International finance multiple choice questions

Assignment Help Corporate Finance

Reference no: EM1316535

International Finance multiple choice questions

1. Companies typically want to participate in foreign direct investment because

a. it is easier to protect trade secrets

b. a smaller percentage of profits will have to be shared

c. they can retain the right to make important business decisions

d. all of the above

2. Governments may try to restrict the influence of foreign companies in their economy by:

a. mandating who can be hired in the company and at what wage

b. requiring that a foreign firm owns at least 50% of a domestic business

c. reducing government interference in international business

d. all of the above

3. The Smithsonian Agreement established that foreign currencies

a. will have a fixed exchange rate against each other

b. will float freely against each other in exchange

c. established the value of a US dollar at $35/ounce

d. will be used to create a large museum in Washington D.C.

4. Bretton Woods established that

a. the gold standard should be abandoned

b. all currencies should be traded in US dollars

c. exchange rates should be free floating

d. there is no need for a central reserve asset

5. An increases in US exports to foreign markets ________________ the amount of dollars in the foreign exchange and _______________ the value of the US dollar.

a. increases, decreases

b. increases, increases

c. decreases, increases

d. decreases, decreases

6. All of the following influence the value of the US dollar in foreign exchange EXCEPT:

a. Anti-trust legislation on international corporations

b. Increases in the rate of inflation

c. Governmental monetary policies

d. Balance of payments

7. If, as of today, the currency per US dollar rate for German marks is 2.2863. What is the US equivalent rate?

a. 4.5726

b. .3752

c. 1.296

d. .4374

8. The quotation, Canada (dollar).... .7261 means

a. it costs US$ .7261 to buy one Canadian dollar.

b. it costs US$ 7.261 to buy one Canadian dollar.

c. it costs Canadian Dollar .7261 to buy US$ 1.

d. all of the above.

9. How many US dollars will it take to purchase a Canadian item valued at 543 Canadian? 10. "Tariff" is a trade restriction. List one other trade restriction.

10. "Tariff" is a trade restriction. List one other trade restriction.

Reference no: EM1316535

Questions Cloud

Finding price elasticity and profit maximization : In 1991, Brazil and Columbia united to form a coffee cartel and reduce coffee output. Suppose total costs for the cartel are: TC = 12 + 5Q + Q 2

Find out probability values from discrete distribution : A consumer organization estimates that over a 1-year period 17 percent of cars will require to be repaired once, 7 percent will need repairs twice, and 4 percent will require three or more repairs. What is the probability that a car chosen at rand..

Developing the histogram and pie chart : Developing the histogram and pie chart for the sample data.

Finding number of cups : A recipe uses two eggs, three cups of flour & some other ingredients. The recipe makes enough batter for 6 servings. How many cups of flour will be needed to make enough batter for ten servings?

International finance multiple choice questions : International Finance multiple choice questions - How many US dollars will it take to purchase a Canadian item valued at 543 Canadian? 10. "Tariff" is a trade restriction. List one other trade restriction.

Required probabilities based on normal distribution : To find z-score and required probabilities based on Normal distribution. Assume that childrens weekly allowances are normally distributed in the population.

Explanation for marginal production-decision making : The largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer's wage is $20 and the price of a printing press is $5000.00. If not, how should the manager of Largo Publishing house adjust input usage?

Probability calculation using hyper geometric distribution : Assume that a hand of 12 cards is dealt from a normal deck of 52 playing cards. What is the probability that of the 12 cards, 3 will be diamonds, 3 will be clubs, 3 will be spades, and 3 will be hearts.

Computation required portfolio return given discount rate : Computation required portfolio return given discount rate and stock betas and invested amounts

User Account

All Pages