DON'T SEARCH ANSWER IN THE INTERNET. EXPLAIN ASAP

101.Which of the following accurately describes a

dumping pricing policy?

a. Selling goods domestically at a price less than

cost.

b. Selling goods in another country at a price less

than cost.

c. Selling goods in another country at an

excessive price.

d. Selling goods domestically at an excessive

price.

102.What is an appropriate response by an

importing country for the payment of export

subsidies by an exporting country?

a. Countervailing duties.

b. Foreign exchange controls.

c. Trade embargo.

d. A dumping pricing policy.

103.Which of the following describes a pegged

exchange rate?

a. A currency rate that is tied to the US dollar.

b. A currency rate with its value determined by

market factors.

c. A currency market in which the country's

central bank keeps the rate from deviating too far

from a target band or value.

d. A currency rate that is tied to the prime rate.

104. Assume that the three-month forward rate

for the euro is P1.367 and the spot rate is P1.364.

What is the forward premium or discount on the

euro?

a. 0.88% premium.

b. 0.88% discount.

c. 0.23% premium.

d. 0.23% discount.

105.When net exports are negative, there is a net

flow of

a. Goods from firms in foreign countries to the

domestic country.

b. Money from foreign countries to the firms of

the domestic country.

c. Goods from the firms of the domestic country

to foreign countries.

d. Goods and services which result in a trade

surplus.

106.Which of the following factors is leastlikely to

affect a countrys foreign currency exchange rates

a. Interest rates in the country.

b. Political stability in the country.

c. Inflation in the country.

d. The tax rate in the country.

8

107.Assume that the exchange rate of US dollars

to euros is P1.80 to 1 euro. How much would a US

company gain or lose if the company has a

10,000 euro receivable and the exchange rate

went P1.75 to 1 euro?

a. P10,000 loss.

b. P10,000 gain.

c. P500 loss.

d. P500 gain.

108.Simon Corp., a US company, has made a

large sale to a French company on a 120-day

account payable in euros. If management of

Simon wants to hedge the transaction risk

related to a decline in the value of the euro, which

of the following strategies is appropriate?

a. Lend euros to another company for payment in

120 days.

b. Enter into a forward exchange contract to

purchase euros for delivery in 120 days.

c. Enter into a futures contract to sell euros for

delivery in the future.

d. Purchase euros on the spot market.

109.Which of the following is not a means by

which a firm might hedge the political risk of an

investment in another country?

a. Insurance.

b. Buy futures contracts for future delivery of the

country's currency.

c. Finance the operations with local-country

capital.

d. Enter into joint ventures with local-country

firms.

Economics and Strategy

110. Patents are granted in order to encourage

firms to invest in the research and development of

new products. Patents are an example of

a. Vertical integration.

b. Market concentration.

c. Entry barriers.

d. Collusion.

111. The market for product RK-25 is perfectly

competitive. The current market price is P30, and

the quantity demanded is 4 million. Due to

changes in consumer tastes, a permanent

increase in demand for RK-25 is expected in the

near term. If nothing else changes in this market,

which of the following would be the most feasible

levels of short term and long term

prices?UFSNQSJDFT

Short-term Long-term

a. P39 P35

b. P35 P39

c. P35 P30

d. P30 P35

112. The ultimate purpose of competitor analysis

is to

a. Identify the competition.

b. Determine the competition's strength and

weaknesses.

c. Identify the competition's major customers.

d. Understand and predict the behavior of the

competition.

113. Which of the following is not an important

aspect of supply chain management?

a. Information technology.

b. Accurate forecasts.

c. Customer relations.

d. Communications.

114. Which of the following types of organizations

would

mostlikely engage in public relations type

advertising?

a. An airline.

b. A hotel chain.

c. A toy manufacturer.

d. An electric utility company.

115. Target marketing analysis involves

a. Analyzing the firm's input markets.

b. Understanding and segmenting the firm's

customer markets.

c. Analyzing the firm's market structure.

d. Deciding on whether to offer a new product

line.

116. If a firm's customers are businesses, market

segmentation might be performed along all of the

following dimensions,except

a. Industry.

b. Location.

c. Lifestyle.

d. Size.

Items 117 and 118 are based on the following

information:

Yeager Corporation has used regression analysis

to perform price elasticity analysis. In doing so

management regressed the quantity demanded (y

variable) against price (x

variable) with the following results:

Multiple R .86798

Adjusted R squared .72458

Standard error 542.33

Intercept 56400.50

Price coefficient -4598.20

117. What percentage of the variation in quantity

demanded is explained by the price?

a. 86.798%

b. 72.458%

c. 56.4%

d. 54.233%

118. Calculate the predicted quantity demanded if

price is set at P7.00.

a. 24,213

b. 88,588

c. 31,234

d. 18,454

119. Which of the following is not one of the five

forces in Porters model for industry analysis?

a. Competitors.

b. Bargaining power of customers.

c. Bargaining power of suppliers.

d. General economic conditions.

120. Which of the following is a defining

characteristic of supply chain management?

a. Focuses on the sharing of information with

suppliers and customers.

b. Focuses on redesigning processes.

c. Focuses on improving quality.

d. Focuses on strategic alliances