Question 21 (10 points)

What is the term for a company's formal statement of the ethical priorities it expects all of its employees to follow?

Question 21 options:

A)	code of ethics

B)	stakeholders pledge

C)	moral courage

D)	difference principle

Question 22 (10 points)

Corporations can contribute to the global tragedy of the commons by pumping pollutants into the atmosphere or dumping them in oceans or rivers in locations with weak environmental standards.

Question 22 options:

	A) True
	B) False

Question 23 (10 points)

Building an organization culture that places a high value on ethical behavior requires incentive and reward systems.

Question 23 options:

	A) True
	B) False

Question 24 (10 points)

A country has an absolute advantage in the production of a product when it

Question 24 options:

A)	has the capability to produce the product within its boundaries.

B)	is more productive and cost efficient than any other country in producing it.

C)	has the largest domestic demand for the product.

D)	has access to the raw materials needed to produce the product.

Question 25 (10 points)

A country's balance-of-payments accounts keep track of the

Question 25 options:

A)	basic factor endowments and advanced factor endowments that the nation possesses.

B)	payments to and receipts from other countries for a particular time period.

C)	income taxes paid by domestic firms and the spending on the firms.

D)	total value of taxes paid by domestic firms and the spending on the firms.

Question 26 (10 points)

Apple's iPhone was unique when it first came out, with many features that no other phones had. As such, it enjoyed great success and dominated the cell phone market. This demonstrates the first-mover advantage.

Question 26 options:

	A) True
	B) False

Question 27 (10 points)

Who benefits from an import tariff?

Question 27 options:

A)	the government

B)

consumers

C)	foreign producers

D)

everyone

Question 28 (10 points)

The TRIPS regulations established at the 1995 Uruguay Round

Question 28 options:

A)	established regulations on patents and copyrights.

B)	set a new level of agriculture subsidies.

C)	organized OECD countries to eliminate tariffs on textiles.

D)	established new tariff levels on technology.

Question 29 (10 points)

Why do governments limit currency convertibility?

Question 29 options:

A)	to preserve foreign exchange reserves

B)	to spend foreign exchange reserves

C)	to keep domestic companies from investing abroad

D)	to allow nonresidents to convert money to foreign currencies

Question 30 (10 points)

Exchange rates are _____ under a pure "free float" system.

Question 30 options:

A)	completely balanced

B)	determined by market forces

C)	wildly variable and unpredictable

D)	determined by the government

Question 31 (10 points)

Which of the following is a common underlying cause of financial crises?

Question 31 options:

A)	a narrowing current account deficit

B)	excessive expansion of domestic borrowing

C)	low relative price inflation rates

D)	asset price deflation

Question 32 (10 points)

The International Monetary Fund's original function was to provide a pool of money from which members could borrow in the short term.

Question 32 options:

	A) True
	B) False

Question 33 (10 points)

Financial services has historically been the most tightly regulated of all industries.

Question 33 options:

	A) True
	B) False

Question 34 (10 points)

The forward exchange market does not provide adequate coverage for long-term borrowings.

Question 34 options:

	A) True
	B) False

Question 35 (10 points)

Which of the following is a major advantage of using a letter of credit?

Question 35 options:

A)	It gives the importer time to resell the merchandise before payment.

B)	It guarantees the exporter preexport financing.

C)	It helps international traders engage in trade with trust.

D)	It guarantees the importer extra funds for other purposes.

Question 36 (10 points)

The _____ is issued to the exporter by the common carrier transporting the merchandise.

Question 36 options:

A)	bill of lading

B)	sight draft

C)	letter of credit

D)	time draft

Question 37 (10 points)

The most comprehensive source of information for U.S. firms on exporting opportunities is the U.S. Department of Commerce.

Question 37 options:

	A) True
	B) False

Question 38 (10 points)

A country can bring antidumping actions against an importer under

Question 38 options:

A)

UNESCO.

B)	the World Bank.

C)

the FEC.

D)

GATT.

Question 39 (10 points)

Historically, most international businesses have been more concerned with training than with management development, focusing on preparing home-country nationals for foreign postings.

Question 39 options:

	A) True
	B) False

Question 40 (10 points)

A law system that is based on a detailed set of laws organized into codes is

Question 40 options:

A)	municipal.

B)

contract.

C)

civil.

D)

common