1) begins by assuming that a given firm first becomes established in its home country and may subsequently penetrate foreign markets via geographic or product differentiation.

Select one:

a. Imperfect Market Theory

b. The Theory of Comparative Advantage

c. The Product Cycle Theory

d. The Theory of Absolute Advantage

2)

is not a bank characteristic important to customers in need of foreign exchange.

Select one:

a. Quote competitiveness

b. Speed of execution

c. Forecasting advice

d. Advice about current market conditions

e. All of the above are important bank characteristics to customers in need of foreign exchange.

3)

A decentralized management style, where subsidiary managers make the relevant decisions regarding their subsidiary, may result in better decision making, as subsidiary managers are generally better informed about their subsidiary's operations.

Select one:

a. True

b. False

4)

A key disadvantage of licensing is that:

Select one:

a. it prevents a firm from importing.

b. it prevents a firm from exporting.

c. it requires large initial investments

d. all of the above

e. none of the above

5)

According to the "J curve effect," a weakening of a nations currency relative to its trading partners' currencies would result in an initial in the current account balance, followed by a subsequent in the current account balance.

Select one:

a. decrease; decrease

b. increase; decrease

c. decrease; increase

d. increase; increase