Midterm Examination Flashcards
It is a negotiation between two or more countries regarding the terms of trade between them, including tariffs, quotas, restrictions on imports and exports, and provisions.
a. International trade
b. International business
c. Trade agreements
d. Business agreements
ANSWER: c. Trade agreements
Floating rates are also referred to as
a. Spot rates
b. Fixed rates
c. Free rates
d. None of these
c. Free rates
Following are the challenges in international business except
a. Currency exchange and inflation rates issues
b. Talent acquisition and onboarding
c. International diversification
d. None of these
c. International diversification
An example of a unilateral trade agreement is
a. South Pacific Regional Trade and Economic Co-operation Agreement
b. The European Union (EU) — Japan Economic Partnership Agreement
c. Both of these are examples of a unilateral trade agreement
d. Neither of the two are examples of a unilateral trade agreement
a. South Pacific Regional Trade and Economic Co-operation Agreement
The following are influences and goals of international business except
a. Attract foreign demand
b. Managing globally distributed teams
c. International diversification
d. None of these
b. Managing globally distributed teams
This highlights the importance of sustainable production methods and non-conventional energy resources for your production process.
a. Payrolling challenges
b. Brand consistency
c. New market competition
d. Environmental issues on a global level
ANSWER: d. Environmental issues on a global level
According to PAS 21, a reporting entity is
a. Encouraged to identify its functional currency
b. Required to identify its functional currency
c. Required to identify its presentation currency
d. (a) and (c)
ANSWER: b. Required to identify its functional currency
When translating foreign currency denominated items into functional currency at the reporting date, which of the following items is measured using historical exchange rate?
a. Accrued liabilities
b. Inventories measured at cost
c. Bonds payable
d. Equity securities measured at fair value
ANSWER: b. Inventories measured at cost
A spot rate may be defined as
a. Price a foreign currency can be purchased or sold today
b. Price today at which a foreign currency can be purchased or sold in the future
c. The forecasted future value of a foreign currency
d. The Euro value of a foreign currency
ANSWER: a. Price a foreign currency can be purchased or sold today
The factors in determining functional currency include all of the following except
a. The currency that mainly affects the entity’s sales
b. The currency that mainly affects the entity’s cost of sales
c. The currency used in the entity’s financing activities and operating activities
d. The currency used in the entity’s investing activities
ANSWER: d. The currency used in the entity’s investing activities
Many companies have set up production plants in other countries like Singapore to take advantage of labor cost savings.
a. Use of economic resources
b. International diversification
c. Utilize technology
d. None of these
a. Use of economic resources
