International Financial Management, 8e(Eun)Chapter 1Globalization and the Multinational Firm1)What major dimension sets apart international finance from domestic finance?A) Foreign exchange and political risksB) MarketimperfectionsC) Expanded opportunity setD) all of the optionsAnswer:DTopic:What's Special about "International" Finance?Accessibility:Keyboard Navigation2) An example of a political risk isA) expropriation of assets.B) adverse change in tax rules.C) the opposition party being elected.D) both the expropriation of assets and adverse changes in tax rules are correct.Answer:DTopic:What's Special about "International" Finance?Accessibility:Keyboard Navigation3)Production of goods and services has become globalized to a large extent as a result ofA) natural resources being depleted in one country after another.B) skilled labor being highly mobile.C) multinational corporations' efforts to source inputs and locate production anywhere where costsare lower and profits higher.D) common tastes worldwide for the same goods and services.Answer:CTopic:What's Special about "International" Finance?Accessibility:Keyboard Navigation4) Recently,financial markets have become highly integrated. This developmentA) allows investors to diversify their portfolios internationally.B) allows minority investors to buy and sell stocks.C) has increased the cost of capital for firms.D) none of the optionsAnswer:ATopic:What's Special about "International" Finance?Accessibility:Keyboard NavigationPreview Mode
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