Exam 8: The International Monetary System and Financial Forces

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Your firm operates in Seattle and is signing a contract to supply advisory services to a design firm in Beijing. Your payment is 50 percent on contract signing and 50 percent on completion, which is two years out. Would you want your payment in dollars or yuan/renminbi for today's portion? What about the portion on completion? Why?

(Essay)

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Question 21

The complexity of the gold standard was a part of its appeal.

(True/False)

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Question 22

Fixed-rate relationships among currencies could not stay fixed, according to Obstfeld and Rogoff, because:

(Multiple Choice)

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Question 23

The U.S. current account deficit can be explained by:

(Multiple Choice)

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Question 24

The exchange rate for today for delivery within two days is known as the current rate.

(True/False)

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Question 25

Who took the United States off the gold system?

(Multiple Choice)

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Question 26

When a country imports more than it exports, the currency might be expected to weaken.

(True/False)

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Question 27

Monetary policies control the collecting and spending of money by governments.

(True/False)

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Question 28

One possible current currency arrangement is a fixed peg, whereby the exchange rate of a currency is allowed to move (within a narrow band) with another currency. One example is the pegging of the Canadian dollar to the U.S. dollar.

(True/False)

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Question 29

The balance part of the BOP is explained by:

(Multiple Choice)

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Question 30

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or:

(Multiple Choice)

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Question 31

What is appealing about the gold standard is:

(Multiple Choice)

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Question 32

The Fisher effect states that the real interest rate:

(Multiple Choice)

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Question 33

BOP accounts are recorded in a double-entry bookkeeping method, with each transaction having debit and credit sides.

(True/False)

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Question 34

Exchange rate forecasting is an advanced science; with the correct data, we can predict with accuracy exchange rate movements.

(True/False)

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Question 35

Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.

(True/False)

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Question 36

The random walk hypothesis suggests that the best predictor of tomorrow's currency prices are today's prices.

(True/False)

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Question 37

The current account on the BOP has three subaccounts:

(Multiple Choice)

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Question 38

Currencies float because they are allowed to make their own adjustments in the marketplace.

(True/False)

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Question 39

Balance-of-payments data:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 100

The complexity of the gold standard was a part of its appeal.

Fixed-rate relationships among currencies could not stay fixed, according to Obstfeld and Rogoff, because:

The U.S. current account deficit can be explained by:

The exchange rate for today for delivery within two days is known as the current rate.

Who took the United States off the gold system?

When a country imports more than it exports, the currency might be expected to weaken.

Monetary policies control the collecting and spending of money by governments.

One possible current currency arrangement is a fixed peg, whereby the exchange rate of a currency is allowed to move (within a narrow band) with another currency. One example is the pegging of the Canadian dollar to the U.S. dollar.

The balance part of the BOP is explained by:

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or:

What is appealing about the gold standard is:

The Fisher effect states that the real interest rate:

BOP accounts are recorded in a double-entry bookkeeping method, with each transaction having debit and credit sides.

Exchange rate forecasting is an advanced science; with the correct data, we can predict with accuracy exchange rate movements.

Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.

The random walk hypothesis suggests that the best predictor of tomorrow's currency prices are today's prices.

The current account on the BOP has three subaccounts:

Currencies float because they are allowed to make their own adjustments in the marketplace.

Balance-of-payments data:

The Challenging World of International Business

International Trade and Foreign Direct Investment

International Institutions From an International Business Perspective

Sociocultural Forces

Natural Resources and Environmental Sustainability

Political and Trade Forces

Intellectual Property and Other Legal Forces

International Competitive Strategy

Organizational Design and Control

Global Leadership Issues and Practices

Assessing International Markets

Entry Modes

Export and Import Practices

Marketing Internationally

Global Operations and Supply Chain Management

Managing Human Resources in an International Context

International Accounting and Financial Management

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