Question 1

The principles of multilateral netting and bilateral netting are different.

Accepted Answer

A) True 
 B)False

Question 2

The technical process by which an independent person gathers evidence for determining if financial accounts conform to required accounting standards is known as _____.

Accepted Answer

A)  standardization 
B)  an audit 
C)  reporting 
D)  a benchmark 
A)  standardization 
B)  an audit 
C)  reporting 
D)  a benchmark

Question 3

Explain why the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

Accepted Answer

In many international businesses, the sa

Question 4

What are the nine possible combinations of the three exchange rates proposed by Lessard and Lorange in the control process?

Accepted Answer

These three exchange rates imply nine po

Question 5

Political risk tends to be:

Accepted Answer

A)  greater in countries experiencing social unrest or disorder. 
B)  negligible for large multinational companies. 
C)  less in countries experiencing social unrest or disorder. 
D)  a consideration only for companies operating in third world countries. 
A)  greater in countries experiencing social unrest or disorder. 
B)  negligible for large multinational companies. 
C)  less in countries experiencing social unrest or disorder. 
D)  a consideration only for companies operating in third world countries.

Question 6

Which of the following is a disadvantage of comparing managers in different countries only on the basis of return on investment?

Accepted Answer

A)  The managers are not responsible for increasing the ROI of an organization. 
B)  Managerial actions do not have a significant impact on firms' profitability. 
C)  Return on investment is not a valid indicator of organizational profitability. 
D)  Environmental factors also contribute to ROI of firms and these factors differ. 
A)  The managers are not responsible for increasing the ROI of an organization. 
B)  Managerial actions do not have a significant impact on firms' profitability. 
C)  Return on investment is not a valid indicator of organizational profitability. 
D)  Environmental factors also contribute to ROI of firms and these factors differ.

Question 7

The price at which goods and services are transferred between subsidiary companies in a multi-national firm is referred to as _____.

Accepted Answer

A)  minimum retail price 
B)  deferral price 
C)  transfer price 
D)  transaction price 
A)  minimum retail price 
B)  deferral price 
C)  transfer price 
D)  transaction price

Question 8

The initial rate, in the Lessard-Lorange Model, refers to the spot exchange rate when the budget is adopted.

Accepted Answer

A) True 
 B)False

Question 9

The governments of some countries require or prefer foreign multinationals to finance projects in their country by local debt financing or local sales of equity.

Accepted Answer

A) True 
 B)False

Question 10

In countries such as the United States and Britain, firms typically raised capital by:

Accepted Answer

A)  obtaining funding from the government. 
B)  borrowing money from national banks. 
C)  issuing stock or bonds to investors. 
D)  borrowing money from international banks. 
A)  obtaining funding from the government. 
B)  borrowing money from national banks. 
C)  issuing stock or bonds to investors. 
D)  borrowing money from international banks.

The principles of multilateral netting and bilateral netting are different.

The technical process by which an independent person gathers evidence for determining if financial accounts conform to required accounting standards is known as _____.

Explain why the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

What are the nine possible combinations of the three exchange rates proposed by Lessard and Lorange in the control process?

Political risk tends to be:

Which of the following is a disadvantage of comparing managers in different countries only on the basis of return on investment?

The price at which goods and services are transferred between subsidiary companies in a multi-national firm is referred to as _____.

The initial rate, in the Lessard-Lorange Model, refers to the spot exchange rate when the budget is adopted.

The governments of some countries require or prefer foreign multinationals to finance projects in their country by local debt financing or local sales of equity.

In countries such as the United States and Britain, firms typically raised capital by:

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Filters

Exam 20: Accounting and Finance in the International Business

The principles of multilateral netting and bilateral netting are different.

The technical process by which an independent person gathers evidence for determining if financial accounts conform to required accounting standards is known as _____.

Explain why the evaluation of a subsidiary should be kept separate from the evaluation of its manager.

What are the nine possible combinations of the three exchange rates proposed by Lessard and Lorange in the control process?

Political risk tends to be:

Which of the following is a disadvantage of comparing managers in different countries only on the basis of return on investment?

The price at which goods and services are transferred between subsidiary companies in a multi-national firm is referred to as _____.

The initial rate, in the Lessard-Lorange Model, refers to the spot exchange rate when the budget is adopted.

The governments of some countries require or prefer foreign multinationals to finance projects in their country by local debt financing or local sales of equity.

In countries such as the United States and Britain, firms typically raised capital by:

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and RD

Global Human Resource Management

Filters