Question 1

The so-called "stakeholder" point of view advocated by non Anglo-American countries as the basis for corporate governance

Accepted Answer

A)  In the long run, often leads to problems with competitiveness. 
B)  Results in a more balanced consideration of the needs of society and, thus, to stronger, more competitive companies. 
C)  Is beginning to be accepted as a more socially just system of management and even companies in the Anglo-American countries are starting to adopt it. 
D)  All of the statements above are correct. 
E)  All of the statements above are incorrect. 
A)  In the long run, often leads to problems with competitiveness. 
B)  Results in a more balanced consideration of the needs of society and, thus, to stronger, more competitive companies. 
C)  Is beginning to be accepted as a more socially just system of management and even companies in the Anglo-American countries are starting to adopt it. 
D)  All of the statements above are correct. 
E)  All of the statements above are incorrect.

Question 2

Which of the following best describes an agency problem?

Accepted Answer

A)  Occurs when foreign exchange brokers buy and sell currencies at two different rates. 
B)  A potential conflict of interest between managers and (1) outside stockholders, (2) creditors, and (3) stockholders and debtholders in times of financial distress. 
C)  Arises when the other party to a contractual arrangement will not be able to carry out its obligations as specified in the contract. 
D)  Arises when a firm has to pay a higher interest rate when renewing maturing credit. 
E)  Occurs when there are more exposed liabilities than exposed assets. 
A)  Occurs when foreign exchange brokers buy and sell currencies at two different rates. 
B)  A potential conflict of interest between managers and (1) outside stockholders, (2) creditors, and (3) stockholders and debtholders in times of financial distress. 
C)  Arises when the other party to a contractual arrangement will not be able to carry out its obligations as specified in the contract. 
D)  Arises when a firm has to pay a higher interest rate when renewing maturing credit. 
E)  Occurs when there are more exposed liabilities than exposed assets.

Question 3

Which of the following statements is most correct?

Accepted Answer

A)  Many companies decide to go abroad in order to increase their sales, to acquire raw materials for their production processes, or to find cheap labor. 
B)  Because foreign markets may not be in the same stage of the product life cycle as the home market, and because the economies of other countries may be in different phases of the business cycle, companies that operate in several different countries may be able to reduce their risk through diversification of their operations globally. 
C)  Companies that experience barriers to exporting their goods to countries with large attractive internal markets often decide to invest directly in local production in those markets. 
D)  All of the statements above are correct. 
E)  Only statements a and b are correct. 
A)  Many companies decide to go abroad in order to increase their sales, to acquire raw materials for their production processes, or to find cheap labor. 
B)  Because foreign markets may not be in the same stage of the product life cycle as the home market, and because the economies of other countries may be in different phases of the business cycle, companies that operate in several different countries may be able to reduce their risk through diversification of their operations globally. 
C)  Companies that experience barriers to exporting their goods to countries with large attractive internal markets often decide to invest directly in local production in those markets. 
D)  All of the statements above are correct. 
E)  Only statements a and b are correct.

Question 4

Profitable domestic companies that have a competitive advantage within home markets are often advised to consider international expansion in order to

Accepted Answer

A)  Increase their overall profitability. 
B)  Reduce their overall risk. 
C)  Lessen the potential impact of future trade barriers. 
D)  Strengthen their competitive position versus MNEs. 
E)  All of the statements above are legitimate reasons to consider international expansion. 
A)  Increase their overall profitability. 
B)  Reduce their overall risk. 
C)  Lessen the potential impact of future trade barriers. 
D)  Strengthen their competitive position versus MNEs. 
E)  All of the statements above are legitimate reasons to consider international expansion.

Question 5

Identify five major factors that distinguish domestic financial management from multinational financial management.

Accepted Answer

Managers of multinational corporations m

Question 6

Which of the following is not an effect of globalization?

Accepted Answer

A)  Globalization may threaten local control of the country's economic destiny. 
B)  Globalization provides the potential to raise the standard of living. 
C)  Globalization challenges long-held cultural values about the role of business in society and the regulation of company practices. 
D)  Globalization provides little competition from around the world with little or no impact on local jobs and company profits. 
E)  Globalization allows individuals greater access to a wider range of products and services at more competitive prices. 
A)  Globalization may threaten local control of the country's economic destiny. 
B)  Globalization provides the potential to raise the standard of living. 
C)  Globalization challenges long-held cultural values about the role of business in society and the regulation of company practices. 
D)  Globalization provides little competition from around the world with little or no impact on local jobs and company profits. 
E)  Globalization allows individuals greater access to a wider range of products and services at more competitive prices.

The so-called "stakeholder" point of view advocated by non Anglo-American countries as the basis for corporate governance

Which of the following best describes an agency problem?

Which of the following statements is most correct?

Profitable domestic companies that have a competitive advantage within home markets are often advised to consider international expansion in order to

Identify five major factors that distinguish domestic financial management from multinational financial management.

Which of the following is not an effect of globalization?

The Global Financial Environment: Markets, Institutions, Interest Rates, and Exchange Rates

Exchange Rate Analysis

International Trade and Foreign Direct Investment

Risk and Return

Financial Statement Analysis

Translating and Consolidating Subsidiary Financial Statements

Debt Instruments and Markets

Stocks and Stock Markets

The Cost of Capital

Capital Budgeting: The Basics

Capital Budgeting: Risk Analysis and Real Options

Capital Structure and Distribution Policy

Working Capital Management and Global Cash Flow Integration

Derivatives and Risk Management

International Tax Planning

Filters

Exam 1: An Introduction to International Financial Management

The so-called "stakeholder" point of view advocated by non Anglo-American countries as the basis for corporate governance

Which of the following best describes an agency problem?

Which of the following statements is most correct?

Profitable domestic companies that have a competitive advantage within home markets are often advised to consider international expansion in order to

Identify five major factors that distinguish domestic financial management from multinational financial management.

Which of the following is not an effect of globalization?

The Global Financial Environment: Markets, Institutions, Interest Rates, and Exchange Rates

Exchange Rate Analysis

International Trade and Foreign Direct Investment

Risk and Return

Financial Statement Analysis

Translating and Consolidating Subsidiary Financial Statements

Debt Instruments and Markets

Stocks and Stock Markets

The Cost of Capital

Capital Budgeting: The Basics

Capital Budgeting: Risk Analysis and Real Options

Capital Structure and Distribution Policy

Working Capital Management and Global Cash Flow Integration

Derivatives and Risk Management

International Tax Planning

Filters