Managers (Latest Update )
Questions with Correct Answers {Grade A}
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If a company seeks to limit foreign exchange rate exposure in the forward direction,
what is the most effective way to do this? - correct answer currency hedging
Exchange rate risk associating with the time delay between entering a contract and
settling it - correct answer transaction risk
Forward transaction that protects traders and investors from exposure to fluctuations
of the spot rate - correct answer hedging
A means of spreading out activities in different currency zones in order to offset the
currency losses in certain regions through gains in other regions - correct answer
strategic heding
,Amount of resources committed to entering a foreign market - correct answer scale of
entry
How do institutions reduce uncertainty? - correct answer by signaling which conduct is
legit and which is not
Pillar of formal institution, coercive power of government - correct answer regulatory
Pillar of informal institution, the mechanism through which norms influence individual
and firm behavior - correct answer normative
Pillar of informal institution, taken for granted values and beliefs that guide behavior -
correct answer cognitive
Institutions represented by laws, regulations and rules - correct answer formal
Institutions represented by norms, culture and ethics - correct answer informal
, The necessity of making rational decisions in the absence of complete information -
correct answer bounded rationality
Bounded rationality is a position in which view of global business - correct answer
institution
Political system that affects global business with an individuals right to freedom of
expression and organization - correct answer democracy
Political system that affects global business with hostility towards business, higher
political risk such as nationalism - correct answer totalitarianism
Political system where citizens elect representatives to govern the country on their
behalf - correct answer democracy
Political system where one person or party exercises absolute political control over
the population - correct answer totalitarianism