1. The multinational phase of the globalization process can be any of the following EXCEPT a. green-field investment b. joint ventures c. cross-border acquisition d. import and export 2. Toyota and Mazda partnered to have a factory in 2018 to manufacture up to 15,000 Mazda crossover vehicles and 15,000 Toyota SUVs. This is a a. green field investment. b. international trade. c. cross-border acquisition. d. joint venture. 3. With regard to corporate goals, an American firm is mostly concerned with maximizing and a Japanese firm is mostly concerned with maximizing a. shareholder wealth; shareholder wealth b. shareholder wealth; stakeholder wealth c. stakeholder wealth; shareholder wealth d. stakeholder wealth; stakeholder wealth 4. Which of the following industries would most likely be raw material seekers in foreign countries? a. assembly line production. b. specialized professional services such as banking services. c. nuclear missile planning. d. crude oil exploration. 5. A government official announced the increase in value of a currency pegged to the U.S. dollar. This is known as a. revaluation b. depreciation c. deterioration d. devaluation 6. Assume that the Japanese government relaxes its controls on imports by Japanese companies, so Japanese companies import more from other countries. Other things being equal, supply of yen in the foreign exchange market should and the value of yen should a. increase; decrease b. decrease; decrease c. increase; increase d. decrease, increase 7. Which of the following is NOT a required convergence criterion to become a full member of the euro zone? a. GDP growth rate must be at 2.0% or higher. b. The fiscal deficit should be no more than 3% of GDP. c. Nominal inflation should be no more than 1.5% above the average inflation rate for the three members with the lowest inflation rates in the previous year. d. Government debt should be no more than 60% of GDP. 8. A London-based insurance company buys U.S. corporate bonds for its investment portfolio. It will be recorded on the U.S. balance of payments as a item under of the financial account. a. credit; portfolio investment b. debit; portfolio investment c. credit; direct investment d. debit; direct investment 9. Under an international regime of floating exchange rates, countries with an overall BOP will have a (an) currency while countries with an overall BOP will have a (an) currency. a. deficit, appreciating; surplus, appreciating b. deficit, depreciating; surplus, depreciating c. surplus, depreciating; deficit, appreciating d. surplus, appreciating; deficit, depreciating 10. are the players that purchase and sell currencies to make a profit from bid-ask spread. a. Central banks b. Dealers c. Brokers d. Arbitragers 11. According to the Impossible Trinity, within the euro zone, member countries enjoy a. independent monetary policies and fixed exchange rate and have free capital flows across borders. b. independent monetary policies and full financial integration, but still have exchange rate risk. c. fixed exchange rate and independent monetary policies, but have capital restrictions across borders. d. fixed exchange rate and full financial integration, but lose the right to conduct independent monetary policies. 12. Anaconda Copper Inc. created a subsidiary in Chile last year to mine copper ore. The proportion of net income paid back to the parent company as a dividend would be recorded in the current account subcategory of a. services trade b. income c. goods trade d. current transfers 13. Which of the following statements about the Gold Standard is correct? a. The gold standard allowed currencies to fluctuate around a certain margin. b. The gold standard broke down because the U.S. did not have enough gold reserves. c. The central banks of the countries had to maintain enough gold reserves to redeem for their currencies, therefore imposing discipline on money supply. d. The gold standard was maintained during the Great Depression. 14. In 2020, the United States posted a current account deficit of -$480 billion. The bulk of the negative value came from: a. a net transfer deficit. b. a service trade deficit. c. a goods trade deficit. d. an income balance deficit. 15. Which of the following was not a reason for the breakdown of the Bretton Woods system? a. Triffin's dilemma. b. Dollar glut c. Balance of payments deficit in the U.S. d. Dollar gap. 16. In January 2000 Ecuador officially replaced its national currency, the Ecuadorian sucre, with the U.S. dollar. This practice is known as: a. securitization. b. currency board arangement. c. dollarization. d. Bi-currencyism