BUAD 2080 EXAM 3 LATEST
UPDATE 2025!!
________ is the extension of company activities into stages of production that provide a
firm's inputs or absorb its outputs. - ANSWER Vertical integration
Happyland is a country characterized by beautiful beaches, vast natural resources, and
a highly skilled labor force. Happyland is now encouraging foreign direct investment
flows. The country has been exporting textiles, computer hardware, and software
programs. The net result of the trade is that Happyland exports far more goods and
services and receives more income from abroad than it imports and pays abroad.
If Happyland advertises its beaches and attracts tourists, the tourism-related income
would be recorded in its ________ account. - ANSWER Services
According to the international product life cycle theory, in which of the following stages
is a good produced in the home country because of uncertain domestic demand and to
keep production close to the research department? - ANSWER New Product Stage
________ is an investment that does not involve obtaining a degree of control in a
company. - ANSWER Portfolio investment
When a U.S. company buys shares of stock in a French company on France's stock
market, the U.S. balance of payments records the transaction as an ________. -
ANSWER outflow of capital with a minus sign
Home nations discourage foreign direct investment outflows because it ________. -
ANSWER replaces jobs in the home nation
The realization that companies can start production in the most efficient and productive
locations in the world and export to markets worldwide led to a new surge of foreign
direct investment into ________. - ANSWER Newly industrialized nations
A(n) ________ advantage is the advantage of conducting a particular economic activity
in a specific area because of the characteristics of that area. - ANSWER location
Which of the following methods is being used when a host country provides lower tax
rates and low-interest loans to firms from abroad for encouraging inflows of foreign
direct investment? - ANSWER financial incentives
Which of the following methods is used by a host country to restrict incoming foreign
direct investment? - ANSWER performance demands
, Which of the following is true of foreign direct investment? - ANSWER The desire to
increase a firm's global competitiveness drives many cross-border mergers and
acquisitions.
Happyland is a country characterized by beautiful beaches, vast natural resources, and
a highly skilled labor force. Happyland is now encouraging foreign direct investment
flows. The country has been exporting textiles, computer hardware, and software
programs. The net result of the trade is that Happyland exports far more goods and
services and receives more income from abroad than it imports and pays abroad.
If Happyland is successful in attracting foreign direct investment, transactions involving
those investments would appear in the country's ________ account. - ANSWER capital
When a U.S. subsidiary in another country remits profits back to its parent company in
the U.S., the receipt of profits is recorded in the ________. - ANSWER income receipts
account and given a plus sign
A company can achieve market power through ________. - ANSWER vertical
integration
If a Japanese citizen invests in the Australian stock market, the transaction would show
up on the capital account in the balance of payments of ________. - ANSWER both
Japan and Australia
An exchange rate calculated using two other exchange rates is called a(n) ________. -
ANSWER cross rate
A loan in which the borrower promises to repay the borrowed amount plus a
predetermined rate of interest is called a(n) ________. - ANSWER debt
The international bond market consists of all bonds sold by issuing companies,
governments, or other organizations ________. - ANSWER outside their own countries
The world's three most important financial centers are ________. - ANSWER Tokyo,
London, and New York
________ in the foreign exchange market specialize in currency futures and options
transactions. - ANSWER securities exchanges
________ refers to the most commonly quoted interest rate that London banks charge
other large banks that borrow Eurocurrency. - ANSWER London Interbank Offer Rate
(LIBOR)
An expanded money supply ________. - ANSWER reduces the cost of borrowing
UPDATE 2025!!
________ is the extension of company activities into stages of production that provide a
firm's inputs or absorb its outputs. - ANSWER Vertical integration
Happyland is a country characterized by beautiful beaches, vast natural resources, and
a highly skilled labor force. Happyland is now encouraging foreign direct investment
flows. The country has been exporting textiles, computer hardware, and software
programs. The net result of the trade is that Happyland exports far more goods and
services and receives more income from abroad than it imports and pays abroad.
If Happyland advertises its beaches and attracts tourists, the tourism-related income
would be recorded in its ________ account. - ANSWER Services
According to the international product life cycle theory, in which of the following stages
is a good produced in the home country because of uncertain domestic demand and to
keep production close to the research department? - ANSWER New Product Stage
________ is an investment that does not involve obtaining a degree of control in a
company. - ANSWER Portfolio investment
When a U.S. company buys shares of stock in a French company on France's stock
market, the U.S. balance of payments records the transaction as an ________. -
ANSWER outflow of capital with a minus sign
Home nations discourage foreign direct investment outflows because it ________. -
ANSWER replaces jobs in the home nation
The realization that companies can start production in the most efficient and productive
locations in the world and export to markets worldwide led to a new surge of foreign
direct investment into ________. - ANSWER Newly industrialized nations
A(n) ________ advantage is the advantage of conducting a particular economic activity
in a specific area because of the characteristics of that area. - ANSWER location
Which of the following methods is being used when a host country provides lower tax
rates and low-interest loans to firms from abroad for encouraging inflows of foreign
direct investment? - ANSWER financial incentives
Which of the following methods is used by a host country to restrict incoming foreign
direct investment? - ANSWER performance demands
, Which of the following is true of foreign direct investment? - ANSWER The desire to
increase a firm's global competitiveness drives many cross-border mergers and
acquisitions.
Happyland is a country characterized by beautiful beaches, vast natural resources, and
a highly skilled labor force. Happyland is now encouraging foreign direct investment
flows. The country has been exporting textiles, computer hardware, and software
programs. The net result of the trade is that Happyland exports far more goods and
services and receives more income from abroad than it imports and pays abroad.
If Happyland is successful in attracting foreign direct investment, transactions involving
those investments would appear in the country's ________ account. - ANSWER capital
When a U.S. subsidiary in another country remits profits back to its parent company in
the U.S., the receipt of profits is recorded in the ________. - ANSWER income receipts
account and given a plus sign
A company can achieve market power through ________. - ANSWER vertical
integration
If a Japanese citizen invests in the Australian stock market, the transaction would show
up on the capital account in the balance of payments of ________. - ANSWER both
Japan and Australia
An exchange rate calculated using two other exchange rates is called a(n) ________. -
ANSWER cross rate
A loan in which the borrower promises to repay the borrowed amount plus a
predetermined rate of interest is called a(n) ________. - ANSWER debt
The international bond market consists of all bonds sold by issuing companies,
governments, or other organizations ________. - ANSWER outside their own countries
The world's three most important financial centers are ________. - ANSWER Tokyo,
London, and New York
________ in the foreign exchange market specialize in currency futures and options
transactions. - ANSWER securities exchanges
________ refers to the most commonly quoted interest rate that London banks charge
other large banks that borrow Eurocurrency. - ANSWER London Interbank Offer Rate
(LIBOR)
An expanded money supply ________. - ANSWER reduces the cost of borrowing
