Question 1

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. A

Question 2

For firms competing in a world characterized by oligopolistic competition, strategic motives can be subdivided into proactive and defensive investments.

Accepted Answer

A) True 
 B)False  True

Question 3

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

Accepted Answer

A) currency options and futures 
B) interest rate and currency swaps 
C) letters of credit 
D) All of the above are domestic financial instruments that have also been modified for use in international financial markets. 
A) currency options and futures 
B) interest rate and currency swaps 
C) letters of credit 
D) All of the above are domestic financial instruments that have also been modified for use in international financial markets. D

Question 4

BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets.

Accepted Answer

A) True 
 B)False

Question 5

Your authors suggest that one way to characterize the global financial marketplace is through its assets, institutions, and linkages.

Accepted Answer

A) True 
 B)False

Question 6

The theory of comparative advantage owes it origins to Ben Bernanke as described in his book The Wealth of Bankers.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

The key factor attracting both depositors and borrowers to the Eurocurrency loan market is the narrow interest rate spread within that market.

Accepted Answer

A) True 
 B)False

Question 9

Multinational enterprises (MNEs)are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries,
branches, or joint ventures with host country firms.

Accepted Answer

A) True 
 B)False

Question 10

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?

Accepted Answer

A) evaluation of the credit quality of foreign buyers and sellers 
B) foreign consumer method of payment preferences 
C) credit risk management 
D) evaluation of foreign exchange risk 
A) evaluation of the credit quality of foreign buyers and sellers 
B) foreign consumer method of payment preferences 
C) credit risk management 
D) evaluation of foreign exchange risk

Question 11

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

Accepted Answer

A) IBM exports computers to Egypt. 
B) Computer hardware is designed in the United States but manufactured and assembled in Korea. 
C) Water of the greatest purity is obtained from wells in Oregon, bottled, and exported worldwide. 
D) All of the above are examples of ways to implement comparative advantage. 
A) IBM exports computers to Egypt. 
B) Computer hardware is designed in the United States but manufactured and assembled in Korea. 
C) Water of the greatest purity is obtained from wells in Oregon, bottled, and exported worldwide. 
D) All of the above are examples of ways to implement comparative advantage.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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?

Accepted Answer

A) evaluation of the credit quality of foreign buyers and sellers 
B) foreign consumer method of payment preferences 
C) credit risk management 
D) evaluation of foreign exchange risk 
A) evaluation of the credit quality of foreign buyers and sellers 
B) foreign consumer method of payment preferences 
C) credit risk management 
D) evaluation of foreign exchange risk

Question 14

MNEs must modify finance theories like cost of capital and capital budgeting because of foreign complexities.

Accepted Answer

A) True 
 B)False

Question 15

Typically, a "greenfield" investment abroad is considered a greater foreign investment having a greater foreign presence than a joint venture with a foreign firm.

Accepted Answer

A) True 
 B)False

Question 16

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?

Accepted Answer

A) satisfaction of local demand in the foreign country 
B) satisfaction of local demand in the domestic markets 
C) political safety and small likelihood of government expropriation of assets 
D) All of the above are market-seeking activities. 
A) satisfaction of local demand in the foreign country 
B) satisfaction of local demand in the domestic markets 
C) political safety and small likelihood of government expropriation of assets 
D) All of the above are market-seeking activities.

Question 17

Today it is widely assumed that there are NO LIMITS to financial globalization.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) Governments attempt to achieve full employment. 
B) Governments promote economic development. 
C) national self-sufficiency in defense-related industries 
D) All are reasons governments interfere with comparative advantage. 
A) Governments attempt to achieve full employment. 
B) Governments promote economic development. 
C) national self-sufficiency in defense-related industries 
D) All are reasons governments interfere with comparative advantage.

Question 19

The growth in the influence and self-enrichment of organizational insiders is seen as an impediment to the growth of financial globalization in general.

Accepted Answer

A) True 
 B)False

Question 20

Defensive measures are designed to enhance growth and profitability of the firm itself.

Accepted Answer

A) True 
 B)False

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

For firms competing in a world characterized by oligopolistic competition, strategic motives can be subdivided into proactive and defensive investments.

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

BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets.

Your authors suggest that one way to characterize the global financial marketplace is through its assets, institutions, and linkages.

The theory of comparative advantage owes it origins to Ben Bernanke as described in his book The Wealth of Bankers.

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

The key factor attracting both depositors and borrowers to the Eurocurrency loan market is the narrow interest rate spread within that market.

Multinational enterprises (MNEs)are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms.

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?

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

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

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?

MNEs must modify finance theories like cost of capital and capital budgeting because of foreign complexities.

Typically, a "greenfield" investment abroad is considered a greater foreign investment having a greater foreign presence than a joint venture with a foreign firm.

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?

Today it is widely assumed that there are NO LIMITS to financial globalization.

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

The growth in the influence and self-enrichment of organizational insiders is seen as an impediment to the growth of financial globalization in general.

Defensive measures are designed to enhance growth and profitability of the firm itself.

Corporate Ownership, Goals, and Governance

The International Monetary System

The Balance of Payments

The Continuing Global Financial Crisis

The Foreign Exchange Theory and Markets

International Parity Conditions

Foreign Currency Derivatives and Swaps

Foreign Exchange Rate Determination and Forecasting

Transaction Exposure

Translation Exposure

Operating Exposure

The Global Cost and Availability of Capital

Raising Equity and Debt Globally

Multinational Tax Management

International Portfolio Theory and Diversification

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Working Capital Management

International Trade Finance

Filters

Exam 1: Current Multinational Challenges and the Global Economy

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

For firms competing in a world characterized by oligopolistic competition, strategic motives can be subdivided into proactive and defensive investments.

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

BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets.

Your authors suggest that one way to characterize the global financial marketplace is through its assets, institutions, and linkages.

The theory of comparative advantage owes it origins to Ben Bernanke as described in his book The Wealth of Bankers.

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

The key factor attracting both depositors and borrowers to the Eurocurrency loan market is the narrow interest rate spread within that market.

Multinational enterprises (MNEs)are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms.

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?

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

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

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?

MNEs must modify finance theories like cost of capital and capital budgeting because of foreign complexities.

Typically, a "greenfield" investment abroad is considered a greater foreign investment having a greater foreign presence than a joint venture with a foreign firm.

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?

Today it is widely assumed that there are NO LIMITS to financial globalization.

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

The growth in the influence and self-enrichment of organizational insiders is seen as an impediment to the growth of financial globalization in general.

Defensive measures are designed to enhance growth and profitability of the firm itself.

Corporate Ownership, Goals, and Governance

The International Monetary System

The Balance of Payments

The Continuing Global Financial Crisis

The Foreign Exchange Theory and Markets

International Parity Conditions

Foreign Currency Derivatives and Swaps

Foreign Exchange Rate Determination and Forecasting

Transaction Exposure

Translation Exposure

Operating Exposure

The Global Cost and Availability of Capital

Raising Equity and Debt Globally

Multinational Tax Management

International Portfolio Theory and Diversification

Foreign Direct Investment and Political Risk

Multinational Capital Budgeting and Cross-Border Acquisitions

Working Capital Management

International Trade Finance

Filters