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IBUS 401 EXAM 3 2026/2027 QUESTIONS AND CORRECT
ANSWERS (VERIFIED) | LATEST UPDATE 2026/2027 |
GRADED A+ | GUARANTEED PASS!!
When a country's currency is inconvertible, the earnings
generated by a subsidiary in that country cannot be remitted to
the parent through currency conversion. - ANSWER-True
When the war in Iraq began in 2003, some MNCs feared that oil
prices would ____ and that U.S. inflation and interest rates
would ____. - ANSWER-rise; rise
Higher interest rates in a foreign country tend to ____ the
growth of an economy and ____ demand for the MNC's
product. - ANSWER-reduce; reduce
31. A ____ currency may ____ the volume of products
imported by the country and therefore reduce the country's
production and national income. - ANSWER-strong; increase
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32. Risk assessors almost always arrive at the same opinion
after completing a macro-assessment of country risk. -
ANSWERFalse
33. A blockage of fund transfers imposed by a host
government usually forces a subsidiary to donate the funds to
the host government. - ANSWER-False
Higher interest rates tend to increase the growth of an
economy and increase the demand for an MNC's products. -
ANSWER-False
34. When using a checklist approach to assess country risk,
factors should be converted to some numerical forms and
assigned equal weights. - ANSWER-False
35. Unlike project risk, country risk cannot be incorporated
into the capital budgeting analysis of a proposed project by
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adjustment of the discount rate or by adjustment of the
estimated cash flows. - ANSWER-False
36. Perhaps the most appropriate method for incorporating
forms of country risk in a capital budgeting analysis is to
estimate how the ____ would be affected by each form of risk. -
ANSWER-cash flows
37. Since country risk is constantly changing and events in
other parts of the world are largely unpredictable, country risk
analysis is not important for MNCs. - ANSWER-False
38. After a project is accepted and implemented, country risk
does not need to be monitored; since the project is already
established, no further changes can be made. - ANSWER-False
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IBUS 401 EXAM 3 2026/2027 QUESTIONS AND CORRECT
ANSWERS (VERIFIED) | LATEST UPDATE 2026/2027 |
GRADED A+ | GUARANTEED PASS!!
When a country's currency is inconvertible, the earnings
generated by a subsidiary in that country cannot be remitted to
the parent through currency conversion. - ANSWER-True
When the war in Iraq began in 2003, some MNCs feared that oil
prices would ____ and that U.S. inflation and interest rates
would ____. - ANSWER-rise; rise
Higher interest rates in a foreign country tend to ____ the
growth of an economy and ____ demand for the MNC's
product. - ANSWER-reduce; reduce
31. A ____ currency may ____ the volume of products
imported by the country and therefore reduce the country's
production and national income. - ANSWER-strong; increase
,2 | Page
32. Risk assessors almost always arrive at the same opinion
after completing a macro-assessment of country risk. -
ANSWERFalse
33. A blockage of fund transfers imposed by a host
government usually forces a subsidiary to donate the funds to
the host government. - ANSWER-False
Higher interest rates tend to increase the growth of an
economy and increase the demand for an MNC's products. -
ANSWER-False
34. When using a checklist approach to assess country risk,
factors should be converted to some numerical forms and
assigned equal weights. - ANSWER-False
35. Unlike project risk, country risk cannot be incorporated
into the capital budgeting analysis of a proposed project by
,3 | Page
adjustment of the discount rate or by adjustment of the
estimated cash flows. - ANSWER-False
36. Perhaps the most appropriate method for incorporating
forms of country risk in a capital budgeting analysis is to
estimate how the ____ would be affected by each form of risk. -
ANSWER-cash flows
37. Since country risk is constantly changing and events in
other parts of the world are largely unpredictable, country risk
analysis is not important for MNCs. - ANSWER-False
38. After a project is accepted and implemented, country risk
does not need to be monitored; since the project is already
established, no further changes can be made. - ANSWER-False
, 4 | Page
Thank you for Purchasing this exam
Study Guide. We provide high-quality
academic materials to help students
excel in exams. Our other Services
include but not limited to: academic
research, University & College
assignments writing, essay writing,
Online Classes, and research projects.
Our services are reliable, affordable,
and plagiarism-free. All the Best in your
Exam. For more information; Contact us
at: or
0R +254
741484450
