Direct exports have which advantage?
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1. Capitalization of economies of scale in production in the home country*
2. an ability to tap into the best locations for certain innovations at low
costs.
3. avoidance of export processes
4. an ability to focus primarily on production
What is one of the three primary types of foreign exchange transactions?
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, 1. Spot transactions*
2. straddles
3. rooted transactions
4. covered calls
Which statement is true for a monopoly firm, but not a competitive firm?
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1. The marginal revenue is less than its price.
2. Profit is maximized when marginal revenue equals marginal cost.
3. The marginal revenue equals its price.
4. Price equals marginal cost.
In which situation is the dodger strategy appropriate for responding to MNEs?
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1. There is high industry pressure to globalize, and competitive assets are
customized to home markets.*
2. There is low industry pressure to globalize, and competitive assets are
transferable abroad
3. There is low industry pressure to globalize, and competitive assets are
customized to home markets
4. There is high industry pressure to globalize, and competitive assets are
transferable abroad
Which quantity measures the market value of all final goods and services produced
within a country in a given period of time?
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1. Gross domestic product (GDP)
2. Net domestic product (NDP)
3. Net national product (NNP)
4. Cumulative domestic product (CDP)
A country has seen a decrease in inflation. What is the effect on the country's
currency exchange rate?
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1. It increases*
2. it decreases
3. It remains the same
4. it changes, but in an unknown direction
In order to increase the money supply, what does the Fed do?
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1. Buys bonds from the public
2. Raises the discount rate
3. Sells stock shares in the open market
4. Lowers the bond rate
What are three characteristics of industries primed for collusion?
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1. Capitalization of economies of scale in production in the home country*
2. an ability to tap into the best locations for certain innovations at low
costs.
3. avoidance of export processes
4. an ability to focus primarily on production
What is one of the three primary types of foreign exchange transactions?
Give this one a try later!
, 1. Spot transactions*
2. straddles
3. rooted transactions
4. covered calls
Which statement is true for a monopoly firm, but not a competitive firm?
Give this one a try later!
1. The marginal revenue is less than its price.
2. Profit is maximized when marginal revenue equals marginal cost.
3. The marginal revenue equals its price.
4. Price equals marginal cost.
In which situation is the dodger strategy appropriate for responding to MNEs?
Give this one a try later!
1. There is high industry pressure to globalize, and competitive assets are
customized to home markets.*
2. There is low industry pressure to globalize, and competitive assets are
transferable abroad
3. There is low industry pressure to globalize, and competitive assets are
customized to home markets
4. There is high industry pressure to globalize, and competitive assets are
transferable abroad
Which quantity measures the market value of all final goods and services produced
within a country in a given period of time?
, Give this one a try later!
1. Gross domestic product (GDP)
2. Net domestic product (NDP)
3. Net national product (NNP)
4. Cumulative domestic product (CDP)
A country has seen a decrease in inflation. What is the effect on the country's
currency exchange rate?
Give this one a try later!
1. It increases*
2. it decreases
3. It remains the same
4. it changes, but in an unknown direction
In order to increase the money supply, what does the Fed do?
Give this one a try later!
1. Buys bonds from the public
2. Raises the discount rate
3. Sells stock shares in the open market
4. Lowers the bond rate
What are three characteristics of industries primed for collusion?
Give this one a try later!
