21 If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen Multiple Choice The dollar will depreciate against the yen The exchange rates will remain the same The yen will appreciate against the dollar The dollar will appreciate against the yen 22 London Luggage is a British multinational company with operations in 120 countries around the world It is the companys policy to staff all the key positions in foreign operations with managers from Great Britain What type of staffing policy does the company use Multiple Choice geocentric eurocentric ethnocentric polycentric 23 Assume that a European nation operates under a fixed exchange rate regime What would occur if this nation rapidly increased its money supply by printing more currency Multiple Choice It would lead to price deflation in the country It would lead to an increase in the worth of the currency The prices of imports would become more attractive in the country The country's goods would be highly competitive in world markets 24 With which statement would a follower of the inefficient market school of thought agree Multiple Choice Forward exchange rates do the best possible job of forecasting future spot exchange rates Forward rates reflect all available information about likely future changes in exchange rates Companies can optimize their foreign exchange transactions by using forward markets Companies would be better off investing in foreign exchange forecasting services 25 Prestige Consulting is a large software service provider The company has the largest market share in the industry In order to restrain the smaller competitors in the market, the company sells some of its products at very low prices This is an example of pricing Multiple Choice experience curve predatory penetration multipoint 26 A U S based company today invests some of its spare cash in a German money market account that will earn 8 percent for two months Which of the following, if it happens during the next two months, would imply that the company will earn less than 8 percent on its investment Multiple Choice The German euro rises in value against the dollar The dollar appreciates against the German euro Short term interest rates in German money markets shoot up Interest rates in the United States move down 27 Presser Auto Works, a German auto parts manufacturer, has a policy of appointing the best person for the job in its various locations regardless of the candidate's nationality Which staffing policy best describes Presser Auto Works approach Multiple Choice ethnocentric geocentric eurocentric polycentric 28 Lead Technologies, based in the United States, decides it wants to collect all of its foreign currency receivables from Singapore early because the currency in Singapore is expected to depreciate This is an example of Multiple Choice a lag strategy the efficient market school arbitrage a lead strategy 29 The currency of Lebanon is fixed relative to the U S dollar This means that the exchange rate between the Lebanese pound and other currencies is determined by the dollar exchange rate This reflects a Multiple Choice managed float system pegged exchange rate floating exchange rate fixed exchange rate 30 Smith Brothers is exporting for the first time to France and has contracted with Miller Products in Brazil for an initial order valued at $55,000 Smith Brothers wants Miller Products to secure a document from a Brazilian bank that indicates the bank will pay Smith Brothers $50,000 upon presentation of specified documents by the exporter What document is Smith Brothers asking for Multiple Choice bill of exchange bill of lading time draft letter of credit 31 Novelty Goods, a United States based company, is clear cut in its human resources policy with regard to international expansion While U S nationals staff key positions at its Chicago, Illinois, headquarters, it recruits locals to manage subsidiaries in each country into which Novelty expands Novelty Goods staffing policy is Multiple Choice ethnocentric polycentric eurocentric geocentric 32 Traders at a stock exchange notice that five traders on the floor seem to be selling more yen and purchasing more euros because of an expected decline in the yen As a result, all other traders started to do the same This is an example of the that creates a self fulfilling prophecy when the yen does decline in value Multiple Choice arbitrage bandwagon effect Fisher Effect decoupling of markets 33 If Mexico suffered from fundamental disequilibrium, and its government chose not to devalue its currency, a likely consequence would be Multiple Choice a persistent trade surplus high unemployment an increase in exports an immediate balance of payments equilibrium 34 Assume that the yen dollar exchange rate quoted in Tokyo at 3 00 p m is 120 $1, and the yen dollar exchange rate quoted in New York at the same time is 123 $1 A dealer in New York uses dollars to purchase yen and then immediately sells the yen to buy dollars in Tokyo, thereby making a profit The dealer has engaged in Multiple Choice an arbitrage a currency swap a trade a straddle 35 A Romanian firm raising capital by selling stock through the Luxembourg Stock Exchange is an example of Multiple Choice service exporting transnational investment transnational financing indirect financing 36 Edwin accepted a position his firm offered him to move and work in China The firm provided Edwin and his family information on how to enroll their children in school, where to shop for groceries, and referrals for medical and dental care What kind of training did they receive Multiple Choice cultural cognitive practical language 37 A pair of earrings costs 40 in Britain An identical pair costs $50 in the United States when the exchange rate is 1 $1 50 Which statement is correct Multiple Choice The United States offers a better deal Britain offers a better deal A trader can make money by buying the earrings in Britain and selling in the United States at $50 The deal is the same in both countries 38 Pure Water manufactures portable water filtration systems It wants to market these products in underdeveloped nations where water quality is poor and people lack easy access to these systems The company knows that to successfully enter a foreign market, the retailers will have to be educated on how these products work What distribution factor does this represent Multiple Choice channel concentration channel quality channel exclusivity channel length 39 Namrata is gathering evidence to determine if the firms financial accounts conform to required accounting standards In what activity is Namrata engaged Multiple Choice auditing reporting banking finance 40 How is the International Fisher effect best characterized Multiple Choice It has proven to have substantial power at predicting short run changes in spot exchange rates It has not proven to be a good predictor of long run changes in forward exchange rates It has not proven to be a good predictor of short run changes in spot exchange rates It has proven to have substantial power at predicting long run changes in forward exchange rates

Question

21  If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will happen  Multiple Choice The dollar will depreciate against the yen  The exchange rates will remain the same  The yen will appreciate against the dollar  The dollar will appreciate against the yen  22  London Luggage is a British multinational company with operations in 120 countries around the world  It is the companys policy to staff all the key positions in foreign operations with managers from Great Britain  What type of staffing policy does the company use  Multiple Choice geocentric eurocentric ethnocentric polycentric 23  Assume that a European nation operates under a fixed exchange rate regime  What would occur if this nation rapidly increased its money supply by printing more currency  Multiple Choice It would lead to price deflation in the country  It would lead to an increase in the worth of the currency  The prices of imports would become more attractive in the country  The country's goods would be highly competitive in world markets  24  With which statement would a follower of the inefficient market school of thought agree  Multiple Choice Forward exchange rates do the best possible job of forecasting future spot exchange rates  Forward rates reflect all available information about likely future changes in exchange rates  Companies can optimize their foreign exchange transactions by using forward markets  Companies would be better off investing in foreign exchange forecasting services  25  Prestige Consulting is a large software service provider  The company has the largest market share in the industry  In order to restrain the smaller competitors in the market, the company sells some of its products at very low prices  This is an example of            pricing  Multiple Choice experience curve predatory penetration multipoint 26  A U S  based company today invests some of its spare cash in a German money market account that will earn 8 percent for two months  Which of the following, if it happens during the next two months, would imply that the company will earn less than 8 percent on its investment  Multiple Choice The German euro rises in value against the dollar  The dollar appreciates against the German euro  Short term interest rates in German money markets shoot up  Interest rates in the United States move down  27  Presser Auto Works, a German auto parts manufacturer, has a policy of appointing the best person for the job in its various locations regardless of the candidate's nationality  Which staffing policy best describes Presser Auto Works approach  Multiple Choice ethnocentric geocentric eurocentric polycentric 28  Lead Technologies, based in the United States, decides it wants to collect all of its foreign currency receivables from Singapore early because the currency in Singapore is expected to depreciate  This is an example of Multiple Choice a lag strategy  the efficient market school  arbitrage  a lead strategy  29  The currency of Lebanon is fixed relative to the U S  dollar  This means that the exchange rate between the Lebanese pound and other currencies is determined by the dollar exchange rate  This reflects a Multiple Choice managed float system  pegged exchange rate  floating exchange rate  fixed exchange rate  30  Smith Brothers is exporting for the first time to France and has contracted with Miller Products in Brazil for an initial order valued at $55,000  Smith Brothers wants Miller Products to secure a document from a Brazilian bank that indicates the bank will pay Smith Brothers $50,000 upon presentation of specified documents by the exporter  What document is Smith Brothers asking for  Multiple Choice bill of exchange bill of lading time draft letter of credit 31  Novelty Goods, a United States based company, is clear cut in its human resources policy with regard to international expansion  While U S  nationals staff key positions at its Chicago, Illinois, headquarters, it recruits locals to manage subsidiaries in each country into which Novelty expands  Novelty Goods staffing policy is Multiple Choice ethnocentric polycentric eurocentric geocentric 32  Traders at a stock exchange notice that five traders on the floor seem to be selling more yen and purchasing more euros because of an expected decline in the yen  As a result, all other traders started to do the same  This is an example of the          that creates a self fulfilling prophecy when the yen does decline in value  Multiple Choice arbitrage bandwagon effect Fisher Effect decoupling of markets 33  If Mexico suffered from fundamental disequilibrium, and its government chose not to devalue its currency, a likely consequence would be Multiple Choice a persistent trade surplus  high unemployment  an increase in exports  an immediate balance of payments equilibrium  34  Assume that the yen dollar exchange rate quoted in Tokyo at 3 00 p m  is 120   $1, and the yen dollar exchange rate quoted in New York at the same time is 123   $1  A dealer in New York uses dollars to purchase yen and then immediately sells the yen to buy dollars in Tokyo, thereby making a profit  The dealer has engaged in Multiple Choice an arbitrage  a currency swap  a trade  a straddle  35  A Romanian firm raising capital by selling stock through the Luxembourg Stock Exchange is an example of Multiple Choice service exporting  transnational investment  transnational financing  indirect financing  36  Edwin accepted a position his firm offered him to move and work in China  The firm provided Edwin and his family information on how to enroll their children in school, where to shop for groceries, and referrals for medical and dental care  What kind of training did they receive  Multiple Choice cultural cognitive practical language 37  A pair of earrings costs 40 in Britain  An identical pair costs $50 in the United States when the exchange rate is 1   $1 50  Which statement is correct  Multiple Choice The United States offers a better deal  Britain offers a better deal  A trader can make money by buying the earrings in Britain and selling in the United States at $50  The deal is the same in both countries  38  Pure Water manufactures portable water filtration systems  It wants to market these products in underdeveloped nations where water quality is poor and people lack easy access to these systems  The company knows that to successfully enter a foreign market, the retailers will have to be educated on how these products work  What distribution factor does this represent  Multiple Choice channel concentration channel quality channel exclusivity channel length 39  Namrata is gathering evidence to determine if the firms financial accounts conform to required accounting standards  In what activity is Namrata engaged  Multiple Choice auditing reporting banking finance 40  How is the International Fisher effect best characterized  Multiple Choice It has proven to have substantial power at predicting short run changes in spot exchange rates  It has not proven to be a good predictor of long run changes in forward exchange rates  It has not proven to be a good predictor of short run changes in spot exchange rates  It has proven to have substantial power at predicting long run changes in forward exchange rates

Accepted Answer

The Answer is in the image, click to view ...

Question

21- If the demand for dollars outstrips its supply and if the supply of Japanese yen is greater than the demand for it, what will

Step by Step Solution

Step: 1

Get Instant Access with AI-Powered Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Analysis Synthesis And Design Of Chemical Processes

Students also viewed these Finance questions

Question

Question

Question

Question

Question

Question

Question

Question

Question