MARK Ch. 01 - 03

Question 1

an unconscious reference to one’s own cultural values, experiences, and knowledge as a basis for decisions

Answer 1

Self-Reference Criterion (SRC)

Question 2

the notion that people in one’s own company, culture, or country know best how to do things

Answer 2

Ethnocentrism

Question 3

current account, capital account, reserves account

Answer 3

balance of payments statement accounts

Question 4

a record of all merchandise exports, imports, and services plus unilateral transfers of funds

Answer 4

current account

Question 5

a record of direct investment, portfolio investment, and short-term capital movements to and from countries

Answer 5

capital account

Question 6

a record of exports and imports of gold, increases or decreases in foreign exchange, and increases or decreases in liabilities to foreign central banks

Answer 6

reserves account

Question 7

Of the three, balance of payments accounts, which is of primary interest to international business?

Answer 7

current account