Exam 1: Current Multinational Challenges and the Global Economy

The theory that suggests specialization by country can increase worldwide production is ________.

Which of the following firms are NOT considered to be multinational enterprises (MNEs)even if they have operations in more than one country?

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.A production unit in Austria has a/an ________ over a production unit in Russia in ________.

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.Assume no trade between Russia and Austria.If each country put 50% of their production units into each product,the total number of snowboards and digital cameras produced by the two countries combined are ________ and ________.

Typically,a firm in its domestic stage of globalization has all financial transactions in its domestic currency.

Despite the underlying advantages of the Theory of Comparative Advantage,countries do not appear to specialize in producing only those goods and services that could most efficiently be produced domestically.Provide at least three reasons why governments interfere with comparative advantage and the techniques they may use to enforce their objectives..

The phase of the globalization process characterized by imports from foreign suppliers and exports to foreign buyers is called the

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.If trade takes place at Brazil's domestic price,________ snowboards will be required to obtain 1 digital camera.

MNEs look to exploit ________ in national markets for products,factors of production,and/or financial assets.

________ are the largest markets in the world.

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.If each country specializes in their production with Austria producing only digital cameras and Russia producing only snowboards,at a trading rate of three snowboards per digital camera,how many cameras and snowboards will be available to be consumed in Russia if they trade 9,000 snowboards to Austria?

The Eurocurrency loan market is characterized by narrow interest rate spreads between deposit and loan rates.This is due in part to which of the following factors?

Although the world is a long way from the classical trade model,the general principle of comparative advantage is still valid.

Domestic currencies of one country on deposit in a second country are called ________.

Of the following,which was NOT mentioned by the authors as an increase in the demands of financial management services due to increased globalization by the firm?

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.If each country specializes in their production with Austria producing only digital cameras and Russia producing only snowboards,at a trading rate of three snowboards per digital camera,how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia?

Once established abroad,large MNEs internal information networks typically fail to help implement market opportunities compared to their purely domestic counterparts.

The twin agency problems limiting financial globalization are caused by these two groups acting in their own self-interests rather than the interests of the firm.

The exposure to foreign exchange risk known as Translation Exposure may be defined as

The global financial marketplace consists of assets,institutions,and linkages.Explain how these factors come together to form the marketplace we know today.