INTERNATIONAL BUSINESS AND TRADE 5.

The cross rate is the exchange rate at which a buyer and a seller
FINALS QUIZZES agree to transact a currency at some date in the future.
- Forward Rate
QUIZ #1 (Lesson 7 & 8)
IDENTIFICATION
1. In 1947, the institutions’ first formal year of operations, it became ENUMERATION
the first nation to borrow the IMF 12-14 at least 3 criticisms of IMF
- France / French - Condition for Loans
2. It is basically an international monetary reserve asset and were - Exchange Rate Reforms
created in 1969 by the IMF in response to the Triffin Paradox - Devaluations
- Special Drawing Rights (SDR) - Lack of Transparency and Involvement
3. It is the exchange rate between two currencies, neither of which - Supporting Military Dictatorships
is the official currency in the country in which the quote is 15-16 Bretton woods institutions
provided. - World Bank
- Cross Rates - International Monetary Fund (IMF)
4. They are groups of financial instruments consisting of forward 17-18 Two main bodies of the World Bank
contracts, currency swaps, options, and futures - International Bank of Reconstruction and Development
- Derivatives (IBRD)
5. It is any form of money in general circulation in a country - International Development Association (IDA)
- Currency 19-20 Two major components of capital markets.
6. It is defined as the rate at which the market converts one currency - International Equity Markets
into another - International Bond Markets
- Exchange Rate
MODIFIED TRUE OR FALSE QUIZ #2 (Lesson 9 & 10)
1. Money provides us with a universally accepted medium of SET A
exchange MODIFIED TRUE OR FALSE
- True 1. PESTEL Analysis helps leaders develop a detailed, internally
2. From about 1486 to 1908, the daric and its variations were used consistent picture of a range of plausible outcomes as an industry
in Europe as the standards against which the various states’ evolves over time.
currencies could be valued. - Scenario Planning
- Thaler 2. A patent is a form of intellectual property rights.
3. A company’s primary purpose for wanting or needing to convert - True
currencies is to pay or receive money for goods or service. 3. When entering a new market, it’s vital for firms to perform full,
- True detailed environmental scanning in order to understand the
4. Currency Speculation is the simultaneous and instantaneous market conditions and take measures to account for them.
purchase and sale of a currency for a profit. - Market Research
- Currency Arbitrage
 4. Most companies consider this market-entry option of franchise to - Other Manufactures
be a low-risk option because there’s typically no up-front - Woodcraft and Furniture
investment.
- Licensing SET B
5. The bill of lading is a contract between banks that stipulates that MODIFIED TRUE OR FALSE
the bank of the importer will pay the bank of the exporter upon 1. PESTEL analysis is an important and widely used tool that
getting the proper documentation about the merchandise. helps show the big picture of a firm’s external
- Letter of Credit environment particularly as related to foreign markets.
IDENTIFICATION - True
6. It is the degree to which the company’s existing practices, 2. Barter occurs when the seller receives cash but not
resources and capabilities fit the new market contractually agrees to buy local products or services with
- Corporate Fit that cash
7. He is the one who typically prepares the documentation, suggests - Counter-purchase
shipping methods, navigates trade regulations, and assists with 3. Economic in PESTEL is the concern when companies
details like packing and labeling. want to identify the status of intellectual property issues in
- Freight Forwarders the local environment.
8. It focuses on the cost advantage that arises when there is a higher - Technological
level of production for one good. 4. Joint Venture involves a contractual agreement between
- Economies of Scale two or more enterprises stipulating that the involved
9. It is typically the easiest way to enter an international market. parties will cooperate in a certain way for a certain time to
- Exporting achieve a common purpose.
10. It is a transaction in which a firm gains control of another firm by - Partnerships and Strategic Alliances
purchasing its stocks, exchanging the stock for its own or in the 5. Greenfield venture is another term for a wholly owned
case of a private firm, paying the owners a purchase price. subsidiary.
- Acquisition - True
ENUMERATION IDENTIFICATION
11-15 Five common international entry modes 6. It involves the sale of products or services in one country
- Exporting that are sourced in another country
- Licensing and Franchising - Importing
- Partnership and Strategic Alliances 7. It is a measure of the impact that activities like
- Acquisition transportation and manufacturing have on the
- Greenfield Venture environment, especially in climate change.
16-17 Investment entry modes - Carbon Footprint
- Joint Venture 8. It occurs when a company contracts with a third party to
- Wholly Owned Subsidiaries do some work on its behalf
18-20 Major exports of the Philippines. (Acct for 1/3 of GDP) - Outsourcing
- Electronic Products
 9. It occurs when companies trade goods and services for 4. Emerging market is a segment of a larger market defined by its
other goods and services and actual monies are involved own specific needs, preferences, or identity that makes it different
only to a lesser degree, if at all. from the market at large.
- Countertrade - Niche Market
10. It is a contractual strategic partnership between two or 5. Most entrepreneurs would identify technology and access to them
more separate business entities to pursue a business as one of the scarcest resources.
opportunity together. - Money
- Joint Venture
ENUMERATION IDENTIFICATION
11-14 Philippines’ main export partners 1. It is the central, integrated, externally oriented concept of how a
- Japan firm will achieve its objectives
- The United States - Strategy
- China 2. It is the company’s statement of purpose for existence.
- Hong kong - Mission
15-17 Three strategies for handling institutional voids 3. It means that the firm seeks to make its products or provide its
- Adapt its business model services at the lowest cost possible relative to tits competitors
- Change the institutional context while maintaining a quality that is acceptable to consumers. ‘
- Stay Away - Cost Leadership
18-20 Rationale for international expansion 4. It stems from creating unique value to the customer through
- To improve the cost-effectiveness of their operations advanced technology, high quality ingredients or components,
- To expand into new markets for new customers product features, superior delivery time, and the like.
- To follow global customers - Differentiation Strategy
5. Using this strategy, the firm can customize its products to meet
the specific preferences and needs of local customers.
QUIZ #3 (Lesson 11 & 12) - Multidomestic
SET A
MODIFIED TRUE OR FALSE ENUMERATION
1. Vertical Scope has come to mean internationalization or the entry 11-15 Elements of strategy
to new markets in other parts of the world. - Arenas
- Geographic Scope - Differentiators
2. Strategy formulation is making the plan happen. - Vehicles
- Strategy implementation - Staging & Pacing
3. Entrepreneur is “a person within a large corporation who takes - Economic Logic
direct responsibility for turning an idea into a profitable finished 16-18 Entrepreneurial process
product through assertive risk taking and innovation.” - Identifying the opportunity
- Intrapreneur - Plan and prepare the venture
- Resource the venture & take action
19-20 Forms of intrapreneurial organization - Transnational
- Co-existence approach 4. It is what the company wants to become.
- Structural-separation approach - Vision
5. There are the means for participating in targeted arenas.
SET B - Vehicles
MODIFIED TRUE OR FALSE
1. With the structural separation approach, the new venture is ENUMERATION
conducted within an existing business or business unit. 12-14 Generic Business Level Strategies
- Co-existence approach - Cost-Leadership
2. A born-global firm, also commonly called an entrepreneurial - Differentiation
venture. - Integrated Cost-Leadership and Differentiation
- Global Start-up 15-17 Corporate Strategies
3. Vehicle refers to how the firm will earn a profit – that is, how - Horizontal Scope
the firm will generate positive returns over and above its cost of - Vertical Scope
capital. - Geographic Scope
- Economic Logic 18-20 International Strategies
4. A mission statement is a formal statement of business goals, the - Multidomestic
reasons why they are attainable, and the plan for reaching those - Global
goals. - Transnational
- Business Plan
5. Arenas are features and attributes of a company’s product or
service that help it beat its competitors in the marketplace.
- Differentiators
6. The intrapreneur challenges the status quo and fights to change
the system from within.
- True

IDENTIFICATION
1. Under this strategy, products are much more likely to be
standardized rather than tailored to local markets.
- Global
2. There are areas in which a firm will be active and clearly tells
managers what the firm should and should not do.
- Arenas
3. This strategy seeks to combine the best of multidomestic strategy
and a global strategy to get both global efficiency and local
responsiveness.