Which one of the following is a disadvantage in terms of jobs and wages in globalization?

(a)  Lower the standards of training.

(b)  Lower the standards of education

(c)  Increase unemployment in developed nations

(d)  Create more skilled workers

When doing international business with another country, why is it important to know their culture?

(a) Adapting to another country’s culture can promote successful business deals

(b) There is a need to know if bribery is compulsory

(c) Certain culture may not understand what is international business.

(d) None of the above

People in individualistic culture work better ____________.

(a) in a group

(b) when given plenty of guidance

(c) on their own with much freedom

(d) under strict company rules

When doing business in another totalitarian nation one of the risk factor is __________________.

(a) they would not implement corporate tax

(b) we would have to join their politics

(c) the government may implement and interpret law their own way

(d) the government may ask for expensive gifts

Government in some countries can take your property under confiscation which is ________________.

(a) forced transfer of assets from a company to the government without compensation

(b) burning down property so that it cannot be reused

(c) returning all capital, you paid for a building

(d) donating any of your land to charity

When doing business in a centrally planned economy we have to note _______________________.

(a) government owns most land and factory

(b) government provides free land space

(c) private companies have much freedom

(d) private companies own most land

When doing business in a mixed economy we have to note _______________________.

(e) private companies own all land

(f) private companies and government have fair share of land ownership

(g) government owns all land

(h) government provides water supply

International trade refers to ___________________________.

(a) purchase, sale, or exchange of goods and services across national borders

(b) strictly cross border employment only

(c) using only migrants workers to support all labour

(d) inviting migrant workers at lower salary

_________________ is the ability of a nation to produce a good more efficiently than any other nation.

purchasing power

trade dependence

trade independence

absolute advantage

One of the economic motives to create Free Trade Zone (FTA) is to ______________.

(a) create jobs and increase trade

(b) sell more land to foreigners

(c) encourage using local banks

(d) ensure more transportation sales

Tariffs are implemented to protect domestic producers and its ___________________.

(a) a form of goods and services tax

(b) a form of revenue for government

(c) used to support overseas charity organization

(d) used to motivate migrant workers with high salary.

Foreign Direct Investment (FDI) recently keeps growing due to _______________.

(a) increased globalization

(b) decreased globalization

(c) increased aging population

(d) decreased aging population

Firms try to have ___________ in an industry by undertaking foreign direct investment.

(a) more overseas land control

(b) dominant market presence

(c) good foreign government relationship

(d) lower tax

Encouraging Foreign Direct Investment (FDI) in new ¬¬¬¬____________ products and processes increases the competitiveness and productivity of a host country.

(a) automotive

(b) marine

(c) agricultural

(d) technological

Regional economic integration is a process whereby countries in a geographic region ________________ to the international flow of products, people, or capital

(a) compete to increase barriers

(b) cooperate to reduce barriers

(c) stop trading to increase inflation

(d) stop exports to decrease price index

Economic unions remove barriers to trade, labor and capital but set a common policy against _________________.

(a) democratic countries

(b) communist countries

(c) non-members

(d) Asian countries

Stable exchange rates improve the accuracy of ______________.

(a) labor requirement

(b) banking system’s speed

(c) transport system ticketing

(d) forecasts and financial planning

Inflation must be the cause of any difference in interest rates between two countries.

(a) Tariffs

(b) Price index

(c) Inflation

(d) FDIs

When following a ____________ strategy, a company adapts its products and marketing to local preferences in each country’s market.

(a) multinational

(b) democratic

(c) financial

(d) marketing

Technology and electronic business are one the reasons why international businesses do not increase much at the moment

Global Marketing increases cost because we have to send advertisements to more countries, and it cost more

Ethnocentricity cause us to view other cultures in terms of our own and cause us to overlook beneficial aspects of other cultures.

When we do business in another country that has democratic rule, we have to understand minorities do not have many rights.

The main goals of a mixed economy can be achieving lower unemployment, poverty and steady economic growth

International trade refers to Purchase, sale, or exchange of goods and services across national borders

When a country imposes export tariffs then it’s because the country wants to reduce imports and encourage more purchase of locally produced goods.

Foreign Direct Investment (FDI) is the purchase of physical assets of a company in another country, but you do not have management control over the company.

Globalization and International marketing influences Foreign Direct Investment (FDI) in many countries

Countries in neighboring region can cooperate to ensure there is easy flow of products, people, or capital when doing business between countries. This is called Regional Economic Integration.

The use of information technology is increasing the costs of global communication because internet is slowing down over the years.

The interbank market is where the world’s largest banks exchange currencies at spot and forward rates for clients.

When you devalue or lower the value of a country’s currency, the export price decrease and import price increase

When a country experience very bad inflation the currency will lose much purchasing power

Monetary policy refers to the steps taken by a country's central bank to control production of goods for economic stability.

Technical analysis uses past trends in currency prices and other factors to forecast exchange rates.

Planning is the process of identifying and selecting a company’s objectives and deciding how the firm will achieve those objectives.

The first stage in strategy formulation process is to identify company mission and goal. In this stage we analyse the company’s abilities, activities and support.

Primary activities in value chain analysis include inbound and outbound logistics, production, marketing and sales, and customer service

In multi-national strategy we ensure the products we produce, and the marketing strategy is suitable for the different international market

Capital Market is a market for

International capital market

Bonds are used to sell debt

You must hold your bond until it matures

People may buy bonds instead of putting their money into banks because (tick one!)

Investing in bonds is more risky than investing in stocks.

Investing in bonds gives higher return on investment rather than investing in stocks

One disadvantage of investing in bonds is that you will need larger amount in your beginning investment.

Equity capital is permanent capital

Instruments in this market have maturity of 1year or less than one year

___________ is a capital market instrument

Mobilisation of savings for investment is main function of capital market

In an agreement to exchange dollars for euros in three months at a price of $0.90 per euro, the price is the ________.

Which of the following is true

Under Which Exchange rate system exchange rates are Fixed by Government.

Foreign Exchange rate is

what Do you mean by Appreciation of Foreign Exchange

What is Foreign Exchange Market?

Purpose of the Forex market is to encourage international investment and trade.

How can the government of foreign country influence the equilibrium exchange rate?

The rate at which one currency is converted into another

The rate at which a foreign exchange dealer converts one currency into another currency on a particular day

The rate governing such future transactions

What is inflation?

Main features of Inflation are:

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

What cause of inflation comes from an increase in commodity prices such as oil and wheat, or an increase in wages?

What do we call it when people want to buy a certain thing?

What do we call something that people sell?

If someone has too much of a product to sell, what can they do?

What is another term for the thing that people want to buy?

If there is more demand than there is supply, what will happen?

If there is more supply than there is demand--what can happen?

What happens when there is too much money and too few goods/products?

Think about this: What can cause prices to go up?

If you make delicious chocolate chip cookies, and suddenly, because of a drought, it is harder to you to get the cocoa that chocolate chips are made from. What happens? (Two correct answers)

You make chocolate chip cookies and there was a great farming season: cocoa and flour are cheap--meaning you can make chocolate chip cookies for even cheaper. How will this affect your business?

Inflation happened to this burger. How did inflation affect it?

Inflation has (slowly) over time affected this coffee. What happened?

In this picture, inflation has affected these products. Which food has it affected the most?

The new Christmas today is the popular Knight and Horse doll. Everyone wants it! And there are not many of these dolls around. What is most likely to happen?

Why would a store have sale...they are losing money? (two correct answers)

What is going on in this picture?

The _______ considers the weighted averages of a group of consumer goods and services.

Fundamental analysis is the study of basic, underlying factors that will affect the supply and demand of the commodity being traded in futures contracts.

Which of the following best describes fundamental analysis?

inflation risk arises due to:

What is the main purpose of the stock market?

In the stock market, technical analysis combines what?

What is resistance?