trắc nghiệm TCQT

International ___can reduce the volatility of an investment portfolio because national financial markets tend to move independently of each other

• investment

• arbitrage

• centralization of the MNC's cash

• diversification

Multinational firms

• invest in developed countries only and avoid developing economies

• may be less risky than domestic firms if the added risks of operating overseas are more than offset by the ability to operate in nations whose economic cycles are not perfectly in phase

• are riskier than purely domestic firms because of the exposures of operating abroad

• are less risky than purely domestic firms because of international diversification

Historically, the primary motive for U.S. multinationals to produce abroad has been to

• gain tax benefits

• avoid trade barriers

• lower costs

• respond more quickly to the marketplace

Which one of the following is a consequence of increased global competition?

• increased anxiety among workers in the old industrial countries

• the end of free - trade agreements between governments of the world

• the creation of new steel plants in the old industrial countries

• increased comfort level of trade unions with the consequences

The primary objective of the multinational corporation is to

• maximize world production

• minimize the cost of doing business globally

• maximize shareholder wealth

• minimize debt

The defenders of multinationals believe that _____ are the appropriate reward for efficiently providing the global economy with products and services.

• low interest, government - subsidized loans

• subsidies

• tax holidays

• profits

_________ are a recent category of multinations that seek out and invest in lower cost production sites overseas

• raw material seekers

• cost minimizers

• market seekers

• high tech firms

When a firm operates globally it offers advantages such as

• greater negotiating power with labor unions

• greater political power at home

• greater negotiating power with foreign minority groups

• bless taxes on its profits

The prime transmitter of global competitive forces is the

• the multinational corporation

• financial management experience of the US markets

• public utility firm

• the Federal Reserve System of the US

The multinational financial system does NOT enable companies to

• avoid exchange rate risk

• access lower cost financing sources

• avoid currency controls

• reduce taxes