国际金融练习题答案Chapter1GlobalizationandtheMultinationalE

Chapter1GlobalizationandtheMultinationalEnterprise1.1MultipleChoiceandTrue/FalseQuestions1)Whichofthefollowingarecriticaltoafirmtryingtoreachthetopofthefirmvaluepyramid?A)anopenmarketplaceB)highqualitystrategicmanagementC)accesstocapitalD)alloftheabove2)Awell-established,largefirmU.S.-basedMNEwillprobablynotbeabletoovercomewhichofthefollowingobstaclestomaximizingfirmvalue?A)anopenmarketplaceB)highqualitystrategicmanagementC)accesstocapitalD)noneoftheabove3)Threenecessaryconditionsforafirmtoreachthetopofthefirmvaluepyramidareanopenmarketplace,highqualitystrategicmanagement,andaccesstocapital.4)Awell-established,largeChina-basedMNEwillprobablybemostadverselyaffectedbywhichofthefollowingelementsoffirmvalue?A)anopenmarketplaceB)high-qualitystrategicmanagementC)accesstocapitalD)accesstoqualifiedlaborpool5)Awell-established,large,Brazil-basedMNEwillprobablybemostadverselyaffectedbywhichofthefollowingelementsoffirmvalue?A)anopenmarketplaceB)high-qualitystrategicmanagementC)accesstocapitalD)accesstoqualifiedlaborpool6)Thetheorythatsuggestsspecializationbycountrycanincreaseworldwideproductionis________.A)thetheoryofcomparativeadvantageB)thetheoryofforeigndirectinvestmentC)theinternationalFishereffectD)thetheoryofworkingcapitalmanagement7)WhichofthefollowingwouldNOTbeawaytoimplementcomparativeadvantage?A)IBMexportscomputerstoEgypt.B)ComputerhardwareisdesignedintheUnitedStatesbutmanufacturedandassembledinKorea.C)WaterofthegreatestpurityisobtainedfromwellsinOregon,bottled,andexportedworldwide.D)Alloftheaboveareexamplesofwaystoimplementcomparativeadvantage.8)WhichofthefollowingwouldNOTbeconsideredafeatureofcomparativeadvantage?A)ExportersinCountryAsellgoodsorservicestounrelatedimportersinCountryB.B)FirmsinCountryAspecializeinmakingproductsthatcanbeproducedrelativelyefficiently,givenCountyA'sendowmentoffactorsofproduction.FirmsinCountryBdolikewisethusmaximizingthecombinedoutputofCountriesAandB.C)TradeexistsbetweenCountiesAandBbecauseofspecializedfactorsofproductionthatcannotbemovedamongcountries.D)Alloftheabovearefeaturesofcomparativeadvantage.9)Ofthefollowing,whichwouldNOTbeconsideredawaythatgovernmentinterfereswithcomparativeadvantage?A)tariffsB)managerialskillsC)quotasD)othernon-tariffrestrictions10)Comparativeadvantageshiftsovertimeaslessdevelopedcountriesbecomemoredevelopedandrealizetheirlatentopportunities.11)Comparativeadvantagewasoncethecornerstoneofinternationaltradetheory,buttodayitisarchaic,simplistic,andirrelevantforexplaininginvestmentchoicesmadebyMNEs.12)Indeterminingwhyafirmbecomesmultinationaltherearemanyreasons.Onereasonisthatthefirmisamarketseeker.WhichofthefollowingisNOTareasonwhymarketseekingfirmsproduceinforeigncountries?A)satisfactionoflocaldemandintheforeigncountryB)satisfactionoflocaldemandinthedomesticmarketsC)politicalsafelyandsmalllikelihoodofgovernmentexpropriationofassetsD)Alloftheabovearemarket-seekingactivities.13)________investmentsaredesignedtopromoteandenhancethegrowthandprofitabilityofthefirm.________investmentsaredesignedtodenythosesameopportunitiestothefirm'scompetitors.A)Conservative;aggressiveB)Defensive;proactiveC)Proactive;defensiveD)Aggressive;proactive14)WhichofthefollowingisNOTconsideredtobeatypeofcompetitiveadvantagethatmaybeenjoyedbyanMNE?A)managerialandmarketingexpertiseB)superiortechnologyduetoinvestmentinresearchanddevelopmentC)increasedagencycostsD)differentiatedproducts15)WhichofthefollowingisNOTconsideredtobeatypeofcompetitiveadvantagethatmaybeenjoyedbyanMNE?A)competitivenessintheirhomemarketsB)foreignexchangerisksC)economiesofscaleD)economiesofscope16)ThephaseoftheglobalizationprocesscharacterizedbyimportsfromforeignsuppliersandexportstoforeignbuyersiscalledtheA)domesticphase.B)multinationalphase.C)internationaltradephase.D)import-exportbankingphase.17)TheauthorsdescribethemultinationalphaseofglobalizationforafirmasonecharacterizedbytheA)ownershipofassetsandenterprisesinforeigncountries.B)potentialforinternationalcompetitorsorsupplierseventhoughallaccountsarewithdomesticfirmsandaredenominatedindollars.C)importsfromforeignsuppliersandexportstoforeignbuyers.D)requirementthatallemployeesbemultilingual.18)Ofthefollowing,whichwasNOTmentionedbytheauthorsasanincreaseinthedemandsoffinancialmanagementservicesduetoincreasedglobalizationbythefirm?A)evaluationofthecreditqualityofforeignbuyersandsellersB)foreignconsumermethodofpaymentpreferencesC)creditriskmanagementD)evaluationofforeignexchangerisk19)TheauthorsdescribethemultinationalphaseofglobalizationforafirmasonecharacterizedbytheA)ownershipofassetsandenterprisesinforeigncountries.B)potentialforinternationalcompetitorsorsupplierseventhoughallaccountsarewithdomesticfirmsandaredenominatedindollars.C)importsfromforeignsuppliersandexportstoforeignbuyers.D)requirementthatallemployeesbemultilingual.20)Ofthefollowing,whichwasNOTmentionedbytheauthorsasanincreaseinthedemandsoffinancialmanagementservicesduetoincreasedglobalizationbythefirm?A)evaluationofthecreditqualityofforeignbuyersandsellersB)foreignconsumermethodofpaymentpreferences