Question : 51. (p. 530) What the best way to describe the relationship of international : 1242163

51. (p. 530) What is the best way to describe the relationship of international currencies to one another? 
A. All currencies are related to the dollar for contractual purposes.
B. There is a stable standard in the world against which all other currencies are pegged.
C. All major currencies are free floating relative to one another.
D. The UN mandates currency valuation.
E. The World Bank mandates currency valuation.

52. (p. 531) When the value of the dollar is weak relative to the buyer’s currency, companies generally employ _____. 
A. competition-based pricing
B. demand-based pricing
C. supply-based pricing
D. psychological pricing
E. cost-plus pricing

53. (p. 532) Currency exchange rate swings are considered by many global companies to be a(n): 
A. opportunity for windfall profits.
B. uncontrollable without a strong U.S. dollar.
C. standard seasonal variation.
D. cost of doing business.
E. major pricing problem.

54. (p. 532) In most countries, channels are _____ and middleman margins _____ than is customary in the United States. 
A. longer; higher
B. shorter; higher
C. longer; lower
D. shorter; lower
E. bigger; smaller

55. (p. 534) One important reason for manufacturing in a third country is an attempt to _____ and thus price escalation. 
A. increase the number of successful product introductions
B. deliver products to market in half the time
C. continue to increase margins annually
D. improve reliability
E. reduce manufacturing costs

56. (p. 534) China is emerging as a global manufacturing powerhouse backed by all of the following EXCEPT: 
A. an inexpensive labor force.
B. rapidly improving production quality.
C. new sources of capital.
D. a deliberately overvalued currency.
E. a more dynamic private sector.

57. (p. 534) Lowering manufacturing costs can often have a double benefit: The lower price to the buyer may also mean lower tariffs, because most tariffs are levied on a(n) _____ basis. 
A. specific
B. alternative
C. prohibitive
D. compound
E. ad valorem

58. (p. 534) In Russia, Johnson & Johnson’s 2-in-1 Shower Gel is considered to be a cosmetic (20 percent tariff). J&J would like it to be considered as a soap substitute (15 percent tariff). This points out which of the following strategies that companies generally prefer in foreign markets with respect to tariffs? 
A. Shift the demand for the high tariff product.
B. Ask for reclassification of the product to a lower customs classification.
C. Question the host country’s definitions.
D. Withdraw the product from a country that is obviously ripping-off manufacturers.
E. Switch to typical generic labeling.

59. (p. 536) A foreign trade zone is an important method for controlling which of the following? 
A. Theft
B. Labor problems at home
C. Price escalation
D. Profiteering
E. Deflation

60. (p. 536) Drew’s company imports materials and parts into an FTZ within the United States and then exports finished products to other countries. Her company will have to pay: 
A. tariffs based on the value of the materials.
B. tariffs based on the value of the parts.
C. tariffs based on the value of the parts and materials.
D. tariffs based on the value of the finished products when they leave the country.
E. no tariffs.