GEB 3373 Spring 2012
1. [WSJ, February 8, 2012] GlaxoSmithKline sells its drugs in all 17 European countries, but is
not leaving its cash there.
Every day it sweeps its money back into London.
This reaction to the
threat that the euro may suddenly ______ is most precisely and example of ______ contagion.
a. appreciate … confidence
b. appreciate … counterparty
c. depreciate … confidence
d. depreciate … counterparty
2. [WirtschaftsWoche, February 6, 2012]
For the past several weeks, the European Central Bank
has abandoned its mandate, to fight
a. inflation, and instead has printed hundreds of billions of euros to buy sovereign debt.
b. inflation, and instead has raised its target interest rate to 7 percent.
c. unemployment, and instead has printed hundreds of billions of euros to buy sovereign debt.
d. unemployment, and instead has raised its target interest rate to 7 percent.
3. [WirtschaftsWoche, February 6, 2012] The Italian newspaper “Il Giornale” printed a picture of
Angela Merkel with a Hitler mustache and a swastika.
The picture was protesting
a. her refusal to allow Italians to work in Germany.
b. German military exercises near the Italian border.
c. the austerity program Italy is adopting under German and French pressure.
d. Germany’s secret financial support for a rightwing Italian political party.
4. An editorial in WirtschaftsWoche, February 6, 2012 calls the fiscally irresponsible countries in
a. the Northern League.
b. the Francophones.
c. the Central Zone.
d. Club Med.
e. the Atlantic Alliance.
5. [WirtschaftsWoche, February 6, 2012] The Deutsche Bahn, which usually buys its high-speed
rail locomotives from Siemens and Bombardier, is thinking about purchasing 60 from the
Japanese company Hitachi.
Hitachi is considering whether to set up a factory in Asia or in
To reduce exchange rate risk it might choose ______.
The current low value of the euro
would push Hitachi toward choosing _____.
a. Asia … Asia
b. Asia … Europe
c. Europe … Asia
d. Europe … Europe
6. [Le Monde, February 12, 2012]
In December 2011, the U.S. Department of Justice asked
eleven banks in ______, a country known for its secret numbered bank accounts used for tax
evasion, to provide data with respect to their American clients.
In 2009, ______, a large bank in
this country, was fined $789 million for helping American depositors evade taxes.