International Finance and Trade

The World Bank was established in 1922.

• True

• False

One U.S. dollar = 1.01389 Japanese yen.

• True

• False

Exchange rates affect the prices of goods.

• True

• False

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

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

• True

• False

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?

• Traded Defict

• Interest Rate Parity

• World Bank Deficit

• Increased Inflation

Which of the following is most likely to influence 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