1. BHP Billiton is a new global challenger.
A) true B) false
2. Nonconvertible currencies are hard currencies.
A) true B) false
3. The key focus of the World Bank is helping countries to stabilize foreign exchange.
A) true B) false
4. A deposit of Euros held in banks in Germany is considered Eurocurrency.
A) true B) false
5. A strategic global team focuses on the efficient operation of the business across the network.
A) true B) false
6. Among entry strategies, low-control strategies require substantial resource commitment.
A) true B) false
7. Contracting with intermediaries in the foreign market to perform export functions enables firms’ indirect exporting.
A) true B) false
8. Technical support outsourcing is part of business process outsourcing (BPO).
A) true B) false
9. Assume entity A (in a country with high corporate income tax) and entity B (in a country with low corporate income tax) are two subsidiaries of Company ABC. Entity A sells parts to entity B. They would pay fewer corporate income taxes in total when entity A charges ______ price to entity B. Here we assume that the price charged by entity A to entity B does not affect the quantity that is sold to entity B.
A) higher
B) lower
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