T F 1. Translation risk can be hedged against by using the forward market for cu
ID: 1101200 • Letter: T
Question
T F 1. Translation risk can be hedged against by using the forward market for currency exchange.
T F 2. Environmental scanning involves looking for changes in environmental forces in the global marketplace.
T F 3. The Total Product and the Physical Product mean the same thing.
T F 4. Transfer pricing is a form of intracorporate pricing that can be used to shift the tax burden from one subsidiary to another.
T F 5. A language trap, where a person can speak two languages, occurs because the person relies on their knowledge of a second language without seeking the assistance of a native speaker.
T F 6. Even with the development of the internet and the virtual capabilities it is still important to make a personal visit to a potential market before investing in the market.
T F 7. Market segment screening is based on needs across national borders.
T F 8. National borders may no longer be the relative unit of analysis for a firm in developing a global market plan.
T F 9. A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.
T F 10. An importer delays payment of the necessary currency exchange when she thinks her currency will devalue in terms of the foreign payment currency.
T F 11. When using a money market hedge, the hedger will immediately convert the currency borrowed into its own currency.
T F 12. JIT systems are more efficient than synchronous manufacturing in all situations.
T F 13. The US has adopted the International Financial Reporting Standards and they are now in effect in the US.
T F 14. A broad statement that defines the organization's purpose and scope is a values statement.
T F 15. Most companies can enter a market in stages. The order listed in the textbook is establishment of a foreign sales company, exporting, local assembly, and manufacturing.
Explanation / Answer
1T
2F
3T
4T
5T
6F
7T
8T
9F
10F
11F
12 T
13 F
14 T
15 T
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