Test Bank for International Financial Management 10e 10th Edition by Cheol Eun, Bruce Resnick and Tuugi Chuluun. ISBN 3096
Full Chapters test bank included
PART ONE:Foundations of International Financial Management
Chapter 1:Globalization and the Multinational Firm
Chapter 2:Internation...
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Chap 01 10e Eun
1) What major attribute(s) set(s) apart international finance from domestic finance?
A) Foreign exchange and political risks
B) Market imperfections
C) Expanded opportunity set
D) all of the options
2) An example(s) of political risk is
A) expropriation of assets, only.
B) adverse change in tax rules, only.
C) the opposition party being elected, only.
D) both the expropriation of assets and adverse changes in tax rules are correct.
3) Production of goods and services has become globalized to a large extent because of
A) natural resources being depleted in one country after another.
B) skilled labor being highly mobile.
C) multinational corporations' efforts to source inputs and locate production anywhere
where costs are lower and profits higher.
D) common tastes worldwide for the same goods and services.
4) Recently, financial markets have become highly integrated. This development
A) allows investors to diversify their portfolios internationally.
B) prevents minority investors to buy and sell stocks.
C) has increased the cost of capital for firms.
D) none of the options
5) Japan has experienced large trade surpluses. Japanese investors have responded to this by
A) liquidating their positions in stocks to buy dollar-denominated bonds.
B) investing heavily in U.S. and other foreign financial markets.
C) lobbying the U.S. government to depreciate its currency.
D) lobbying the Japanese government to allow the yen to appreciate.
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