Exam 1: Globalization and the Multinational Enterprise

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

A well-established, large firm U.S.-based MNE will probably not be able to overcome which of the following obstacles to maximizing firm value?

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

TABLE 1.1 Use the information in the table to answer 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 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.

Which of the following is NOT considered to be a type of competitive advantage that may be enjoyed by an MNE?

Which of the following would NOT be considered a feature of comparative advantage?

________ investments are designed to promote and enhance the growth and profitability of the firm. ________ investments are designed to deny those same opportunities to the firm's competitors.

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

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

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

TABLE 1.1 Use the information in the table to answer 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.

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

A firm in the International Trade Phase of Globalization

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

A well-established, large, Brazil-based MNE will probably be most adversely affected by which of the following elements of firm value?

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

A well-established, large China-based MNE will probably be most adversely affected by which of the following elements of firm value?

Which of the following are critical to a firm trying to reach the top of the "firm value pyramid"?

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