Multinational Business Finance (Pearson Series in Finance) 13th Edition

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 10 Transaction Exposure 10.1 Types of Foreign Exchange Exposure Multiple Choice Question: ________ exposure deals with cash flows that result from existing contractual obligations. A) Operating B) Transaction C) Translation D) Economic Answer: [cpmembership level="2,3"] B Diff: 2 Topic: 10.1 Types of Foreign Exchange Exposure Skill: Recognition [/cpmembership] Question: ________ exposure

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 11 Translation Exposure 11.1 Overview of Translation Multiple Choice Question: Translation exposure may also be called ________ exposure. A) transaction B) operating C) accounting D) currency Answer: [cpmembership level="2,3"] C Diff: 1 Topic: 11.1 Overview of Translation Skill: Recognition [/cpmembership] Question: ________ exposure is the potential for an increase or decrease

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 12 Operating Exposure 12.1 Trident Corporation: A Multinationals Operating Exposure Multiple Choice Question: Another name for operating exposure is ________ exposure. A) economic B) competitive C) strategic D) all of the above Answer: [cpmembership level="2,3"] D Diff: 1 Topic: 12.1 Trident Corporation: A Multinationals Operating Exposure Skill: Recognition [/cpmembership] Question: What type

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 13 The Global Cost and Availability of Capital 13.1 Financial Globalization and Strategy Multiple Choice Question: If a firm lies within a country with ________ or ________ domestic capital markets, it can achieve lower global cost and greater availability of capital with a properly designed and implemented strategy

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 14 Raising Equity and Debt Globally 14.1 Designing a Strategy to Source Capital Globally Multiple Choice Question: The choice of when and how to source capital globally is usually aided early on by the advice of: A) an investment banker. B) your stock broker. C) a commercial banker. D)

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 15 Multinational Tax Management 15.1 Tax Principles Multiple Choice [/cpmembership] Question: The issue of ethics in the reporting of income and the payment of taxes is a considerable one. The authors state that most MNEs operating in foreign countries tend to follow the general principle of: A) "when in

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 16 International Portfolio Theory and Diversification 16.1 International Diversification and Risk Multiple Choice Question: Beta may be defined as: A) the measure of systematic risk. B) a risk measure of a portfolio. C) the ratio of the variance of the portfolio to the variance of the market. D) all of the above Answer: [cpmembership

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 17 Foreign Direct Investment and Political Risk 17.1 Sustaining and Transferring Competitive Advantage Multiple Choice Question: An example of economies of scale in financing include: A) being able to access the Euroequity, Eurobond, and Eurocurrency markets. B) being able to ship product in shiploads or carloads. C) being

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 18 Multinational Capital Budgeting and Cross-Border Acquisitions 18.1 Complexities of Budgeting for a Foreign Project Multiple Choice Question: The traditional financial analysis applied to foreign or domestic projects, to determine the projects value to the firm is called: A) cost of capital analysis. B) capital budgeting. C) capital

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 19 Working Capital Management 19.1 Trident Brazils Operating Cycle Multiple Choice Question: Working capital management involves the management of: A) current and long-term assets. B) current assets and current liabilities. C) current liabilities and long-term assets. D) current liabilities and long-term debt and equity. Answer: [cpmembership level="2,3"] B Diff: 1

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 2 Corporate Ownership, Goals, and Governance 2.1 Who Owns the Business? Multiple Choice 1) Foreign stock markets are frequently characterized by controlling shareholders for the individual publicly traded firms. Which of the following is NOT identified by the authors as typical controlling shareholders? A) the government (for example, privatized utilities) B) institutions

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 20 International Trade Finance 20.1 The Trade Relationship Multiple Choice Question: The exporter-importer relationship to a corporation of a foreign importer that has not previously conducted business with the firm would be an: A) unaffiliated known. B) affiliated party. C) unaffiliated unknown. D) any of the above Answer: [cpmembership level="2,3"] C Diff: 2 Topic: 20.1 The Trade Relationship Skill:

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 3 The International Monetary System 3.1 History of the International Monetary System Multiple Choice 1) Under the gold standard of currency exchange that existed from 1879 to 1914, an ounce of gold cost $20.67 in U.S. dollars and 4.2474 in British pounds. Therefore, the exchange rate of pounds per dollar

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 6 The Foreign Exchange Theory and Markets 6.1 Geographical Extent of the Foreign Exchange Market Multiple Choice Question: Which of the following is NOT true regarding the market for foreign exchange? A) The market provides the physical and institutional structure through which the money of one country is exchanged for

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 7 International Parity Conditions 7.1 Prices and Exchange Rates Multiple Choice Question: If an identical product can be sold in two different markets, and no restrictions exist on the sale or transportation costs, the products price should be the same in both markets. This is known as: A) relative purchasing power

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 8 Foreign Currency Derivatives and Swaps 8.1 Foreign Currency Futures Multiple Choice Question: Financial derivatives are powerful tools that can be used by management for purposes of: A) speculation. B) hedging. C) human resource management. D) A and B above Answer: [cpmembership level="2,3"] D Diff: 1 Topic: 8.1 Foreign Currency Futures Skill: Recognition [/cpmembership] Question: A foreign currency ________ contract calls

Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett) Chapter 9 Foreign Exchange Rate Determination and Forecasting 9.1 Exchange Rate Determination: The Theoretical Thread Multiple Choice Question: An important thing to remember about foreign exchange rate determination is that parity conditions, asset approach, and balance of payments approaches are ________ theories rather than ________ theories. A) competing; complementary B)