Test Bank for International Financial Management 10th Edition (McGraw Hill, 2023) by Cheol Eun, Bruce G. Resnick & Tuugi Chuluun, Isbn no; 9781266224058, all 16 Chapters Covered

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, Chapter 1 Globalization and the Multinational Firm
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1) What major dimension sets apart international finance from domestic finance?
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A) Foreign exchange and political risks
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B) Market imperfections vb




C) Expanded opportunity set vb vb




D) all of thevb vb




v b options

vb Answer:

D

Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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2) An example of a political risk is
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A) expropriation of assets. vb vb




B) adverse change in tax rules. vb vb vb vb




C) the opposition party being elected.
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D) both the expropriation of assets and adverse changes in
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vb tax rules
vb v b are correct.vb v b Answer: v b D

Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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3) Production of goods and services has become globalized to a large extent as a result of
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A) natural resources being depleted in one country after another.
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B) skilled labor being highly mobile.
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C) multinational corporations' efforts to source inputs and locate production anywhere
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where costs are lower and profits higher.
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D) common tastes worldwide for the same goods
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vb and v b services. v b Answer: v b C

Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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4) Recently, financial markets have become highly integrated. This development
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A) allows investors to diversify their portfolios internationally.
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,B) allows minority investors to buy and sell stocks.
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, C) has increased the cost of capital for firms.
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