Exam 1: Globalization and the Multinational Enterprise

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?

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

Which of the following is NOT a reason governments interfere with comparative advantage?

Comparative advantage in the 21st century is based more on services and their cross border facilitation by telecommunications and the Internet.

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

Which of the following would NOT be a way to implement comparative advantage?

The authors argue that financial inefficiency caused by influential insiders may prove to be an increasingly troublesome barrier to international finance.

In determining why a firm becomes multinational there are many reasons. One reason is that the firm is a market seeker. Which of the following is NOT a reason why market seeking firms produce in foreign countries?

Which of the following domestic financial instruments have NOT been modified for use in international financial management?

Comparative advantage is one of the underlying principles driving the growth of global business.

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

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