BUSI 600 FINAL EXAM / BUSI600 FINAL EXAM:LATEST-LIBERTY UNIVERSITY

BUSI 600 FINAL EXAM / BUSI600 FINAL EXAM:LATEST-LIBERTY UNIVERSITY BUSI 600 FINAL EXAM Question 1 2 out of 2 points Fixed exchange rates, also known as pegged exchange rates, occur when a government or central bank ties the official exchange rate to another country’s currency or the price of gold. Question 2 2 out of 2 points The FX swap of currency amounts is normally variable. Question 3 2 out of 2 points Purchasing Power Parity has an impact on exchange rates and indicates the current level of inflation of one currency against another. Question 4 2 out of 2 points Hedging is described as measures taken by a company or corporation to protect itself from the loss that may occur because of fluctuations in the exchange rate of currency. Question 5 2 out of 2 points Since the world thrives to trade and does not have a uniformed international currency, the exchange rate from one currency to another is determined by (______) and (________) on a given day on the FX Market. Question 6 0 out of 2 points In the U.S., the Security Exchange Commission monitors activities of exchange markets and OTC markets. Question 7 The USD remains the world’s leading currency. Question 8 Global financial markets are important to borrowers for two reasons such as (1) to expand the supply of money, and (2) reduce the cost of money. Question 9 2 out of 2 points The two most popular products traded on security exchange markets are stocks and treasury bills. Question 10 2 out of 2 points Actual currencies change hands in FX Markets transactions and can also be completed electronically. Question 11 2 out of 2 points (__________) essentially decreases a consumer’s purchasing power by making goods and services more expensive. Question 12 2 out of 2 points (__________)is the largest informational platform that international traders use to communicate FX exchange rates. Question 13 2 out of 2 points Speculators buy and sell commodities with the intention of making profits on price differentials across global markets. Question 14 0 out of 2 points The main principle of trading on FX Markets is to select a pair of currencies and measure supply and demand by the fluctuation of one currency’s market activity compared to the other. Question 15 2 out of 2 points A (_________) notifies the investor of the price movement of shares he or she holds in the security exchange. Question 16 2 out of 2 points The (___________) monitors the various companies and organizations that are quoted on the security exchange and make sure they meet the requirements for being listed. Question 17 2 out of 2 points The (________) of money in a nation can affect the price of goods and services and employment. Question 18 2 out of 2 points While hedging may protect against (_________), it may eliminate a potential for unexpected (______). Question 19 2 out of 2 points European Parliament elections are held every five years, and all register EU citizens are allowed to vote. Question 20 2 out of 2 points Signatory nations a part of CACM have not been able to achieve their wider aims of stronger economic and political unification because of a failure to settle (________). Question 21 2 out of 2 points The Office of the United States Trade Representative (USTR) has shown that the overall effect of NAFTA has been negative for all member nations, especially the United States. Question 22 2 out of 2 points Agreements between participating nations are managed and promoted through (__________). Question 23 2 out of 2 points The stages of regional economic integration are as follows: Free Trade Agreement, (__________), Common Market, Economic Union, and (_________). Question 24 2 out of 2 points Easier movement of labor between members is not an element addressed in the process of integration. Question 25 2 out of 2 points (________) has been stripped of its member rights to Mercosur and must renegotiate its membership. Question 26 2 out of 2 points Mercosur ranks as one of the four largest trading blocs and one of the largest economies in the world. Question 27 2 out of 2 points Non-tariff barriers refer to laws and regulations affecting trade; these include barriers that governments use to ensure accountability and quality. Question 28 2 out of 2 points The objective of the OECD is increasing economic welfare through the world by covering issues associated with social work and economic efforts within participating governments and nonparticipating governments. Question 29 2 out of 2 points Member nations of ECOWAS have tried to agree on a common currency: the Euro. Question 30 2 out of 2 points More than 60 percent of Africa’s people depend upon agriculture, with farming being mostly of the subsistence variety. Question 31 2 out of 2 points In a (_______) union, members have the same rights as in a free trade area, with the exception that they will now all have the same trade policy towards nonmembers. Question 32 2 out of 2 points The SACU goals are to maintain the free interchange of goods between signatory nations and provide for a common external tariff and a common excise tariff. Question 33 2 out of 2 points The (__________) approves the EU budget and seeks to coordinate the adoption of common economic, defense, and judicial policies across the EU. Question 34 2 out of 2 points Trading blocs can provide protection from global competitiveness prompted by nations outside of the bloc. Question 35 2 out of 2 points Common market includes all of the elements of a (____________) and freedom of movement of the four factors of production. Question 36 2 out of 2 points (_________), executive body of the EU, drafts and implements legislation and enforces existing treaties. Question 37 0 out of 2 points (_________) is the largest agreement in the world (approximately 1.56 billion people). Question 38 Franchise fees typically include an initial fee for the franchise and then a percentage of (______). Question 39 2 out of 2 points A joint venture is utilized when a corporate entity needs complete control over every detail of the structure within the host country. Question 40 2 out of 2 points Three questions are especially important to international expansion: (______), timing, and scale. Question 41 2 out of 2 points Social factors define the legal and regulatory parameters within which firms must operate. Question 42 0 out of 2 points The key factors that influence the entry mode selection are as follows: Question 43 2 out of 2 points Small businesses cannot compete in the global economy. Question 44 2 out of 2 points As one of the primary government facilitators for small businesses, the (_____) agency will provide corporate services, which include financing, trade counseling, and commodity brokerage. Question 45 0 out of 2 points Firms are better off selecting non-equity, low-investment entry modes in countries that have low environmental uncertainty. Question 46 2 out of 2 points When strong global competition is scarce, the global firm should perform well, even though it does not develop global-market-knowledge competencies or global responsiveness. Question 47 2 out of 2 points Exporting also has its disadvantages, such as the high cost of transportation and the potential of (_________) being placed on incoming goods. Question 48 2 out of 2 points Turnkey projects are not successful modes of business operations for developing countries. Question 49 2 out of 2 points Exporting and importing are great examples of high-risk entry modes into a new market. Question 50 2 out of 2 points In industries subject to high technological turbulence, the organizations will enjoy abnormal returns from alternative opportunities, rather than those created by their market knowledge competencies. Question 51 2 out of 2 points A licensor must invest into the foreign market because the licensee (more than likely) is not established in the market. Question 52 2 out of 2 points Intermediaries are often considered “coaches” or outside consultants brought in to help steer the firm in the right exporting direction. Question 53 2 out of 2 points Possibly the greatest proactive motivation for global expansion is the prospect of (__________). Question 54 2 out of 2 points Economic factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment. Question 55 2 out of 2 points One of the most important advantages in using an export management company is that it can handle all aspects of exporting a company’s product into the new market(s). Question 56 0 out of 2 points (_________) enables a firm to penetrate markets that might not otherwise have been accessible because of foreign policy or laws. Question 57 2 out of 2 points (____________) allows a producer to adapt its products to a particular group of consumers. Question 58 2 out of 2 points The overall success of the business is dependent upon the efficiency and effectiveness of every function within the (_______) process. Question 59 2 out of 2 points (__________) is a total system approach (not a separate area or program) and an integral part of high-level strategy; it works horizontally across functions and departments, involves all employees, top to bottom, and extends backward and forward to include the supply chain and the customer chain. Question 60 2 out of 2 points Becoming ISO certified requires the inspection of production processes, maintaining equipment, training workers, testing products, and dealing with customer complaints. Question 61 2 out of 2 points A key determinant in the facility location decision is the (_________) the site has to the organization’s largest customer base and suppliers. Question 62 2 out of 2 points When considering global outsourcing, a key concept is that the closer the supplier, the more the shipping costs will impact the raw material acquisition decision. Question 63 2 out of 2 points The intention behind (_________) management systems is to concentrate on eradicating waste and reducing warehouse inventories. Question 64 2 out of 2 points The goal of the JIT management system is eliminating waste, making best use of cost efficiency, and creating and sustaining competitive advantage. Question 65 2 out of 2 points Logistic decisions are made primarily on three different levels: strategic planning, network, and (_________). Question 66 2 out of 2 points (____) is a codification or assurance of quality - an internationally recognized certification system or process. Question 67 2 out of 2 points In product-oriented firms, capacity is measured in terms of the total number of customers that can be served in a given amount of time. Question 68 2 out of 2 points Kazan is a people-focused management system that aims at continual increase in customer satisfaction at continually lower real cost. Question 69 2 out of 2 points The bureaucratic hierarchy is the most common centralized organizational structure. Question 70 0 out of 2 points (________) defines the goal or purpose of the organization, while (_________) defines how personnel will collectively implement the strategy. Question 71 0 out of 2 points Factors that play into the make or buy decision include the following items except for: (______), (______), and (_________) of a product or component. Question 72 2 out of 2 points In the physical inventory control category, calculations are made to maintain sufficient inventories for predetermined supply chain system needs. Question 73 2 out of 2 points A (____________) model does not allow for innovative thinking, nor does it engender employee initiative for problem solving. Question 74 2 out of 2 points An interlocking directorate allows the organization the opportunity to more effectively coordinate the output of raw materials to meet the needs of the manufacturing operation. Question 75 2 out of 2 points Decisions in the (____________) area include such considerations as where to purchase and what to purchase.