Question 1

Of the following,which would NOT be considered a way that government interferes with comparative advantage?

Accepted Answer

A) tariffs 
B) managerial skills 
C) quotas 
D) other non-tariff restrictions 
A) tariffs 
B) managerial skills 
C) quotas 
D) other non-tariff restrictions

Question 2

Comparative advantage shifts over time as less developed countries become more developed and realize their latent opportunities.

Accepted Answer

A) True 
 B)False

Question 3

"BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development.The BRIC countries are ________.

Accepted Answer

A) Belgium, Romania, Italy, and Canada 
B) Brazil, Russia, India, and China 
C) Britain, Romania, Israel, and Colombia 
D) Brazil, Russia, Italy, and Chile 
A) Belgium, Romania, Italy, and Canada 
B) Brazil, Russia, India, and China 
C) Britain, Romania, Israel, and Colombia 
D) Brazil, Russia, Italy, and Chile

Question 4

Which of these issues must be addressed by domestic financial managers but may be ignored by international financial managers?

Accepted Answer

A) capital budgeting decisions 
B) capital structure decisions 
C) working capital management decisions 
D) All of the above must also be addressed by international financial managers. 
A) capital budgeting decisions 
B) capital structure decisions 
C) working capital management decisions 
D) All of the above must also be addressed by international financial managers.

Question 5

TABLE 1.1
Use the information in the table to answer the following question(s).
  
-Refer to Table 1.1.Austria has a larger relative advantage over Russia in the production of ________ at a ratio of ________.

Accepted Answer

A) snowboards; 5 to 4 
B) cameras; 8 to 3 
C) snowboards; 8 to 3 
D) cameras; 3 to 8 
A) snowboards; 5 to 4 
B) cameras; 8 to 3 
C) snowboards; 8 to 3 
D) cameras; 3 to 8

Question 6

The authors describe the multinational phase of globalization for a firm as one characterized by the

Accepted Answer

A) ownership of assets and enterprises in foreign countries. 
B) potential for international competitors or suppliers even though all accounts are with domestic firms and are denominated in dollars. 
C) imports from foreign suppliers and exports to foreign buyers. 
D) requirement that all employees be multilingual. 
A) ownership of assets and enterprises in foreign countries. 
B) potential for international competitors or suppliers even though all accounts are with domestic firms and are denominated in dollars. 
C) imports from foreign suppliers and exports to foreign buyers. 
D) requirement that all employees be multilingual.

Question 7

List and explain three strategic motives why firms become multinationals and give an example of each.

Accepted Answer

The authors provide 5 strategic motives

Question 8

According to the authors,which of the following groups or securities are at the "heart" to the global capital markets?

Accepted Answer

A) debt securities issued by governments 
B) bank loans and corporate bons 
C) equity securities 
D) derivative securities 
A) debt securities issued by governments 
B) bank loans and corporate bons 
C) equity securities 
D) derivative securities

Question 9

Which of these factors may differ for management of a domestic firm vs an international firm?

Accepted Answer

A) culture 
B) corporate governance 
C) political risk 
D) All of the above may differ. 
A) culture 
B) corporate governance 
C) political risk 
D) All of the above may differ.

Question 10

There are no essay questions in this section.
1.4 Market Imperfections: A Rationale for the Existence of the Multinational Firm

Accepted Answer

The authors provide 5 strategic motives

Question 11

A firm in the International Trade Phase of Globalization

Accepted Answer

A) makes all foreign payments in foreign currency units and all foreign receipts in domestic currency units. 
B) receives all foreign receipts in foreign currency units and makes all foreign payments in domestic currency units. 
C) bears direct foreign exchange risk. 
D) none of the above. 
A) makes all foreign payments in foreign currency units and all foreign receipts in domestic currency units. 
B) receives all foreign receipts in foreign currency units and makes all foreign payments in domestic currency units. 
C) bears direct foreign exchange risk. 
D) none of the above.

Question 12

Large international firms may be better able to exploit such competitive factors as ________ than are their domestic competitors.

Accepted Answer

A) economies of scale 
B) technological expertise 
C) product differentiation 
D) all of the above 
A) economies of scale 
B) technological expertise 
C) product differentiation 
D) all of the above

Question 13

Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity.

Accepted Answer

A) True 
 B)False

Of the following,which would NOT be considered a way that government interferes with comparative advantage?

Comparative advantage shifts over time as less developed countries become more developed and realize their latent opportunities.

"BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development.The BRIC countries are ________.

Which of these issues must be addressed by domestic financial managers but may be ignored by international financial managers?

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.Austria has a larger relative advantage over Russia in the production of at a ratio of .

The authors describe the multinational phase of globalization for a firm as one characterized by the

List and explain three strategic motives why firms become multinationals and give an example of each.

According to the authors,which of the following groups or securities are at the "heart" to the global capital markets?

Which of these factors may differ for management of a domestic firm vs an international firm?

There are no essay questions in this section. 1.4 Market Imperfections: A Rationale for the Existence of the Multinational Firm

A firm in the International Trade Phase of Globalization

Large international firms may be better able to exploit such competitive factors as ________ than are their domestic competitors.

Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity.

Financial Goals and Corporate Governance

The International Monetary System

The Balance of Payments

Current Multinational Financial Challenges: the Credit Crisis of 2007 - 2009

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives and Swaps

Foreign Exchange Rate Determination and Forecasting

Transaction and Translation Exposure

Operating Exposure

The Global Cost and Availability of Capital

Sourcing Equity and Debt Globally

Multinational Tax Management

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

International Portfolio Theory and Diversification

Working Capital Management

International Trade Finance

Filters

Exam 1: Current Multinational Challenges and the Global Economy

Of the following,which would NOT be considered a way that government interferes with comparative advantage?

Comparative advantage shifts over time as less developed countries become more developed and realize their latent opportunities.

"BRIC" is a term coined in 2001 to refer to a group of countries at about the same stage of advanced economic development.The BRIC countries are ________.

Which of these issues must be addressed by domestic financial managers but may be ignored by international financial managers?

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.Austria has a larger relative advantage over Russia in the production of ________ at a ratio of ________.

The authors describe the multinational phase of globalization for a firm as one characterized by the

List and explain three strategic motives why firms become multinationals and give an example of each.

According to the authors,which of the following groups or securities are at the "heart" to the global capital markets?

Which of these factors may differ for management of a domestic firm vs an international firm?

There are no essay questions in this section. 1.4 Market Imperfections: A Rationale for the Existence of the Multinational Firm

A firm in the International Trade Phase of Globalization

Large international firms may be better able to exploit such competitive factors as ________ than are their domestic competitors.

Eurocurrency deposits are an efficient and convenient money market device for holding excess corporate liquidity.

Financial Goals and Corporate Governance

The International Monetary System

The Balance of Payments

Current Multinational Financial Challenges: the Credit Crisis of 2007 - 2009

The Foreign Exchange Market

International Parity Conditions

Foreign Currency Derivatives and Swaps

Foreign Exchange Rate Determination and Forecasting

Transaction and Translation Exposure

Operating Exposure

The Global Cost and Availability of Capital

Sourcing Equity and Debt Globally

Multinational Tax Management

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

International Portfolio Theory and Diversification

Working Capital Management

International Trade Finance

Filters

TABLE 1.1 Use the information in the table to answer the following question(s). -Refer to Table 1.1.Austria has a larger relative advantage over Russia in the production of at a ratio of .