0-Which of the following is best defined by “the conversion of one currency into another at Time…

0-Which of the following is best defined by “the conversion of one currency into another at Time 1, with an agreement to revert it back to the original currency at a specific Time 2 in the future”?

a.

Currency swap

b.

Direct currency transaction

c.

Spot currency transaction

d.

Forward currency transaction

2-

1. ____ allow participants to buy and sell currencies now for future delivery.

   	a.	Swaps
   	b.	Direct transactions
   	c.	Spot transactions
   	d.	Forward transactions

2. What is the “law of one price,” where the price for identical products in different countries should be the same if trade barriers are absent?

   	a.	Purchasing power parity
   	b.	Fixed exchange rate policy
   	c.	Balance of payments
   	d.	Currency swap

3. Which is NOT one of the primary types of foreign exchange transactions?

   	a.	Swaps
   	b.	Direct transactions
   	c.	Spot transactions
   	d.	Forward transactions

4. A country experiencing a current account surplus will see its currency ____, while a country experiencing a current account deficit will see its currency ____.

   		Appreciate, appreciate
   		Appreciate, depreciate
   		Depreciate, appreciate
   		Depreciate, depreciate

5. If a country’s interest rate is high relative to other countries, the country will:

   	a.	Develop a trade deficit.
   	b.	Attract foreign funds.
   	c.	Experience depreciation in its home currency.
   	d.	Discourage foreign investing.

6. Which of the following best describes a rate in which selective government intervention works hand-in-hand with allowing markets the freedom to work themselves out?

   	a.	Floating rate
   	b.	Fixed rate
   	c.	Dirty float rate
   	d.	Target exchange rate

7. Setting up subsidiaries abroad when the work is done in-house only at the foreign location is also called:

   	a.	Captive sourcing
   	b.	Inshoring
   	c.	Offshoring
   	d.	Outsourcing

8. The difficulty of identifying the causal determinants of successful firm performance is also called:

   	a.	Causal identification
   	b.	Ambiguity
   	c.	Performance indicator
   	d.	Causal ambiguity

9. The view in global business which deals with external opportunity threats is also called:

   	a.	Global-business external view
   	b.	Resource-based view
   	c.	Institution-based view
   	d.	Global-business internal view

10. Turning over an organizational activity to a domestic firm is also called:

    	a.	Captive sourcing
    	b.	Inshoring
    	c.	Offshoring
    	d.	Outsourcing

11. The socially intricate and interdependent ways that firms are typically organized may be called:

    	a.	Social typicality
    	b.	Social complexity
    	c.	Organized typicality
    	d.	Complex organization

12. Turning over an organizational activity to an outside supplier that will perform it on behalf of the local firm is also called:

    	a.	Captive sourcing
    	b.	Inshoring
    	c.	Offshoring
    	d.	Outsourcing

13. Which of the following is NOT an intangible asset?

    	a.	Human resources and capabilities
    	b.	Reputational resources and capabilities
    	c.	Innovation resources and capabilities
    	d.	All of these are intangible assets