In the above scenario, the profit of the company will
a. increase.
b. decrease.
c. remains the same.
d. may increase or decrease.
QUESTION 2Which of the following is FALSE about firms organized along functional lines?
a. Workers develop functional expertise
b. Workers find it difficult to share information within their division
c. They foster the exploitation of economies of scale
d. None of the above
QUESTION 3An increase in the exchange rate of the U.S. dollar relative to a trading partner can result from
a. higher anticipated costs of production in the U.S.
b. higher interest rates and higher inflation in the U.S.
c. higher growth rates in the trading partner's economy
d. a change in the terms of trade
e. lower export industry productivity
QUESTION 4Which of the following is FALSE about firms organized along functional lines?
a. Workers find it difficult to develop functional expertise
b. Workers can easily share information within their division
c. They foster the exploitation of economies of scale
d. None of the above
QUESTION 5In the above scenario, the quantity of gas sold will
a. increase.
b. decrease.
c. remains the same.
d. may increase or decrease.
QUESTION 6When a manufacturer's home currency appreciates substantially,
a. domestic sales decline
b. foreign sales decline
c. company-owned foreign plant and equipment will increase
d. margins often decline
e. all of the above
QUESTION 7Which of the following is FALSE about firms organized along functional lines?
a. Workers develop functional expertise
b. Workers can easily share information within their division
c. They foster the exploitation of economies of scale
d. None of the above