Exam 1: An Introduction to Multinational Finance

The three types of market efficiency used in the text to describe the performance of financial markets are allocational efficiency, operational efficiency, and transactional efficiency.

(True/False)

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Question 21

Operational efficiency refers to how large an influence transactions costs and other market frictions have on the operation of a market.

(True/False)

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Question 22

Because of globalization in the world's markets, a multinational financial manager is more likely than a domestic manager to be highly specialized in finance to the exclusion of other disciplines.

(True/False)

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Question 23

Opportunities for MNCs to create value through their financial policies include each of the following EXCEPT

(Multiple Choice)

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Question 24

Political risk is the risk that the business environment in a host country will change unexpectedly due to political events.

(True/False)

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Question 25

Loss in value from conflicts of interest between managers and other stakeholders are called ________.

(Multiple Choice)

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Question 26

Risk exists whenever actual outcomes can differ from expected outcomes.

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Question 27

Showing 21 - 27 of 27

The three types of market efficiency used in the text to describe the performance of financial markets are allocational efficiency, operational efficiency, and transactional efficiency.

Operational efficiency refers to how large an influence transactions costs and other market frictions have on the operation of a market.

Because of globalization in the world's markets, a multinational financial manager is more likely than a domestic manager to be highly specialized in finance to the exclusion of other disciplines.

Opportunities for MNCs to create value through their financial policies include each of the following EXCEPT

Political risk is the risk that the business environment in a host country will change unexpectedly due to political events.

Loss in value from conflicts of interest between managers and other stakeholders are called ________.

Risk exists whenever actual outcomes can differ from expected outcomes.

World Trade and the International Monetary System

Foreign Exchange and Eurocurrency Markets

The International Parity Conditions and Their Consequences

Extension: the International Parity Conditions and Their Consequences

Currency Futures and Futures Markets

Currency Options and Options Markets

Currency Swaps and Swaps Markets

Multinational Treasury Management

Extension: Multinational Treasury Management

Managing Transaction Exposure to Currency Risk

Managing Operating Exposure to Currency Risk

Managing Translation Exposure and Accounting for Financial Transactions

Foreign Market Entry and Country Risk Management

Multinational Capital Budgeting

Multinational Capital Structure and Cost of Capital

Taxes and Multinational Corporate Strategy

Real Options and Cross-Border Investment Strategy

Corporate Governance and the International Market for Corporate Control

International Capital Markets

International Portfolio Diversification

International Asset Pricing

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