Reference no: EM133200633
1. Currency ________ happens whenever some company buys a foreign currency, not because it needs to pay for an import or is investing in a foreign business, but because it hopes to sell the currency at a higher rate in the future.
Select one: a. hedging b. laundering c. speculation d. preventing
2. The Association of Southeast Asian Nations or ASEAN has 10 members including Bangladesh.
Select one: True/False
3. Liquidity risk in international capital investments means the risk of not being able to sell an investment quickly at any time without risking substantial losses due to a political or economic crisis.
Select one: True/False
4. USA has the largest stock market in the world followed by China and Japan.
Select one: True/False
5. The capital market includes the bond market, stock market, and commercial banks who provide cash loans to companies.
Select one: True/False
6. The US tobacco industry is protected by tariffs since the _______________.
Select one: a. 1960s b. Great Depression c. 1st World War d. 2nd World War
7. The most serious concerns for the home country arise when FDI is seen as a substitute for domestic production which results in reduced home-country employment.
Select one: True/False
8. The designation World Bank is most often limited to the International Bank for Reconstruction and Development (IBRD) plus International Development Association (IDA).
Select one: True/False
9. A firm that insures itself against foreign exchange risk is said to be _______.
Select one: a. hedging b. laundering c. speculating d. preventing
10. Considering FDI direction in another dimension, it may be noted that in the past two decades, the sector composition of FDI has shifted sharply away from extractive industries and manufacturing and toward services.
Select one: True/False
11. For most major currencies, forward exchange rates are quoted for 30 days, 90 days, and 180 days into the future. In some cases, it is possible to get forward exchange rates up to a maximum of one year into the future.
Select one: True/False
12. According to the British economist Dunning, firms undertake FDI to exploit resource endowments or assets that are not location-specific.
Select one: True/False
13. One of the reasons for the worldwide negative trends of FDI since 2015 is the decline in average rates of return on FDI which gradually came down to 6.7% in 2017 from 8.1% in 2012.
Select one: True/False
14. The ultimate objective of the antidumping policy is to protect domestic producers from _____ foreign competition.
Select one: a. legal b. unknown c. strong d. unfair
15. The daily average trading in foreign exchange markets is several trillion dollars.
Select one: True/False
16. USMCA has replaced NAFTA.
Select one: True/False
17. ___________ is an information-intensive industry. It uses large volumes of information about markets, risks, exchange rates, interest rates, creditworthiness, and so on.
Select one: a. Accounting service b. IT industry c. Financial service d. Banking industry
18. The US retailer Walmart is currently negotiating an investment of up to $25 billion in TATA Motors, the Indian automobile manufacturer. This type of FDI is called -
Select one: a. Forward vertical FDI b. Horizontal FDI c. Conglomerate FDI d. Backward vertical FDI
19. A currency _____ is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates.
Select one: a. insurance b. deal c. pact d. swap
20. Regional economic integration can be seen as an attempt to establish a free trade & investment regime among a limited number of adjacent countries that cannot be established among the world community.
Select one: True/False