Question 1

When a buyer locks in an exchange rate and avoids the risk of currency fluctuations, it is called:

Accepted Answer

A) the spot market. 
B) the gray market. 
C) vertical purchasing. 
D) currency hedging. 
E) factoring. 
A) the spot market. 
B) the gray market. 
C) vertical purchasing. 
D) currency hedging. 
E) factoring.

Question 2

One of the most fundamental determinates of the exchange rate is purchasing power places.

Accepted Answer

A) True 
 B)False

Question 3

Argentina's currency woes were attributed in part to its own ______________ policy.

Accepted Answer

A) social 
B) political 
C) global 
D) exchange 
E) monetary 
A) social 
B) political 
C) global 
D) exchange 
E) monetary

Question 4

In January 1999, ________ European countries surrendered their rights to issue their own money.

Accepted Answer

A) five 
B) eight 
C) ten 
D) eleven 
E) twelve 
A) five 
B) eight 
C) ten 
D) eleven 
E) twelve

Question 5

The World Bank was initially intended for:

Accepted Answer

A) financing postwar reconstruction and development in Japan. 
B) financing postwar reconstruction and development in France. 
C) financing postwar reconstruction and development in Italy. 
D) financing postwar reconstruction and development in Russia. 
E) financing postwar reconstruction and development in Europe. 
A) financing postwar reconstruction and development in Japan. 
B) financing postwar reconstruction and development in France. 
C) financing postwar reconstruction and development in Italy. 
D) financing postwar reconstruction and development in Russia. 
E) financing postwar reconstruction and development in Europe.

Question 6

Since the 1970s, all major nations have had _____ currencies.

Accepted Answer

A) floating 
B) fixed 
C) common 
D) adjustable 
E) pegged 
A) floating 
B) fixed 
C) common 
D) adjustable 
E) pegged

Question 7

According to the theory of international trade and balance of payments, a surplus or deficit in a country's basic balance should be:

Accepted Answer

A) always weighted toward the deficit side. 
B) always weighted toward the surplus side. 
C) self-correcting. 
D) continually out of balance. 
E) only brought into balance by government tariff action. 
A) always weighted toward the deficit side. 
B) always weighted toward the surplus side. 
C) self-correcting. 
D) continually out of balance. 
E) only brought into balance by government tariff action.

Question 8

According to the text, the EMU and the euro have a strategic impact on elements of companies' operations EXCEPT:

Accepted Answer

A) price transparency. 
B) supply chains. 
C) hiring practices. 
D) new opportunities for small and medium-sized companies. 
E) intensified competitive pressures. 
A) price transparency. 
B) supply chains. 
C) hiring practices. 
D) new opportunities for small and medium-sized companies. 
E) intensified competitive pressures.

Question 9

Foreign exchange refers to the exchange of one country's money for that of another country.

Accepted Answer

A) True 
 B)False

Question 10

In Europe, EU regulations do not cross national boundaries.

Accepted Answer

A) True 
 B)False

Question 11

The adoption of the euro in the European Union took place in 1990.

Accepted Answer

A) True 
 B)False

Question 12

The __________________________________ was established at Bretton Woods.

Accepted Answer

A) Global Monetary Fund 
B) European Monetary Fund 
C) International Monetary Fund (IMF) 
D) Asian Monetary Fund 
E) None of the above 
A) Global Monetary Fund 
B) European Monetary Fund 
C) International Monetary Fund (IMF) 
D) Asian Monetary Fund 
E) None of the above

Question 13

The __________________ of a nation summarizes all the transactions that have taken place between its residents and the residents of other countries over a specified time period (usually a month, quarter or a year).

Accepted Answer

A) target exchange rate 
B) portfolio acquisition 
C) balance of payments 
D) debt accumulation 
E) exchange inflation 
A) target exchange rate 
B) portfolio acquisition 
C) balance of payments 
D) debt accumulation 
E) exchange inflation

Question 14

The government entity which prepares the balance of payments statement in the United States is:

Accepted Answer

A) the Federal Reserve. 
B) the Internal Revenue Service. 
C) the Customs Department. 
D) the Department of Commerce. 
E) the Federal Communications Commission. 
A) the Federal Reserve. 
B) the Internal Revenue Service. 
C) the Customs Department. 
D) the Department of Commerce. 
E) the Federal Communications Commission.

Question 15

In the 1960s, the _______________ was the reserve currency, convertible to gold under the Bretton Woods Agreement.

Accepted Answer

A) Australian dollar 
B) Canadian dollar 
C) U.S.dollar 
D) Hong Kong dollar 
E) None of the above 
A) Australian dollar 
B) Canadian dollar 
C) U.S.dollar 
D) Hong Kong dollar 
E) None of the above

Question 16

The balance of payments on goods shows trade in currently produced goods.

Accepted Answer

A) True 
 B)False

Question 17

Protecting oneself against potential loss is called:

Accepted Answer

A) hedging. 
B) factoring. 
C) risk analysis. 
D) portfolio reduction strategy. 
E) devaluing. 
A) hedging. 
B) factoring. 
C) risk analysis. 
D) portfolio reduction strategy. 
E) devaluing.

Question 18

One of the functions of the International Monetary Fund (IMF) was to monitor problems that a country might experience in maintaining equilibrium in its balance of payments.By agreement, countries would need permission from the IMF to alter their peg if the initial par value was to be adjusted by more than 10%.

Accepted Answer

A) True 
 B)False

Question 19

The Bretton Woods conference recommended that a monetary system was needed that would recognize that exchange rates were both a national and international concern.

Accepted Answer

A) True 
 B)False

Question 20

The European Monetary System (EMS) was established in the late 1950s.

Accepted Answer

A) True 
 B)False

When a buyer locks in an exchange rate and avoids the risk of currency fluctuations, it is called:

One of the most fundamental determinates of the exchange rate is purchasing power places.

Argentina's currency woes were attributed in part to its own ______________ policy.

In January 1999, ________ European countries surrendered their rights to issue their own money.

The World Bank was initially intended for:

Since the 1970s, all major nations have had _____ currencies.

According to the theory of international trade and balance of payments, a surplus or deficit in a country's basic balance should be:

According to the text, the EMU and the euro have a strategic impact on elements of companies' operations EXCEPT:

Foreign exchange refers to the exchange of one country's money for that of another country.

In Europe, EU regulations do not cross national boundaries.

The adoption of the euro in the European Union took place in 1990.

The __________________________________ was established at Bretton Woods.

The __________________ of a nation summarizes all the transactions that have taken place between its residents and the residents of other countries over a specified time period (usually a month, quarter or a year).

The government entity which prepares the balance of payments statement in the United States is:

In the 1960s, the _______________ was the reserve currency, convertible to gold under the Bretton Woods Agreement.

The balance of payments on goods shows trade in currently produced goods.

Protecting oneself against potential loss is called:

The Bretton Woods conference recommended that a monetary system was needed that would recognize that exchange rates were both a national and international concern.

The European Monetary System (EMS) was established in the late 1950s.

Globalization Imperative

Economic Environment

Global Cultural Environment and Buying Behavior

Political and Legal Environment

Global Marketing Research

Global Segmentation and Positioning

Global Marketing Strategies

Global Market Entry Strategies

Global Product Policy Decisions I: Developing New Products for Global Markets

Global Product Policy Decisions Ii: Marketing Products and Services

Global Pricing

Global Communication Strategies

Sales Management

Global Logistics and Distribution

Export and Import Management

Planning, Organization, and Control of Global Marketing Operations

Marketing Strategies for Emerging Markets

Global Marketing and the Internet

Sustainable Marketing in the Global Marketplace

Filters

Exam 3: Financial Environment

When a buyer locks in an exchange rate and avoids the risk of currency fluctuations, it is called:

One of the most fundamental determinates of the exchange rate is purchasing power places.

Argentina's currency woes were attributed in part to its own ______________ policy.

In January 1999, ________ European countries surrendered their rights to issue their own money.

The World Bank was initially intended for:

Since the 1970s, all major nations have had _____ currencies.

According to the theory of international trade and balance of payments, a surplus or deficit in a country's basic balance should be:

According to the text, the EMU and the euro have a strategic impact on elements of companies' operations EXCEPT:

Foreign exchange refers to the exchange of one country's money for that of another country.

In Europe, EU regulations do not cross national boundaries.

The adoption of the euro in the European Union took place in 1990.

The __________________________________ was established at Bretton Woods.

The __________________ of a nation summarizes all the transactions that have taken place between its residents and the residents of other countries over a specified time period (usually a month, quarter or a year).

The government entity which prepares the balance of payments statement in the United States is:

In the 1960s, the _______________ was the reserve currency, convertible to gold under the Bretton Woods Agreement.

The balance of payments on goods shows trade in currently produced goods.

Protecting oneself against potential loss is called:

The Bretton Woods conference recommended that a monetary system was needed that would recognize that exchange rates were both a national and international concern.

The European Monetary System (EMS) was established in the late 1950s.

Globalization Imperative

Economic Environment

Global Cultural Environment and Buying Behavior

Political and Legal Environment

Global Marketing Research

Global Segmentation and Positioning

Global Marketing Strategies

Global Market Entry Strategies

Global Product Policy Decisions I: Developing New Products for Global Markets

Global Product Policy Decisions Ii: Marketing Products and Services

Global Pricing

Global Communication Strategies

Sales Management

Global Logistics and Distribution

Export and Import Management

Planning, Organization, and Control of Global Marketing Operations

Marketing Strategies for Emerging Markets

Global Marketing and the Internet

Sustainable Marketing in the Global Marketplace

Filters