Exam 3 Intl Business Review - 1 sWhich of the following...

This preview shows page 1 - 2 out of 9 pages.

1. sWhich of the following most likely faces a high degree of currency risk? exporters 2. If last year one dollar equaled one euro, and then the exchange rate shifted so that today one dollar equals two euros, which of the following would most likely not occur? European firms would lower their prices on goods made with U.S. parts 3. A government reduction of the currency value is known by which of the following terms? devaluation 4. The difference between the total amount of money flowing into and out of a nation is known by which of the following terms? balance of payments 5. The purpose of the Bretton Woods Agreement was to govern the exchange rates of major international currencies . 6. Which of the following best characterizes the functions of the World Bank? provide loans to developing countries 7. Bonds can best be described as which of the following? a debt security used to raise capital 8. Plas-Tex Plastic Company manufactures plastic storage containers of all different sizes. Plas-Tex has been exporting more storage containers to Europe recently because of the depreciation of the U.S. dollar relative to the euro. Plas-Tex CEO, Wayne Chisholm, has prepared a report for the annual shareholders meeting in which he outlines his manufacturing and sales recommendations for the upcoming year. Which of the following questions would be more important for Chisholm to evaluate before presenting his manufacturing recommendations to shareholders? What is the currency risk of exporting additional Plas-Tex products to Europe? 9. Plas-Tex Plastic Company manufactures plastic storage containers of all different sizes. Plas-Tex has been exporting more storage containers to Europe recently because of the depreciation of the U.S. dollar relative to the euro. Plas-Tex CEO, Wayne Chisholm, has prepared a report for the annual shareholders meeting in which he outlines his manufacturing and sales recommendations for the upcoming year. Which of the following should be considered closely before Chisholm recommends increasing production to take advantage of the current exchange rate? What will be the effect on Plas-Tex if the euro depreciates more than the U.S. dollar? 10. A corporate strategy is most likely based on which of the following? strengths and weaknesses compared to a competitor 11. Which of the following is characteristic of a global industry? A small number of firms compete head-on in multiple markets. 12. In order for local responsiveness to effectively increase a firm's competitiveness, which of the following is necessary? Local managers need to be able to make decisions based on local needs. 13. Which of the following characterizes a multi-domestic strategy? subsidiary managers adapt products and services to meet local needs 14. Which of the following is a negative aspect of a multi-domestic strategy?
Image of page 1

Subscribe to view the full document.

Image of page 2

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern