International Financial Management 9th Edition
B B B B
,MULTIPLEBCHOICEB-
BChooseBtheBoneBalternativeBthatBbestBcompletesBtheBstatementBorBanswersBtheBquestion
.
1) WhatBmajorBdimensionBsetsBapartBinternationalBfinanceBfromBdomesticBfinance?
A) ForeignBexchangeBandBpoliticalBrisks
B) MarketBimperfections
C) ExpandedBopportunityBset
D) allBofBtheBoptions
2) AnBexample(s)BofBaBpoliticalBriskBis
A) expropriationBofBassets.
B) adverseBchangeBinBtaxBrules.
C) theBoppositionBpartyBbeingBelected.
D) bothBtheBexpropriationBofBassetsBandBadverseBchangesBinBtaxBrulesBareBcorrect.
3) ProductionBofBgoodsBandBservicesBhasBbecomeBglobalizedBtoBaBlargeBextentBasBaBresultBof
A) naturalBresourcesBbeingBdepletedBinBoneBcountryBafterBanother.
B) skilledBlaborBbeingBhighlyBmobile.
C) multinationalBcorporations'BeffortsBtoBsourceBinputsBandBlocateBproductionBany
whereBwhereBcostsBareBlowerBandBprofitsBhigher.
D) commonBtastesBworldwideBforBtheBsameBgoodsBandBservices.
International Financial Management 9th Edition
B B B B
,4) Recently,BfinancialBmarketsBhaveBbecomeBhighlyBintegrated.BThisBdevelopment
International Financial Management 9th Edition
B B B B
, A) allowsBinvestorsBtoBdiversifyBtheirBportfoliosBinternationally.
B) allowsBminorityBinvestorsBtoBbuyBandBsellBstocks.
C) hasBincreasedBtheBcostBofBcapitalBforBfirms.
D) noneBofBtheBoptions
5) JapanBhasBexperiencedBlargeBtradeBsurpluses.BJapaneseBinvestorsBhaveBrespondedBtoBthis
Bby
A) liquidatingBtheirBpositionsBinBstocksBtoBbuyBdollar-denominatedBbonds.
B) investingBheavilyBinBU.S.BandBotherBforeignBfinancialBmarkets.
C) lobbyingBtheBU.S.BgovernmentBtoBdepreciateBitsBcurrency.
D) lobbyingBtheBJapaneseBgovernmentBtoBallowBtheByenBtoBappreciate.
6) SupposeByourBfirmBinvestsB$100,000BinBaBprojectBinBItaly.BAtBtheBtimeBtheBexchangeBrate
Bis
$1.25B=B€1.00.BOneByearBlaterBtheBexchangeBrateBisBtheBsame,BbutBtheBItalianBgovernmen
tBhasBexpropriatedByourBfirm'sBassetsBpayingBonlyB€80,000BinBcompensation.BThisBisBanBe
xampleBof
A) exchangeBrateBrisk.
B) politicalBrisk.
C) marketBimperfections.
D)BnoneBofBtheBoptions,BsinceB$100,000B=B€80,000B×B$1.25/€1.00.
International Financial Management 9th Edition
B B B B
B B B B
,MULTIPLEBCHOICEB-
BChooseBtheBoneBalternativeBthatBbestBcompletesBtheBstatementBorBanswersBtheBquestion
.
1) WhatBmajorBdimensionBsetsBapartBinternationalBfinanceBfromBdomesticBfinance?
A) ForeignBexchangeBandBpoliticalBrisks
B) MarketBimperfections
C) ExpandedBopportunityBset
D) allBofBtheBoptions
2) AnBexample(s)BofBaBpoliticalBriskBis
A) expropriationBofBassets.
B) adverseBchangeBinBtaxBrules.
C) theBoppositionBpartyBbeingBelected.
D) bothBtheBexpropriationBofBassetsBandBadverseBchangesBinBtaxBrulesBareBcorrect.
3) ProductionBofBgoodsBandBservicesBhasBbecomeBglobalizedBtoBaBlargeBextentBasBaBresultBof
A) naturalBresourcesBbeingBdepletedBinBoneBcountryBafterBanother.
B) skilledBlaborBbeingBhighlyBmobile.
C) multinationalBcorporations'BeffortsBtoBsourceBinputsBandBlocateBproductionBany
whereBwhereBcostsBareBlowerBandBprofitsBhigher.
D) commonBtastesBworldwideBforBtheBsameBgoodsBandBservices.
International Financial Management 9th Edition
B B B B
,4) Recently,BfinancialBmarketsBhaveBbecomeBhighlyBintegrated.BThisBdevelopment
International Financial Management 9th Edition
B B B B
, A) allowsBinvestorsBtoBdiversifyBtheirBportfoliosBinternationally.
B) allowsBminorityBinvestorsBtoBbuyBandBsellBstocks.
C) hasBincreasedBtheBcostBofBcapitalBforBfirms.
D) noneBofBtheBoptions
5) JapanBhasBexperiencedBlargeBtradeBsurpluses.BJapaneseBinvestorsBhaveBrespondedBtoBthis
Bby
A) liquidatingBtheirBpositionsBinBstocksBtoBbuyBdollar-denominatedBbonds.
B) investingBheavilyBinBU.S.BandBotherBforeignBfinancialBmarkets.
C) lobbyingBtheBU.S.BgovernmentBtoBdepreciateBitsBcurrency.
D) lobbyingBtheBJapaneseBgovernmentBtoBallowBtheByenBtoBappreciate.
6) SupposeByourBfirmBinvestsB$100,000BinBaBprojectBinBItaly.BAtBtheBtimeBtheBexchangeBrate
Bis
$1.25B=B€1.00.BOneByearBlaterBtheBexchangeBrateBisBtheBsame,BbutBtheBItalianBgovernmen
tBhasBexpropriatedByourBfirm'sBassetsBpayingBonlyB€80,000BinBcompensation.BThisBisBanBe
xampleBof
A) exchangeBrateBrisk.
B) politicalBrisk.
C) marketBimperfections.
D)BnoneBofBtheBoptions,BsinceB$100,000B=B€80,000B×B$1.25/€1.00.
International Financial Management 9th Edition
B B B B
