Test Bank for Fundamentals of Corporate Finance 5th Edition By Robert Parrino, David Kidwell, Thomas Bates, Stuart Gillan

Test Bank For
Fundamentals of Corporate
Finance, 5th Edition By Robert
Parrino, David Kidwell,
Thomas Bates, Stuart Gillan
(All Chapters 1-21, 100%
Original Verified, A+ Grade)
All Chapters Arranged
Reverse: 21-1
This is The Original Test Bank
For 5th Edition, All other Files
in The Market are
Fake/Old/Wrong Edition.

,Fundamentals of Corporate Finance, 5e (Parrino)
Chapter 21 International Financial Management

1) Globalization refers to the removal of barriers to free trade and the closer integration of
national economies.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Diversity
IMA: Global Business
AICPA: Global and Industry Perspectives

2) While the production of goods and services has become globalized, American consumers only
purchase domestic goods.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Comprehension
AACSB: Diversity
IMA: Global Business
AICPA: Global and Industry Perspectives

3) The production of goods and services has become highly globalized due to the emergence of
large multinational companies.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Comprehension
AACSB: Diversity
IMA: Global Business
AICPA: Global and Industry Perspectives

4) Integration of the financial system globally is a result of deregulation of foreign exchange
markets, money and capital markets, and banking systems.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Comprehension
AACSB: Analytic
IMA: Global Business
AICPA: Global and Industry Perspectives




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,5) A transnational corporation is a business that operates in more than one country but is
managed from the perspective of a firm residing in a particular country.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Global Business
AICPA: Global and Industry Perspectives

6) Royal Dutch Shell is a transnational corporation.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Global Business
AICPA: Global and Industry Perspectives

7) Differences in legal systems and tax codes do not affect the way firms operate in foreign
countries.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Comprehension
AACSB: Analytic
IMA: Global Business
AICPA: Global and Industry Perspectives

8) Legal systems can vary on simple matters, such as opening a business, selecting a site
location, and hiring employees.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Comprehension
AACSB: Analytic
IMA: Global Business
AICPA: Global and Industry Perspectives

9) English is the world's social language.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Diversity
IMA: Global Business
AICPA: Global and Industry Perspectives

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, 10) English is the language for international business, but not the world's social language.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Diversity
IMA: Global Business
AICPA: Global and Industry Perspectives

11) Cultural views shape business practices and people's attitudes toward business.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Comprehension
AACSB: Diversity
IMA: Global Business
AICPA: Global and Industry Perspectives

12) Both China and the nations that formerly made up the Soviet Union are currently moving
toward centrally planned economies.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Diversity
IMA: Global Business
AICPA: Global and Industry Perspectives

13) Country risk has no effect on a firm's cash flows, and firm value.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Global Business
AICPA: Global and Industry Perspectives

14) Maximizing stockholders' wealth is a widely embraced goal for firms in all countries around
the world.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Comprehension
AACSB: Analytic
IMA: Global Business
AICPA: Global and Industry Perspectives



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