Question

In the trade relationship with China, why is the US dollar in more demand than the...

In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan?

A.) More people demand the yuan domestically in China, so it is not used for imports and exports.

B.) The dollar is the common transaction currency between the two countries.

C.) The yuan is pegged to the US dollar.

D.) Formal institutions and regulations demand the trade be conducted in the dollar.

Which of the following is NOT an advantage of a strong US dollar?

A. US consumers benefit from low prices on imports.
B.

US tourists benefit from lower prices when traveling abroad.

C. Lower prices on foreign goods help keep US prices level and inflation low.
D.

US firms in import-competing industries face more low-cost imports.

Non-MNE firms can also do business abroad by:

A.

Licensing and franchising
B

Outsourcing and engaging in FDI
C

Exporting and importing
D

All of these answers

___ is leading the world in managerial compensation.

United States

Britain

Japan

Germany

Which of the following is NOT one of the four strategic choices for MNEs?

Unionization

Global standardization

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Answer #1

1. In the trade relationship with China, why is the US dollar in more demand than the Chinese yuan

Answer: The dollar is the common transaction currency between the two countries

Demand for US dollar is high as most of the countries prefers trading in US dollars as compared to Chinese Yuan

2. Which of the following is NOT an advantage of a strong US dollar

Answer: US consumers benefit from low prices on imports

A strong US dollar is beneficial if the expenses are done out of the US. Within the US, strong US dollar has neglibile effect

3. Non-MNE firms can also do business abroad by

Answer: All of the above

4. ___ is leading the world in managerial compensation

Answer: US

5. Which of the following is NOT one of the four strategic choices for MNEs

Answer: Unionization

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