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QUESTION

CAPELLA UNIVERSITY BUS4016 UNIT 9 QUIZ 1

Question

Question 1

4 out of 4 points

An exchange rate is simply the rate at which one currency is converted to another.

True

False

Question 2

4 out of 4 points

Spot exchange rates change daily as determined by the relative demand for and supply of different currencies.

True

False

Question 3

4 out of 4 points

Which of the following pairs correctly matches the country with its currency?

a. South Korea, the pound.

b. France, the deutsche mark.

c. Japan, the yen.

d. Great Britain, the franc.

Question 4

4 out of 4 points

The IMF helped several Asian countries deal with the dramatic decline in the value of their currencies during the Asian financial crisis that started in 1997.

True

False

Question 5

4 out of 4 points

What is the term for a system of institutional arrangements that countries adopt to govern exchange rates?

a. The international comparative advantage exchange system.

b. The international supremacy exchange system.

c. The international monetary system.

d. The international exchange process.

Question 6

4 out of 4 points

Some countries try to hold the value of their currency within some range against an important reference currency. This is referred to as what?

a. A dirty-float system.

b. A contaminated float system.

c. A pegged-float system.

d. A fixed-variable system.

Question 7

0 out of 4 points

A firm's __________ can be defined as the actions that managers take to attain the goals of the firm.

a. Systems.

b. Value chain.

c. Operations.

d. Strategy.

Question 8

4 out of 4 points

_______ is the difference between total revenues and total costs.

a. Strategy.

b. Profit.

c. Asset.

d. Economies of scale.

Question 9

4 out of 4 points

What are the two basic strategies for improving a firm's profitability?

a. Differentiation strategy and low-cost strategy.

b. Premier strategy and generic strategy.

c. High-cost strategy and low-cost strategy.

d. Comparison strategy and low-cost strategy.

Question 10

4 out of 4 points

Which function of a firm can help create value through brand positioning and advertising?

a. Marketing and sales.

b. Production.

c. Research and development.

d. Human resources.

Question 11

4 out of 4 points

One advantage to exporting is that it avoids the costs of establishing manufacturing operations in the host country.

True

False

Question 12

4 out of 4 points

One advantage of a joint venture is that a company benefits from a local partner's knowledge of the host country's competitive conditions, culture, language, political systems, and business systems.

True

False

Question 13

4 out of 4 points

When making basic entry decisions, the benefit-cost-risk trade-off is likely to be most favorable in what type of country?

a. A large country.

b. A country with a free-market system.

c. A country that is politically unstable.

d. A communist country.

Question 14

4 out of 4 points

The ability to preempt rivals and capture demand by establishing a strong brand name is an example of what?

a. First-mover advantages.

b. Pioneering costs.

c. Late-entry advantages.

d. Second-mover costs.

Question 15

4 out of 4 points

Lack of trust in international trade is exacerbated by the distance between two parties in space, language, and culture.

True

False

Question 16

4 out of 4 points

Countertrade is a common solution when a currency is considered nonconvertible.

True

False

Question 17

4 out of 4 points

Logistics is the activity that controls the transmission of physical materials through the value chain, from procurement through production and into distribution.

True

False

Question 18

4 out of 4 points

ISO 9000 is a standard designed to assure the quality of products and processes.

True

False

Question 19

4 out of 4 points

Theodore Levitt argues that the emergence of a global market calls for standardized consumer products.

True

False

Question 20

4 out of 4 points

When markets are divided up by sex, age, income, race, or education, they are segmented by what?

a. Geography.

b. Economic factors.

c. Psychological factors.

d. Demography.

Question 21

4 out of 4 points

What kind of distribution channel is difficult for outsiders to access?

a. Long.

b. Exclusive.

c. Short.

d. Inclusive.

Question 22

4 out of 4 points

What limits a country's ability to use the same marketing message and selling approach worldwide?

a. Source effects.

b. Noise.

c. Cultural differences.

d. Globalization.

Question 23

4 out of 4 points

An expatriate manager is a citizen of one country who works abroad in one of the companys subsidiaries.

True

False

Question 24

4 out of 4 points

French is the language of world business.

True

False

Question 25

4 out of 4 points

Which of the following is NOT a major task of the human resource function?

a. Staffing policy.

b. Marketing analysis.

c. Management training.

d. Performance appraisal.

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