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

Answer

Unfavourable trade negotiations

Answer

Poor corporate governance

Answer

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

Answer

Threat of hostile takeover

Answer

Executive compensation

Answer

Monitoring by large shareholders

Question 3

Investors consider political risk to be

Accepted Answer

Discouraged

Answer

Make them happy

Answer

Attracted

Answer

Encouraged

Question 4

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

Accepted Answer

Foreign competition

Answer

Joint ventures

Answer

Domestic Competition

Answer

All of answers are correct

Question 5

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

Accepted Answer

Direct Forging Investment

Answer

Importing

Answer

Exporting

Answer

Licensing

Question 6

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

Accepted Answer

Major investment in foreign countries

Answer

International trade

Answer

Investment

Answer

Acquisition of Subsidiary

Question 7

Portfolio investing focuses on

Accepted Answer

Different securities

Answer

Don

Answer

Same securities

Answer

Short term investment

Question 8

Acquisitions may benefit from subsidiaries because

Accepted Answer

Can be tailored

Answer

Easy to manage

Answer

Can't be tailored

Answer

Easy to incorporate

Question 9

Effective tools for superb corporate governance companies include

Accepted Answer

Board of directors

Answer

Top executive officers

Answer

Common stock shareholders

Answer

All of answers are correct

Question 10

All manufacturing parameters operate flawlessly in the real world.

Accepted Answer

Immobile

Answer

Somewhat mobile

Answer

Mobile

Answer

All of answers are correct