Question 1

Country risk refers to:

Accepted Answer

A)  transfer risk. 
B)  control risk. 
C)  political risk, credit risk and other economic performances. 
D)  every risk except political risk. 
A)  transfer risk. 
B)  control risk. 
C)  political risk, credit risk and other economic performances. 
D)  every risk except political risk.

Question 2

Political risk can be evaluated by studying:

Accepted Answer

A)  the host country's political and government system. 
B)  key economic indicators. 
C)  regional security. 
D)  All of these. 
A)  the host country's political and government system. 
B)  key economic indicators. 
C)  regional security. 
D)  All of these.

Question 3

Explain the role of market imperfections in FDI.

Accepted Answer

There are a number of different reasons

Question 4

Which of the following statements is true about product life cycle theory?

Accepted Answer

A)  In the early stages of the product life cycle, the demand for the new product is relatively insensitive to the price, and thus, a pioneering firm can charge a relatively high price. 
B)  It predicts that over time, the U.S. switches from an exporting country of new products to an importing country. 
C)  It has an "S" shaped curve when plotting "quantity sold" versus "time". 
D)  All of these. 
A)  In the early stages of the product life cycle, the demand for the new product is relatively insensitive to the price, and thus, a pioneering firm can charge a relatively high price. 
B)  It predicts that over time, the U.S. switches from an exporting country of new products to an importing country. 
C)  It has an "S" shaped curve when plotting "quantity sold" versus "time". 
D)  All of these.

Question 5

Political risk is classified into:

Accepted Answer

A)  macro- and micro risk 
B)  major- and minor risk 
C)  macro- and minor risk 
D)  major- and micro risk 
A)  macro- and micro risk 
B)  major- and minor risk 
C)  macro- and minor risk 
D)  major- and micro risk

Question 6

Foreign direct investment is undertaken via:

Accepted Answer

A)  buying bonds in a foreign company. 
B)  buying 1% of the equity capital of a foreign company. 
C)  buying substantial degree of the equity capital of a foreign company. 
D)  can only be done when a foreign subsidiary is built up from scratch. 
A)  buying bonds in a foreign company. 
B)  buying 1% of the equity capital of a foreign company. 
C)  buying substantial degree of the equity capital of a foreign company. 
D)  can only be done when a foreign subsidiary is built up from scratch.

Question 7

Examples of intangible assets of MNCs are all except:

Accepted Answer

A)  production costs. 
B)  R&D capabilities. 
C)  marketing know-how. 
D)  managerial know-how. 
A)  production costs. 
B)  R&D capabilities. 
C)  marketing know-how. 
D)  managerial know-how.

Question 8

The following are barriers to trade except:

Accepted Answer

A)  Tariffs 
B)  Transportation costs 
C)  Telecommunications 
D)  Import taxes 
A)  Tariffs 
B)  Transportation costs 
C)  Telecommunications 
D)  Import taxes

Country risk refers to:

Political risk can be evaluated by studying:

Explain the role of market imperfections in FDI.

Which of the following statements is true about product life cycle theory?

Political risk is classified into:

Foreign direct investment is undertaken via:

Examples of intangible assets of MNCs are all except:

The following are barriers to trade except:

Globalization and the Multinational Firm

International Monetary System

Balance of Payments

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

International Banking and Money Market

International Bond Market

International Equity Markets

Futures and Options on Foreign Exchange

Interest Rate and Currency Swaps

International Portfolio Investment

Management of Economic Exposure

Management of Transaction Exposure

Management of Translation Exposure

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

Exports and Imports

International Tax Environment

Corporate Governance Around the World

Filters

Exam 15: Foreign Direct Investment and Cross-Border Acquisitions

Country risk refers to:

Political risk can be evaluated by studying:

Explain the role of market imperfections in FDI.

Which of the following statements is true about product life cycle theory?

Political risk is classified into:

Foreign direct investment is undertaken via:

Examples of intangible assets of MNCs are all except:

The following are barriers to trade except:

Globalization and the Multinational Firm

International Monetary System

Balance of Payments

The Market for Foreign Exchange

International Parity Relationships and Forecasting Foreign Exchange Rates

International Banking and Money Market

International Bond Market

International Equity Markets

Futures and Options on Foreign Exchange

Interest Rate and Currency Swaps

International Portfolio Investment

Management of Economic Exposure

Management of Transaction Exposure

Management of Translation Exposure

International Capital Structure and the Cost of Capital

International Capital Budgeting

Multinational Cash Management

Exports and Imports

International Tax Environment

Corporate Governance Around the World

Filters