Worksheet On Foreign Exchange

Question 1 of 20
Primo is a multinational enterprise based in California that
manufactures and sells affordably-priced athletic shoes in retail stores
around the world. A Primo manufacturing subsidiary in China employs over
20,000 locals. Primo executives recently learned of human rights
violations at the firm’s China subsidiary. Workers had been forced to
work more than 60 hours each week, and minimum wage laws were regularly
ignored. As a result, Primo executives need to decide whether to
continue operations in China.

Which of the following is MOST relevant to
the decision by Primo to remain in China?

A. The extent of effect that bribery has on decisions made by Primo’s
global managers in China

B. The methods of dealing with the hazardous waste created by Primo’s China
manufacturing facility

C. The benefits that the local Chinese community might have

D. The changes that need to be made by Primo managers to show more respect
for the Chinese culture

Question 2 of 20
If MNCs want to take the lead in dealing with ecological interdependence, then they most likely need to:

A. comply with international environmental regulations.

B. incorporate sustainability goals into strategic planning.

C. invest all profits into recycling and renewing resources around the world.

D. work with foreign governments to draft global environmental protection legislation.

Question 3 of 20
Under __________ law, it is assumed a contract reflects promises that will be enforced without specifying the details in the contract.

A. contract

B. federal

C. state

D. civil

Question 4 of 20
In which of the following groups of trade blocs does most of today’s world trade take place?

A. Middle East, China, and India

B. North America, Africa, and Canada

C. Saudi Arabia, Western Europe, and the Gulf

D. Western Europe, Asia, and the Americas

Question 5 of 20
The checklist approach relies on a few easily measurable and timely criteria believed to reflect or indicate changes in the __________ of the country.

A. creditworthiness

B. dynamics

C. quality

D. trust

Question 6 of 20