Business Activities

1) Describe the purposes of the international capital market. What factors account for its rapid growth?

2) How does the international capital market reduce the cost of money for borrowers? What are the two components for every quoted exchange rate?

3) What is the role of debt in national capital markets, and what form does company debt normally take? Describe the different types of international bonds.

4) Briefly describe any two of the three main components of the international capital market.

Chapter 10

1) Briefly describe how exchange rates influence business activities.

2) Explain how movement in a currency’s exchange rate affects the activities of both domestic and international companies. Discuss how companies can export successfully despite having a strong currency.

3) Explain the concept of devaluation, and explain the effect devaluation has on the price of a country’s imports. Discuss how international companies can adjust to a weak currency.

5) Briefly describe the gold standard, its advantages, and why it collapsed.

Chapter 11

1 Differentiate between primary and support activities that create value for a company’s customers. How can managers determine whether an activity enhances customer value?

2) Briefly describe the three generic business-level strategies, providing an example of each.

3) Differentiate between a multinational and a global strategy. Identify the main benefits and the main drawbacks of each.