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Study Resources (Business Management)

    51) Currently the most sophisticated and advanced example of regional integration is occurring in ________. A) Asia B) Europe C) North America D) Africa 52) In 1951, Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands signed the Treaty of Paris and created the ________. A) European Union B) European Economic Community C) European Coal and Steel Community D).
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    1) Trade agreements allow competitors from other nations to enter the domestic market.   2) A group of nations in a geographic region undergoing economic integration is called a regional trading bloc.   3) A common market area is the greatest extent of national integration.   4) In a free trade area, each country can maintain.
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    61) Which of the following institutions is least likely to play an important role in monitoring and enforcing economic and political integration in the European Union? A) European Parliament B) Council of the European Union C) European Court of Human Rights D) European Commission   62) The main purpose of the ________ is to debate and.
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  91) Country M wants member nations to harmonize their tax, monetary, and fiscal policies and wants to create a common currency. Country M is requesting for the creation of a(n) ________ in the Moonland nations. A) free trade area B) economic union C) customs union D) common market   92) Country X advocates the greatest level.
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    31) Which of the following is a debt instrument that specifies the timing of principal and interest payments? A) stock B) bond C) share D) equity   32) ________ refers to shares of ownership in a company's assets that give shareholders a claim on the company's future cash flows. A) Stock B) A bond C) Debt D) A draft   33) The.
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  109) Describe the Association of Southeast Asian Nations (ASEAN).   110) Describe some of the cultural challenges of doing business with countries of Central and Eastern Europe. How do these challenges compare with the challenges of doing business with ASEAN countries?       .
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    81) ________ in the foreign exchange market specialize in currency futures and options transactions. A) Securities exchanges B) Eurocurrency markets C) Interbank markets D) Over-the-counter markets   82) ________ is a decentralized exchange encompassing a global computer network of foreign exchange traders and other market participants. A) Securities exchanges B) Eurocurrency market C) Interbank market D) Over-the-counter market 83) ________.
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    11) The spread of privatization encourages the growth of the international equity market.   12) All of Europe's currencies combined are referred to as Eurocurrency. 13) The London Interbank Bid Rate (LIBID) is the interest rate that London banks charge other large banks for borrowing Eurocurrency.   14) The forces of supply and demand determine.
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    61) ________ is the instantaneous purchase and sale of a currency in different markets for profit. A) Currency hedging B) Currency arbitrage C) Currency speculation D) Currency conversion   62) The profit-motivated purchase and sale of interest-paying securities denominated in different currencies is called ________. A) currency conversion B) currency hedging C) interest arbitrage D) interbank interest rates 63) The purchase.
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    71) Which of the following statements is true of NAFTA? A) It introduced a common currency for trade between the U.S., Mexico and Canada. B) It overrode the local content requirements and rules of origin for products manufactured in the member nations. C) It eliminated all tariffs and nontariff trade barriers on goods.
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    1) Liquidity refers to the ease with which bondholders and shareholders may convert their investments to cash.   2) An excess money supply creates a borrower's market, forcing down interest rates and the cost of borrowing.   3) Investors increase risk by holding international securities whose prices move independently.   4) With the help of microfinance,.
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    11) Purchasing power parity does not hold for single products, it is meaningful only when applied to a basket of goods.   12) Inflation is a result of the supply and demand for a currency.   13) Low unemployment rates can lead to higher inflation. 14) Inflation in an economy can be controlled by lowering.
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    21) An exchange rate requiring delivery of the traded currency within two business days is called a cross rate.   22) If an individual is traveling to another country and wants to exchange currencies at his bank before departing, he will be quoted the spot rate since he is exchanging on the.
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  111) Explain how political cooperation is a benefit of regional integration. How has the Gulf Cooperation Council (GCC) evolved towards political cooperation? 112) Compare and contrast the slow progress of the Andean Community and the Economic Community of West African States (ECOWAS). Why have these trade blocs not been more successful?       .
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    41) Which of the following is true of inflation? A) It occurs when money is injected into an economy that is experiencing greater output. B) It is the result of supply and demand for a currency. C) It increases people's purchasing power. D) It is not particularly affected by the unemployment in a country.   42).
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    61) In the earliest days of international trade, ________ was the internationally accepted currency for payment of goods and services. A) British pound B) U.S. dollar C) silver D) gold   62) The gold standard is a ________ because it secured nations' currencies to the value of gold. A) floating exchange-rate system B) fixed exchange-rate system C).
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    41) ________ is a prominent operational center. A) Dubai B) London C) Singapore D) Mexico   42) ________ are usually located on small island nations or territories with favorable tax and/or secrecy laws. A) Cybermarkets B) Over-the-counter markets C) Booking centers D) Operational centers 43) The international bond market consists of all bonds sold by issuing companies, governments, or other organizations.
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    31) Which of the following is the intentional lowering of a currency's value by its government? A) revaluation B) devaluation C) currency hedging D) currency arbitrage 32) Devaluation of a nation's currency ________. A) gives foreign companies in the country an edge over domestic companies B) leads to a decline in the supply of goods and services C).
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    41) Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and set a common trade policy against nonmembers is called a ________. A) free trade area B) customs union C) common market D) preferential trade area   42) Economic integration whereby countries remove barriers to trade and.
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    21) The value of a currency expressed in dollars is called its par value.   22) The primary disadvantage of the gold standard was that it increased exchange-rate risk.   23) The Bretton Woods Agreement was an accord among nations to create a new international monetary system based on the value of the U.S..
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    51) The principle that a difference in nominal interest rates supported by two countries' currencies will cause an equal but opposite change in their spot exchange rates is called the ________. A) Guidotti-Greenspan rule B) international Fisher effect C) comparative advantage theory D) efficient market view principle 52) Purchasing power parity is better at predicting.
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    11) The greatest benefit of regional integration is trade diversion.   12) Economic integration can unintentionally reward a less efficient producer within a trading bloc. 13) When trade diversion occurs, buyers will likely pay less for products.   14) In regional economic integration, industries that require mostly unskilled labor tend to shift production to low-wage.
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    31) The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called ________. A) regional economic integration B) protectionism C) mercantilism D) economic nationalism 32) Regional economic integration is also referred to as ________. A) mercantilism B) nationalism C) protectionism D) regionalism   33).
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    21) The Court of Justice is the court of appeals of the European Union.   22) Like the European Union commissioners, EU justices are required to act in the interest of their native countries.   23) The European Free Trade Association focuses on trade in consumer goods.   24) The European Union (EU) and European Free.
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    71) Which of the following features did Bretton Woods Agreement incorporate in the international monetary system based on the U.S. dollar? A) floating exchange rates B) trade imbalance corrections C) an enforcement mechanism D) a strict ban on devaluation 72) An economic condition in which a trade deficit causes a permanent negative shift in a.
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    81) The ________ was an agreement among the G7 nations that the dollar was appropriately valued and that they would intervene in currency markets to maintain its current market value. A) Bretton Woods Agreement B) Smithsonian Agreement C) Plaza Accord D) Louvre Accord   82) A ________ is a monetary regime that is based on an.
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    51) Which of the following terms refers to a stock market with no central geographic location? A) cybermarket B) foreign exchange market C) capital market D) international bond market   52) The market consisting of all the world's currencies that are banked outside their countries of origin is called the ________. A) foreign exchange market B) interbank market C).
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