TEST BANK for International Financial Management 9th Edition by Cheol Eun, Bruce Resnick and Tuugi
Chuluun.
TESTaqBANKaqforaqInternationalaqFinancialaqManagementaq9thaqEditionaqByaqCheola
q Eun,aqBruceaqResnickaqandaqTuugiaqChuluunaqLatestaqTestaqBank.
Test Bank Page 1
, TEST BANK for International Financial Management 9th Edition by Cheol Eun, Bruce Resnick and Tuugi
Chuluun.
Test Bank Page 2
, TEST BANK for International Financial Management 9th Edition by Cheol Eun, Bruce Resnick and Tuugi
Chuluun.
MULTIPLEaqCHOICEaq-
Chooseaqtheaqoneaqalternativeaqthataqbestaqcompletesaqtheaqstatementaqoraqanswersaqtheaqquestion.
aq
1) Whataqmajoraqdimensionaqsetsaqapartaqinternationalaqfinanceaqfromaqdomesticaqfinance?
A) Foreignaqexchangeaqandaqpoliticalaqrisks
B) Marketaqimperfections
C) Expandedaqopportunityaqset
D) allaqofaqtheaqoptions
2) Anaqexample(s)aqofaqaaqpoliticalaqriskaqis
A) expropriationaqofaqassets.
B) adverseaqchangeaqinaqtaxaqrules.
C) theaqoppositionaqpartyaqbeingaqelected.
D) bothaqtheaqexpropriationaqofaqassetsaqandaqadverseaqchangesaqinaqtaxaqrulesaqareaqcorrect.
3) Productionaqofaqgoodsaqandaqservicesaqhasaqbecomeaqglobalizedaqtoaqaaqlargeaqextentaqasaqaaqresult
aqof
A) naturalaqresourcesaqbeingaqdepletedaqinaqoneaqcountryaqafteraqanother.
B) skilledaqlaboraqbeingaqhighlyaqmobile.
C) multinationalaqcorporations'aqeffortsaqtoaqsourceaqinputsaqandaqlocateaqproductionaqanyw
hereaqwhereaqcostsaqareaqloweraqandaqprofitsaqhigher.
D) commonaqtastesaqworldwideaqforaqtheaqsameaqgoodsaqandaqservices.
4) Recently,aqfinancialaqmarketsaqhaveaqbecomeaqhighlyaqintegrated.aqThisaqdevelopment
Test Bank Page 3
, TEST BANK for International Financial Management 9th Edition by Cheol Eun, Bruce Resnick and Tuugi
Chuluun.
A) allowsaqinvestorsaqtoaqdiversifyaqtheiraqportfoliosaqinternationally.
B) allowsaqminorityaqinvestorsaqtoaqbuyaqandaqsellaqstocks.
C) hasaqincreasedaqtheaqcostaqofaqcapitalaqforaqfirms.
D) noneaqofaqtheaqoptions
5) Japanaqhasaqexperiencedaqlargeaqtradeaqsurpluses.aqJapaneseaqinvestorsaqhaveaqrespondedaqtoaqthi
saqby
A) liquidatingaqtheiraqpositionsaqinaqstocksaqtoaqbuyaqdollar-denominatedaqbonds.
B) investingaqheavilyaqinaqU.S.aqandaqotheraqforeignaqfinancialaqmarkets.
C) lobbyingaqtheaqU.S.aqgovernmentaqtoaqdepreciateaqitsaqcurrency.
D) lobbyingaqtheaqJapaneseaqgovernmentaqtoaqallowaqtheaqyenaqtoaqappreciate.
6) Supposeaqyouraqfirmaqinvestsaq$100,000aqinaqaaqprojectaqinaqItaly.aqAtaqtheaqtimeaqtheaqexchangeaq
rateaqis
$1.25aq=aq€1.00.aqOneaqyearaqlateraqtheaqexchangeaqrateaqisaqtheaqsame,aqbutaqtheaqItalianaqgovernmentaqha
saqexpropriatedaqyouraqfirm'saqassetsaqpayingaqonlyaq€80,000aqinaqcompensation.aqThisaqisaqanaqexampleaq
of
A) exchangeaqrateaqrisk.
B) politicalaqrisk.
C) marketaqimperfections.
D) noneaqofaqtheaqoptions,aqsinceaq$100,000aq=aq€80,000aq×aq$1.25/€1.00.
Test Bank Page 4
Chuluun.
TESTaqBANKaqforaqInternationalaqFinancialaqManagementaq9thaqEditionaqByaqCheola
q Eun,aqBruceaqResnickaqandaqTuugiaqChuluunaqLatestaqTestaqBank.
Test Bank Page 1
, TEST BANK for International Financial Management 9th Edition by Cheol Eun, Bruce Resnick and Tuugi
Chuluun.
Test Bank Page 2
, TEST BANK for International Financial Management 9th Edition by Cheol Eun, Bruce Resnick and Tuugi
Chuluun.
MULTIPLEaqCHOICEaq-
Chooseaqtheaqoneaqalternativeaqthataqbestaqcompletesaqtheaqstatementaqoraqanswersaqtheaqquestion.
aq
1) Whataqmajoraqdimensionaqsetsaqapartaqinternationalaqfinanceaqfromaqdomesticaqfinance?
A) Foreignaqexchangeaqandaqpoliticalaqrisks
B) Marketaqimperfections
C) Expandedaqopportunityaqset
D) allaqofaqtheaqoptions
2) Anaqexample(s)aqofaqaaqpoliticalaqriskaqis
A) expropriationaqofaqassets.
B) adverseaqchangeaqinaqtaxaqrules.
C) theaqoppositionaqpartyaqbeingaqelected.
D) bothaqtheaqexpropriationaqofaqassetsaqandaqadverseaqchangesaqinaqtaxaqrulesaqareaqcorrect.
3) Productionaqofaqgoodsaqandaqservicesaqhasaqbecomeaqglobalizedaqtoaqaaqlargeaqextentaqasaqaaqresult
aqof
A) naturalaqresourcesaqbeingaqdepletedaqinaqoneaqcountryaqafteraqanother.
B) skilledaqlaboraqbeingaqhighlyaqmobile.
C) multinationalaqcorporations'aqeffortsaqtoaqsourceaqinputsaqandaqlocateaqproductionaqanyw
hereaqwhereaqcostsaqareaqloweraqandaqprofitsaqhigher.
D) commonaqtastesaqworldwideaqforaqtheaqsameaqgoodsaqandaqservices.
4) Recently,aqfinancialaqmarketsaqhaveaqbecomeaqhighlyaqintegrated.aqThisaqdevelopment
Test Bank Page 3
, TEST BANK for International Financial Management 9th Edition by Cheol Eun, Bruce Resnick and Tuugi
Chuluun.
A) allowsaqinvestorsaqtoaqdiversifyaqtheiraqportfoliosaqinternationally.
B) allowsaqminorityaqinvestorsaqtoaqbuyaqandaqsellaqstocks.
C) hasaqincreasedaqtheaqcostaqofaqcapitalaqforaqfirms.
D) noneaqofaqtheaqoptions
5) Japanaqhasaqexperiencedaqlargeaqtradeaqsurpluses.aqJapaneseaqinvestorsaqhaveaqrespondedaqtoaqthi
saqby
A) liquidatingaqtheiraqpositionsaqinaqstocksaqtoaqbuyaqdollar-denominatedaqbonds.
B) investingaqheavilyaqinaqU.S.aqandaqotheraqforeignaqfinancialaqmarkets.
C) lobbyingaqtheaqU.S.aqgovernmentaqtoaqdepreciateaqitsaqcurrency.
D) lobbyingaqtheaqJapaneseaqgovernmentaqtoaqallowaqtheaqyenaqtoaqappreciate.
6) Supposeaqyouraqfirmaqinvestsaq$100,000aqinaqaaqprojectaqinaqItaly.aqAtaqtheaqtimeaqtheaqexchangeaq
rateaqis
$1.25aq=aq€1.00.aqOneaqyearaqlateraqtheaqexchangeaqrateaqisaqtheaqsame,aqbutaqtheaqItalianaqgovernmentaqha
saqexpropriatedaqyouraqfirm'saqassetsaqpayingaqonlyaq€80,000aqinaqcompensation.aqThisaqisaqanaqexampleaq
of
A) exchangeaqrateaqrisk.
B) politicalaqrisk.
C) marketaqimperfections.
D) noneaqofaqtheaqoptions,aqsinceaq$100,000aq=aq€80,000aq×aq$1.25/€1.00.
Test Bank Page 4
