Question

1. How are spot exchange rates determined?

a. Using historical average prices of different currencies

b. Taking the average of a basket of currencies

c. The interaction between demand and supply of a currency relative to other currencies

d. Government decree

e. Predicting future currency movements in nonmember countries

Question text

2. Comp-U-Learn Inc. prides itself on a competitive advantage based on their proprietary educational software technology. What two entry modes should the company avoid in order to minimize the risk of losing this technology?

a. acquisitions and greenfield ventures

b. licensing and exporting

c. licensing and joint venture

d. joint venture and wholly owned subsidiary

e. exporting and franchising

3. Stacey Yung wants to open a Pizza Hut restaurant in Beijing and has an agreement with the restaurant chain in which she can use the trademark and must also follow a strict set of guidelines detailing how the business should operate. The Pizza Hut Corporation will receive a percentage of Stacey's revenues from her restaurant. What type of entry mode does this represent?

a. franchising

b. licensing

c. turnkey operation

d. wholly owned subsidiary

e. acquisition

Answer 1

Question How are spot exchange rate determine

Option C. The interaction between demand and supply of a currency relative to other currencies.

because spot rate means the immediate or spot date payment or delivery of currency, commodity and security. when we determine the spot exchange rate, we measure the interaction between demand and supply of a currency relative to uther currency. because of it, the delivery of the foreign exchange has to be made. so basically its called the current exchange rate. The spot exchange rate can be determine by analyze of of the demand and supply of currency.