International Financial Management 8E - Eun - TBChapter 1

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1、ExamName___________________________________MULTIPLECHOICE.Choosetheonealternativethatbestcompletesthestatementoranswersthequestion.1)Whatmajordimensionsetsapartinternationalfinancefromdomesticfinance?1)A)ForeignexchangeandpoliticalrisksB)ExpandedopportunitysetC)Marketimperfec

2、tionsD)alloftheoptionsAnswer:DTopic:What'sSpecialabout"International"Finance?2)Anexampleofapoliticalriskis2)A)adversechangeintaxrules.B)expropriationofassets.C)theoppositionpartybeingelected.D)boththeexpropriationofassetsandadversechangesintaxrulesarecorrect.Answer:DTopic:Wha

3、t'sSpecialabout"International"Finance?3)Productionofgoodsandserviceshasbecomeglobalizedtoalargeextentasaresultof3)A)commontastesworldwideforthesamegoodsandservices.B)naturalresourcesbeingdepletedinonecountryafteranother.C)skilledlaborbeinghighlymobile.D)multinationalcorporati

4、ons'effortstosourceinputsandlocateproductionanywherewherecostsarelowerandprofitshigher.Answer:DTopic:What'sSpecialabout"International"Finance?4)Recently,financialmarketshavebecomehighlyintegrated.Thisdevelopment4)A)hasincreasedthecostofcapitalforfirms.B)allowsinvestorstodiver

5、sifytheirportfoliosinternationally.C)allowsminorityinvestorstobuyandsellstocks.D)noneoftheoptionsAnswer:BTopic:What'sSpecialabout"International"Finance?5)Japanhasexperiencedlargetradesurpluses.Japaneseinvestorshaverespondedtothisby5)A)lobbyingtheJapanesegovernmenttoallowtheye

6、ntoappreciate.B)liquidatingtheirpositionsinstockstobuydollar-denominatedbonds.C)investingheavilyinU.S.andotherforeignfinancialmarkets.D)lobbyingtheU.S.governmenttodepreciateitscurrency.Answer:CTopic:What'sSpecialabout"International"Finance?16)Supposeyourfirminvests$100,000ina

7、projectinItaly.Atthetimetheexchangerateis6)$1.25=€1.00.Oneyearlatertheexchangerateisthesame,buttheItaliangovernmenthasexpropriatedyourfirm'sassetspayingonly€80,000incompensation.ThisisanexampleofA)politicalrisk.B)marketimperfections.C)exchangeraterisk.D)noneoftheoptions,since

8、$100,000=€80,000×$1.25/€1.00.Answer:ATopic:What'sSpecialabout"Intern