Liberty BUSI 303 Exam 2 Answers Complete Solutions
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Hexagon Corporation, an American high-tech company, wants to set up operations in a foreign country to profit from its core competency in technological know-how. Therefore, the company needs to select an entry mode that offers protection of technology. Which of the following entry modes is most suitable for Hexagon Corporation?
Other things being equal, when fixed costs are substantial and minimum efficient scale of production is high, the arguments for concentrating production at a few choice locations are strong.
Flexible manufacturing technologies allow a company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.
The World Bank’s initial mission was to
The rate at which a foreign exchange dealer converts one currency into another currency on a particular day is the
With the signing of the Treaty of Rome in 1957, the European Economic Community was established.
Setting up wholly owned subsidiaries is preferable to joint-venture arrangements because wholly owned subsidiaries
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A wide product variety makes it easier for a firm to increase its production efficiency and thus reduce its unit costs.
The movement of traders like a herd, all in the same direction and at the same time, in response to each other’s perceived actions is called
Which of the following is a drawback of countertrade?
____, which is a certification process that requires certain quality standards that must be met, is necessary before a firm is allowed access to the European Union marketplace.
The drawback of a just-in-time inventory system is that it leaves a firm with excess unsold inventory that it has to write off against earnings or price low to sell.
The concept of economies of scale tells us that as plant output expands, unit costs decrease.
In international business, when consumer demand is prone to large and unpredictable shifts, the firm that can adapt most quickly to these shifts will gain an advantage.
Kussoko’s currency, the Kussokan peso, is fixed relative to the U.S. dollar. As a result, the U.S. dollar exchange rate determines the exchange rate between the Kussokan peso and other currencies. This is an example of a ____ exchange rate.
In terms of the approaches to exchange rate forecasting, which of the following is based on the premise that there are analyzable market trends and waves and that previous trends and waves can be used to predict future trends and waves?
When the Bretton Woods participants established the World Bank, the need to lend money to developing nations was foremost in their minds.
_____ covers a range of manufacturing technologies designed to reduce setup times for complex equipment, increase the utilization of individual machines through better scheduling, and improve quality control at all stages of the manufacturing process.
1.
_____, a category of foreign exchange risk, is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.
2.
_____, a category of foreign exchange risk, is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs.
