Why Firms adapt their product? Select all that applies To take into account different levels of income To take into account Cultural factors color, design, and artistic, preferences have to be taken into consideration. To take into account legal Considerations, such as labeling requirements To take into account economies of scales. Firms adapt their products only to lower cost of manufacturing was The General Agreement on Tariffs and Trade (GATT) Established by 33 nations Abolished tariffs Not covering trades in services OFounded after the WTO A skimming strategy Sets an aggressively low price to attract a maximum number of customers Sets the price at a desired margin over cost May give the perception of low quality Sets a high price for a new product, which is aimed at market innovators Franchising: May be difficult to sell if the brand is not known Is used when a firm needs to enter many markets at the same time Is an arrangement in which one firm provides management personnel to perform general or specialized functions to another firm for a fee. Is used because it is the easiest way to maintain quality standards One of the key objective of the IMF (International Monetary Fund) is to To ensure stability in the international monetary system To encourage the adoption of the Yen, Euro, or Dollars to other countries To provide assistance only to the top 10 member nations To fix an exchange rate system under which each IMF member nation set a par value for its currency based solely on gold Making Greenfield Investments is when a Companies choose to acquire existing operations to avoid start-up problems, obtain easier financing, and get an immediate cash flow True False Customer Orientation strategy is best defined as This strategy indicates a firm is sensitive to customer needs. The product changes, the market/customers remain constant In Customer orientation strategy the product stays the same- the market changes. It is based on the reasonably similar than domestic ones. assumption that customers abroad are A strategy that preserves or enhances the well-being of all its stakeholders This strategy indicates a firm is sensitive to customer needs. the product stays the same- the market changes involve the exchange of currency the fourth day after the date on which the two foreign- exchange traders agree to the transaction. Spot transactions Forward transactions FX swaps Reverse transactions Companies may find more advantages to locating production in foreign countries than export to them. under all of these conditions expect: When buyers prefer products originating from a particular country When governments inhibit the import of foreign products When production at home is cheaper than abroad When transportation costs are too high for moving goods or services internationally is the sale of goods or services produced by a firm based in one country to customers that reside in another country Importing Exporting Input Optimizing Tradecountering When a country wants to become member of the IMF that has to contributea certain amount of money. That amount is called A SDR A hard peg A quota An equal Contribution Under NAFTA The liberalization of restrictions on services and foreign investment applies Only American products are shipped to Canada and Mexico duty-free All members import products only from member nations There is no dispute settlement OO A Sporadic Exporter. Has little to no knowledge about exporting Is experienced with the technicalities of international trade, but has no Interest in International trade Invest resources to expand export operations, and aggressively pursues exports sales, Fills an unsolicited order from the occasional foreign buyer but prefers to focus on the domestic market. COMPANIES COLLABORATE for which of these reasons: To Avoid or Counter Competition. To Spread and Reduce Costs. To Secure Vertical access on control To Specialize in Competencies. All of the above An option is a trader's right but not the obligation to trade foreign currency in the future. True False All of the following are ways to control currency convertibility EXCEPT MULTIPLE EXCHANGE RATES QUANTITY CONTROLS ADVANCE IMPORT DEPOSIT THE INTERNATIONAL FISHER EFFECT Which of these statement is true regarding the Spot and Froward Market? The Spot Market consists of players who conduct those foreign exchange transactions that occur "on the spot" or technically, beyond two business days following the date of agreement to trade. The spot market consists of players who conduct those foreign exchange transactions that occur within two business days following the date of agreement to trade The forward market consists of those players who conduct foreign exchange transactions that occur at a set rate within two business days following the date of agreement to trade. On the Forward Market transactions are simultaneously spot and forward transaction, one currency is swapped for another on one date and then swapped back on a future date Question 1 Expatriate are compensated in different ways, the host-based method is best defined by: O Expatriate compensation on the prevailing pay scales in the foreign locale. The Expatriate salary is set in terms of the salary of a comparable job in the city where the MNE has its headquarters The Expatriate salary is based on a comparable job in the expatriate's home city Sometimes also called the HST-Destination salary based, the salary is an average of the Home-based method and the Headquarter based method. 3.33 pts Question 20 The World Trade Organization (WTO) Facilitates reciprocal trade negotiations and enforces trade agreements between or among member nations Established in 1947, the WTO established the fundamental principle of "trade without discrimination" Is a multilateral agreement between twenty-three nations Does not cover trades in services, and was established only to settle associated disputes between members. OC