International Finance
Exam
, The degree of political risk faced by a firm operating in a foreign country - VERIFIED
ANSWERSdepends on how the firm has structured its operations
One good indicator of political risk is - VERIFIED ANSWERSthe seriousness of capital
flight
Capital flight occurs for several reasons, most of which have to do with - VERIFIED
ANSWERSinappropriate economic policies
Expropriation or creeping expropriation is most likely in the ------ sector of an economy -
VERIFIED ANSWERSextractive
The great economic lesson of the ill-fated, post-World War II experiment in Communism
is that _________ work and command economies do not - VERIFIED
ANSWERScentralized economic controls
A large government deficit relative to GDP, a high rate of money expansion
accompanied by fixed exchange rates, along with substantial government expenditures
are some of the common characteristics of _________ risk. - VERIFIED
ANSWERScountry
A structure of incentives that rewards risk taking in productive ventures is an indicator of
long-run _____________ health for a country - VERIFIED ANSWERSeconomic
The state's best strategy is to provide basic _________ in order to promote economic
growth. - VERIFIED ANSWERSeconomic and political stability
What ultimately determines a nation's ability to repay foreign loans is its ability to
generate ___________ - VERIFIED ANSWERShard currencies
The economic experiences of Mexico, Chile, and Argentina in the recent past show that
they all possessed a_________. - VERIFIED ANSWERSa head of state who
demonstrates strong will and leadership
When investing in a natural resource project, a foreign mining firm can add value to the
project by doing all of the following EXCEPT - VERIFIED ANSWERSignoring safety
conditions in the local plant
During the 1980s many Latin American countries believed in a policy that economic
growth was best promoted by extensive state ownership which led to - VERIFIED
ANSWERScapital flight
Which one of the following is a tough-minded economic policy that may halt capital
flight? - VERIFIED ANSWERSremoving barriers to investment by foreigners
Exam
, The degree of political risk faced by a firm operating in a foreign country - VERIFIED
ANSWERSdepends on how the firm has structured its operations
One good indicator of political risk is - VERIFIED ANSWERSthe seriousness of capital
flight
Capital flight occurs for several reasons, most of which have to do with - VERIFIED
ANSWERSinappropriate economic policies
Expropriation or creeping expropriation is most likely in the ------ sector of an economy -
VERIFIED ANSWERSextractive
The great economic lesson of the ill-fated, post-World War II experiment in Communism
is that _________ work and command economies do not - VERIFIED
ANSWERScentralized economic controls
A large government deficit relative to GDP, a high rate of money expansion
accompanied by fixed exchange rates, along with substantial government expenditures
are some of the common characteristics of _________ risk. - VERIFIED
ANSWERScountry
A structure of incentives that rewards risk taking in productive ventures is an indicator of
long-run _____________ health for a country - VERIFIED ANSWERSeconomic
The state's best strategy is to provide basic _________ in order to promote economic
growth. - VERIFIED ANSWERSeconomic and political stability
What ultimately determines a nation's ability to repay foreign loans is its ability to
generate ___________ - VERIFIED ANSWERShard currencies
The economic experiences of Mexico, Chile, and Argentina in the recent past show that
they all possessed a_________. - VERIFIED ANSWERSa head of state who
demonstrates strong will and leadership
When investing in a natural resource project, a foreign mining firm can add value to the
project by doing all of the following EXCEPT - VERIFIED ANSWERSignoring safety
conditions in the local plant
During the 1980s many Latin American countries believed in a policy that economic
growth was best promoted by extensive state ownership which led to - VERIFIED
ANSWERScapital flight
Which one of the following is a tough-minded economic policy that may halt capital
flight? - VERIFIED ANSWERSremoving barriers to investment by foreigners
