Multinational Business Finance Quiz

Financial globalization has not resulted in:

• continuing imbalances of balance of payments.

• an increase in quantity and speed in the flow of capital across the world.

• capital markets less open and a decrease in the availability of capital for many organizations.

• uniform ways of ownership, control, and governance across the world.

BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets.

• TRUE

• FALSE

Multinational enterprises (MNEs) are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms.

• TRUE

• FALSE

Ownership, control, and governance changes radically across the world. The publicly traded company is not the dominant global business organization—the privately held or family-owned business is the prevalent structure—and their goals and measures of performance differ dramatically.

• TRUE

• FALSE

The theme dominating global financial markets today is the complexity of risks associated with financial globalization. List and explain examples of the complexity of risks affecting the leading and managing of multinational firms in the rapidly moving marketplace.

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A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the following obstacles to maximizing firm value?

• an open market place

• high quality strategic management

• access to capital

• none of the above

A well-established, large China-based MNE will probably be most adversely affected by which of the following elements of firm value?

• an open marketplace

• high-quality strategic management

• access to capital

• access to qualified labor pool

A well-established, large, Brazil-based MNE will probably be most adversely affected by which of the following elements of firm value?

• an open marketplace

• high-quality strategic management

• access to capital

• access to qualified labor pool

A major cost avoided in the eurocurrency markets is the payment of deposit insurance fees, such as:

• Federal Deposit Insurance Corporation - FDIC

• Office of the Comptroller of the Currency - OCC

• International Monetary Fund - IMF

• World Bank - WB

The modern eurocurrency market was born shortly after:

• World War II

• World War I

• Korean War

• Bosnian War