mmuthanna
12/The operating exposure at the subsidiary lovel can be assessed…
12/The operating exposure at the subsidiary lovel can be assessed by investigating the
A.Exposure absorption capability on the output market side and exchange rate pass-through on the output market side
B.Exposure absorption capability on the Input market side and exchange rate pass-through on the input market side
C.Exposure absorption capability on the output market side and exchange rate pass-through on the input market side
D.Exposure absorption capability on the input market side and exchange rate pass-through on the output market side
13/Domino’s international outlets reach several hundred consumers in over a dozen foreign countries. The initial entry into a foreign market is based not only on a country’s market potential, but also on the existence of eligible local entrepreneurs who can buy the right to operate a business under the Domino’s hame and way of doing business and pay royalties to Domino.
A.Franchising
B.Exporting
C.Joint venture
D.Acquisition
14/According to Lessard and Liantstone, several actions can be undertaken
to reduce the impact of economic exposure. Which of the following is not one of these actions?
A.Having a flexible sourcing structure
B.Eliminating bounded rationality with the senior financial managers
C.Strengthen the firm’s capability to engage in exchange rate pass through
D.Shifting production from one country to another quickly and efficiently as a function of exchange rate fluctuations
15/According to Govindarajan, Rajgopal, and Srivastava in their HBR article.
what is the main weakness of the Generally Accepted Accounting Principles (GAAP) in relation to modern digital companies?
A.That GAP competes with the IRS accounting principles
B.That the number of users of modern digital companies exceeds the number of investors of modern digital companies
C.That it is typically neither available online nor on an app
D.That it was not designed with modern digital companies in mind and thus fails to capture their key performance indicators and sources of revenues
16/Which of the following is most likely a disadvantage to firms who use exporting
as an entry strategy?
A. unqualified foreign market managers
B difficulties withdrawing from foreign markets
C.lack of detailed knowledge about foreign customers.
D. high levels of political risk
28/Countries with varied climates and varied natural resources generally than countries with less varied climates and natural resources.
A.have lower per capita incomes
B.depend less heavily on trade
C.have more ethnic subgroups
D.??have higher endowments of capital relative to labor
29/As a leading exporter of luxury automobiles, Germany has built a strong reputation in engineering. Germany’s trade most likely relies on a(n)
A. outward immigration restriction
B. natural advantage
C.acquired advantage
D.neo-mercantilist policy
30/The most internationally mobile factor of production is
A.labor
B.management
C.long-term capital
D.short-term capital
31/ involve the exchange of currency the second day after the date on
which the two foreign-exchange traders agree to the transaction.
A.Spot transactions
B.Outright forward transactions
C. FX swaps
D.Reverse transactions
32/If a Big Mac costs $3.41 in the United States and $2.67 in Argentina (the price of a Big Mac in Argentine pesos converted into dollars at the spot exchange rate), which of the following is most likely true?
A.The peso is overvalued against the dollar.
B.The dollar is overvalued against the peso.
C.It should be harder for a U.S. tourist to buy a leather coat in Buenos Aires because the dollar won’t go very far.
D.It will be cheap for Argentine companies to invest in the United States because the dollar is relatively weak.
33/The FX rate has changed from $1.10/euro to $1.20/euro. Define how the value of euro has changed?
A.appreciation of the euro
B.depreciation of the euro
C.none of the above
D.all the above
34/Administrative orientation refers to
A.The managers’ interpretation of changes occurring in the relevant exter environment
B.The information management system within the ME
C.The perception by senior managers of what constitutes the relevant business environment
D.The distribution of power within the MNE
