FIN 435-TEST 1 QUESTIONS WITH
ANSWERS 100% SOLVED
Chapter 1 - ANSWER
A well-established, large U.S.-based MNE will probably NOT be able to
overcome which of the following obstacles to maximizing firm value? - ANSWER
A) an open market place
B) high quality strategic management
C) access to capital
D) NONE OF THE ABOVE
A well-established, large China-based MNE will probably be most adversely
affected by which of the following elements of firm value? - ANSWER an open
marketplace
A well-established, large, Brazil-based MNE will probably be most adversely
affected by which of the following elements of firm value? - ANSWER access to
capital
The theory that suggests specialization by country can increase worldwide
production is: - ANSWER the theory of comparative advantage.
Which of the following is NOT a reason governments interfere with comparative
advantage? - ANSWER A) Governments attempt to achieve full employment.
B) Governments promote economic development.
C) national self-sufficiency in defense-related industries
D) ALL ARE REASONS GOVERNMENTS INTERFERE WITH COMPARATIVE
ADVANTAGE.
Which of the following factors of production DO NOT flow freely between
countries? - ANSWER raw materials
Which of the following would NOT be a way to implement comparative
advantage? - ANSWER A) IBM exports computers to Egypt.
B) Computer hardware is designed in the United States but manufactured and
assembled in Korea.
C) Water of the greatest purity is obtained from wells in Oregon, bottled, and
exported worldwide.
D) ALL OF THE ABOVE ARE EXAMPLES OF WAYS TO IMPLEMENT
COMPARATIVE ADVANTAGE.
, Of the following, which would NOT be considered a way that government
interferes with comparative advantage? - ANSWER managerial skills
Which of the following domestic financial instruments have NOT been modified
for use in international financial management? - ANSWER A) currency options
and futures
B) interest rate and currency swaps
C) letters of credit
D) ALL OF THE ABOVE ARE DOMESTIC FINANCIAL INSTRUMENTS THAT HAVE
ALSO BEEN MODIFIED FOR USE IN INTERNATIONAL FINANCIAL MARKETS.
In determining why a firm becomes multinational there are many reasons. One
reason is that the firm is a market seeker. Which of the following is NOT a reason
why market-seeking firms produce in foreign countries? - ANSWER political
safety and small likelihood of government expropriation of assets
________ 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. - ANSWER Proactive; Defensive
The phase of the globalization process characterized by imports from foreign
suppliers and exports to foreign buyers is called the: - ANSWER international
trade phase.
The authors describe the multinational phase of globalization for a firm as one
characterized by the: - ANSWER ownership of assets and enterprises in foreign
countries.
A firm in the International Trade Phase of Globalization: - ANSWER bears direct
foreign exchange risk.
Of the following, which was NOT mentioned by the authors as an increase in the
demands of financial management services due to increased globalization by
the firm? - ANSWER foreign consumer method of payment preferences
The authors describe the multinational phase of globalization for a firm as one
characterized by the: - ANSWER ownership of assets and enterprises in foreign
countries.
The twin agency problems limiting financial globalization are caused by these
two groups acting in their own self-interests rather than the interests of the firm.
- ANSWER corporate insiders and rulers of sovereign states
Chapter 2 - ANSWER
ANSWERS 100% SOLVED
Chapter 1 - ANSWER
A well-established, large U.S.-based MNE will probably NOT be able to
overcome which of the following obstacles to maximizing firm value? - ANSWER
A) an open market place
B) high quality strategic management
C) access to capital
D) NONE OF THE ABOVE
A well-established, large China-based MNE will probably be most adversely
affected by which of the following elements of firm value? - ANSWER an open
marketplace
A well-established, large, Brazil-based MNE will probably be most adversely
affected by which of the following elements of firm value? - ANSWER access to
capital
The theory that suggests specialization by country can increase worldwide
production is: - ANSWER the theory of comparative advantage.
Which of the following is NOT a reason governments interfere with comparative
advantage? - ANSWER A) Governments attempt to achieve full employment.
B) Governments promote economic development.
C) national self-sufficiency in defense-related industries
D) ALL ARE REASONS GOVERNMENTS INTERFERE WITH COMPARATIVE
ADVANTAGE.
Which of the following factors of production DO NOT flow freely between
countries? - ANSWER raw materials
Which of the following would NOT be a way to implement comparative
advantage? - ANSWER A) IBM exports computers to Egypt.
B) Computer hardware is designed in the United States but manufactured and
assembled in Korea.
C) Water of the greatest purity is obtained from wells in Oregon, bottled, and
exported worldwide.
D) ALL OF THE ABOVE ARE EXAMPLES OF WAYS TO IMPLEMENT
COMPARATIVE ADVANTAGE.
, Of the following, which would NOT be considered a way that government
interferes with comparative advantage? - ANSWER managerial skills
Which of the following domestic financial instruments have NOT been modified
for use in international financial management? - ANSWER A) currency options
and futures
B) interest rate and currency swaps
C) letters of credit
D) ALL OF THE ABOVE ARE DOMESTIC FINANCIAL INSTRUMENTS THAT HAVE
ALSO BEEN MODIFIED FOR USE IN INTERNATIONAL FINANCIAL MARKETS.
In determining why a firm becomes multinational there are many reasons. One
reason is that the firm is a market seeker. Which of the following is NOT a reason
why market-seeking firms produce in foreign countries? - ANSWER political
safety and small likelihood of government expropriation of assets
________ 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. - ANSWER Proactive; Defensive
The phase of the globalization process characterized by imports from foreign
suppliers and exports to foreign buyers is called the: - ANSWER international
trade phase.
The authors describe the multinational phase of globalization for a firm as one
characterized by the: - ANSWER ownership of assets and enterprises in foreign
countries.
A firm in the International Trade Phase of Globalization: - ANSWER bears direct
foreign exchange risk.
Of the following, which was NOT mentioned by the authors as an increase in the
demands of financial management services due to increased globalization by
the firm? - ANSWER foreign consumer method of payment preferences
The authors describe the multinational phase of globalization for a firm as one
characterized by the: - ANSWER ownership of assets and enterprises in foreign
countries.
The twin agency problems limiting financial globalization are caused by these
two groups acting in their own self-interests rather than the interests of the firm.
- ANSWER corporate insiders and rulers of sovereign states
Chapter 2 - ANSWER
