1. Which of the following is not a step in the financial overview process?

a. Determining financial health of country
b. Estimating budget percentages
c. Market research
d. Repatriation of funds
e. Source of finance

2. ___________ are the costs of exchange.

a. Transfer fees
b. Fronting loans
c. Taxes
d. Royalties
e. Transaction costs

3. The Eurocurrency market primarily concentrates on

a. sort-term lending-one year or less.
b. medium-term lending.
c. long-term lending activities.
d. placing newly issued stocks in foreign markets.
e. floating bonds in the open market.

4. A weak dollar is normally expected to cause

a. high unemployment and high inflation in the United States.
b. high unemployment and low inflation in the United States.
c. low unemployment and low inflation in the United States.
d. low unemployment and high inflation in the United States.
e. high inflation and high interest rates in the United States.

5. Which of the following is not an advantage of a transnational strategy?

a. Organizations can implement a transnational strategy easily.
b. Organizations can exploit experience curve effects.
c. Organizations can exploit location economies.
d. Organizations can customize product offerings and marketing strategy in accordance with local responsiveness.
e. Organizations can reap the benefits of global learning.

6. A ________________ staffing policy seeks the best person for key jobs throughout the multinational organization, regardless of their nationality.

a. Multicentric
b. Polycentric
c. Expatriate
d. Geocentric
e. Ethnocentric