Question Details

The Single European Act of 1987 was primarily intended 



1. If a U.S.-based MNC focused completely on importing, then its valuation would likely be adversely affected if most currencies were expected to appreciate against the dollar over time.
A) True.
B) False.

2. The acquisition of a foreign subsidiary is commonly considered by MNCs because the cost is less expensive than establishing a new subsidiary of the same size.
A) True.
B) False.


3. A recent study by McKinsey & Co. found that investors assign a higher value to firms 
that exhibit ________ corporate governance standards and are likely to ________ ethical 
constraints. 

A) high; not obey 

B) high; obey 

C) low; not obey 

D) low; obey 

4. An indirect benefit to the MNC of following a worldwide code of ethics is: 

A) it allows them to receive special tax breaks in less developed countries. 

B) it puts them at a competitive advantage in foreign markets. 

C) the worldwide credibility associated with maintaining such standards can increase 
global demand for the MNC's products. 

D) A and B.

5. The term privatization is typically used to describe: 

A) firms that are purchased by their managers. 

B) firms that are purchased by the government. 

C) firms that are bought out by other firms. 

D) government operations that are purchased by corporations and other investors.
6. Which of the following is not a major event that increased international business 
opportunities in Europe? 

A) the Single European Act. 

B) the removal of the Berlin Wall. 

C) the inception of the euro. 

D) the reduction in the number of countries participating in the European Union.

7. The Single European Act of 1987 was primarily intended to: 

A) create more trade barriers between European countries. 

B) unify East Germany and West Germany. 

C) provide financial support for Eastern Europe. 

D) make regulations more uniform across industrialized countries in Europe. 




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