IBUS 401 Final Exam USC Exam comprehensive
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Terms in this set (78)
Which of the following theories identifies the non-
Imperfect Markets Theory transferability of resources as a reason for
international business?
(T/F) Licensing is the process by which a firm provides
it's technology (copyrights, patents, trademarks, or
True
trade names) in exchange for fees or some other
specified benefits
(T/F) The Sarbanes-Oxley Act (SOX) was enacted in
2002 required MNCs and other firms to implement an
True
internal reporting process that could be easily
monitored by executives and the board of directors
(T/F) A centralized management style, where major
False decisions about a foreign subsidiary are made by the
parent company, results in an increase in agency costs
Balance of Trade The primary component of the current account is the:
Which of the following is mentioned in the text as a
It could attempt to reduce possible means by which a government may attempt
its home currency value to improve its balance of trade position (increase its
exports or reduce its imports)
, (T/F) A balance of trade deficit indicates an excess of
True
imports over exports
(T/F) A weakening of the U.S dollar with respect to the
False British pound would likely reduce U.S. exports to the
U.K. and increase U.S. imports from the U.K.
Assume that a bank's bid rate on Swiss francs is $0.45
About 4.26% and its ask rate is $0.47. Its bid-ask percentage spread
is:
Order Costs ______________ is a factor that affects the bid/ask spread.
Inventory Costs
Volume
Obtain a 90-day forward If a U.S. firm desires to avoid risk from exchange rate
purchase contract on fluctuations, and it will need C$200,000 in 90 days to
Canadian dollars make a payment on imports from Canada, it could:
(T/F) A put option is the amount or percentage by
False
which the existing spot rate exceeds the forward rate
Sold on an exchange; Futures contracts are typically ______________; forward
offered by commercial contracts are typically _____________.
banks
(T/F) In general, when speculating on exchange rate
movements, the speculator will borrow the currency
False
that is expected to appreciate and invest in the
country whose currency is expected to depreciate.
Assume that Swiss investors have francs available to
The Swiss demand for
invest in securities, and they initially view U.S. and
dollars to increase and the
British interest rates as equally attractive. Now assume
dollar will appreciate
that the U.S. interest rates increase while the British
against the Swiss franc.
interest rates stay the same. This would likely cause:
Assume a central bank exchanges its currency for
other foreign currencies in the foreign exchange
Nonsterilized intervention
market, but does not adjust for the resulting change in
the money supply. This is an example of:
questions | FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS/GET IT
100% ACCURATE!!
Save
Terms in this set (78)
Which of the following theories identifies the non-
Imperfect Markets Theory transferability of resources as a reason for
international business?
(T/F) Licensing is the process by which a firm provides
it's technology (copyrights, patents, trademarks, or
True
trade names) in exchange for fees or some other
specified benefits
(T/F) The Sarbanes-Oxley Act (SOX) was enacted in
2002 required MNCs and other firms to implement an
True
internal reporting process that could be easily
monitored by executives and the board of directors
(T/F) A centralized management style, where major
False decisions about a foreign subsidiary are made by the
parent company, results in an increase in agency costs
Balance of Trade The primary component of the current account is the:
Which of the following is mentioned in the text as a
It could attempt to reduce possible means by which a government may attempt
its home currency value to improve its balance of trade position (increase its
exports or reduce its imports)
, (T/F) A balance of trade deficit indicates an excess of
True
imports over exports
(T/F) A weakening of the U.S dollar with respect to the
False British pound would likely reduce U.S. exports to the
U.K. and increase U.S. imports from the U.K.
Assume that a bank's bid rate on Swiss francs is $0.45
About 4.26% and its ask rate is $0.47. Its bid-ask percentage spread
is:
Order Costs ______________ is a factor that affects the bid/ask spread.
Inventory Costs
Volume
Obtain a 90-day forward If a U.S. firm desires to avoid risk from exchange rate
purchase contract on fluctuations, and it will need C$200,000 in 90 days to
Canadian dollars make a payment on imports from Canada, it could:
(T/F) A put option is the amount or percentage by
False
which the existing spot rate exceeds the forward rate
Sold on an exchange; Futures contracts are typically ______________; forward
offered by commercial contracts are typically _____________.
banks
(T/F) In general, when speculating on exchange rate
movements, the speculator will borrow the currency
False
that is expected to appreciate and invest in the
country whose currency is expected to depreciate.
Assume that Swiss investors have francs available to
The Swiss demand for
invest in securities, and they initially view U.S. and
dollars to increase and the
British interest rates as equally attractive. Now assume
dollar will appreciate
that the U.S. interest rates increase while the British
against the Swiss franc.
interest rates stay the same. This would likely cause:
Assume a central bank exchanges its currency for
other foreign currencies in the foreign exchange
Nonsterilized intervention
market, but does not adjust for the resulting change in
the money supply. This is an example of:
