International Trade Phase

Topics: International trade, International economics, Globalization Pages: 2 (292 words) Published: March 9, 2011
2) Typically, a "greenfield" investment abroad is considered a greater foreign investment having a greater foreign presence than a joint venture with a foreign firm. Answer: TRUE

3) The authors argue that financial inefficiency caused by influential insiders may prove to be an increasingly troublesome barrier to international finance. Answer: TRUE

7) The twin agency problems limiting financial globalization are caused by these two groups acting in their own self-interests rather than the interests of the firm. A) Rulers of sovereign states and unsavory customs officials. B) Corporate insiders and attorneys.

C) Corporate insiders and rulers of sovereign states.
D) Attorneys and unsavory customs officials.
Answer: C

3) A firm in the International Trade Phase of Globalization
A) makes all foreign payments in foreign currency units and all foreign receipts in domestic currency units. B) receives all foreign receipts in foreign currency units and makes all foreign payments in domestic currency units. C) bears direct foreign exchange risk.

D) none of the above
Answer: C

2) The authors describe the multinational phase of globalization for a firm as one characterized by the A) ownership of assets and enterprises in foreign countries. B) potential for international competitors or suppliers even though all accounts are with domestic firms and are denominated in dollars. C) imports from foreign suppliers and exports to foreign buyers. D) requirement that all employees be multilingual.

Answer: A

1) The phase of the globalization process characterized by imports from foreign suppliers and exports to foreign buyers is called the A) domestic phase.
B) multinational phase.
C) international trade phase.
D) import-export banking phase.
Answer: C

1) For firms competing in a world characterized by oligopolistic competition, strategic motives can be subdivided into proactive and defensive investments. Answer: TRUE
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