1. The market consisting of all stocks bought and sold outside the issuer’s home country is called the ________.
international equity market
foreign exchange market
international bond market
2. ________ involves using taxes and government spending to influence the money supply indirectly.
The law of one price
3. Purchasing power parity is better at predicting ________ exchange rates.
4. A contract between the exporter and shipper that specifies merchandise destination and shipping costs is called a ________.
bill of lading
letter of credit
bill of exchange
5. Which of these is the relative ability of two countries’ currencies to buy the same “basket” of goods in those two countries?
Law of one price
Purchasing power parity
6. The likelihood that a society will undergo political changes that negatively affect local business activity is known as ________.
7. Which of the following is NOT a method of export/import financing
Letter of credit
8. When the U.S. government lowers taxes, this is an example of ________.
the law of one price
9. In countries with high illiteracy rates, a(n) ________ should not be used to collect information.
observation of behavior
10. A promotional strategy designed to create buyer demand that will encourage channel members to stock a company’s product is called a(n) ________.
end distribution strategy
11. Which of the following is an example of a legal force that might influence a site location decision?
Strong work ethic
Strict environmental regulations
12. When a government buys its own securities on the open market,
tax rates decline
the money supply increases
the nation’s productivity increases
it encourages FDI outflow
13. A distribution channel in which a manufacturer grants the right to sell its products to only one or a limited number of resellers is called a(n) ________.
push strategy channel
pull strategy channel
14. In which type of joint venture do the parties choose to invest together in downstream business activities?
15. Which of the following financing methods entails the greatest risk for importers?
Letter of credit
16. Manufacturers of products that are commonly sold through department and grocery stores often use a(n) ________.
exclusive channel strategy
value chain strategy
17. The process of sending messages about products to target markets is called ________.
18. Developing a market-potential indicator for an emerging market is useful to companies considering ________ .
wholly owned subsidiaries
19. The process of obtaining information that already exists within the company or that can be obtained from outside sources is called ________.
secondary market research
primary market research
invalid market research
20. To insure against potential losses that result from adverse changes in exchange rates, Trader’s Paradise should use currency ________.