1.Which of the below is NOT one of the advantages that Dunning's Eclectic Theory points out?

a. Ownership advantage

b. Opportunity advantage

c. Internalization advantage

d. Location advantage

2. The zero-sum game view of trade assumes that one country' win is another country's loss a. True

b. False

3. When a country adopts the currency of another country as its own, it is using which exchange rate system a. Dollarization system

b. Crawling-peg system

c. Floating rate system

d. Pegged exchange rate system

4. When banks sell currency at a higher price, they are selling at

a. None of the above

b. Exchange rates

c. Biding price

d. Asking price

5. A Stock Market

a. Is a financial market where companies can sell shares of ownership and investors can trade these shares with other investors b. Is a combination of national central banks, private banks, and foreign exchange dealers and brokers through which people and companies can sell or buy foreign currencies

c. Ignores the differences in needs between nations and applies the models uniformly d. Is where companies can purchase bonds

6. The philosophy concerning between-country trade in which one country wins by exporting more than is imported is known as a. Mercantilism

b. Specie-flow mechanism

c. None of the above

d. Absolute advantage

7. The Leontief paradox refers to the finding that the US exports more labor-intensive products than capital intensive products

a. True

b. False

8. The bond issuer is usually the

a. Inflation rate

b. Borrower

c. Interest rate

d. Lender

9. Exchange rates represent the prices of foreign currency in terms of other currencies a. True

b. False

10. When it takes fewer units of labor for Country A to produce the same good as Country B, Country A is said to possess________ over country B

a. Mercantilism advantage b. Absolute advantage

c. Comparative advantage

d. Location advantage

11. The price of foreign currency in terms of other currencies is represented by

a. Foreign Price Chart

b. Pounds Sterling

c. Exchange rates

d. Dollars

12.The rule that countries can use to govern the value of their currencies relative to the values of other nations' currencies is called

a. Foreign Exchange bid system

b. Exchange currency system

c. Exchange rule system

d. Exchange rate system

13.Immediate transaction at a specific exchange rate is known as

a. Spot transaction

b. Currency swap

c. Forward transaction

d. None of the above

14. When it takes country A fewer labor units than country B to make a product, country A has a comparative advantage over country B a. True

b. False

15.The Big Mac Index is a. A country's pegging of its currency to the Big Mac

b. An index of currency overvaluation and undervaluation based on the price of a McDonald's Big Mac

c. The physical distance between an organization's culture and the local national culture

d. Comprehensive licensing agreement where the franchisor grants to the franchisee the use of whole business operation

16. Specie - flow mechanism is when

a. The supply or amount of money in a country decreases, so the prices in that country tend to go up as well b. The supply or amount of money in a country increases, so the prices in that country tend to go up as well c. The supply or amount of money in a country decreases, so the prices in that country tend to go down as well d. The supply or amount of money in a country increases, so the prices in that country tend to go down as well.

17.The stock market is the market in which money can be transferred to businesses, individuals, and governments

a. True

b. False