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, Chapter 1 Globalization and the Multinational Firm
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1) What major dimension sets apart international finance from domestic finance?
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A) Foreign exchange and political risks
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B) Market imperfections ju
C) Expanded opportunity set ju ju
D) all of the
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Answer:
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D
Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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2) An example of a political risk is
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A) expropriation of assets. ju ju
B) adverse change in tax rules. ju ju ju ju
C) the opposition party being elected.
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D) both the expropriation of assets and adverse changes in tax
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ju rules j u are correct. ju j u Answer: j u D
Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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3) Production of goods and services has become globalized to a large extent as a result of
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A) natural resources being depleted in one country after another.
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B) skilled labor being highly mobile.
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C) multinational corporations' efforts to source inputs and locate production anywhere where
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costs are lower and profits higher.
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D) common tastes worldwide for the same goods
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and
ju j u services. j u Answer: j u C
Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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4) Recently, financial markets have become highly integrated. This development
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A) allows investors to diversify their portfolios internationally.
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,B) allows minority investors to buy and sell stocks.
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3
, C) has increased the cost of capital for firms.
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4
, Chapter 1 Globalization and the Multinational Firm
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1) What major dimension sets apart international finance from domestic finance?
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A) Foreign exchange and political risks
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B) Market imperfections ju
C) Expanded opportunity set ju ju
D) all of the
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j u options
Answer:
ju
D
Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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2) An example of a political risk is
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A) expropriation of assets. ju ju
B) adverse change in tax rules. ju ju ju ju
C) the opposition party being elected.
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D) both the expropriation of assets and adverse changes in tax
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ju rules j u are correct. ju j u Answer: j u D
Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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3) Production of goods and services has become globalized to a large extent as a result of
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A) natural resources being depleted in one country after another.
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B) skilled labor being highly mobile.
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C) multinational corporations' efforts to source inputs and locate production anywhere where
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costs are lower and profits higher.
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D) common tastes worldwide for the same goods
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and
ju j u services. j u Answer: j u C
Topic: What's Special about "International" Finance? Accessibility: Keyboard Navigation
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4) Recently, financial markets have become highly integrated. This development
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A) allows investors to diversify their portfolios internationally.
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2
,B) allows minority investors to buy and sell stocks.
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3
, C) has increased the cost of capital for firms.
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4
