In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan?

A.) More people demand the yuan domestically in China, so it is not used for imports and exports.

B.) The dollar is the common transaction currency between the two countries.

C.) The yuan is pegged to the US dollar.

D.) Formal institutions and regulations demand the trade be conducted in the dollar.

Which of the following is NOT an advantage of a strong US dollar?

		A. US consumers benefit from low prices on imports.
	B.	US tourists benefit from lower prices when traveling abroad.
		C. Lower prices on foreign goods help keep US prices level and inflation low.
	D.	US firms in import-competing industries face more low-cost imports.

Non-MNE firms can also do business abroad by:

	A.	Licensing and franchising
	B	Outsourcing and engaging in FDI
	C	Exporting and importing
	D	All of these answers

___ is leading the world in managerial compensation.

		United States
		Britain
		Japan
		Germany

Which of the following is NOT one of the four strategic choices for MNEs?

		Unionization
		Global standardization
		Home replication