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Question
Which of the following is a key feature of the foreign exchange market?A.The foreign exchange market never sleeps.
B.The foreign exchange market is located in London.
C.The foreign exchange market is characterized by high transaction costs.
D.The foreign exchange market is shut for two hours every day.
E.The foreign exchange market is poorly interconnected giving rise to ample arbitrage opportunities.
Answer
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Which of the following is true of the barriers to international communication?
A.Noise tends to increase the probability of effective communication.
B.Source effects can be beneficial for an international business when potential consumers in a target country have a bias against foreign firms.
C.Many international businesses try to promote positive source effects by deemphasizing their foreign origins.
D.Fewer firms vie for the attention of prospective customers in developing countries, thus the noise level is lower.
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According to research, when do consumers usually use the country of origin as a cue when evaluating a product?
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B.When consumers lack detailed knowledge of a product
C.When an advertising campaign stresses the positive performance attributes of a product
D.When a limited number of messages compete with each other for consumers' attention
E.When a firm resorts to personal selling instead of mass media advertising