Question 1

Which one of the following is an alternate and/or a precursor to setting up a production facility abroad?

Accepted Answer

A) exporting 
B) setting up a sales subsidiary 
C) setting up a distribution system 
D) licensing 
A) exporting 
B) setting up a sales subsidiary 
C) setting up a distribution system 
D) licensing

Question 2

Historically,the primary motive for U.S.multinationals to produce abroad has been to

Accepted Answer

A) lower costs 
B) respond more quickly to the marketplace 
C) avoid trade barriers 
D) gain tax benefits 
A) lower costs 
B) respond more quickly to the marketplace 
C) avoid trade barriers 
D) gain tax benefits

Question 3

According to Shapiro,if you were the CEO of a multinational corporation,which of the following would be MOST important to you in hiring a manager? One that

Accepted Answer

A) Avoids risk at any price 
B) Manages effectively the political environment of the subsidiary country 
C) Anticipates every future disturbance related to the supply chain 
D) Makes decisions that anticipates problems and provides solutions that enhances the firm's prospects for growth 
A) Avoids risk at any price 
B) Manages effectively the political environment of the subsidiary country 
C) Anticipates every future disturbance related to the supply chain 
D) Makes decisions that anticipates problems and provides solutions that enhances the firm's prospects for growth

Question 4

___________ are a recent category of multinationals that seek out and invest in lower cost production sites overseas.

Accepted Answer

A) Cost minimizers 
B) Market seekers 
C) Raw-material seekers 
D) High tech firms 
A) Cost minimizers 
B) Market seekers 
C) Raw-material seekers 
D) High tech firms

Question 5

The internationalization process tends to

Accepted Answer

A) proceed in a preprogrammed series of steps 
B) begin by licensing foreign producers 
C) inevitably involve foreign production 
D) often begin by accident 
A) proceed in a preprogrammed series of steps 
B) begin by licensing foreign producers 
C) inevitably involve foreign production 
D) often begin by accident

Question 6

The ___________ are the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.

Accepted Answer

A) cost minimizers 
B) market seekers 
C) raw-material seekers 
D) whaling companies 
A) cost minimizers 
B) market seekers 
C) raw-material seekers 
D) whaling companies

Question 7

International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other.

Accepted Answer

A) arbitrage 
B) centralization of the MNC's cash 
C) diversification 
D) investment 
A) arbitrage 
B) centralization of the MNC's cash 
C) diversification 
D) investment

Question 8

What would be the preferred mode of market penetration for the firm seeking to expand globally when the company wants to market its patent?

Accepted Answer

A) Licensing 
B) Exporting 
C) Setting up local facilities 
D) Setting up a foreign sales office 
A) Licensing 
B) Exporting 
C) Setting up local facilities 
D) Setting up a foreign sales office

Question 9

When a firm operates globally it offers advantages such as

Accepted Answer

A) greater political power at home 
B) bless taxes on its profits 
C) greater negotiating power with foreign minority groups 
D) greater negotiating power with labor unions 
A) greater political power at home 
B) bless taxes on its profits 
C) greater negotiating power with foreign minority groups 
D) greater negotiating power with labor unions

Question 10

Which of the following is NOT a failing of the theory of comparative advantage?

Accepted Answer

A) it ignores the role of uncertainty and economies of scale 
B) it assumes that factors of production are immobile 
C) it assumes that there are no differentiated products 
D) it assumes a scarcity of resources 
A) it ignores the role of uncertainty and economies of scale 
B) it assumes that factors of production are immobile 
C) it assumes that there are no differentiated products 
D) it assumes a scarcity of resources

Question 11

The defenders of multinationals believe that __________ are the appropriate reward for efficiently providing the global economy with products and services.

Accepted Answer

A) profits 
B) subsidies 
C) tax holidays 
D) low-interest,government-subsidized loans 
A) profits 
B) subsidies 
C) tax holidays 
D) low-interest,government-subsidized loans

Question 12

Which one of the following provides strong evidence that internationalization continues to grow in the world economy?

Accepted Answer

A) import restrictions by the Bush Administration on foreign steel 
B) efforts suggested by politicians to restrict the sourcing of foreign products by locally headquartered multinationals 
C) the growing volume of foreign direct investment by U.S.as well as other multinational companies 
D) pressure on governments to embargo unfriendly nations 
A) import restrictions by the Bush Administration on foreign steel 
B) efforts suggested by politicians to restrict the sourcing of foreign products by locally headquartered multinationals 
C) the growing volume of foreign direct investment by U.S.as well as other multinational companies 
D) pressure on governments to embargo unfriendly nations

Which one of the following is an alternate and/or a precursor to setting up a production facility abroad?

Historically,the primary motive for U.S.multinationals to produce abroad has been to

According to Shapiro,if you were the CEO of a multinational corporation,which of the following would be MOST important to you in hiring a manager? One that

___________ are a recent category of multinationals that seek out and invest in lower cost production sites overseas.

The internationalization process tends to

The ___________ are the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.

International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other.

What would be the preferred mode of market penetration for the firm seeking to expand globally when the company wants to market its patent?

When a firm operates globally it offers advantages such as

Which of the following is NOT a failing of the theory of comparative advantage?

The defenders of multinationals believe that __________ are the appropriate reward for efficiently providing the global economy with products and services.

Which one of the following provides strong evidence that internationalization continues to grow in the world economy?

The Determination of Exchange Rates

The International Monetary System

Parity Conditions in International Finance and Currency Forecasting

The Balance of Payments and International Economic Linkages

Country Risk Analysis

The Foreign Exchange Market

Currency Futures and Options Markets

Swaps and Interest Rate Derivatives

Measuring and Managing Translation and Transaction Exposure

Measuring and Managing Economic Exposure

International Financing and National Capital Markets

Functions of Euromarkets

The Cost of Capital for Foreign Investments

Examining International Portfolio Investing

Corporate Strategy and Foreign Direct Investment

Capital Budgeting for the Multinational Corporation

Financing Foreign Trade

Current Asset Management and Short-Term Financing

Managing the Multinational Financial System

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Exam 1: Introduction

Which one of the following is an alternate and/or a precursor to setting up a production facility abroad?

Historically,the primary motive for U.S.multinationals to produce abroad has been to

According to Shapiro,if you were the CEO of a multinational corporation,which of the following would be MOST important to you in hiring a manager? One that

___________ are a recent category of multinationals that seek out and invest in lower cost production sites overseas.

The internationalization process tends to

The ___________ are the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets.

International ________ can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other.

What would be the preferred mode of market penetration for the firm seeking to expand globally when the company wants to market its patent?

When a firm operates globally it offers advantages such as

Which of the following is NOT a failing of the theory of comparative advantage?

The defenders of multinationals believe that __________ are the appropriate reward for efficiently providing the global economy with products and services.

Which one of the following provides strong evidence that internationalization continues to grow in the world economy?

The Determination of Exchange Rates

The International Monetary System

Parity Conditions in International Finance and Currency Forecasting

The Balance of Payments and International Economic Linkages

Country Risk Analysis

The Foreign Exchange Market

Currency Futures and Options Markets

Swaps and Interest Rate Derivatives

Measuring and Managing Translation and Transaction Exposure

Measuring and Managing Economic Exposure

International Financing and National Capital Markets

Functions of Euromarkets

The Cost of Capital for Foreign Investments

Examining International Portfolio Investing

Corporate Strategy and Foreign Direct Investment

Capital Budgeting for the Multinational Corporation

Financing Foreign Trade

Current Asset Management and Short-Term Financing

Managing the Multinational Financial System

Filters