International Financial Management Quiz

What does the international financial environment refer to?

• The global system in which countries interact financially.

• A local financial market.

• A national banking system.

• A regional trade agreement.

What is one of the rewards of international finance?

• Higher Returns on Investments

• Limited Market Access

• Increased Domestic Competition

• Reduced Economic Growth

What is currency risk?

• Risk from exchange rate fluctuations.

• Risk from political instability.

• Risk from legal disputes.

• Risk from market competition.

What does MNC stand for?

• Multinational Corporation

• Multi-National Company

• Multi-Country Network

• Multi-National Consortium

What is one of the goals of a Multinational Corporation?

• Maximize Profitability

• Limit Global Expansion

• Reduce Brand Recognition

• Increase Local Competition

What is exporting?

• The sale of goods produced in one country to another.

• The import of goods from another country.

• The transfer of technology between countries.

• The investment in foreign markets.

What is licensing in international business?

• Granting permission to use intellectual property.

• Selling goods directly to foreign customers.

• Establishing a new business entity.

• Investing in foreign companies.

What is a joint venture?

• A partnership between companies from different countries.

• A method of exporting goods.

• A type of foreign direct investment.

• A form of franchising.

What is foreign direct investment (FDI)?

• Investing directly in a foreign country.

• Exporting goods to another country.

• Licensing intellectual property.

• Forming a strategic alliance.

What is e-commerce in the context of international business?

• Selling products online to foreign markets.

• Exporting goods to other countries.

• Investing in foreign companies.

• Establishing a joint venture.