Question 1

For a company that is engaged in exports and imports

Accepted Answer

A)  a thorough knowledge is required of tariffs because they can vary between countries 
B)  tariffs do not affect the prices of commodities 
C)  tariffs are usually a flat rate imposed on all different types of goods 
D)  if tariffs are high, companies may have to increase export prices to compensate 
E)  a U.S. company that is purchasing goods from overseas need not worry about U.S. tariffs 
A)  a thorough knowledge is required of tariffs because they can vary between countries 
B)  tariffs do not affect the prices of commodities 
C)  tariffs are usually a flat rate imposed on all different types of goods 
D)  if tariffs are high, companies may have to increase export prices to compensate 
E)  a U.S. company that is purchasing goods from overseas need not worry about U.S. tariffs A

Question 2

In global shipping:

Accepted Answer

A)  Tanker carriers transport mostly raw materials such as hydrocarbons and wet chemicals. 
B)  Dry Bulk carriers transport mostly dry raw materials or food, such as stones and maize 
C)  Dry bulk carriers transport mostly finished products shipped in containers. 
D)  Wet Bulk carriers transport mostly dry raw materials or food, such as stones and maize 
E)  Container sizes are standardized at 100 feet in length for direct loading to trains and trucks 
A)  Tanker carriers transport mostly raw materials such as hydrocarbons and wet chemicals. 
B)  Dry Bulk carriers transport mostly dry raw materials or food, such as stones and maize 
C)  Dry bulk carriers transport mostly finished products shipped in containers. 
D)  Wet Bulk carriers transport mostly dry raw materials or food, such as stones and maize 
E)  Container sizes are standardized at 100 feet in length for direct loading to trains and trucks B

Question 3

What is the difference between a subsidiary and a branch of an international bank?

Accepted Answer

A subsidiary is a free-standing legal entity separate from the parent company and is treated as a domestic company by the local authorities. The parent company's ownership of the overseas subsidiary may be less than 100 percent, but the parent still maintains control of management. A branch office is just a legal extension of the parent company and is not treated as a separate corporate entity. The branch office may or may not accept deposits from local customers.

Question 4

In international banking

Accepted Answer

A)  deposits of foreign branches in the United States can be insured by the FDIC 
B)  a commercial bank does not usually maintain a deposit in the correspondent bank 
C)  a representative office does not accept deposits, engage in lending, or offer other banking activities 
D)  maintaining a corresponding banking relationship is not important for banks that have multinationals as their customers 
E)  a parent bank's ownership of its overseas subsidiary has to be 100 percent 
A)  deposits of foreign branches in the United States can be insured by the FDIC 
B)  a commercial bank does not usually maintain a deposit in the correspondent bank 
C)  a representative office does not accept deposits, engage in lending, or offer other banking activities 
D)  maintaining a corresponding banking relationship is not important for banks that have multinationals as their customers 
E)  a parent bank's ownership of its overseas subsidiary has to be 100 percent

Question 5

The Office of Foreign Assets Control, a part of the U.S. Department of the Treasury

Accepted Answer

A)  monitors both exports and imports of goods 
B)  ensures that fair trade is implemented among countries 
C)  monitors the reporting of foreign-exchange earnings 
D)  subjects all exports to that foreign country to customs duties 
E)  ensures that investments are not undertaken in countries where investment is prohibited by law 
A)  monitors both exports and imports of goods 
B)  ensures that fair trade is implemented among countries 
C)  monitors the reporting of foreign-exchange earnings 
D)  subjects all exports to that foreign country to customs duties 
E)  ensures that investments are not undertaken in countries where investment is prohibited by law

Question 6

If the exporter's bank also confirms the letter of credit, the exporter had managed to get double insurance.

Accepted Answer

A) True 
 B)False

Question 7

A documentary collection (DC) is commonly used when the exporter and importer are not too familiar with each other.

Accepted Answer

A) True 
 B)False

Question 8

When a documentary collection as a method of payment is used in international transactions,

Accepted Answer

A)  the importer's bank will pay immediately if it is a document against acceptance 
B)  the importer's bank will pay on the specified date if it is a document against payment 
C)  it is less expensive than a letter of credit 
D)  it is often used with shipments by air 
E)  it is commonly used when the parties are not familiar with each other 
A)  the importer's bank will pay immediately if it is a document against acceptance 
B)  the importer's bank will pay on the specified date if it is a document against payment 
C)  it is less expensive than a letter of credit 
D)  it is often used with shipments by air 
E)  it is commonly used when the parties are not familiar with each other

Question 9

What are American depository receipts and how do they help foreign companies in their financing?

Accepted Answer

The answer of What are American depository receipts and how...

Question 10

Reconciling taxes between a parent company and its overseas subsidiaries can be difficult because of the difference in local accounting standards.

Accepted Answer

A) True 
 B)False

Question 11

Under methods of payments in international transactions,

Accepted Answer

A)  The routing number known as the ABA number is used by all banks in the world, 
B)  Wire transfer is the least common form of payment in international transactions. 
C)  The routing number known as IBAN is used by all banks in the world 
D)  Some banks require routing numbers for the actual delivery of the payment 
E)  SWIFT is used by most banks use a messaging system to notify recipient bank of the arrival of funds 
A)  The routing number known as the ABA number is used by all banks in the world, 
B)  Wire transfer is the least common form of payment in international transactions. 
C)  The routing number known as IBAN is used by all banks in the world 
D)  Some banks require routing numbers for the actual delivery of the payment 
E)  SWIFT is used by most banks use a messaging system to notify recipient bank of the arrival of funds

Question 12

When establishing a subsidiary overseas, the following holds, except

Accepted Answer

A)  a financial manager has to be aware of the different types of taxes in a country 
B)  reconciling taxes can be challenging because of the different accounting standards between countries 
C)  a parent and a subsidiary have to follows both country's tax laws 
D)  a subsidiary usually prefers to work with the local offices of major international banks 
E)  a subsidiary in a foreign country is not a separate freestanding incorporated company unlike a branch 
A)  a financial manager has to be aware of the different types of taxes in a country 
B)  reconciling taxes can be challenging because of the different accounting standards between countries 
C)  a parent and a subsidiary have to follows both country's tax laws 
D)  a subsidiary usually prefers to work with the local offices of major international banks 
E)  a subsidiary in a foreign country is not a separate freestanding incorporated company unlike a branch

Question 13

What are the three types of global shipping? Are they losing market share to air shipments?

Accepted Answer

The answer of What are the three types of global...

Question 14

In international banking

Accepted Answer

A)  all commercial banks have their own traders to buy and sell foreign exchange 
B)  large commercial banks find it advantageous to set up subsidiaries in other countries 
C)  a subsidiary is just a legal extension of the parent company in the foreign country 
D)  a branch office is a freestanding legal entity separate from the parent company 
E)  a branch usually offers a full range of services in the local country 
A)  all commercial banks have their own traders to buy and sell foreign exchange 
B)  large commercial banks find it advantageous to set up subsidiaries in other countries 
C)  a subsidiary is just a legal extension of the parent company in the foreign country 
D)  a branch office is a freestanding legal entity separate from the parent company 
E)  a branch usually offers a full range of services in the local country

Question 15

In the Eurocurrency market,

Accepted Answer

A)  the original Eurodollar can be traced to the American financing of the war in England 
B)  all dollars that are traded in Europe are known as Eurodollars 
C)  a quarter of the Eurocurrency market is dominated by the Eurodollar. 
D)  London is the largest center for Eurodollar deposits 
E)  New York is the largest center for Eurodollar deposits 
A)  the original Eurodollar can be traced to the American financing of the war in England 
B)  all dollars that are traded in Europe are known as Eurodollars 
C)  a quarter of the Eurocurrency market is dominated by the Eurodollar. 
D)  London is the largest center for Eurodollar deposits 
E)  New York is the largest center for Eurodollar deposits

Question 16

A branch office is just a legal extension of the parent company and is not treated as a separate corporate entity.

Accepted Answer

A) True 
 B)False

Question 17

Offshore banks serve a useful function for banks that are engaged in international transactions because they allow banks to park their cash for temporary periods as they shift their resources globally.

Accepted Answer

A) True 
 B)False

Question 18

Among global stock exchange markets,

Accepted Answer

A)  the London Stock Exchange is the youngest of the exchanges 
B)  the New York Stock Exchange merged with Euronext to create NYSE Euronext 
C)  the NASDAQ Stock Exchange merged with Euronext to create NASDAQ Euronext 
D)  the New York Stock Exchange merged with OMX to create the NYSE OMX 
E)  prior to its merger, the OMX was a derivatives exchange based in Amsterdam 
A)  the London Stock Exchange is the youngest of the exchanges 
B)  the New York Stock Exchange merged with Euronext to create NYSE Euronext 
C)  the NASDAQ Stock Exchange merged with Euronext to create NASDAQ Euronext 
D)  the New York Stock Exchange merged with OMX to create the NYSE OMX 
E)  prior to its merger, the OMX was a derivatives exchange based in Amsterdam

Question 19

Wire transfer is the most common form of payment in international transactions.

Accepted Answer

A) True 
 B)False

Question 20

In an open revolving account, the risk of payment is borne completely by the importer.

Accepted Answer

A) True 
 B)False

For a company that is engaged in exports and imports

In global shipping:

What is the difference between a subsidiary and a branch of an international bank?

In international banking

The Office of Foreign Assets Control, a part of the U.S. Department of the Treasury

If the exporter's bank also confirms the letter of credit, the exporter had managed to get double insurance.

A documentary collection (DC) is commonly used when the exporter and importer are not too familiar with each other.

When a documentary collection as a method of payment is used in international transactions,

What are American depository receipts and how do they help foreign companies in their financing?

Reconciling taxes between a parent company and its overseas subsidiaries can be difficult because of the difference in local accounting standards.

Under methods of payments in international transactions,

When establishing a subsidiary overseas, the following holds, except

What are the three types of global shipping? Are they losing market share to air shipments?

In international banking

In the Eurocurrency market,

A branch office is just a legal extension of the parent company and is not treated as a separate corporate entity.

Offshore banks serve a useful function for banks that are engaged in international transactions because they allow banks to park their cash for temporary periods as they shift their resources globally.

Among global stock exchange markets,

Wire transfer is the most common form of payment in international transactions.

In an open revolving account, the risk of payment is borne completely by the importer.

Introduction and Overview

International Business Environment-Culture

Economic and Other Related Environmental Variables

The Political and Legal Environment

International Trade and Foreign Direct Investments

Entry Strategies

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Accounting

Filters

Exam 13: International Financial Management

For a company that is engaged in exports and imports

In global shipping:

What is the difference between a subsidiary and a branch of an international bank?

In international banking

The Office of Foreign Assets Control, a part of the U.S. Department of the Treasury

If the exporter's bank also confirms the letter of credit, the exporter had managed to get double insurance.

A documentary collection (DC) is commonly used when the exporter and importer are not too familiar with each other.

When a documentary collection as a method of payment is used in international transactions,

What are American depository receipts and how do they help foreign companies in their financing?

Reconciling taxes between a parent company and its overseas subsidiaries can be difficult because of the difference in local accounting standards.

Under methods of payments in international transactions,

When establishing a subsidiary overseas, the following holds, except

What are the three types of global shipping? Are they losing market share to air shipments?

In international banking

In the Eurocurrency market,

A branch office is just a legal extension of the parent company and is not treated as a separate corporate entity.

Offshore banks serve a useful function for banks that are engaged in international transactions because they allow banks to park their cash for temporary periods as they shift their resources globally.

Among global stock exchange markets,

Wire transfer is the most common form of payment in international transactions.

In an open revolving account, the risk of payment is borne completely by the importer.

Introduction and Overview

International Business Environment-Culture

Economic and Other Related Environmental Variables

The Political and Legal Environment

International Trade and Foreign Direct Investments

Entry Strategies

Functional Integration

Production and Operations Management and Supply Chain Management

Outsourcing

International Finance

International Marketing

Human Resource Management and Organizational Structures

International Accounting

Filters