Answer each True or False

1. Translation risk can be hedged against by using the forward market for currency exchange.

2. Environmental scanning involves looking for changes in environmental forces in the global marketplace.

3. The Total Product and the Physical Product mean the same thing.

4. Transfer pricing is a form of intracorporate pricing that can be used to shift the tax burden from one subsidiary to another.

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.

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.

7. Market segment screening is based on needs across national borders.

8. National borders may no longer be the relative unit of analysis for a firm in developing a global market plan.

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.

10. An importer delays payment of the necessary currency exchange when she thinks her currency will devalue in terms of the foreign payment currency.

11. When using a money market hedge, the hedger will immediately convert the currency borrowed into its own currency.

12. JIT systems are more efficient than synchronous manufacturing in all situations.

13. The US has adopted the International Financial Reporting Standards and they are now in effect in the US.

14. A broad statement that defines the organization's purpose and scope is a values statement.

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.