International Finance & Exchange

The World Bank was established in 1922.

• true
• false
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One U.S. dollar = 1.01389 Japanese yen.

• true
• false
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Exchange rates affect the prices of goods.

• true
• false
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Floating exchange rates occur when the government (central bank) of a country decide what its currency will be worth relative to other countries.

• true
• false
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Licensing is the transfer of rights and permission to produce and sell a product to a foreign firm.

• true
• false
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All of the following direct international law EXCEPT which one of these?

• International Court of Justice
• Permanent Court of Arbitration
• Committee of International Trade
• International Criminal Court

Which of the following occurs when the forward exchange rate does NOT equal the spot exchange rate?

• Trade deficit
• Increased inflation
• World bank deficit
• Interest rate parity

Which of the following methods of entering international markets is the most complex and requires the most risk?

• Joint venture
• Licensing
• Exporting
• Strategic alliance

Which of the following is NOT one of the economic conditions affecting international business?

• Inflation rates
• Unemployment rates
• Voting rates
• GDP

The International Monetary Fund has approximately 100 members.

• true
• false
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