Reference no: EM132180314
True or False
1. An investor purchases the right to receive a specified fixed stream of income from the corporation when he purchases a share of stock.
True
False
2. The minimum efficient scale of production is high when fixed costs are low.
True
False
3. An organizational culture can be strong but bad.
True
False
4. Firms pursuing a localization strategy have a high need for coordination between subunits.
True
False
5. The choice of which markets to enter should be driven by an assessment of relative long-run growth and profit potential.
True
False
6. The value an international business creates in a foreign market depends on the suitability of its product offering to that market and the nature of indigenous competition.
True
False
7. First-mover advantages are the advantages associated with entering a market early.
True
False
8. Costs that an early entrant has to bear that a later entrant can avoid are known as first-mover costs.
True
False
9. A buyback occurs when a direct exchange of goods or services occur between two parties without a cash transaction.
True
False
10. U.S. organizations can get financing aid from the Export-Import Bank.
True
False
11. Proactive firms do not consider exporting until their domestic market is saturated.
True
False
12. Poor understanding of competitive conditions in the foreign market is a common problem facing exporters.
True
False
13. The set of choices the firm offers to its targeted markets is known as the marketing mix.
True
False
14. To design the product so that it can be manufactured in a cost-effective manner, the firm needs to build close links between R&D, marketing, and manufacturing.
True
False
15. The rate of new-product development seems to be lesser in countries where more money is spent on basic and applied research and development.
True
False
16. New-product development has a high failure rate.
True
False
17. Political risk tends to be greater in countries experiencing social unrest or disorder.
True
False
18. Studies have shown that a country's relative inflation rates and changes in exchange rates are not related to each other.
True
False
19. The governments of some countries require or prefer foreign multinationals to finance projects in their country by local debt financing or local sales of equity.
True
False
20. Money management decisions attempt to manage the firm's working capital most efficiently.
True
False
21. Firms cannot use transfer prices to move funds from a subsidiary to the parent company when financial transfers in the form of dividends are blocked by host-country government policies.
True
False