Fin 582 exam 1 questions Study guides, Class notes & Summaries

FIN 582 Exam 1 (Unit 1,2,3,4) Questions & Answers 2024. Containing Terms like: I: Suppose the exchange rate is $1.3902/€. Convert $571 into EUR. What is the equivalent Euro amount to $571? (correct to the nearest $.01 or "penny") - Answer: *When you convert one currency into another, the currency symbols have to cancel out! - = $571*(C1/C2) - = $571*($1.3902/€) - *The $ symbols must cancel out! - = $571*(€/$1.3902) - *Assume you are multiplying by one - = $571*(1/$1.3902) = €410...

FIN 582 Exam 1 Questions and Answers All Correct Theory of Competitive Advantage: - Answer-specialization increases production efficiency Imperfect Markets Theory: - Answer-factors of production are somewhat immobile providing incentive to seek out foreign opportunities Product Cycle Theory: - Answer-as a firm matures, it recognizes opportunities outside its domestic market How firms engage in international business: - Answer-1. international trade (easiest) 2. licensing 3. franchisin...