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IBUS 401 Final Exam Questions and Correct
Answers | Latest Update 2026/2027 | Graded A+ |
Guaranteed Pass!!
Which of the following is a reason to consider international business?
- economies of scale
- exploit monopolistic advantages
- diversification
- all of the above
Ans: all of the above
When a firm perceives that a foreign currency is _______, the firm may
attempt direct foreign investment in that country, as the initial outlay
should be relatively _________.
- overvalued; high
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- overvalued; low
- undervalued; high
- undervalued; low
Ans: undervalued; low
A US-based MNC has just established a subsidiary in Algeria. Shortly
after the plant was built, the MNC determines that its exchange rate
forecasts, which had previously indicated a slight appreciation in the
Algerian dinar, were probably false. Instead of a slight appreciation, the
MNC now expects that the dinar will depreciate substantially due to
political turmoil in Algeria. This new development would likely cause
the MNC to _______ its estimate of the previously computed net
present value.
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- lower
- increase
- lower, but not necessarily if the mNC invests enough in Algeria to
offset the decrease in NPV
- increase, but not necessarily if the MNC reduces its investment in
Algeria by an offsetting amount
Ans: lower
Other tings being equal, firms from a particular home country will
engage in more international acquisitions if they expect foreign
currencies to _______ against their home currency, and if their cost of
capital is relatively _________.
- appreciate; low
- appreciate; high
- depreciate; high
IBUS 401 Final Exam Questions and Correct
Answers | Latest Update 2026/2027 | Graded A+ |
Guaranteed Pass!!
Which of the following is a reason to consider international business?
- economies of scale
- exploit monopolistic advantages
- diversification
- all of the above
Ans: all of the above
When a firm perceives that a foreign currency is _______, the firm may
attempt direct foreign investment in that country, as the initial outlay
should be relatively _________.
- overvalued; high
,2|Page
- overvalued; low
- undervalued; high
- undervalued; low
Ans: undervalued; low
A US-based MNC has just established a subsidiary in Algeria. Shortly
after the plant was built, the MNC determines that its exchange rate
forecasts, which had previously indicated a slight appreciation in the
Algerian dinar, were probably false. Instead of a slight appreciation, the
MNC now expects that the dinar will depreciate substantially due to
political turmoil in Algeria. This new development would likely cause
the MNC to _______ its estimate of the previously computed net
present value.
, 3|Page
- lower
- increase
- lower, but not necessarily if the mNC invests enough in Algeria to
offset the decrease in NPV
- increase, but not necessarily if the MNC reduces its investment in
Algeria by an offsetting amount
Ans: lower
Other tings being equal, firms from a particular home country will
engage in more international acquisitions if they expect foreign
currencies to _______ against their home currency, and if their cost of
capital is relatively _________.
- appreciate; low
- appreciate; high
- depreciate; high
