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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Foreign Direct Investment and Global Strategy | 20% | - Foreign Direct Investment (FDI)
|
| Topic 2: Macroeconomics for Managers | 10% | - Economic Indicators and Policies
|
| Topic 3: Global Finance and Monetary Systems | 25% | - Balance of Payments and International Monetary System
|
| Topic 4: International Trade Theory and Policy | 25% | - Trade Policies and Barriers
|
| Topic 5: Foundations of Global Economics | 20% | - Economic Systems and Institutions
|
Question 1
What is a key feature of an oligopoly?
A. The actions of any one seller in the market have little to no impact on the profits of all the other sellers.
B. Firms in an oligopoly are independent of one another, much like competitive firms.
C. There is tension between cooperation and self-interest.
D. There is little, if any, motivation for cooperation between firms.
Question 2
Which statement describes turnkey projects?
A. Clients pay contractors to design and construct new facilities and train personnel.
B. Companies build new factories and offices from scratch.
C. Two or more parent companies create and own a new entity.
D. Two companies agree to mutually refer customers.
Question 3
Point A is on the same indifference curve as Point B. What can be said about the points?
A. The consumer prefers bundle A over bundle B.
B. Point A represents a bundle that costs more than Point B.
C. The consumer's preference for bundle A is the same as for bundle B.
D. Point B represents a bundle that costs more than Point A.
Question 4
What is the most basic way for nonfinancial companies to adjust to fluctuations of the foreign exchange market?
A. Invoicing customers in the company's currency
B. Currency hedging
C. Rate locks
D. Forward transactions
Question 5
What are three characteristics of industries primed for collusion? (Choose THREE.)
A. Perfect information for consumers
B. High product differentiation
C. A price leader
D. Free entry and exit
E. Homogeneous products
F. A small number of rivals
Solutions:
| Question 1 Answer: C | Question 2 Answer: A | Question 3 Answer: C | Question 4 Answer: A | Question 5 Answer: C,E,F |
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