Canada, Mexico, and the United States have implemented North American Free Trade Agreement (NAFTA)???
47. Argentina, Brazil, Paraguay, and Uruguay established Mercosur???
48. Thirty-four countries in the Americas are currently negotiating to establish the Free Trade Area of the Americas (FTAA)???
49. Twenty-one Pacific Rim countries including the NAFTA countries, Japan, and China have been discussing a pan-Pacific free trade area under the auspices of the Asian Pacific Economic Cooperation forum (APEC)
50. _______ are the most common form of economic integration.
Free trade agreement
51. _______ account for _______ percent of all regional economic integration.
Free trade agreement 90 %
52. Which of the following selections accurately depicts the levels of economic integration from least integrated to most integrated? Free trade area, customs union, common market, economic union, and full political union
53. In a _________, there are no discriminatory tariffs, quotas, subsidies, or administrative impediments allowed to distort trade between members. free trade area
54. In a free trade area Barriers to the trade of goods and services among member nations are removed
55 In a ____, no discriminatory tariffs, quotas, subsidies, or administrative impediments are allowed to distort trade between member nations. Each country, however, is allowed to determine its own trade policies with regard to nonmembers. Free trade area
56. Adverse consequences of unpredictable changes in exchange rates is known as Foreign exchange risk
57. Which of the following statements is true? It has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between members.???
58. The __________ helps us to compare the relative prices of goods and services in different countries. Exchange rate
59. The foreign exchange market serves two main functions. These are Convert the currency of the country into the currency of another and provide some insurance against foreign exchange risk
60. When a tourist exchanges one currency into another, she is participating in the: foreign exchange market
61. A pair of shoes costs £30 in Britain. The identical pair costs $45 in the U.S. The exchange rate is £1=$1.80. Where should you buy the shoes? The U.S. offers a better deal
62. Which of the following correctly matches a country with its currency? Japan - the yen
63. An exchange rate of ą1=$1.30 specifies that one euro buys 1.30 dollars
64. Which of the following is not one of the four main uses that international businesses have for the foreign exchange market? International businesses use foreign exchange markets in determining domestic wage rates.
65. If a company expects the ____ relative to the Japanese yen, the company might invest $10 million and receive ¥1.2billion. ($1=¥120 now, $1=¥100 in 90 days)
A. dollar to appreciate B. dollar to depreciate??? C. the to be undervalued D. the yen to be overvalued
66. When two parties agree to exchange currency and execute the deal immediately, the transaction is referred to as a Spot exchange.
67. The short-term movement of funds from one currency to another in the hopes of profiting from shifts in exchange rates is Currency Speculation
68. The Spot exchange rate is the rate at which a foreign exchange dealer converts one currency into another currency on a particular day.
69. When a speculator thinks a currency is _______, the speculator believes the currency will ________.
70. The _____ formed the framework for the post World War II international monetary system.
71. The IMF maintains order in the international monetary system.
72. The ______ role in the international monetary system was to promote development.
73. The key failure of the gold standard was that
-many governments financed their World War I expenditures by printing money and so, created inflation
-People lost confidence in the system
demanded gold for their currency putting pressure on countries' gold reserves, and forcing them to suspend gold convertibility
74. By the _______, the gold standard was finished.
1939 or WWI
75. Many _____ countries follow a pegged exchange rate regime.
76. About _____ percent of IMF members allow their currencies to float freely.
14 % (!)
77. Approximately ______ percent of IMF members follow a fixed peg exchange rate system.
26 % (!)
78. The goal of most firms is to choose a strategy that
increase profitability and profit growth
79. Two basic conditions determine a firm's profits: The amount of value customers place on the firm's products and the costs of production
80. The actions that managers take to attain the goals of the firm are known as the firmís Strategy
81. A strategy that focuses on lowering production costs is referred to as a: Low cost strategy
82. A firmís value creation can be measured as the difference between V (the price that the firm can charge for that product given competitive pressures) and C (the costs of producing that product)
83. Which of the following is an example of a primary activity in the value chain? Research and Development
84. _Primary_ activities have to do with the design, creation, and delivery of the product; its marketing; and its support and after sale service.
85. When a firm has a strategic goal of pursuing a low cost strategy on a global scale, the firm should follow Global standardization strategy
86. Localization is appropriate when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.
87. By organizational structure we mean all of the following except The manner in which decisions are made and work is performed by individuals
88. Which of the following is not part of organizational structure? The manner in which decisions are made and work is performed by individuals
89. In firms pursuing a localization strategy, the level of performance ambiguity is Low
90. In firms pursuing a transnational strategy interdependence is High, ambiguity is High, and performance costs of control are High.
91. In firms pursuing either Global or transnational, the usefulness of output controls is limited by substantial performance ambiguity.
92. Interdependence is low, ambiguity is low, and performance costs of control are low in firms pursuing a Localization strategy.
93. Interdependence is very high, ambiguity is very high, and performance costs of control are very high in firms pursuing a Transnational strategy.
94. Human resource management refers to the activities an organization carries out to utilize its human resources effectively.
95. A citizen of one country who is working abroad in one of the firmís subsidiaries is known as a(n) Inpatriate manager
96. A Ethnocentric policy for staffing involves filling all key management positions with parent company nationals.
97. A 1996 study by the Japanese Overseas Enterprise Association found that most Japanese companies used a(n) _______ approach to staffing foreign subsidiaries.
98. A firm that is trying to maintain a unified corporate culture will pursue an Ethnocentric staffing policy.
99. When a firm believes the host country lacks qualified individuals to fill senior management positions, the firm will pursue a ______ staffing policy.
100. A(n) polycentric staffing policy requires host country nationals to be recruited to manage subsidiaries, while parent company nationals occupy key positions at corporate headquarters.
101. A polycentric approach to staffing may be attractive because the approach ______ and _____.
Is inexpensive to implement and decreases the costs of value creation (!)
102. Firms may avoid the polycentric approach to staffing because it limits career mobility and isolates headquarters from foreign subsidaries