Exam 1: Current Multinational Challenges and the Global Economy

Comparative advantage was once the cornerstone of international trade theory, but today it is archaic, simplistic, and irrelevant for explaining investment choices made by MNEs.

(True/False)

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Question 21

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

(True/False)

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Question 22

A firm in the International Trade Phase of Globalization:

(Multiple Choice)

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Question 23

The authors describe a process for development of a MNE that begins with a purely domestic phase, followed by the multinational phase, and topping out with the international trade phase.

(True/False)

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Question 24

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

(True/False)

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Question 25

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

(Multiple Choice)

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Question 26

Which of the following factors of production DO NOT flow freely between countries?

(Multiple Choice)

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Question 27

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

(Multiple Choice)

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Question 28

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

(Multiple Choice)

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Question 29

Because countries have different financial regulations and customs, it is common for MNEs to apply their domestic rules and regulations when doing financial business in a foreign country.

(True/False)

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Question 30

International trade might have approached the comparative advantage model in the 19th century, and it does so even more today.

(True/False)

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Question 31

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

(True/False)

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Question 32

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.

(Multiple Choice)

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Question 33

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

(Multiple Choice)

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Question 34

A eurodollar deposit is a demand deposit.

(True/False)

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Question 35

A number of financial instruments that are used in domestic financial management have been modified for use in international financial management. Examples are foreign currency options and futures, interest rate and currency swaps, and letters of credit.

(True/False)

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Question 36

The actions of corporate insiders and the actions of rulers of sovereign states are both agency costs that act as an impediment to the growth of globalization.

(True/False)

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Question 37

The Eurocurrency market continues to thrive because it is a large international money market relatively free from governmental regulation and interference. Recent events may lead to greater regulation.

(True/False)

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Question 38

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

(Multiple Choice)

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Question 39

Eurocurrencies are domestic currencies of one country on deposit in a second country.

(True/False)

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Question 40

Showing 21 - 40 of 50

Comparative advantage was once the cornerstone of international trade theory, but today it is archaic, simplistic, and irrelevant for explaining investment choices made by MNEs.

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

A firm in the International Trade Phase of Globalization:

The authors describe a process for development of a MNE that begins with a purely domestic phase, followed by the multinational phase, and topping out with the international trade phase.

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

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

Which of the following factors of production DO NOT flow freely between countries?

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

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

Because countries have different financial regulations and customs, it is common for MNEs to apply their domestic rules and regulations when doing financial business in a foreign country.

International trade might have approached the comparative advantage model in the 19th century, and it does so even more today.

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

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

A eurodollar deposit is a demand deposit.

A number of financial instruments that are used in domestic financial management have been modified for use in international financial management. Examples are foreign currency options and futures, interest rate and currency swaps, and letters of credit.

The actions of corporate insiders and the actions of rulers of sovereign states are both agency costs that act as an impediment to the growth of globalization.

The Eurocurrency market continues to thrive because it is a large international money market relatively free from governmental regulation and interference. Recent events may lead to greater regulation.

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

Eurocurrencies are domestic currencies of one country on deposit in a second country.

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

Comparative advantage was once the cornerstone of international trade theory, but today it is archaic, simplistic, and irrelevant for explaining investment choices made by MNEs.

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

A firm in the International Trade Phase of Globalization:

The authors describe a process for development of a MNE that begins with a purely domestic phase, followed by the multinational phase, and topping out with the international trade phase.

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

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

Which of the following factors of production DO NOT flow freely between countries?

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

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

Because countries have different financial regulations and customs, it is common for MNEs to apply their domestic rules and regulations when doing financial business in a foreign country.

International trade might have approached the comparative advantage model in the 19th century, and it does so even more today.

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

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

A eurodollar deposit is a demand deposit.

A number of financial instruments that are used in domestic financial management have been modified for use in international financial management. Examples are foreign currency options and futures, interest rate and currency swaps, and letters of credit.

The actions of corporate insiders and the actions of rulers of sovereign states are both agency costs that act as an impediment to the growth of globalization.

The Eurocurrency market continues to thrive because it is a large international money market relatively free from governmental regulation and interference. Recent events may lead to greater regulation.

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

Eurocurrencies are domestic currencies of one country on deposit in a second country.

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

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.