Question 1

The extent to which a foreign company changes dollar prices of its products in the U.S. market as a result of exchange rate fluctuations is called:

Accepted Answer

A)  hedging. 
B)  exchange rate pass-through. 
C)  a target exchange rate. 
D)  factoring. 
E)  inflation-proofing. 
A)  hedging. 
B)  exchange rate pass-through. 
C)  a target exchange rate. 
D)  factoring. 
E)  inflation-proofing. B

Question 2

Increased demand for Asian _____________ has helped the region rebound quickly from the 1997 currency crisis.

Accepted Answer

A)  exports 
B)  imports 
C)  commodities 
D)  fruit 
E)  cars 
A)  exports 
B)  imports 
C)  commodities 
D)  fruit 
E)  cars A

Question 3

Double entry accounting, with respect to calculation of balance of payments calculation, means:

Accepted Answer

A)  the balance of payments statement must always balance. 
B)  the balance of payments statement will always favor the larger nation. 
C)  the balance of payments statement will always favor the smaller nation. 
D)  the balance of payments statement will never be in complete balance. 
E)  the balance of payments statement will rarely be accurate. 
A)  the balance of payments statement must always balance. 
B)  the balance of payments statement will always favor the larger nation. 
C)  the balance of payments statement will always favor the smaller nation. 
D)  the balance of payments statement will never be in complete balance. 
E)  the balance of payments statement will rarely be accurate. A

Question 4

The U.S. Department of Commerce prepares the balance of payments statement in the
United States.

Accepted Answer

A) True 
 B)False

Question 5

In the 1960s, the United States began to experience sequential balance of payments
deficits.

Accepted Answer

A) True 
 B)False

Question 6

The value of SDRs is determined by a weighted average of a basket of four currencies:

Accepted Answer

A)  the U.S. dollar, the Japanese yen, the euro, and the Swiss franc. 
B)  the U.S. dollar, the Japanese yen, the euro, and the French franc. 
C)  the U.S. dollar, the Japanese yen, the euro, and the British pound. 
D)  the U.S. dollar, the Japanese yen, the euro, and the Italian lira. 
E)  none of the above. 
A)  the U.S. dollar, the Japanese yen, the euro, and the Swiss franc. 
B)  the U.S. dollar, the Japanese yen, the euro, and the French franc. 
C)  the U.S. dollar, the Japanese yen, the euro, and the British pound. 
D)  the U.S. dollar, the Japanese yen, the euro, and the Italian lira. 
E)  none of the above.

Question 7

In 1994, China's devaluation of its currency triggered the Asian financial
crisis.

Accepted Answer

A) True 
 B)False

Question 8

One creation of the Bretton Woods Agreement was the International Bank for Reconstruction and Development, known as ________________.

Accepted Answer

A)  the Merchant Bank. 
B)  the Monetary Bank. 
C)  the World Bank. 
D)  the European Bank. 
E)  none of the above. 
A)  the Merchant Bank. 
B)  the Monetary Bank. 
C)  the World Bank. 
D)  the European Bank. 
E)  none of the above.

Question 9

The problem with tight exchange controls is that often they promote a _________________________.

Accepted Answer

A)  black market 
B)  white market 
C)  flat market 
D)  slim market 
E)  regular market 
A)  black market 
B)  white market 
C)  flat market 
D)  slim market 
E)  regular market

Question 10

The ___________________________ refers to the movement of prices and incomes in a country.

Accepted Answer

A)  external market adjustment 
B)  internal market adjustments 
C)  linear market adjustment 
D)  upward market adjustment 
E)  downward market adjustment 
A)  external market adjustment 
B)  internal market adjustments 
C)  linear market adjustment 
D)  upward market adjustment 
E)  downward market adjustment

Question 11

According to the text, EMU will have a strategic impact on companies' following 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 12

All of the following are purposes of the International Monetary Fund (IMF) EXCEPT:

Accepted Answer

A)  To promote international monetary cooperation through a permanent institution. 
B)  To facilitate the expansion and balanced growth of international trade. 
C)  To develop a world currency by 2010. 
D)  To promote exchange stability. 
E)  To give confidence to members by making the general resources of the fund temporarily available to them under adequate safeguards. 
A)  To promote international monetary cooperation through a permanent institution. 
B)  To facilitate the expansion and balanced growth of international trade. 
C)  To develop a world currency by 2010. 
D)  To promote exchange stability. 
E)  To give confidence to members by making the general resources of the fund temporarily available to them under adequate safeguards.

Question 13

Argentina's currency woes are attributed 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 14

Factors that might influence foreign exchange rates with respect to political factors would include election year or leadership change and:

Accepted Answer

A)  money supply. 
B)  balance of payments. 
C)  exchange rate control as imposed by a government. 
D)  size of the military. 
E)  amount of armed conflict in the world. 
A)  money supply. 
B)  balance of payments. 
C)  exchange rate control as imposed by a government. 
D)  size of the military. 
E)  amount of armed conflict in the world.

Question 15

The U.S. trade deficit has pushed the value of the U.S. dollar _______________.

Accepted Answer

A)  forward 
B)  backward. 
C)  inward3 
D)  upward. 
E)  downward. 
A)  forward 
B)  backward. 
C)  inward3 
D)  upward. 
E)  downward.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Protecting oneself against potential loss is called _________________.

Accepted Answer

The answer of Protecting oneself against potential loss is called...

Question 18

_____________ float is the closest approximation to perfect competition, because there is no government intervention and because billions of units of currency are
Being traded by buyers and sellers.

Accepted Answer

A)  Managed (clean) 
B)  Managed (dirty) 
C)  Vertical 
D)  Free (clean) 
E)  Horizontal 
A)  Managed (clean) 
B)  Managed (dirty) 
C)  Vertical 
D)  Free (clean) 
E)  Horizontal

Question 19

The ERM stands for:

Accepted Answer

A)  European Region Mechanism. 
B)  European Rate Mechanism. 
C)  European Research Mechanism. 
D)  European Railroad Mechanism. 
E)  none of the above. 
A)  European Region Mechanism. 
B)  European Rate Mechanism. 
C)  European Research Mechanism. 
D)  European Railroad Mechanism. 
E)  none of the above.

Question 20

The balance of payments in goods account or ____________ shows trade in currently produced goods as well as unilateral transfers of merchandise.

Accepted Answer

A)  current account balance 
B)  capital account 
C)  trade balance 
D)  direct investments 
E)  portfolio investment 
A)  current account balance 
B)  capital account 
C)  trade balance 
D)  direct investments 
E)  portfolio investment

The extent to which a foreign company changes dollar prices of its products in the U.S. market as a result of exchange rate fluctuations is called:

Increased demand for Asian _____________ has helped the region rebound quickly from the 1997 currency crisis.

Double entry accounting, with respect to calculation of balance of payments calculation, means:

The U.S. Department of Commerce prepares the balance of payments statement in the United States.

In the 1960s, the United States began to experience sequential balance of payments deficits.

The value of SDRs is determined by a weighted average of a basket of four currencies:

In 1994, China's devaluation of its currency triggered the Asian financial crisis.

One creation of the Bretton Woods Agreement was the International Bank for Reconstruction and Development, known as ________________.

The problem with tight exchange controls is that often they promote a _________________________.

The ___________________________ refers to the movement of prices and incomes in a country.

According to the text, EMU will have a strategic impact on companies' following operations EXCEPT:

All of the following are purposes of the International Monetary Fund (IMF) EXCEPT:

Argentina's currency woes are attributed to its own ______________ policy.

Factors that might influence foreign exchange rates with respect to political factors would include election year or leadership change and:

The U.S. trade deficit has pushed the value of the U.S. dollar _______________.

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

Protecting oneself against potential loss is called _________________.

_____________ float is the closest approximation to perfect competition, because there is no government intervention and because billions of units of currency are Being traded by buyers and sellers.

The ERM stands for:

The balance of payments in goods account or ____________ shows trade in currently produced goods as well as unilateral transfers of merchandise.

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

The extent to which a foreign company changes dollar prices of its products in the U.S. market as a result of exchange rate fluctuations is called:

Increased demand for Asian _____________ has helped the region rebound quickly from the 1997 currency crisis.

Double entry accounting, with respect to calculation of balance of payments calculation, means:

The U.S. Department of Commerce prepares the balance of payments statement in the United States.

In the 1960s, the United States began to experience sequential balance of payments deficits.

The value of SDRs is determined by a weighted average of a basket of four currencies:

In 1994, China's devaluation of its currency triggered the Asian financial crisis.

One creation of the Bretton Woods Agreement was the International Bank for Reconstruction and Development, known as ________________.

The problem with tight exchange controls is that often they promote a _________________________.

The ___________________________ refers to the movement of prices and incomes in a country.

According to the text, EMU will have a strategic impact on companies' following operations EXCEPT:

All of the following are purposes of the International Monetary Fund (IMF) EXCEPT:

Argentina's currency woes are attributed to its own ______________ policy.

Factors that might influence foreign exchange rates with respect to political factors would include election year or leadership change and:

The U.S. trade deficit has pushed the value of the U.S. dollar _______________.

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

Protecting oneself against potential loss is called _________________.

_____________ float is the closest approximation to perfect competition, because there is no government intervention and because billions of units of currency are Being traded by buyers and sellers.

The ERM stands for:

The balance of payments in goods account or ____________ shows trade in currently produced goods as well as unilateral transfers of merchandise.

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