FIN 535 Midterm Part I 100% Correct

FIN 535 Midterm Question 1 For the MNC, agency costs are typically

Question 2

 	Which of the following is not mentioned in the text as an additional risk resulting from international business?
			
•	Question 3
4 out of 4 points
	
 	The commonly accepted goal of the MNC is to:
			
•	Question 4
4 out of 4 points
	
 	Which of the following theories identifies specialization as a reason for international business?

			
•	Question 5
4 out of 4 points
	
 	Which of the following is not mentioned in the text as a theory of international business?
			
•	Question 6
4 out of 4 points
	
 	Which of the following is not an example of political risk?
Answer			
	
•	Question 7
4 out of 4 points
	
 	In comparing exporting to direct foreign investment (DFI), an exporting operation will likely incur ____ fixed production costs and ____ transportation costs than DFI.
•	Question 8
4 out of 4 points
	
 	International trade generally results in ____ exposure to international political risk and ____ exposure to international economic conditions, when compared to other methods of international business.

•	Question 9
4 out of 4 points
	
 	Also known as the "central banks' central bank," the ____ attempts to facilitate cooperation among countries with regard to international transactions and provides assistance to countries experiencing a financial crisis.
•	Question 10
4 out of 4 points
	
 	____ is (are) income received by investors on foreign investments in financial assets (securities).
•	Question 11
4 out of 4 points
	
 	As a result of the European Union, restrictions on exports between ____ were reduced or eliminated.

•	Question 12
4 out of 4 points
	
 	The World Bank's Multilateral Investment Guarantee Agency (MIGA):

			
•	Question 13
4 out of 4 points
	
 	Without the international capital flows, there would be ____ funding available in the U.S. across all risk levels, and the cost of funding would be ____ regardless of the firm's risk level.

			
•	Question 14
4 out of 4 points
	
 	According to the text, international trade (exports plus imports combined) as a percentage of GDP is:

			
•	Question 15
4 out of 4 points
	
 	"Dumping" is used in the text to represent the:

			
•	Question 16
4 out of 4 points
	
 	In recent years, the U.S. has had a relatively (compared to other countries) ____ balance of trade ____ with China.

			
•	Question 17
4 out of 4 points
	
 	Intracompany trade makes up approximately ____ percent of all international trade.
			
•	Question 18
4 out of 4 points
	
 	According to the text, the forward rate is commonly used for:

•	Question 19
4 out of 4 points
	
 	The Basel II accord is focused on eliminating inconsistencies in ____ across countries.

•	Question 20
4 out of 4 points
	
 	The main participants in the international money market are:

			
•	Question 21
4 out of 4 points
	
 	Futures contracts are sold on exchanges and are consequently ____ than forward contracts, which can be ____ to satisfy an MNC's needs.

•	Question 22
4 out of 4 points
	
 	Assume a Japanese firm invoices exports to the U.S. in U.S. dollars. Assume that the forward rate and spot rate of the Japanese yen are equal. If the Japanese firm expects the U.S. dollar to ____ against the yen, it would likely wish to hedge. It could hedge by ____ dollars forward.

•	Question 23
4 out of 4 points
	
 	Futures contracts are typically ____; forward contracts are typically ____.

•	Question 24
4 out of 4 points
	
 	A syndicated loan:
Answer			
	er.
			
•	Question 25
4 out of 4 points
	
 	The international money market is primarily served by:
Answer