Question 1 (1 point)
The existence of graymarket activity across a country’s border has a positive
impact on the producer and their channel partners (e.g., distributors and retailers) in the higherpriced country. Question 1 options: 1) True
2) False
Save Question 2 (1 point)
In the case of the indirect channel of distribution, there are no intermediaries between the consumer and the producer. Question 2 options: 1) True
2) False
Save Question 3 (1 point)
The disadvantage of straight product extension is that a company’s products may not be well suited to local needs. Question 3 options: 1) True
2) False
Save Question 4 (1 point)
Counterfeit markets are illegal because they purposely deceive the buyer. Question 4 options: 1) True
2) False
Save Question 5 (1 point) The Los Altos firmwhich performs global market research on everything from routers to software for clients including Cisco, HP, and Microsofthas only 14
fulltime employees. But it farms out research from Silicon Valley to India’s Evalueserve and to some 5,000 other independent experts in China, the Czech Republic, and South Africa. The above serves as an example of:
Question 5 options: 1) opensourcing.
2) in sourcing.
3) farmshoring.
4) homesourcing.
5) outsourcing.
Save Question 6 (1 point)
An organization that manufactures readymade cotton shirts sources the raw material from all over the world. It does this as a precaution against the failure of one or more companies to deliver the raw materials. The above serves as an example of:
Question 6 options: 1) opensourcing.
2) multisourcing.
3) solesourcing.
4) home sourcing.
5) outsourcing.
Save Question 7 (1 point)
One of the biggest challenges in selling to emerging markets involves making the product affordable. Question 7 options: 1) True
2) False
Save Question 8 (1 point) In the case of outsourcing, the company pays the outsource vendor for the end result; how the vendor achieves the end result is up to the vendor. Question 8 options: 1) True
2) False
Save Question 9 (1 point)
In marketing, which of the following statements holds true for promotion?
Question 9 options:
It refers to the shortest channel of distribution, consisting of just the producer 1) and the end consumer. 2) It refers to any physical good or intangible service that is offered for sale.
It refers to the amount of money that the consumer pays for any physical good or 3) intangible service.
4) It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.
It refers to the location at which the company offers any physical good or 5) intangible service for sale.
Save Question 10 (1 point)
A single supplier from Pennsylvania supplies ash tree wood to a company that manufactures baseball bats. This is an example of:
Question 10 options: 1) opensourcing.
2) multisourcing.
3) solesourcing.
4) homesourcing.
5) outsourcing.
Save Question 11 (1 point)
In marketing, market segmentation refers to the:
Question 11 options: process of dividing a larger market into smaller markets that share a common 1) characteristic, such as age, gender, income level, or lifestyle. combination of the four Ps of marketing that can be customized for different 2) countries. commerce areas where because of price differences across countries, consumers are 3) able to cross international borders to legally purchase products at lower prices than in their home country.
commerce areas where vendorspurposely deceive buyers by altering products and 4) then selling them as branded products at a bargain cost. set of expectations, memories, stories and relationships thattaken together 5) account for a consumer’s decision to choose one product or service over another.
Save Question 12 (1 point)
All citizens of a given country can be marketed to uniformly. Question 12 options: 1) True
2) False
Save Question 13 (1 point)
A cosmetic company manufactures and markets beauty and related products. It markets its products only via the internet. This is an example of (a):
Question 13 options: 1) indirect channel of distribution.
2) direct channel of distribution.
3) channel value proposition.
4) franchising.
5) licensing.
Save Question 14 (1 point)
One advantage of straight product extension is that the products may be less costly due to lower manufacturing and labour costs in the United States. Question 14 options: 1) True 2) False
Save Question 15 (1 point)
In marketing, gray market refers to the:
Question 15 options:
process of dividing a larger market into smaller markets that share a common 1) characteristic, such as age, gender, income level, or lifestyle. trade of goods and services that are illegal in themselves and/or distributed 2) through illegal channels.
3) commerce areas where, because of price differences across countries, consumers are
able to cross international borders to legally purchase products at lower prices than in their home country.
commerce areas where vendors purposely deceive buyers by altering products and 4) then sell them as branded products at a bargain cost. secretive, unregulated (though often technically legal) trading in commodity 5) futures.
Save Question 16 (1 point)
In a centralizedmarketing organizational structure:
Question 16 options:
the power to make decisions is shared by the homecountry headquarters and the 1) local regional headquarters. the local regional headquarters has the power to make marketing decisions 2) affecting its region. the host government in which the local regional headquarters is situated has the 3) power to make marketing decisions. the homecountry headquarters retains decisionmaking power for marketing in all 4) countries. the power of decision making is delegated to an independent third party to avoid 5) conflict between the local and the country headquarters.
Save Question 17 (1 point)
Nike products are manufactured in factories in countries such as China, Vietnam, Indonesia, and Mexico. Wholesalers, retailers, agents, and brokers are intermediaries who help in bringing the products to the consumer. These intermediaries bring the products from the factories to the consumers. They serve as an example of:
Question 17 options: 1) product branding.
2) market positioning.
3) market segmentation.
4) channel of distribution.
5) social marketing.
Save Question 18 (1 point)
Amway, a global company, manufactures and distributes over 450 different consumer products. Amway introduced a new range of products called Satinique. Once Amway developed the product, they undertook market research to determine their target consumers group. They identified a segment consisting of professional women who always want to look their best and who want professional, salon quality products and who rely on recommendations from friends when making haircare purchase decisions. They then developed a marketing strategy and implemented a successful marketing plan. This process of identifying a particular target group to market one’s products is called:
Question 18 options: 1) product branding.
2) market positioning.
3) market segmentation.
4) channel of distribution.
5) social marketing.
Save Question 19 (1 point)
Understanding the market’s culture and social trends is irrelevant when it comes to doing business in the emerging economies of the world. Question 19 options: 1) True
2) False
Save Question 20 (1 point)
_____ refers to a situation which means that there is no more stock of the company’s product.
Question 20 options: 1) Stock of record
2) Stockcheck
3) Safety stock
4) Stockout
5) Stockout
Save Question 21 (1 point)
In marketing, which of the following statements holds true for place?
Question 21 options:
It refers to the shortest channel of distribution, consisting of just the producer 1) and the end consumer. 2) It refers to any physical good or intangible service that is offered for sale.
It refers to the amount of money that the consumer pays for any physical good or 3) intangible service.
4) It refers to the activities that inform and encourage consumers to buy any physical good or intangible service including advertising (whether print, radio, television, online, billboard, poster, or mobile), coupons, rebates, and personal sales.
It refers to the location at which the company offers any physical good or 5) intangible service for sale.
Save Question 22 (1 point)
The world does become flatter to the extent a brand is recognized, accepted, and trusted across borders. Question 22 options: 1) True
2) False
Save Question 23 (1 point)
Investors and banks use financial statements to determine whether to invest in
or loan capital to the firm. Question 23 options: 1) True
2) False
Save Question 24 (1 point)
Which of the following statements holds true for equity financing?
Question 24 options:
It refers to the process of financing major projects such as plant expansion, 1) entry into new markets, or research and development by taking loans from private banks.
It refers to the process of raising capital by borrowing the money and agreeing to 2) repay the entire amount plus agreedupon interest at a specific date in the future. 3) It refers to raising capital by selling shares of stock.
It refers to a set of procedures used to estimate the economic value of an owner’s 4) interest in a business. It refers to a technique that companies use to reduce the costs of crossborder 5) payments between subsidiaries.
Save Question 25 (1 point)
The Mexican subsidiary of an American durables giant acquired a market research firm a few months ago. The rate of exchange at the time of acquisition was 12 pesos= 1 dollar. At the end of the financial year the subsidiaries’ financial statements need to be translated into the currency of the parent corporation. The current exchange rate is 10 pesos= 1 dollar. The subsidiaries’ financial statement is translated into the currency of the parent corporation at the exchange rate of 12 pesos= 1 dollar. The above serves as an example of the _____ of foreigncurrency translation.
Question 25 options: 1) hedging process
2) currentrate method
3) Monte Carlo method
4) temporal method
5) Markov process
Save Question 26 (1 point)
Which of the following statements holds true for hedging?
Question 26 options: It refers to using financial instruments to reduce adverse price movements by 1) taking an offsetting position. It refers to the simultaneous and instantaneous purchase and sale of a currency 2) for a profit. It refers to a strategy that ensures that a change in interest rates does not 3) affect the value of a portfolio. It refers to the practice of buying and selling a currency with the expectation 4) that the value will change and result in a profit. It refers to the method of bringing all financial statements of a parent and its 5) subsidiaries into a single financial statement.
Save Question 27 (1 point)
The _____ is the most widely used currencytranslation method.
Question 27 options: 1) Hedging process
2) currentrate method
3) Monte Carlo method
4) temporal method
5) Markov process
Save Question 28 (1 point)
Despite the costs associated with a forward contract, companies often prefer it to protect themselves against a potential larger downside loss. Question 28 options: 1) True
2) False
Save Question 29 (1 point)
Most IASB statements provide three acceptable alternatives since it is difficult to get an agreement while formulating the international reporting standards. Question 29 options: 1) True 2) False
Save Question 30 (1 point)
Which of the following statements holds true for forward exchange rates?
Question 30 options: 1) It refers to the weighted average of a basket of foreign currencies.
It refers to the rate at which two parties agree to exchange currency and execute 2) a deal that takes place immediately. It refers to the rate that determines payoffs in a financial contract and that is 3) outside the control of the parties to the contract. It refers to the rate at which two parties agree to exchange currency and execute 4) a deal at some specific point in the future, usually 30 days, 60 days, 90 days, or
180 days in the future.
It refers to a form of exchange traded derivative whose underlying value is the 5) rate on various financial interest rates, including treasury, bills and bonds.
Save Question 31 (1 point)
In the United States and Great Britain, companies tend to rely more on banks for funding than on individual investors. Question 31 options: 1) True
2) False
Save Question 32 (1 point)
Adhering to GAAP as well as IFRS helps companies in creating globally shared service center for accounting, rather than having accounting departments in different regions. Question 32 options: 1) True
2) False
Save Question 33 (1 point)
Subsidiaries purchase assets at different times throughout the year and therefore the balance sheet of a multinational firm may not balance if the currentrate method is used. Question 33 options: 1) True
2) False
Save Question 34 (1 point)
Governments use financial statements to ensure that the companies are paying their fair share of taxes. Question 34 options: 1) True
2) False
Save Question 35 (1 point)
Which of the following statements holds true for indirect tax?
Question 35 options: 1) It refers to the tax levied on the value of a property that the owner of the property is required to pay to the government of the country in which the property
is located.
It refers to the tax that is shifted to another person or entity, like the value 2) added tax (VAT), which is levied on the seller but is passed on and paid by buyer.
It refers to the tax that is levied on the income of individuals or businesses 3) (corporations or other legal entities). It refers to the tax that is levied on the passing of title to property from one 4) person (or entity) to another. 5) It refers to the tax that is levied on and paid by the seller.
Save Question 36 (1 point)
The currentrate method avoids the paper gains or losses problem of the temporal method. Question 36 options: 1) True
2) False
Save Question 37 (1 point)
Which of the following statements holds true for a forward contract?
Question 37 options: 1) It refers tothe method of foreigncurrency translation in which items in the subsidiaries’ financial statements are translated into the currency of the parent corporation at the current exchange rate.
It refers to the companygenerated forecast of future spot exchange rates between 2) two trading partners.
3) It refers to a method of foreigncurrency translation that uses exchange rates based on the rate in place when the assets and liabilities were originally acquired or incurred. 4) It refers to the contract between two parties to buy or sell an asset today.
It refers to an agreement in which a firm agrees to pay a specific rate at the 5) beginning of the contract for delivery at a future date.
Save Question 38 (1 point)
The purpose of accounting is to communicate the organization’s financial position to company managers, investors, banks, and the government. Question 38 options: 1) True
2) False
Save Question 39 (1 point)
The Indian subsidiary of a USbased MNC purchased three Caterpillars for its mining work. At the end of the financial year, the financial statements of the
subsidiaries need to be translated into the currency of the parent corporation. When the Caterpillars were purchased, the exchange rate was 50 INR= 1USD. The present exchange rate is 60 INR= 1USD. The financial statement of the Indian subsidiary is translated into the currency of the parent corporation at the exchange rate of 60 INR= 1USD. The above serves as an example of the _____ of foreigncurrency translation.
Question 39 options: 1) Wiener process
2) currentrate method
3) Monte Carlo method
4) temporal method 5) Markov process
Save Question 40 (1 point)
The disadvantage of raising capital in equity markets is that the firm has to repay the money at a specific time and at a specific interest rate. Question 40 options: 1) True
2) False
Save Question 41 (1 point)
Which of the following statements holds true for transnational financing?
Question 41 options:
It refers to the process of financing major projects such as plant expansion in 1) different countries, entry into new countries, or research and development in new countries. 2) It refers to investing capital in foreign markets.
It refers to the process and a set of procedures used to estimate the economic 3) value of an owner’s interest in a transnational business.
4) It refers to seeking capital from foreign sources. It refers to a technique that companies use to reduce the costs of crossborder 5) payments between subsidiaries.
Save Question 42 (1 point)
The _____ is the major entity proposing international standards of accounting and was formerly known as the International Accounting Standards Committee (IASC).
Question 42 options: 1) International Public Sector Accounting Standards (IPSAS) Board
2) US Financial Accounting Standards Board (FASB)
3) International Accounting Standards Board (IASB)
4) Federal Reserve Bank (FRBA) of America
5) Australian Accounting Standards Board (AASB)
Save Question 43 (1 point)
_____ refers to a method of foreign currency translation in which items in the
subsidiaries’ financial statements are translated at the current exchange rate
into the currency of the parent corporation.
Question 43 options: 1) Hedging process
2) Currentrate method
3) Monte Carlo method
4) Temporal method
5) Markov process
Save Question 44 (1 point)
Multinational firms often organize as separate legal entities (i.e., companies) in different countries to gain advantages, such as limiting liability or taking advantage of local corporate tax regulations. Question 44 options: 1) True
2) False
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