Multinational Financial Management 11th Edition by Alan C. Shapiro Test bank

a) flexibility
b) adaptability
c) speed
d) economies of scale of distribution
 
Ans:      c  
Section: A Behavioral Definition of the Multinational Corporation
Level:  Difficult
 
1.32  Referring to the text, 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
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
 
Ans:      d
Section: The Global Manager
Level:  Difficult
 
1.33 Reverse foreign investment into the United States primarily started with _________ multinationals?
 

1. West European
2. East European
3. Japanese
4. Chinese

 
Ans:      d
Section: The rise of the multinational corporation
Level:  Difficult
 
 

1.34 Privatization refers to _____________
 

1. A corporation deciding to delist its shares on a stock exchange.
2. A government that decides to purchase privately owned enterprises
3. A government that decides to allow private enterprises to exist
4. A government that decides to sell state owned enterprises to private investors.

 
Ans. d
Section The rise of the multinational corporation
Level: Difficult
 
1.35 Total risk can be attributed to how many sources?
 

1. 0
2. 1
3. 2
4. 3

 
Ans. c
Section Capital Asset Pricing
Level: Difficult
 
1.36 Which of the following factors has NOT recently contributed to radically changing the global competitive environment?
 

1. Increased nationalizations of private enterprises
2. Massive deregulation
3. The collapse of the Soviet Union
4. Advances in information technology

 
Ans. a
Section The Rise of the Multinational Corporation
Level: Difficult
 
1.37 The world’s dominant currency is the ______
a) Euro
b) U.S. dollar
c) British pound
d) Swiss Franc
 
Ans. b
Section: Introduction
Level: Easy.
 
1.38 The BRICS refer to which group of countries:
a) Belgium, the Republic of Ireland, Croatia and Serbia
b) Botswana, Rwanda, Ivory Coast, and Sudan
c) Brazil, Russia, India, China, and South Africa
d) Big and Rich Industrial Countries of Southern Europe.    
 
Ans. c
Section: Evolution of the Multinational Corporation
Level: Easy
 
1.39 The theory of comparative advantage implies that:
 

1. one country's gain comes at the expense of another country.
2. international trade will enhance the standard of living of both countries.
3. if a country doesn’t have an absolute advantage in at least one good there is no benefit to trade
4. that the country with cheaper labor will reap all the benefits from trade.

 
Ans. b
Section: The rise of the multinational corporation
Level: Easy
 
1.40 The theory of comparative advantage ignores which of the following:
 

1. Uncertainty
2. Economies of scale
3. Transportation costs
4. All of the above

 
Ans. d
Section: The rise of the multinational corporation
Level: Difficult