Finance > TEST BANKS > Test Bank for multinational financial management by alan shapiro chapter-1-20 (Complete solutions) (All)

Test Bank for multinational financial management by alan shapiro chapter-1-20 (Complete solutions)

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Chapter 1, Introduction CHAPTER 1 Introduction EASY (definitional) 1.1 Historically, the primary motive for U.S. multinationals to produce abroad has been to lower costs respond more quickly to the marketplace avoid trade barriers gain tax benefits Ans: b Section: evolution of multinational Level: Easy 1.2 The primary objective of the multinational corporation is to a.) maximize shareholder wealth maximize world production minimize debt minimize the cost of doing business globally Ans: a Section: Multinational Financial Management: Theory and Practice Level: Easy 1.3 ____________ is defined as the purchase of assets or commodities on one market for immediate resale on another in order to profit form a price discrepancy. internationalization arbitrage financing total risk Ans: b Section: evolution of multinational Level: Easy 1.4 The value of good financial management is ___________ in the global markets because of the much greater probability of market imperfections and multiple tax rates. minimized neutralized enhanced arbitraged away Ans: c Section: role of the financial executive Chapter 1, Introduction Level: Easy 1.5 When a firm operates globally it offers advantages such as greater political power at home bless taxes on its profits greater negotiating power with foreign minority groups greater negotiating power with labor unions Ans: d Section: The rise of the MNC Level: Easy 1.6 The prime transmitter of global competitive forces is the public utility firm financial management experience of the U.S. markets the multinational corporation the Federal Reserve System of the U.S. Ans: c Section: rise of the multinational Level: Easy 1.7 ___________ were the earliest multinationals. raw-material seekers market seekers cost minimizers oil companies Ans: a Section: raw material seekers Level: Easy 1.8 The ___________ are the archetype of the modern multinational firm that goes overseas to produce and sell in foreign markets. cost minimizers market seekers raw-material seekers whaling companies Ans: b Section: market seekers Level: Easy 1.9 ___________ are a recent category of multinationals that seek out and invest in lower cost production sites overseas. a) Cost minimizers Chapter 1, Introduction Market seekers Raw-material seekers High tech firms Ans: a Section: cost minimizers Level: Easy

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