1. To insure against potential losses that re

1. To insure against potential losses that re

1. To insure against potential losses that result from adverse changes in exchange rates, Traders Paradise should use currency . (Points : 5) conversionspeculationhedgingarbitrage2. involves using taxes and government spending to influence the money supply indirectly. (Points : 5) Monetary policyDomestic policyThe law of one priceFiscal policy3. Purchasing power parity is better at predicting exchange rates. (Points : 5) Europeanshort-termspotlong-term4. A contract between the exporter and shipper that specifies merchandise destination and shipping costs is called a . (Points : 5) draftbill of ladingletter of creditbill of exchange5. Which of these is the relative ability of two countries currencies to buy the same basketĀ of goods in those two countries? (Points : 5) Fisher effectLaw of one pricePurchasing power parityCross rates6. The likelihood that a society will undergo political changes that negatively affect local business activity is known as . (Points : 5) business riskinvestment riskpolitical riskproduction risk7. Which of the following is NOT a method of export/import financing (Points : 5) Documentary collectionLetter of creditBuybackOpen account8. When the U.S. government lowers taxes, this is an example of . (Points : 5) fiscal policymonetary policydomestic policythe law of one price9. In countries with high illiteracy rates, a(n) should not be used to collect information. (Points : 5) personal interviewobservation of behaviorwritten surveygroup interview10. A promotional strategy designed to create buyer demand that will encourage channel members to stock a companys product is called a(n) . (Points : 5) pull strategyend distribution strategypush strategyup-channel strategy11. Which of the following is an example of a legal force that might influence a site location decision? (Points : 5) Strong work ethicStrict environmental regulationsQualified workforceLiquidity problems12. When a government buys its own securities on the open market, (Points : 5) tax rates declinethe money supply increasesthe nations productivity increasesit encourages FDI outflow13. A distribution channel in which a manufacturer grants the right to sell its products to only one or a limited number of resellers is called a(n) . (Points : 5) intensive channelpush strategy channelexclusive channelpull strategy channel14. In which type of joint venture do the parties choose to invest together in downstream business activities? (Points : 5) Backward integrationMultistageForward integrationBuyback15. Which of the following financing methods entails the greatest risk for importers? (Points : 5) Documentary collectionAdvance paymentLetter of creditOpen account16. Manufacturers of products that are commonly sold through department and grocery stores often use a(n) . (Points : 5) pull strategyexclusive channel strategypush strategyvalue chain strategy17. The process of sending messages about products to target markets is called . (Points : 5) promotion mixdistribution policyvalue densitymarketing communication18. Developing a market-potential indicator for an emerging market is useful to companies considering . (Points : 5) exportinglicensingjoint ventureswholly owned subsidiaries19. The process of obtaining information that already exists within the company or that can be obtained from outside sources is called . (Points : 5) secondary market researchlogistics managementprimary market researchinvalid market research20. The market consisting of all stocks bought and sold outside the issuers home country is called the . (Points : 5) Eurocurrency marketinternational equity marketforeign exchange marketinternational bond market


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