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, 4. Which political view of foreign direct investment (FDI) is most widely used by governments in the current international
business environment?
Radicalism
Protectionism
Communism
nationalism
5. Which factors predict the degree of rivalry between a pair of competitors? 2 choices Market
commonality
Cost structure Resource
similarity Organizational
structure
6. Which factors predicts how local firms in emerging economics will respond to multinational competitors? Competitive
assets and industry pressures to globalize
Formal and informal institutions
Market dominance and market fragmentation
Cooperation and signaling
7. During which stage of the product life cycle do sales and profits gradually increase before seeing more dramatic increases?
Introduction
Maturity Growth
Decline
8. Which factor determines the foreign exchange rate any currency? Universal
trade of the currency
Supply and demand for the currency The age
of the currency
Business economics of the currency
9. Which risk must a corporation minimize if it is to effectively manage short-term currency fluctuations? Beta risk
Hedging Alpha
risk Transaction
risk
10. Which policy does a country use to determine the exchange rate of their currency in relationship to another country's
currency if they do not rely on market forces?
Clean float rate policy Fixed
rate policy Flexible rate
policy Floating rate policy
11. Which term refers to trading currencies and currency derivatives in order to earn profits and help make prices efficient?
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, Investing
Brokering
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