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Study Resources (Business Management)

  61) The framework that managers use to make decisions that maximize their companies' value creation performance are referred to as a strategy. 62) Markets are not always perfectly competitive and some firms consistently outperform industry averages. This suggests that firm performance is also influenced by the presence of bright, motivated managers.
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  21) The concept of liquidity preference in international operations refers to ________. A) a company's willingness to accept a lower rate of return on investments in countries where it can more easily sell them and convert the proceeds at a favorable rate B) a company's willingness to accept lower rates of return.
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  21) Successful implementation of a(n) ________ strategy requires a company to develop unique competencies that rivals find hard, if not impossible, to match or copy. A) differentiation B) cost leadership C) globalization D) marketing 22) A useful way to understanding the purpose of strategy is to think of the firm as a(n) ________, composed of.
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  51) Shelly, a manager at a global firm, is studying the foreign currency intervention practices of Indonesia. Shelly is most likely examining ________ factors. A) institutional setting B) fundamental analysis C) confidence D) circumstantial 52) Craig, a manager at a global firm, is studying the cyclical nature of growth and employment as a part of.
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  51) Johnson & Johnson delegates to its subsidiaries a great deal of authority to respond to local conditions. Many subsidiaries have their own manufacturing, marketing, research, and human resource functions. This value chain configuration illustrates the ________ strategy. A) transnational B) global C) multidomestic D) international 52) A disadvantage of the ________ strategy is that.
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  81) An irrevocable letter of credit is the basis for multilateral netting. 82) A confirmed letter of credit may obligate the exporter's bank to honor a draft presented to it. 83) Arbitrage is the purchase of foreign currency on one market for immediate resale on a foreign market in order to profit.
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  97) What methods are used by managers to forecast exchange rates? What are the main factors that influence exchange rates? 98) How do exchange rate changes affect a company's marketing, production, and financial decisions? What predictors should a manager monitor to forecast exchange rate changes?     .
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  31) Which of the following refers to the means by which management applies the systems that link a company's value activities, whether those activities are performed in one or in many countries? A) configuration B) logistics C) coordination D) core competency 32) Social network analysis indicates that information flows more efficiently in a(n) ________ manner. A).
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  11) The IO paradigm has been qualified by the potential for ________ to lead to a company's sustained competitive advantage. A) bright, motivated managers B) political trends and events C) cultural institutions D) new markets 12) It is most accurate to say that as a result of the global economic crisis, the potential for profitability.
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  81) Fundamental forecasters assume that if current exchange rates reflect all facts in the market, then under similar circumstances, future rates will follow the same patterns. 82) Fundamental forecasting uses trends in economic variables to predict future rates. 83) The three variables predicted by forecasting are the timing, magnitude, and length of.
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  31) If a foreign currency is quoted in American terms (the direct quote) and the forward rate for a foreign currency is less than the spot rate, the foreign currency is selling at a ________. A) forward premium B) backward discount C) backward premium D) forward discount 32) If a foreign currency is quoted in.
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  1) The primary objective of the International Monetary Fund is to ________. A) encourage euro adoption B) promote exchange rate stability C) establish a unilateral system of payments D) foster the power of the foreign exchange market 2) The Bretton Woods Agreement established a system of fixed exchange rates under which each IMF member country.
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  71) Central bank reserve assets are kept in three major forms: foreign-exchange reserves, silver, and gold. 72) Although central banks are responsible for foreign exchange policy, they have no power to intervene in exchange rate markets. 73) The Japanese yen is an example of a soft currency. 74) In a multiple exchange-rate system,.
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  99) What is the relationship between the five-forces model and a firm's international business strategy? Provide examples to illustrate your answer. 100) What are core competencies? How do firms that adopt an international strategy utilize their core competencies? How do firms that adopt a transnational strategy utilize their core competencies?     .
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  41) According to the integration-responsiveness (IR) grid, consumer electronics and corporate banking are two types of industries with ________ industry pressure for global integration and ________ industry pressure for local responsiveness. A) low; low B) high; high C) low; high D) high; low 42) In the global environment, firms use an international strategy, a multidomestic.
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  71) Support activities define the infrastructure of the firm and serve as the basis for the daily implementation of primary activities in the value chain. 72) Using a concentrated configuration, an MNE performs value activities in different countries. 73) Dispersed value chains make sense when costs vary across countries. 74) A core competency.
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  1) Which of the following statements about Zara is most likely FALSE? A) Zara puts fewer products on clearance racks than most of its competitors in the industry. B) Zara's large advertising budget generates word-of-mouth and attracts new buyers. C) New products and designs are delivered to Zara stores every three to four.
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  31) Gordon, a manager with Burberry Pharmaceuticals, has been given the task of collecting and analyzing data that will help the firm decide where to locate its international operations. Which of the following best describes how Gordon should handle this task? A) conducting extensive research, regardless of the expense, in order.
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  81) The fundamental outlook of the global strategy is adaptation. 82) The strategy of a firm using an international strategy is likely to entail producing and marketing mostly standardized products worldwide, with some customization where and when necessary. 83) Tel-Comm Tek is a company that believes it has core competencies that its.
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  61) The IMF's primary role is to identify exchange rate regimes. 62) The SDR is equal in value to the U.S. dollar. 63) Dollarization of a currency occurs when a country takes all of its own currency out of circulation and replaces it with U.S. dollars. 64) An independently floating exchange rate is.
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  1)  Comparing countries in international business is LEAST useful for determining the ________. A) best location for sales and production B) sequence of entering different countries C) amount of resources to allocate in each country D) method for selecting local and expatriate employees 2) International managers most likely need to understand how to evaluate international.
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  21) Given the daily volume of foreign-exchange transactions, it is most accurate to say which of the following? A) It is impossible for a government's interventions in the foreign-exchange market to affect market psychology. B) A government's intervention in the foreign-exchange market can reverse a currency's slide for the long term. C) A.
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  41) The International Fisher Effect implies that ________ A) the country with the higher interest rate should have lower inflation B) the currency of the country with the lower interest rate will strengthen in the future C) the currency of the country with the higher interest rate will strengthen in the future D) interest.
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