FREE Master of International Business: Multinational Financial Management Questions and Answers

Question 1

Political risk is the threat of value loss as a result of

Accepted Answer

Government or Public actions

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Unfavourable trade negotiations

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Poor corporate governance

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Exchange rate movements

Question 2

Which of the following is not a way that corporate rule can help with agency issues?

Accepted Answer

Acquisition of a foreign subsidiary

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Threat of hostile takeover

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Executive compensation

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Monitoring by large shareholders

Question 3

Investors consider political risk to be

Accepted Answer

Discouraged

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Make them happy

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Attracted

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Encouraged

Question 4

If a simple family organization experiences even a small amount of exchange rate volatility,

Accepted Answer

Foreign competition

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Joint ventures

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Domestic Competition

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All of answers are correct

Question 5

Snyder Golf Co. plans to construct a golf club in Brazil.

Accepted Answer

Direct Forging Investment

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Importing

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Exporting

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Licensing

Question 6

Businesses can use their expertise in overseas markets without a license thanks to licensing.

Accepted Answer

Major investment in foreign countries

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International trade

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Investment

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Acquisition of Subsidiary

Question 7

Portfolio investing focuses on

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Different securities

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Don

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Same securities

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Short term investment

Question 8

Acquisitions may benefit from subsidiaries because

Accepted Answer

Can be tailored

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Easy to manage

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Can't be tailored

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Easy to incorporate

Question 9

Effective tools for superb corporate governance companies include

Accepted Answer

Board of directors

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Top executive officers

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Common stock shareholders

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All of answers are correct

Question 10

All manufacturing parameters operate flawlessly in the real world.

Accepted Answer

Immobile

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Somewhat mobile

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Mobile

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All of answers are correct