Here are the 30 fill-in-the-blank questions and 10 open-ended questions in English:

Unit 5:

Fill-in-the-blank questions:

1. In international transactions, companies need a mechanism for exchanging one _____ for
another _______.
2. Exchange rates depend on the size of the transaction, the _____ conducting it, general economic
conditions and, sometimes, government _______.
3. Banks always buy _____ and sell _____, earning their profits from the _____ between the two
rates.
4. Companies use the foreign exchange market to _____ one currency into another.
5. The practice of insuring against potential losses from adverse changes in exchange rates is called
"currency ______".
6. _____ is the instantaneous purchase and sale of a currency in different markets for profit.
7. _____ is the purchase or sale of a currency with the expectation that its value will change and
generate a profit.
8. Spot rates are exchange rates that require delivery of the traded currency within _____ business
days.
9. The buy rate is the rate at which the bank will _____ a currency, while the ask rate is the rate at
which it will _____ that currency.
10. The _____ rate is the exchange rate at which two parties agree to exchange currencies on a
specified future date.

Open-ended questions:

1. Why do companies need to use the foreign exchange market?

2. What are the common currency risk hedging instruments?
3. Compare the characteristics of spot transactions, forward currency transactions, and currency
swaps.
4. What is the role of currency options?
5. How do economic factors like inflation, public debt, and trade balance affect exchange rates?
6. Why are some currencies not traded in the forward currency market?
7. When is a currency considered to be trading at a "premium" or "discount"?
8. Describe a typical example of a company using forward currency contracts to hedge exchange
rate risk.
9. What are the roles of banks and foreign exchange brokers in the foreign exchange market?
10. What factors influence the determination of exchange rates in the foreign exchange market?
Here are the answers to the 30 fill-in-the-blank questions and 10 open-ended questions:
Unit 3.

Here are 20 fill-in-the-blank questions and 5 open-ended questions in English based on the reading
about mergers and acquisitions:

Fill-in-the-blank questions:

1. Successful companies generally want to _____ and enter new _____.

2. Buying another company with existing products and customers is often _____ and _____ than
going into new markets.
3. Apart from _____, reasons for acquiring companies include gaining a stronger _____ in a
market, _____ competition, benefiting from _____, and making use of plant and _____.
4. There are two ways to acquire a company: a _____ or a _____ bid.
5. A _____ bid is a public offer to a company's stockholders to buy their stocks at a certain price,
which is higher than the _____ market price.
6. Investment banks may _____ takeovers if they consider that the _____ companies are _____.
7. Diversification can damage a company's _____ and _____.
8. After _____ takeovers, the top executives of the newly acquired company are often _____ or
choose to _____.
9. A company's _____ size or market share can be quite small, and large _____ can become
unmanageable and _____.
10. Corporate _____ and private _____ firms look for large _____ that have become inefficient and
are _____, then split them up and sell off the _____.

Open-ended questions:
1. Why do companies often want to diversify and enter new markets?
2. What are the main risks and challenges associated with mergers and acquisitions?
3. How do investment banks play a role in merger and acquisition transactions?
4. How can companies ensure that their merger or acquisition goals are successfully achieved?
5. Why do financial companies and private equity firms seek out undervalued large conglomerates
to acquire?

Here are the answers to the 20 fill-in-the-blank questions and 5 open-ended questions:

Unit 4

Fill-in-the-blank questions:

1. The ___ is a statistical summary of a country's total trade, other economic transactions and
financial flows at a given time.
2. In ___, the balance of trade simply refers to the balance between a country's exports and
imports.
3. A ___ is a non-binding intergovernmental instrument that seeks to regulate certain types of
behavior of governments or private corporations.
4. ___ refers to governmental acts, policies and practices which influence trade in goods and
services.
5. ___ includes approaches of governments to the promotion and protection of competition, which
may conflict with trade policies like anti-dumping measures.
6. According to the theory of ___, the success of a firm or an industry is based on cost advantages
or product differentiation.
7. ___ is the concept that multilateral action should be taken whenever possible to improve
market access.
8. ___ are legal protective mechanisms under WTO agreements to counter the effects of dumping,
subsidies and import surges.
9. ___ and ___ exist side by side, with ___ being promoted by rapid improvements in international
transport and communications.
10. The aim of ___ is the accumulation of an increased share of global wealth, often in the form of
gold and silver, and nowadays, foreign exchange.

Open-ended questions:

1. Explain the concept of the "balance of trade" and why it is not necessarily an important
economic indicator for evaluating the success of economic policies.
2. Analyze the relationship between competition policy and anti-dumping measures, and the
potential conflict between these two policy areas.
3. Why is the distinction between "internationalization" and "globalization" important in the study
of international economics?
4. Discuss the arguments for and against protectionist trade policies. Which approach do you think
is more appropriate?
5. What are the main differences between bilateral and multilateral trade agreements? When are
each of these types of agreements preferred?
6. What is the role of the principles of "most-favored-nation" and "national treatment" in the
multilateral trading system?
7. Analyze the significance and implications of governments pursuing "mercantilist" policies of
national wealth accumulation.
8. How can trade and competition policies impact the interests of consumers versus producers?
9. What have been the key changes in the concept of "free trade" over historical periods?
10. Compare and contrast the "contingent multilateralism" and "pure multilateralism" approaches
in US trade policy
Here are 20 multiple-choice questions, with answers provided separately:

### Questions

1. **What is a common market?**

- a) A country with low taxes
- b) A group of countries with a common trade policy
- c) A system of floating exchange rates
- d) An argument for protecting new industries
2. **What does economic risk refer to?**
- a) Low income taxes
- b) Trade policy
- c) Changes in a country's business environment
- d) Foreign investment

3. **Floating exchange rates are:**

- a) Fixed by the government
- b) Adjusted by supply and demand
- c) Based on common trade policies
- d) Part of a mixed economy

4. **Free trade means:**

- a) No taxes
- b) No barriers to goods and services
- c) A common external trade policy
- d) A staffing policy

5. **The General Agreement on Tariffs and Trade (GATT) is:**

- a) A staffing policy
- b) A treaty to lower trade barriers
- c) An exchange rate system
- d) A domestic production requirement

6. **Globalization of markets involves:**

- a) Distinct national markets
- b) Moving away from distinct markets
- c) Fixed exchange rates
- d) Common market policies

7. **Horizontal foreign direct investment is:**

- a) Investment in a different industry abroad
- b) Investment in the same industry abroad
- c) A tax haven
- d) A trade policy

8. **The infant industry argument suggests:**

- a) Permanent protection for new industries
- b) Temporary protection for new industries
- c) No protection is necessary
- d) Only subsidies are needed

9. **An international strategy aims to:**

- a) Create value domestically
 - b) Transfer competencies to foreign markets
- c) Restrict exports
- d) Encourage imports

10. **A local content requirement mandates:**

- a) Goods be produced entirely abroad
- b) A fraction of a good be produced domestically
- c) Fixed exchange rates
- d) Free flow of goods

11. **A voluntary export restraint (VER) is:**

- a) Imposed by the importer
- b) Imposed by the exporter
- c) A tax haven
- d) A polycentric staffing policy

12. **A tax haven is:**

- a) A country with high taxes
- b) A country with low or no taxes
- c) An international investment policy
- d) A trade agreement

13. **Mercantilism advocates for:**

- a) Free trade
- b) Encouraging exports and discouraging imports
- c) Fixed exchange rates
- d) Horizontal investment

14. **Minimum efficient scale is:**

- a) The smallest market size
- b) The level where scale economies are exhausted
- c) A staffing policy
- d) A trade agreement

15. **Polycentric staffing involves:**

- a) Recruiting only from the home country
- b) Recruiting host-country nationals for subsidiaries
- c) Recruiting only from third countries
- d) Complete government control

16. **A positive sum game means:**

- a) Only one country benefits
- b) All countries benefit
- c) No countries benefit
 - d) Only exporters benefit

17. **Price elasticity of demand measures:**

- a) Supply changes
- b) Demand responsiveness to price changes
- c) Currency exchange rates
- d) Trade barriers

18. **A subsidy is:**

- a) A tax on imports
- b) Financial assistance to a domestic producer
- c) A free trade agreement
- d) A staffing policy

19. **Systematic risk is associated with:**

- a) Individual firm factors
- b) Macroeconomic forces
- c) Tax policies
- d) Local content requirements

20. **A mixed economy includes:**

- a) Complete private ownership
- b) Significant government ownership and planning
- c) Only free market mechanisms
- d) Only government control

Unit 4

Certainly! Here are 20 multiple-choice questions based on the provided terms, followed by the answers.

### Questions

1. **What is Foreign Portfolio Investment?**

- a) Establishing a plant abroad

- b) Purchasing shares and debt from a foreign entity

- c) Acquiring raw materials

- d) Merging with a foreign company

2. **What characterizes Foreign Direct Investment?**

 - a) Quick liquidation of assets

- b) Establishing control over foreign operations

- c) Trading stocks on an exchange

- d) Franchising agreements

3. **What is a key feature of the Strategic Approach in FDI?**

- a) Investing only in domestic markets

- b) Seeking access to resources and efficiencies

- c) Primarily focusing on stock market growth

- d) Selling off foreign assets

4. **What does Cash Flow represent?**

- a) Total revenue before expenses

- b) Cash remaining after taxes and expenses

- c) Gross profit from sales

- d) Investment incentives

5. **What are Investment Incentives?**

- a) Strategies to increase product prices

- b) Benefits like tax credits to attract foreign investment

- c) High-interest loans

- d) Penalties for foreign companies

6. **Who is an Exclusive Distributor?**

- a) A manufacturer of foreign goods

- b) An agent with sole rights to sell products

- c) A company owning multiple brands

- d) An agent selling products from many manufacturers

7. **What are Royalty Payments?**

- a) Payments for exclusive distribution rights

- b) Payments for licensing production of products

- c) Taxes on imported goods

- d) Profits from international sales

8. **What defines a Joint Venture?**

- a) A corporation with 100% foreign ownership

- b) A partnership formed by two or more corporations

- c) A sole proprietorship

- d) A franchise agreement

9. **What is a Multinational Corporation (MNC)?**

- a) A company operating only domestically

- b) A corporation controlling systems in multiple countries

- c) A small local business

- d) A government-owned entity

10. **What percentage of ownership defines a Subsidiary?**

- a) Less than 25%

- b) More than 50%

- c) Exactly 50%

- d) Less than 10%

11. **What is an International Division Structure?**

- a) A reporting system within a domestic market

- b) Communication through an international department

- c) A structure for local business management

- d) A division based solely on product types

12. **What characterizes a Global Structure?**

- a) Separate divisions for international operations

- b) Total involvement of top management in all matters

- c) Independent subsidiaries with no central control

- d) Focus only on domestic sales

13. **What is Decentralization?**

- a) Centralized decision-making at the parent company

- b) Significant voice for foreign subsidiaries in decisions

- c) Complete autonomy for each subsidiary

- d) Uniform policies worldwide

14. **What is Centralization?**

- a) Granting autonomy to subsidiaries

- b) Retaining decision-making power at the parent company

- c) Independent operation of each branch

- d) Delegating all responsibilities to local managers

15. **What defines an Acquisition?**

- a) A merger between two equal companies

- b) When one company takes over another

- c) A partnership agreement

- d) A joint venture

16. **What is a Raid in business terms?**

- a) Offering to buy a company’s stocks publicly

- b) Buying as many stocks as possible on the market

- c) Selling off company assets

 - d) Merging with a competitor

17. **What is a Takeover Bid?**

- a) A secret purchase of company shares

- b) A public offer to buy stocks at a specific price

- c) A hostile acquisition

- d) A merger proposal

18. **What is a Buyout?**

- a) Selling shares to the public

- b) Purchasing shares to gain controlling interest

- c) A joint venture

- d) An investment incentive

19. **What happens in a Merger?**

- a) One company dissolves

- b) Two firms become a single new company

- c) A company buys another company’s stocks

- d) A partnership is formed

20. **What is a Horizontal Merger?**

- a) A merger between companies in different industries

- b) Combining two companies making the same products

- c) A merger between a manufacturer and a supplier

- d) A diversification strategy

Certainly! Here are 20 multiple-choice questions based on the terms provided, followed by the answers.

### Questions
1. **What is Foreign Exchange?**

- a) A domestic currency

- b) Money or currency of a foreign country

- c) A type of investment

- d) A financial institution

2. **What is the Foreign Exchange Market?**

- a) A place for trading stocks

- b) A market for buying and selling currencies

- c) A commodities exchange

- d) A futures trading platform

3. **What does the Exchange Rate refer to?**

- a) Interest on foreign loans

- b) The rate at which one currency is exchanged for another

- c) The value of gold reserves

- d) A country's trade balance

4. **What is a Spot Rate?**

- a) A long-term exchange rate

- b) An exchange rate for immediate delivery

- c) A historical exchange rate

- d) A speculative rate

5. **What is a Forward Rate?**

- a) An exchange rate for immediate delivery

- b) An exchange rate agreed for a future date

- c) A past exchange rate

 - d) A speculative rate

6. **What is Hedging?**

- a) Speculating on currency value

- b) Insuring against exchange rate losses

- c) Trading commodities

- d) Buying stocks

7. **What is Arbitrage?**

- a) Long-term currency investment

- b) Instantaneous purchase and sale of currency for profit

- c) Currency speculation

- d) Banking regulation

8. **What is Speculation in currency markets?**

- a) Insuring against losses

- b) Buying or selling currency expecting its value to change

- c) Fixed exchange rate management

- d) Government intervention

9. **What is a Forward Contract?**

- a) A contract for immediate currency exchange

- b) A contract for future currency exchange at a set rate

- c) A stock market agreement

- d) A commodities trade

10. **What is a Currency Option?**

- a) An obligation to exchange currency

- b) A right to exchange currency at a specific rate on a specific date

 - c) A stock option

- d) A futures contract

11. **What is a Currency Swap?**

- a) A single currency exchange

- b) Simultaneous purchase and sale of currency for two different dates

- c) A speculative trade

- d) A hedging strategy

12. **What is the role of a Central Bank?**

- a) To trade stocks

- b) To regulate banks and manage currency reserves

- c) To invest in foreign markets

- d) To set global interest rates

13. **What defines a Fixed Exchange Rate?**

- a) Currencies fluctuate freely

- b) Currencies are kept at a fixed value through central bank intervention

- c) Currency value is based on speculation

- d) No government intervention

14. **What is a Floating Exchange Rate?**

- a) A rate set by international agreement

- b) A rate determined by supply and demand

- c) A fixed rate by central banks

- d) An outdated system

15. **What is the purpose of a Forward Contract?**

- a) To speculate on currency value

 - b) To secure a future exchange rate

- c) To insure against losses

- d) To invest in foreign assets

16. **How does Hedging reduce risk?**

- a) By maximizing speculative gains

- b) By insuring against adverse currency movements

- c) By investing in volatile markets

- d) By setting fixed exchange rates

17. **What characterizes Arbitrage?**

- a) Long-term investment in currency

- b) Exploiting price differences in different markets

- c) Central bank intervention

- d) Fixed exchange rate systems

18. **What is the benefit of a Currency Option?**

- a) It obligates the holder to exchange currency

- b) It provides the right to exchange currency at a favorable rate

- c) It fixes the exchange rate permanently

- d) It is used solely for speculation

19. **What happens in a Currency Swap?**

- a) A single exchange at a fixed rate

- b) Exchange of currencies for two different future dates

- c) Immediate currency trading

- d) Setting a long-term exchange rate

20. **Why do Central Banks intervene in Floating Exchange Rate systems?**

- a) To eliminate all market fluctuations

- b) To stabilize excessive currency volatility

- c) To fix the exchange rate permanently

- d) To speculate on currency value