs Union; Political Union

 

Question 20

History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.

Selected Answer:            Price

 

 

  • Question 1

2 out of 2 points

Trading in the OTC market occurs through a network of (_______) unlike in securities exchanges where the (_________) conducts trading by ordering matchmaking service on the floor on behalf of the investor.
Selected Answer: dealers; broker
  • Question 2

2 out of 2 points

OTC participants trade on a physical trading floor.
Selected Answer: False
  • Question 3

2 out of 2 points

(_________) are used as an alternative to borrowing and lending in the Eurodollar and other offshore markets.
Selected Answer: FX swaps
  • Question 4

2 out of 2 points

A bond is a certificate with a certain monetary value.
Selected Answer: True
  • Question 5

2 out of 2 points

A currency board is a government’s bank and is capable of bailing out a failing bank.
Selected Answer: False
  • Question 6

2 out of 2 points

Traders who (________) are taking risks (staying open) because they buy and sell currencies based on the predicted rise and fall in price of a given currency.
Selected Answer: speculate
  • Question 7

2 out of 2 points

The role of the World Bank is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries.
Selected Answer: False
  • Question 8

0 out of 2 points

Speculators buy and sell commodities with the intention of making profits on price differentials across global markets.
Selected Answer: False
  • Question 9

2 out of 2 points

Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.
Selected Answer: True
  • Question 10

2 out of 2 points

(______) rates indicate the exchange rate of one currency in units of another currency immediately.
Selected Answer: Spot
  • Question 11

2 out of 2 points

After the Gold Standard was discontinued in 1971, the (___________) followed the rule of supply and demand, and currencies started to flow freely between sellers and buyers in currency markets.
Selected Answer: Foreign Exchange (FX) Market
  • Question 12

2 out of 2 points

Forward rates are typically cheaper than spot rates.
Selected Answer: True
  • Question 13

2 out of 2 points

Cross rates have to be calculated when parties are conducting a trade in currencies other than (____).
Selected Answer: USD
  • Question 14

2 out of 2 points

In the United States, the Federal Reserve Bank is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of currency exchange.
Selected Answer: False
  • Question 15

2 out of 2 points

Since the world thrives to trade and does not have a uniformed international currency, the exchange rate from one currency to another is determined by (______) and (________) on a given day on the FX Market.
Selected Answer: supply and demand
  • Question 16

2 out of 2 points

The public begins to experience the effects of deflation with an expanding money supply.
Selected Answer: False
  • Question 17

2 out of 2 points

The FX swap of currency amounts is normally variable.
Selected Answer: False
  • Question 18

2 out of 2 points

Actual currencies change hands in FX Markets transactions and can also be completed electronically.
Selected Answer: False
  • Question 19

0 out of 2 points

Increasing attention is being paid to the rapidly growing economies of (_______) and (_________), as they evolve from primarily agricultural dependence into industrial giants with regional superpower status.
Selected Answer: Mexico and India
  • Question 20

2 out of 2 points

The Council of Europe judges claims by member states that the European Commission has exceeded its authority.
Selected Answer: False
  • Question 21

2 out of 2 points

To become a member state in the ANCOM, a prospective country needs to fulfill political and economic preconditions known as the Copenhagen Criteria.
Selected Answer: False
  • Question 22

2 out of 2 points

According to its proponents, (_________) helps nations take advantage of the unprecedented wealth the global economy is producing.
Selected Answer: Free trade
  • Question 23

2 out of 2 points

European Parliament elections are held every five years, and all register EU citizens are allowed to vote.
Selected Answer: True
  • Question 24

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of (______) and (______), which have been exempted under the terms of the Maastricht Treaty.
Selected Answer: A and B
  • Question 25

2 out of 2 points

The Schengen Agreement abolished passport and border controls within the internal-national boundaries of the (_______).
Selected Answer: European Union
  • Question 26

2 out of 2 points

The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).
Selected Answer: Customs Union; Political Union
  • Question 27

2 out of 2 points

The EU aims to enhance political, economic, and social cooperation through a process known as (___________).
Selected Answer: European integration
  • Question 28

2 out of 2 points

Common market includes all of the elements of a (____________) and freedom of movement of the four factors of production.
Selected Answer: Customs Union
  • Question 29

2 out of 2 points

Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.
Selected Answer: True
  • Question 30

2 out of 2 points

The (______) operates as a common market, granting national treatment to all (___) firms and citizens in any other (____) country, as well as removing all barriers to cross country investment and services trade.
Selected Answer: Gulf Cooperation Council
  • Question 31

2 out of 2 points

The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.
Selected Answer: True
  • Question 32

0 out of 2 points

The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.
Selected Answer: True
  • Question 33

2 out of 2 points

OAPEC has implemented effective measures to ensure success in different areas of supplying petroleum to nations.
Selected Answer: True
  • Question 34

2 out of 2 points

The majority of economic growth and stability in the Middle East depends upon the natural resource of coal.
Selected Answer: False
  • Question 35

0 out of 2 points

The first stage of economic integration is establishment of preferential or free trade agreements.
Selected Answer: False
  • Question 36

2 out of 2 points

The (__________) examines and decides on claims brought by the European Commission against member states for noncompliance with EU laws or directives.
Selected Answer: European Court of Justice
  • Question 37

2 out of 2 points

More than 60 percent of Africa’s people depend upon agriculture, with farming being mostly of the subsistence variety.
Selected Answer: True
  • Question 38

2 out of 2 points

A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.
Selected Answer: Strategic alliance
  • Question 39

2 out of 2 points

Environmental turbulence has two dimensions: technological turbulence and (____________).
Selected Answer: Market dynamism
  • Question 40

0 out of 2 points

The percentage increase and decrease of a population and the average life expectancy in a global market serve as indicators of the global-market potential.
Selected Answer: False
  • Question 41

2 out of 2 points

In formulating a (____________) entry plan, firms should research, assess, and analyze the external environments that exist in the foreign markets under consideration.
Selected Answer: Global strategic
  • Question 42

0 out of 2 points

An export trading company usually takes title to the goods.
Selected Answer: False
  • Question 43

2 out of 2 points

One of the most important advantages in using an export management company is that it can handle all aspects of exporting a company’s product into the new market(s).
Selected Answer: True
  • Question 44

2 out of 2 points

A company can keep itself flexible by following a (____________) which allows the firm to switch partners or exit the market altogether if the need arises.
Selected Answer: Low-resource commitment plan
  • Question 45

0 out of 2 points

Intermediaries have limited financial resources and will usually rely on the contracting company to provide immediate financial support to finance and distribute the product and or service.
Selected Answer: False
  • Question 46

2 out of 2 points

One advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.
Selected Answer: True
  • Question 47

2 out of 2 points

Franchise fees typically include an initial fee for the franchise and then a percentage of (______).
Selected Answer: Annual revenues
  • Question 48

2 out of 2 points

In industries subject to high technological turbulence, the organizations will enjoy abnormal returns from alternative opportunities, rather than those created by their market knowledge competencies.
Selected Answer: True
  • Question 49

0 out of 2 points

To avoid obsolescence and promote innovation, a firm must be aware of (_________) changes that might influence the industry.
Selected Answer: Social
  • Question 50

2 out of 2 points

The main difference between the two entry modes depends on how much risk and/or control an entering business is willing to take.
Selected Answer: True
  • Question 51

2 out of 2 points

A turnkey project relieves the purchaser in a developing country of the responsibility of managing and coordinating the various technical and managerial aspects in a situation where there are often inadequate technical and managerial capabilities.
Selected Answer: True
  • Question 52

0 out of 2 points

Two types of entry modes are available into a market:  (______) intensity or (______) intensity.
Selected Answer: Proactive and reactive
  • Question 53

2 out of 2 points

When strong global competition is scarce, the global firm should perform well, even though it does not develop global-market-knowledge competencies or global responsiveness.
Selected Answer: True
  • Question 54

2 out of 2 points

A joint venture is utilized when a corporate entity needs complete control over every detail of the structure within the host country.
Selected Answer: False
  • Question 55

2 out of 2 points

(____________) are contracted to assist the experienced exporter in entering markets in unfamiliar countries.
Selected Answer: Export intermediaries
  • Question 56

2 out of 2 points

The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.
Selected Answer: Competitor knowledge process
  • Question 57

2 out of 2 points

In a (__________) agreement, each party provides some part of the production process, and the profits are shared between the two organizations.
Selected Answer: Joint venture
  • Question 58

2 out of 2 points

The (_____________) suggests that the greater gain will come from identifying which part of the process is a constraint to the whole, rather than focusing on increased output from an entire process.
Selected Answer: Theory of Constraints
  • Question 59

2 out of 2 points

Unlike the case of an acquisition, a (___________) requires only product adaptation rather than both product and process adaptation.
Selected Answer: Greenfield Investment
  • Question 60

2 out of 2 points

Currently, 3PLs are limited to noncritical processes within an organization.
Selected Answer: False
  • Question 61

2 out of 2 points

Logistic decisions are made primarily on three different levels: strategic planning, network, and (_________).
Selected Answer: Operations
  • Question 62

2 out of 2 points

The ABC Classification System allows managers to focus   on the most important items when forecasting, controlling, and scheduling inventories.
Selected Answer: True
  • Question 63

2 out of 2 points

The Theory of Constraints suggests that once the constraints are identified, the organization should focus improvement energy solely in  that  area.
Selected Answer: True
  • Question 64

2 out of 2 points

(__________) is a total system approach (not a separate area or program) and an integral part of high-level strategy; it works horizontally across functions and departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain.
Selected Answer: Total Quality Management
  • Question 65

2 out of 2 points

Efficient supply chain management is considered critical to the long-term success of an organization.
Selected Answer: True
  • Question 66

2 out of 2 points

An interlocking directorate allows the organization the opportunity to more effectively coordinate the output of raw materials to meet the needs of the manufacturing operation.
Selected Answer: True
  • Question 67

2 out of 2 points

The (__________) layout gives customers direct access to merchandise throughout the store.
Selected Answer: self-service
  • Question 68

2 out of 2 points

A process layout groups machines according to their roles in the production process.
Selected Answer: False
  • Question 69

2 out of 2 points

A (____________) provides for the establishment of raw material design teams that consist of representatives from a company and its suppliers.
Selected Answer: interlocking directorate
  • Question 70

2 out of 2 points

Inventory growth may be both a cause and effect of a poorly aligned supply chain.
Selected Answer: True
  • Question 71

2 out of 2 points

The problem with a (_________) model is the inevitability that divisional communication will break down, causing coordination efforts to become difficult and complicated.
Selected Answer: Decentralized
  • Question 72

2 out of 2 points

(__________) involves both management and labor in finding and eliminating waste in machinery, labor, materials, and production methods.
Selected Answer: Continuous improvement or Kaizen
  • Question 73

2 out of 2 points

The goal of the JIT management system is eliminating waste, making best use of cost efficiency, and creating and sustaining competitive advantage.
Selected Answer: True
  • Question 74

2 out of 2 points

Financial management specifically involves the management of the process and production activities that produce the goods or services.
Selected Answer: False
  • Question 75

0 out of 2 points

The selected type of transportation has no impact on the quality of the products.
Selected Answer: True

 

Question 1

2 out of 2 points

   
  (________) and (_________) quotation are also referred to as American and European Quotes.
 
Selected Answer: direct and indirect

Question 2

2 out of 2 points

   
  The economies of the world have become highly interdependent because of improvements in communication and transportation technologies and the lowering of barriers to trade.
 
Selected Answer: True

Question 3

2 out of 2 points

   
  A (_________) notifies the investor of the price movement of shares he or she holds in the security exchange.
 
Selected Answer: Trade alert

Question 4

2 out of 2 points

   
  While hedging may protect against (_________), it may eliminate a potential for unexpected (______).
 
Selected Answer: loss; gain

Question 5

0 out of 2 points

   
  Eurocurrency and Eurobanks do not necessarily mean the currencies or the banks are European.
 
Selected Answer: False

Question 6

2 out of 2 points

   
  Consumers attempt to offset inflation by exchanging (_________) for something that is perceived to hold a value better such as property, gold, or foreign currencies.
 
Selected Answer: lower-value currency

Question 7

2 out of 2 points

   
  In the United States, the Federal Reserve Bank is responsible for regulating the growth of the economy, which is accomplished by the increase or decrease of currency exchange.
 
Selected Answer: False

Question 8

2 out of 2 points

   
  Global Financial Markets include both(__________) and (________) market places that make the cross-border exchange of goods and services between buyers and sellers possible.
 
Selected Answer: physical and virtual

Question 9

2 out of 2 points

   
  The FX swap of currency amounts is normally variable.
 
Selected Answer: False

Question 10

0 out of 2 points

   
  Actual currencies change hands in FX Markets transactions and can also be completed electronically.
 
Selected Answer: True

Question 11

2 out of 2 points

   
  The two most popular products traded on security exchange markets are stocks and treasury bills.
 
Selected Answer: False

Question 12

2 out of 2 points

   
  OTC participants trade on a physical trading floor.
 
Selected Answer: False

Question 13

0 out of 2 points

   
  The end result of the global competition is higher (_______) and lower (_________) for consumers.
 
Selected Answer: prices; exchange rates

Question 14

0 out of 2 points

   
  The major difference between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.
 
Selected Answer: False

Question 15

2 out of 2 points

   
  The role of the World Bank is to supervise the exchange rate practices of member countries and to encourage the free convertibility of any national money into the monies of other countries.
 
Selected Answer: False

Question 16

2 out of 2 points

   
  A large percentage of all FX market transactions are spot transactions.
 
Selected Answer: True

Question 17

2 out of 2 points

   
  (_________) are used as an alternative to borrowing and lending in the Eurodollar and other offshore markets.
 
Selected Answer: FX swaps

Question 18

2 out of 2 points

   
  The public begins to experience the effects of deflation with an expanding money supply.
 
Selected Answer: False

Question 19

2 out of 2 points

   
  According to its proponents, (_________) helps nations take advantage of the unprecedented wealth the global economy is producing.
 
Selected Answer: Free trade

Question 20

2 out of 2 points

   
  The SACU and (_________) consider industry, labor rights, and environmental regulations very important to the prosperity of the SACU region.
 
Selected Answer: United States

Question 21

2 out of 2 points

   
  The decisions made by OPEC do not directly or indirectly affect the majority of consumer goods being produced, sold, or used.
 
Selected Answer: False

Question 22

2 out of 2 points

   
  Trading blocs can provide protection from global competitiveness prompted by nations outside of the bloc.
 
Selected Answer: True

Question 23

2 out of 2 points

   
  Freedom and the absence of random violence is not one of the five basic goals espoused by national governments.
 
Selected Answer: False

Question 24

2 out of 2 points

   
  The (______) is guided by the belief in the importance of building an integrated petroleum industry as a cornerstone for future economic integration amongst Arab countries.
 
Selected Answer: Organization of Arab Petroleum Exporting Countries

Question 25

2 out of 2 points

   
  The main objective of (______) was to create a sustainable food source for the member countries of the ECOWAS.
 
Selected Answer: Common Agricultural Policy

Question 26

2 out of 2 points

   
  European Parliament elections are held every five years, and all register EU citizens are allowed to vote.
 
Selected Answer: True

Question 27

2 out of 2 points

   
  (________) has been stripped of its member rights to Mercosur and must renegotiate its membership.
 
Selected Answer: Venezuela

Question 28

2 out of 2 points

   
  The main objective of one of the trade organizations in Africa, (________), was to integrate economies and partake in shared development of economic growth.
 
Selected Answer: Economic Community of West African States

Question 29

2 out of 2 points

   
  The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________).
 
Selected Answer: Customs Union; Political Union

Question 30

2 out of 2 points

   
  In a customs union, all barriers of trade among members are removed, and a common external trade policy is adopted.
 
Selected Answer: True

Question 31

2 out of 2 points

   
  The EU aims to enhance political, economic, and social cooperation through a process known as (___________).
 
Selected Answer: European integration

Question 32

2 out of 2 points

   
  The major function of (_______) is to help member countries coordinate oil production in an effort to stabilize the oil market, while achieving a reasonable return on oil investment.
 
Selected Answer: Organization of the Petroleum Exporting Countries

Question 33

2 out of 2 points

   
  The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.
 
Selected Answer: True

Question 34

2 out of 2 points

   
  ASEAN association members also undertake to avoid interference in the internal affairs of one another and are committed to the settlement of differences or disputes by peaceful means.
 
Selected Answer: True

Question 35

2 out of 2 points

   
  More than 60 percent of Africa’s people depend upon agriculture, with farming being mostly of the subsistence variety.
 
Selected Answer: True

Question 36

2 out of 2 points

   
  (_________), executive body of the EU, drafts and implements legislation and enforces existing treaties.
 
Selected Answer: European Commission

Question 37

2 out of 2 points

   
  The Schengen Agreement abolished passport and border controls within the internal-national boundaries of the EU, with the aim to eliminate barriers to trade, investment, and the movement of labor.
 
Selected Answer: True

Question 38

2 out of 2 points

   
  In industries subject to high technological turbulence, the organizations will enjoy abnormal returns from alternative opportunities, rather than those created by their market knowledge competencies.
 
Selected Answer: True

Question 39

2 out of 2 points

   
  The wholly owned subsidiary is partially liable for specific aspects of the operation in the host country.
 
Selected Answer: False

Question 40

2 out of 2 points

   
  A primary characteristic of the globalization of markets is the advent of the (_________).
 
Selected Answer: Global consumer

Question 41

2 out of 2 points

   
  A (__________) is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.
 
Selected Answer: Strategic alliance

Question 42

2 out of 2 points

   
  One of the most important advantages in using an export management company is that it can handle all aspects of exporting a company’s product into the new market(s).
 
Selected Answer: True

Question 43

2 out of 2 points

   
  A turnkey project allows a novice corporation immediate presence within a foreign country and ease the initiation process into the marketplace.
 
Selected Answer: False

Question 44

0 out of 2 points

   
  The (___________) is relatively free to establish additional subsidiary and contracting  relationships  with  other  partners  in  the host country.
 
Selected Answer: Turnkey projects

Question 45

2 out of 2 points

   
  The percentage increase and decrease of a population and the average life expectancy in a global market serve as indicators of the global-market potential.
 
Selected Answer: True

Question 46

2 out of 2 points

   
  Low production cost in a country encourages local production.
 
Selected Answer: True

Question 47

2 out of 2 points

   
  Exporting and importing are great examples of high-risk entry modes into a new market.
 
Selected Answer: False

Question 48

2 out of 2 points

   
  Reactive reasons for motivation are based on the firm’s internal situation and are firm initiated.
 
Selected Answer: False

Question 49

2 out of 2 points

   
  Three questions are especially important to international expansion: (______), timing, and scale.
 
Selected Answer: Location

Question 50

0 out of 2 points

   
  The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.
 
Selected Answer: Openness to global trade

Question 51

2 out of 2 points

   
  The main difference between the two entry modes depends on how much risk and/or control an entering business is willing to take.
 
Selected Answer: True

Question 52

2 out of 2 points

   
  Small businesses cannot compete in the global economy.
 
Selected Answer: False

Question 53

2 out of 2 points

   
  (_________) enables a firm to penetrate markets that might not otherwise have been accessible because of foreign policy or laws.
 
Selected Answer: Licensing

Question 54

2 out of 2 points

   
  Possibly the greatest proactive motivation for global expansion is the prospect of (__________).
 
Selected Answer: Increased profits

Question 55

0 out of 2 points

   
  Franchise fees typically include an initial fee for the franchise and then a percentage of (______).
 
Selected Answer: Stock ownership

Question 56

0 out of 2 points

   
  The necessary conditions for global expansion include all of the following except for:
 
Selected Answer: capitalizing on special features of location

Question 57

2 out of 2 points

   
  In a (__________) agreement, each party provides some part of the production process, and the profits are shared between the two organizations.
 
Selected Answer: Joint venture

Question 58

2 out of 2 points

   
  The bureaucratic hierarchy is the most common centralized organizational structure.
 
Selected Answer: True

Question 59

2 out of 2 points

   
  The strategy of standardization requires the firm to tailor mass production products to meet the expectations of the customer.
 
Selected Answer: False

Question 60

2 out of 2 points

   
  The value chain is generally considered to consist of the acquisition of raw materials, finished goods manufacturing, and distribution channels.
 
Selected Answer: True

Question 61

0 out of 2 points

   
  The overall success of the business is dependent upon the efficiency and effectiveness of every function within the (_______) process.
 
Selected Answer: Financial

Question 62

0 out of 2 points

   
  The ABC Classification System allows managers to focus   on the most important items when forecasting, controlling, and scheduling inventories.
 
Selected Answer: [None Given]

Question 63

2 out of 2 points

   
  (__________) provide(s) the additional benefit of tax breaks, resulting from depreciation.
 
Selected Answer: Fixed assets

Question 64

0 out of 2 points

   
  In a (_____________), the most common centralized organizational structure, decision making is a top-down process.
 
Selected Answer: [None Given]

Question 65

2 out of 2 points

   
  In product-oriented firms, capacity is measured in terms of the total number of customers that can be served in a given amount of time.
 
Selected Answer: False

Question 66

0 out of 2 points

   
  The (__________) layout gives customers direct access to merchandise throughout the store.
 
Selected Answer: [None Given]

Question 67

2 out of 2 points

   
  (________) defines the goal or purpose of the organization, while (_________) defines how personnel will collectively implement the strategy.
 
Selected Answer: Strategy; structure

Question 68

0 out of 2 points

   
  Continuity is an important aspect of the (________) approach used by companies to acquire raw materials.
 
Selected Answer: [None Given]

Question 69

2 out of 2 points

   
  In the physical inventory control category, calculations are made to maintain sufficient inventories for predetermined supply chain system needs.
 
Selected Answer: False

Question 70

0 out of 2 points

   
  Factors that play into the make or buy decision include the following items except for: (______), (______), and (_________) of a product or component.
 
Selected Answer: [None Given]

Question 71

0 out of 2 points

   
  The (_____________) suggests that the greater gain will come from identifying which part of the process is a constraint to the whole, rather than focusing on increased output from an entire process.
 
Selected Answer: [None Given]

Question 72

2 out of 2 points

   
  Cost savings only result from looking for the cheapest method.
 
Selected Answer: False

Question 73

0 out of 2 points

   
  Integration is not a key issue of global logistics.
 
Selected Answer: [None Given]

Question 74

2 out of 2 points

   
  Becoming ISO certified requires the inspection of production processes, maintaining equipment, training workers, testing products, and dealing with customer complaints.
 
Selected Answer: True

Question 75

2 out of 2 points

   
  A key determinant in the facility location decision is the (_________) the site has to the organization’s largest customer base and suppliers.
 
Selected Answer: Proximity

 

 

·         Question 1

2 out of 2 points

The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed.
Selected Answer: Securities Exchange Commission

·         Question 2

2 out of 2 points

A (_________) notifies the investor of the price movement of shares he or she holds in the security exchange.
Selected Answer: Trade alert

·         Question 3

2 out of 2 points

A simpler way to calculate purchasing power parity between two countries is to compare the price of a (________) good that is in fact identical across countries.
Selected Answer: Standard

·         Question 4

0 out of 2 points

The major functions of the FX Market include conversion, (______), arbitrage, and  (_________).
Selected Answer: Speculation; trading

·         Question 5

2 out of 2 points

Speculators buy and sell commodities with the intention of making profits on price differentials across global markets.
Selected Answer: True

·         Question 6

2 out of 2 points

Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another.
Selected Answer: True

·         Question 7

2 out of 2 points

OTC participants trade on a physical trading floor.
Selected Answer: False

·         Question 8

0 out of 2 points

The main principle of trading on FX Markets is to select a pair of currencies and measure supply and demand by the fluctuation of one currency’s market activity compared to the other.
Selected Answer: True

·         Question 9

2 out of 2 points

(__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive.
Selected Answer: Inflation

·         Question 10

0 out of 2 points

The FX swap of currency amounts is normally variable.
Selected Answer: True

·         Question 11

2 out of 2 points

The public begins to experience the effects of deflation with an expanding money supply.
Selected Answer: False

·         Question 12

2 out of 2 points

A large percentage of all FX market transactions are spot transactions.
Selected Answer: True

·         Question 13

2 out of 2 points

A bond is a certificate with a certain monetary value.
Selected Answer: True

·         Question 14

2 out of 2 points

(______) rates indicate the exchange rate of one currency in units of another currency immediately.
Selected Answer: Spot

·         Question 15

2 out of 2 points

Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold.
Selected Answer: True

·         Question 16

2 out of 2 points

After the Gold Standard was discontinued in 1971, the (___________) followed the rule of supply and demand, and currencies started to flow freely between sellers and buyers in currency markets.
Selected Answer: Foreign Exchange (FX) Market

·         Question 17

2 out of 2 points

A currency board is a government’s bank and is capable of bailing out a failing bank.
Selected Answer: False

·         Question 18

2 out of 2 points

Traders who (________) are taking risks (staying open) because they buy and sell currencies based on the predicted rise and fall in price of a given currency.
Selected Answer: speculate

·         Question 19

0 out of 2 points

Opponents of (___________) have argued that the related agreements are dangerous because such agreements advance and establish procedures that protect participating nations from the benefits of free trade.
Selected Answer: Free Trade Agreement

·         Question 20

2 out of 2 points

The objective of the OECD is increasing economic welfare through  the  world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments.
Selected Answer: False

·         Question 21

2 out of 2 points

Preferential Trade Areas are suitable in cases where economic structures in signatory nations complement one another and trade in products that do not compete with each other.
Selected Answer: False

·         Question 22

2 out of 2 points

The Office of the United States Trade Representative (USTR) has shown that the overall effect of NAFTA has been negative for all member nations, especially the United States.
Selected Answer: False

·         Question 23

2 out of 2 points

Mercosur ranks as one of the four largest trading blocs and one of the largest economies in the world.
Selected Answer: True

·         Question 24

2 out of 2 points

The Council of Europe judges claims by member states that the European Commission has exceeded its authority.
Selected Answer: False

·         Question 25

0 out of 2 points

(________) was incorporated within the establishments of NAFTA.
Selected Answer: CACM

·         Question 26

2 out of 2 points

According to its proponents, (_________) helps nations take advantage of the unprecedented wealth the global economy is producing.
Selected Answer: Free trade

·         Question 27

2 out of 2 points

Signatory nations a part of CACM have not been able to achieve their wider aims of stronger economic and political unification because of a failure to settle (________).
Selected Answer: Trade disputes

·         Question 28

2 out of 2 points

Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality.
Selected Answer: True

·         Question 29

2 out of 2 points

The intent to form a trading bloc may range from the potential of trade creation to the desire for economic protectionism.
Selected Answer: True

·         Question 30

2 out of 2 points

History has displayed how conflicts can affect the supply and demand of oil resources, resulting in (______) fluctuation.
Selected Answer: Price

·         Question 31

2 out of 2 points

The first stage of economic integration is establishment of preferential or free trade agreements.
Selected Answer: True

·         Question 32

2 out of 2 points

All EU members are obliged to adopt the Euro as their national currency, with the exception of Great Britain and France.
Selected Answer: False

·         Question 33

2 out of 2 points

The (__________) approves the EU budget and seeks to coordinate the adoption of common economic, defense, and judicial policies across the EU.
Selected Answer: Council of Europe

·         Question 34

2 out of 2 points

Member nations of ECOWAS have tried to agree on a common currency: the Euro.
Selected Answer: False

·         Question 35

2 out of 2 points

Due to political and military tensions between India and Pakistan, SAARC has not been effective in integrating the economies of signatory nations.
Selected Answer: True

·         Question 36

2 out of 2 points

More than 60 percent of Africa’s people depend upon agriculture, with farming being mostly of the subsistence variety.
Selected Answer: True

·         Question 37

2 out of 2 points

(_________), executive body of the EU, drafts and implements legislation and enforces existing treaties.
Selected Answer: European Commission

·         Question 38

2 out of 2 points

A primary characteristic of the globalization of markets is the advent of the (_________).
Selected Answer: Global consumer

·         Question 39

2 out of 2 points

(______) and (________) generally requires a minimal initial investment and may allow a business to develop key relationships with export/import firms (intermediaries) that will aid in ensuring success into the new market.
Selected Answer: Exporting and importing

·         Question 40

2 out of 2 points

Exporting and importing are great examples of high-risk entry modes into a new market.
Selected Answer: False

·         Question 41

2 out of 2 points

Entering the market at the right time, or the wrong time can have tremendous effects on the success or failure of the expansion.
Selected Answer: True

·         Question 42

2 out of 2 points

(____________) are contracted to assist the experienced exporter in entering markets in unfamiliar countries.
Selected Answer: Export intermediaries

·         Question 43

2 out of 2 points

As one of the primary government facilitators for small businesses, the (_____) agency will provide corporate services, which include financing, trade counseling, and commodity brokerage.
Selected Answer: United States Small Business Administration

·         Question 44

2 out of 2 points

(__________) includes the attractiveness of the geography of region, the socioeconomics of the population, proximity to required resources, labor costs, costs of living, and quality of life variables.
Selected Answer: Geography and socio-economic attributes

·         Question 45

2 out of 2 points

Intermediaries can facilitate the transfer of goods and services from a company to the consumer in a new market.
Selected Answer: True

·         Question 46

2 out of 2 points

A licensor must invest into the foreign market because the licensee (more than likely) is not established in the market.
Selected Answer: False

·         Question 47

2 out of 2 points

The primary private sector facilitator for intermediaries, outside of export management and trading companies, are (__________).
Selected Answer: Commercial banks

·         Question 48

2 out of 2 points

Firms are better off selecting non-equity, (______)-investment entry modes in countries that have high environmental uncertainty.
Selected Answer: Low

·         Question 49

2 out of 2 points

(_________) enables a firm to penetrate markets that might not otherwise have been accessible because of foreign policy or laws.
Selected Answer: Licensing

·         Question 50

2 out of 2 points

Intermediaries are often considered “coaches” or outside consultants brought in to help steer the firm in the right exporting direction.
Selected Answer: False

·         Question 51

0 out of 2 points

Environmental turbulence has two dimensions: technological turbulence and (____________).
Selected Answer: Product dynamism

·         Question 52

2 out of 2 points

The (___________) is relatively free to establish additional subsidiary and contracting  relationships  with  other  partners  in  the host country.
Selected Answer: Wholly owned subsidiaries

·         Question 53

2 out of 2 points

Proactive reasons are based on the firm’s behavior with respect to the environment and adaptation to changes from outside the firm.
Selected Answer: False

·         Question 54

2 out of 2 points

Exporting also has its disadvantages, such as the high cost of transportation and the potential of (_________) being placed on incoming goods.
Selected Answer: tariffs

·         Question 55

2 out of 2 points

The (______________) is one of the global market knowledge competencies required to succeed in the global marketplace.
Selected Answer: Competitor knowledge process

·         Question 56

2 out of 2 points

Establishment of a wholly owned subsidiary in a foreign country is a high-risk challenge for even the largest of multinational corporations.
Selected Answer: True

·         Question 57

2 out of 2 points

Logistic decisions are made primarily on three different levels: strategic planning, network, and (_________).
Selected Answer: Operations

·         Question 58

2 out of 2 points

Efficient supply chain management is considered critical to the long-term success of an organization.
Selected Answer: True

·         Question 59

2 out of 2 points

Cost savings only result from looking for the cheapest method.
Selected Answer: False

·         Question 60

2 out of 2 points

Companies using a global outsourcing strategy mandate that their suppliers have a facility within a certain distance of the manufacturing facility.
Selected Answer: False

·         Question 61

2 out of 2 points

A key determinant in the facility location decision is the (_________) the site has to the organization’s largest customer base and suppliers.
Selected Answer: Proximity

·         Question 62

2 out of 2 points

The goal of the JIT management system is eliminating waste, making best use of cost efficiency, and creating and sustaining competitive advantage.
Selected Answer: True

·         Question 63

2 out of 2 points

Integration is not a key issue of global logistics.
Selected Answer: False

·         Question 64

2 out of 2 points

One popular option of environmentally friendly or “green” packaging is the use of (___________) – reusable containers that can be repeatedly used for refill by the supplier and in the transportation of materials.
Selected Answer: Returnables

·         Question 65

2 out of 2 points

A (____________) model does not allow for innovative thinking, nor does it engender employee initiative for problem solving.
Selected Answer: Centralized

·         Question 66

2 out of 2 points

The decentralized model allows decision-making authority to occur where the decisions are to be made, promoting innovation, initiative, and teamwork.
Selected Answer: True

·         Question 67

2 out of 2 points

The (_____________) suggests that the greater gain will come from identifying which part of the process is a constraint to the whole, rather than focusing on increased output from an entire process.
Selected Answer: Theory of Constraints

·         Question 68

2 out of 2 points

The intention behind (_________) management systems is to concentrate on eradicating waste and reducing warehouse inventories.
Selected Answer: Just in time

·         Question 69

2 out of 2 points

Inventory turnover rates being slower than expected are indicative of a global business experiencing inventory problems.
Selected Answer: True

·         Question 70

2 out of 2 points

(____________) allows a producer to adapt its products to a particular group of consumers.
Selected Answer: Mass customization

·         Question 71

2 out of 2 points

(__________) involves both management and labor in finding and eliminating waste in machinery, labor, materials, and production methods.
Selected Answer: Continuous improvement or Kaizen

·         Question 72

2 out of 2 points

Such considerations for (______) decisions include the degree of centralization/decentralization, degree of hierarchy, and number of echelons.
Selected Answer: Network level

·         Question 73

2 out of 2 points

The overall success of the business is dependent upon the efficiency and effectiveness of every function within the (_______) process.
Selected Answer: Production

·         Question 74

2 out of 2 points

The (__________) layout gives customers direct access to merchandise throughout the store.
Selected Answer: self-service

·         Question 75

2 out of 2 points

In a (__________) agreement, each party provides some part of the production process, and the profits are shared between the two organizations.
Selected Answer: Joint venture