Liberty University BUSI 604 Test 2
Question 1 2 out of 2 points
The public begins to experience the e”ects of deflation with an expanding money supply.
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Question 2 2 out of 2 points
Global financial markets are important to lenders for two major reasons: (1) expanding ( ) and (2) reducing ( ).
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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 e”ect on exports and imports.
Selected Answer: Revaluation
Question 4 2 out of 2 points
While hedging may protect against ( ), it may eliminate a potential for unexpected ( ).
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Question 5 2 out of 2 points
( )is the largest informational platform that international traders use to communicate FX exchange rates.
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Question 6 0 out of 2 points
The end result of the global competition is higher ( ) and lower ( ) for consumers.
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prices; exchange rates
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.
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Question 8 2 out of 2 points
The two most popular products traded on security exchange markets are stocks and treasury bills.
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Question 9 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.
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Question 10 2 out of 2 points
Volatility represents the possibility of a change in exchange rates projected over a year.
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Question 11 0 out of 2 points
Many nations restrict hedging of their currencies due to their national and international policies and interests.
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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.
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Question 13 2 out of 2 points
( ) are used as an alternative to borrowing and lending in the Eurodollar and other o”shore markets.
Selected Answer: FX swaps
Question 14 2 out of 2 points
A bond is a certificate with a certain monetary value.
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Question 15 2 out of 2 points
The di”erence between a ( ) rate and a ( ) rate is termed a forward discount.
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Question 16 2 out of 2 points
In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets.
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Question 17 0 out of 2 points
The major di”erence between the currency futures market and the OTC market is that futures settle gains and losses on a daily basis through the margin mechanism.
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Question 18 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.
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Question 19 2 out of 2 points
Non-tari” barriers involve financial methods (e.g., taxes on imports) of protecting national industries from competition by foreign corporations.
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Question 20 0 out of 2 points
( ) is the United States’ second largest trading partner in Africa behind Nigeria whose exports are almost exclusively petroleum products.
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Question 21 2 out of 2 points
ASEAN association members also undertake to avoid interference in the internal a”airs of one another and are committed to the settlement of di”erences or disputes by peaceful means.
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Question 22 2 out of 2 points
( ), executive body of the EU, drafts and implements legislation and enforces existing treaties.
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Question 23 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.
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Question 24 2 out of 2 points
Member nations of ECOWAS have tried to agree on a common currency: the Euro.
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Question 25 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 26 2 out of 2 points
More than 60 percent of Africa’s people depend upon agriculture, with farming being mostly of the subsistence variety.
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Question 27 2 out of 2 points
The stages of regional economic integration are as follows: Free Trade Agreement, ( ), Common Market, Economic Union, and ( ).
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Question 28 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.
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Question 29 2 out of 2 points
( ) has been stripped of its member rights to Mercosur and must renegotiate its membership.
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Question 30 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.
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Question 31 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 32 2 out of 2 points
Freedom and the absence of random violence is not one of the five basic goals espoused by national governments.
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Question 33 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.
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Question 34 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.
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Question 35 2 out of 2 points
The Caribbean Community and Common Market (CARICOM) is an example of a ( ).
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Question 36 2 out of 2 points
Trading blocs can provide protection from global competitiveness prompted by nations outside of the bloc.
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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.
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Question 38 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.
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Question 39 2 out of 2 points
Economic factors that a”ect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment.
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Question 40 0 out of 2 points
Intermediaries are often considered “coaches” or outside consultants brought in to help steer the firm in the right exporting direction.
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Question 41 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.
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Question 42 2 out of 2 points
Possibly the greatest proactive motivation for global expansion is the prospect of ( ).
Selected Answer: Increased profits
Question 43 2 out of 2 points
Market entry motivation can be classified into two separate areas: (1) ( ) and (2) ( ).
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Question 44 2 out of 2 points
Two types of entry modes are available into a market: ( ) intensity or ( ) intensity.
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Question 45 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.
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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.
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Question 47 2 out of 2 points
Exporting and importing are great examples of high-risk entry modes into a new market.
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Question 48 2 out of 2 points
Entering the market at the right time, or the wrong time can have tremendous e”ects on the success or failure of the expansion.
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Question 49 2 out of 2 points
The key factors that influence the entry mode selection are as follows:
Selected Answer: organization structure
Question 50 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.
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Question 51 2 out of 2 points
Intermediaries can facilitate the transfer of goods and services from a company to the consumer in a new market.
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Question 52 2 out of 2 points
Low production cost in a country encourages local production.
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Question 53 2 out of 2 points
In attractive markets, short-term profitability for a firm is expected to be provided through these investment modes.
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Question 54 2 out of 2 points
The main di”erence between the two entry modes depends on how much risk and/or control an entering business is willing to take.
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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.
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Question 56 2 out of 2 points
Firms are better o” selecting non-equity, ( )-investment entry modes in countries that have high environmental uncertainty.
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Question 57 2 out of 2 points
Inventory turnover rates being slower than expected are indicative of a global business experiencing inventory problems.
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Question 58 2 out of 2 points
Currently, 3PLs are limited to noncritical processes within an organization.
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Question 59 2 out of 2 points
An interlocking directorate allows the organization the opportunity to more e”ectively coordinate the output of raw materials to meet the needs of the manufacturing operation.
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Question 60 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.
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Question 61 2 out of 2 points
The strategy of standardization requires the firm to tailor mass production products to meet the expectations of the customer.
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Question 62 2 out of 2 points
Quality e”orts begin and end with lower level employees.
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Question 63 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.
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Question 64 2 out of 2 points
( ) is a codification or assurance of quality – an internationally recognized certification system or process.
Selected Answer: ISO
Question 65 2 out of 2 points
Fixed assets includes items normally consumed in the course of business operation or production.
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Question 66 2 out of 2 points
The free-flow pattern provides customers ease of movement and is visually appealing.
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Question 67 2 out of 2 points
( ) defines the goal or purpose of the organization, while ( ) defines how personnel will collectively implement the strategy.
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Question 68 2 out of 2 points
It is crucial for a company to reevaluate strategic level decisions at least once
a year.
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Question 69 2 out of 2 points
Financial management specifically involves the management of the process and production activities that produce the goods or services.
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Question 70 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.
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Question 71 2 out of 2 points
( ) involves both management and labor in finding and eliminating waste in machinery, labor, materials, and production methods.
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Question 72 2 out of 2 points
In the physical inventory control category, calculations are made to maintain sufficient inventories for predetermined supply chain system needs.
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Question 73 2 out of 2 points
The intention behind ( ) management systems is to concentrate on eradicating waste and reducing warehouse inventories.
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Question 74 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.
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Question 75 2 out of 2 points
( ) provide(s) the additional benefit of tax breaks, resulting from depreciation.
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