Course Introduction
International Finance
Exam Materials
International Finance explores the financial dynamics and complexities of businesses operating across national borders. This course examines international monetary systems, foreign exchange markets, balance of payments, and the management of exchange rate risks. Students will analyze global financial instruments, international investment decisions, multinational capital budgeting, and risk management strategies. Emphasis is placed on understanding the impact of international economic policies, financial regulations, and geopolitical factors on global financial markets, providing students with the analytical tools necessary to make informed financial decisions in a globalized economy.
Recommended Textbook
International Business The Challenges of Globalization 9th Edition by John J. Wild
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16 Chapters
1650 Verified Questions
1650 Flashcards
Source URL: https://quizplus.com/study-set/2033
Page 2
Chapter 1: Globalization
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40400
Sample Questions
Q1) The purpose of the General Agreement on Tariffs and Trade (GATT)was to
A) create an international currency
B) regulate exchange rates
C) create regional trade organizations
D) promote free trade
Answer: D
Q2) GATT's contribution to trade liberalization made possible the expansion of world trade in the second half of the twentieth century.
A)True
B)False
Answer: True
Q3) Kireki is a small country with a corrupt government.Its population is rural for most part and citizens have few or no legal rights.Which of the following is the type of market featured in Kireki?
A) developed market
B) traditional market
C) emerging market
D) virtual market
Answer: B
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Chapter 2: Cross-Cultural Business
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40401
Sample Questions
Q1) A caste system is a system of social stratification in which ________.
A) a person's social status is decided by his acquired wealth
B) a person's position in society depends upon his educational qualifications and achievements
C) people are born into a social ranking, with no opportunity for social mobility
D) people join highly exclusive associations that encourage external interaction
Answer: C
Q2) ________ is crucial in production facilities where nonnative managers supervise local employees.
A) Ethnocentrism
B) Language proficiency
C) Cultural isolation
D) Individualism
Answer: B
Q3) A culture's values tend to become inflexible over time.
A)True
B)False
Answer: True
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Chapter 3: Political Economy and Ethics
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40402
Sample Questions
Q1) The government maintains control over the banking industry in a country.Which of the following is most likely true if the country has a mixed economy?
A) Businesses in most economic sectors of the country are privately owned.
B) The government considers banking sector as important to national security.
C) The country has never experienced threats against its long-term stability.
D) The government views banking as more important than manufacturing.
Answer: B
Q2) The bureaucracy is the part of government that implements the rules and laws passed by elected representatives.
A)True
B)False
Answer: True
Q3) ________ is the belief that only individuals and private groups should control a nation's political activities.
A) Pluralism
B) Anarchism
C) Theocracy
D) Totalitarianism
Answer: B
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Page 5
Chapter 4: Economic Development of Nations
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86 Verified Questions
86 Flashcards
Source URL: https://quizplus.com/quiz/40403
Sample Questions
Q1) ________ is political risk that affects only a specific firm or firms within a specific industry.
A) Inclusive political risk
B) Exclusive political risk
C) Micropolitical risk
D) Macropolitical risk
Q2) ________ refers to the transfer of ownership of resources from the private to the public sector.
A) Nationalization
B) Expropriation
C) Federalization
D) Conversion
Q3) SJC Enterprises,a global firm,operates a facility in Angola.Managers want to reduce the firm's vulnerability to political risk in Angola.All of the following actions would most likely accomplish this task except ________.
A) reducing net investment in the subsidiary
B) purchasing capital equipment outright
C) buying inputs from local suppliers
D) being a good corporate citizen
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Page 6
Chapter 5: International Trade Theory
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40404
Sample Questions
Q1) Trade in services tends to be relatively more important for the world's richest countries.
A)True
B)False
Q2) The danger of trade dependency is that ________.
A) it often leads to the exploitation of developed countries
B) political turmoil in a country might affect all dependent countries
C) the countries involved in trade often get into rivalry over trade tariff issues
D) it is difficult to end trade activities with current trade partners and find new trade partners
Q3) Which theory listed below is also called the Heckscher-Ohlin theory?
A) relative advantage
B) comparative advantage
C) factor proportions theory
D) specialization of countries
Q4) Explain the theory of comparative advantage using an example,and describe its assumptions and limitations.
Q5) Discuss the dangers of trade dependency.
Q6) Explain mercantilism.What were its major flaws?
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Chapter 6: Political Economy of Trade
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108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/40405
Sample Questions
Q1) Tariffs are a source of government revenue mostly among developing nations.
A)True
B)False
Q2) Which of the following is an instrument that governments use to promote trade?
A) embargoes
B) tariffs
C) export financing
D) administrative delays
Q3) Managers should understand the effect of trade protectionism because ________.
A) trade protectionism may limit the number of people permitted to practice a specific profession
B) trade protectionism requires the payment of high insurance rates to transport goods internationally
C) trade protectionism may prevent companies' enactment of merger and acquisition agreements
D) trade protectionism may make it difficult for a company to buy what it needs from foreign suppliers
Q4) Consumers are benefitted when a government imposes import quotas on products. A)True
B)False
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Chapter 7: Foreign Direct Investment
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104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/40406
Sample Questions
Q1) A(n)________ advantage is the one that a company gains from incorporating a business activity within itself rather than leaving it to a relatively inefficient market.
A) ownership
B) internalization
C) location
D) comparative
Q2) Explain the concept of balance of payments and describe its two major components.
Q3) Performance demands made by host countries to restrict incoming FDI apply exclusively to businesses in cultural industries.
A)True
B)False
Q4) Firms from emerging markets account for a greater share of global mergers and acquisitions than developed markets.
A)True
B)False
Q5) What two factors propel growth in foreign direct investment?
Q6) Discuss why a host country might promote or restrict foreign direct investment.
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Chapter 8: Regional Economic Integration
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111 Verified Questions
111 Flashcards
Source URL: https://quizplus.com/quiz/40407
Sample Questions
Q1) When trade diversion occurs,buyers will likely pay more for products.
A)True
B)False
Q2) The Council of the European Union is the legislative body of the EU.
A)True
B)False
Q3) A group of nations in a geographic region undergoing economic integration is called a regional trading bloc.
A)True
B)False
Q4) Which of the following is part of ASEAN?
A) Cuba
B) Cambodia
C) Peru
D) Greenland
Q5) The European Commission is the ________ body of the European Union.
A) legislative
B) executive
C) financial
D) monitoring
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Chapter 9: International Financial Markets
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109 Verified Questions
109 Flashcards
Source URL: https://quizplus.com/quiz/40408
Sample Questions
Q1) Issuing bonds internationally is an increasingly popular way to obtain needed funding.
A)True
B)False
Q2) ________ refers to the most commonly quoted interest rate that London banks charge other large banks that borrow Eurocurrency.
A) London Interbank Offer Rate (LIBOR)
B) London Interbank Bid Rate (LIBID)
C) Spot rate
D) Cross rate
Q3) Securitization is the unbundling and repackaging of hard-to-trade financial assets into liquid financial instruments.
A)True
B)False
Q4) Which of the following is a major purpose of the international capital market?
A) to reduce entrepreneurial initiatives
B) to increase the cost of borrowing
C) to reduce risk for lenders
D) to reduce the money supply for borrowers
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Chapter 10: International Monetary System
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107 Verified Questions
107 Flashcards
Source URL: https://quizplus.com/quiz/40409
Sample Questions
Q1) When the value of a country's currency declines,the price of its ________.
A) exports and imports on world markets declines
B) exports and imports on world markets increases
C) exports on world markets declines and the price of its imports increases
D) exports on world markets increases and the price of its imports declines
Q2) Predictable exchange rates reduce the need for ________.
A) currency conversion
B) currency swap
C) currency depreciation
D) currency hedging
Q3) The exchange rate at the beginning of a year between the Indian Rupee (R)and the U.S.dollar is R43.125/$.The annual inflation rates in India and in the United States are 19 percent and 3 percent respectively.What would be the new exchange rate at the end of the year?
A) R49.8224/$
B) R37.327/$
C) R0.0267/$
D) $37.327/R
Q4) Explain how a pegged exchange-rate system works.Why would a country choose to follow this system?
Page 12
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Chapter 11: International Strategy and Organization
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112 Verified Questions
112 Flashcards
Source URL: https://quizplus.com/quiz/40410
Sample Questions
Q1) Which term refers to the major objectives that a firm wants to accomplish through pursuing a specific course of action?
A) tactics
B) value chains
C) strategic goals
D) control frameworks
Q2) A strategy of adapting products and their marketing strategies in each national market to suit local preferences is referred to as a ________ strategy.
A) global
B) retrenchment
C) multinational
D) blue ocean
Q3) A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs.
A) retrenchment
B) global
C) multidomestic
D) blue ocean
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Chapter 12: Analyzing International Opportunities
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/40411
Sample Questions
Q1) The annual income considered below the poverty line in one country is the annual income of a middle-class family in another country.Which of the following difficulties associated with conducting international market research does this scenario illustrate?
A) availability of data
B) protection of data
C) marketability of data
D) comparability of data
Q2) What are the factors managers consider when analyzing industrialized markets? Discuss why the comparability of data is a major challenge while conducting international research.
Q3) If Matt wants to estimate an emerging market's spending capacity,he should focus on the ________.
A) population in the middle class
B) need for consumer products
C) demand for consumer and industrial products
D) volume of imports
Q4) Discuss how companies identify the basic appeal for products when screening a potential market,and explain how international organizations provide the essential information to researchers.
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Chapter 13: Selecting and Managing Entry Modes
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106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/40412
Sample Questions
Q1) A company proposes that in exchange for a hard-currency sale,it will make a hard-currency purchase of an unspecified product from the buyer nation in the future.Which of the following is the company proposing?
A) a counterpurchase
B) an offset
C) a buyback
D) a barter
Q2) Discuss the advantages of licensing,low-cost production,and low-cost shipping for international companies.
Q3) Low tariffs and high quota limits encourage market entry by means of investment. A)True
B)False
Q4) Why would an exporter use a sales representative or a distributor? Why would the exporter be reluctant to offer an open account payment method?
Q5) A confirmed letter of credit is guaranteed by both the exporter's bank in the country of export and the importer's bank in the country of import.
A)True
B)False
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Chapter 14: Developing and Marketing Products
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103 Verified Questions
103 Flashcards
Source URL: https://quizplus.com/quiz/40413
Sample Questions
Q1) The value customers obtain from a product is heavily influenced by the image of the country in which the product is manufactured.
A)True
B)False
Q2) ________ are imitation products passed off as legitimate trademarks,patents,or copyrighted works.
A) Giffen goods
B) Counterfeit goods
C) Inferior goods
D) Intangible goods
Q3) If Silk Industries is interested in creating buyer demand that will encourage channel members to stock its products,it should employ ________.
A) a pull strategy
B) a push strategy
C) horizontal integration
D) vertical integration
Q4) Differentiate between worldwide and dual pricing.Which one of these is more difficult to achieve and why?
Q5) Using examples,explain the circular process of marketing communication.
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Chapter 15: Managing International Operations
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/40414
Sample Questions
Q1) Which of the following reasons encourages companies to make a product rather than buy it?
A) Making a product gives managers greater control over the production process.
B) Making a product lowers the risk associated with the production process.
C) Making a product increases the company's flexibility to respond to market conditions.
D) Making a product gives companies a great deal of power in their relationships with suppliers.
Q2) Which of the following processes will a computer assembling firm engage in if it decides to manufacture its own monitors and printers?
A) outsourcing
B) vertical integration
C) niche marketing
D) lean production
Q3) Capacity planning applies only to manufacturing companies.
A)True
B)False
Q4) What are the options available to companies seeking financial resources?
Q5) Why might companies decide to reinvest,scale back,or divest local operations?
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Chapter 16: Hiring and Managing Employees
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102 Verified Questions
102 Flashcards
Source URL: https://quizplus.com/quiz/40415
Sample Questions
Q1) The psychological process of readapting to one's home culture after working in a host-country culture is called ________.
A) social loafing
B) assimilation effect
C) reverse culture shock
D) expatriate failure
Q2) The positive or negative condition of relations between employers and their workers is referred to as ________.
A) international relations
B) labor-management relations
C) corporatism
D) organizational hierarchy
Q3) Ethnocentric staffing places managerial responsibility in the hands of people intimately familiar with the local business environment.
A)True
B)False
Q4) Briefly explain how companies compensate managers in international markets.
Q5) Compare and contrast the methods of cultural training.Is any single method better than all the others?
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