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International Corporate Finance 1st Edition Ashok Robin - Test Bank
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Complete Test Bank (with Questions Answers)
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,Chapter 01 - IntroductionChapter 01
Introduction
Multiple Choice Questions
1. Risks that are unique to international business include:
A. economic risks and business risks.
B. currency risks and country risks.
C. economic risks and political risks.
D. economic risks and currency risks.
2. The global business environment is much more ________________ than the domestic
business environment.
A. profitable
B. difficult
C. political
D. dynamic
3. Global corporations are often referred to as:
A. multinational corporations.
B. international corporations.
C. global enterprises.
D. international consortiums.
4. The movement of goods across national borders is the definition of
________________________.
A. importation
B. exportation
C. globalization
D. international trade
1-1
,Chapter 01 - Introduction
5. What was the Silk Road?
A. An international trade route that connected East and West Asia as long as 2,000 years ago
B. An East Asia trade route that connected Japan and China in the 5th century CE
C. A Mediterranean trade route that connected ancient civilizations
D. One of the routes that lead to the expansion of the Roman Empire
6. Many economists agree that globalization:
A. will continue indefinitely.
B. is good for some nations but bad for many more nations.
C. is good because it raises the standard of living for all global citizens.
D. is good because it allows firms to earn maximum profits.
7. One of the most serious negative consequences of globalization is that it:
A. leads to the destruction of rainforests.
B. results in global warming.
C. makes nations dependent on each other so that they cannot continue to exist alone.
D. causes nations to be interconnected so that regional economic disruptions spread quickly.
8. How did World War II affect the progress of globalization?
A. It was aided since the United States became more involved in European and world affairs.
B. It was adversely affected because so many resources were used in the war effort.
C. It was not affected since trade continued despite the war.
D. The results have not yet been determined since the economic upheaval caused by the war
was so great.
9. Countries generally believe that international trade has what affect on them?
A. It encourages the creation of new businesses which pay more taxes to the countries where
they are created.
B. It improves the welfare of their citizens by creating jobs and allowing more variety in
goods available.
C. It benefits developed countries the most because they have the most money to spend on
international trade.
D. It benefits developing countries the most because they have the most to gain from
international trade.
1-2
, Chapter 01 - Introduction
10. The general objectives of both the WTO and NAFTA include:
A. enabling the movement of goods and services across borders by eliminating tariffs and
other restrictions.
B. providing a forum where trade disputes can be resolved and where nations that violate
trade laws can be punished.
C. protecting domestic industries in member countries from competition for foreign
companies.
D. encouraging the creation of new international companies that will increase international
trade.
11. Unilateral actions by individual nations in trade matters:
A. is authorized by most international trade agreements.
B. is preferred in resolving trade disputes since the actions can be taken quickly.
C. often mean that international trade organizations have failed to resolve trade conflicts.
D. often result in a cycle of retaliation against each other which interferes with international
trade.
12. In international trade matters, _____________________ is joint, coordinated action by all
countries involved in or affected by a matter to resolve the matter.
A. multilateralism
B. unilateralism
C. socialism
D. capitalism
13. Key trade issues that remain unresolved include agricultural subsidies in _____________
and market access for _______________________________.
A. developing countries; industrialized countries
B. industrialized countries; developing countries
C. land-rich countries; land-locked countries
D. Western countries; Eastern countries
1-3
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