International Financial Management MCQs and Notes

V

Vikash Gupta

🎓 Tutor III ⭐ 33.56K Points

Q. A country with high unemployment could best increase its employment by:

(A) encouraging foreign firms to establish subsidiaries that produce the same products local firms produce.
(B) encouraging foreign firms to establish licensing arrangements for products local firms produce.
(C) encouraging foreign firms to establish subsidiaries that produce products local firms do not produce.
(D) none of the above would reduce employment.

✅ Correct Answer: (C) encouraging foreign firms to establish subsidiaries that produce products local firms do not produce.

G

Gopal Sharma

🎓 Tutor III ⭐ 38.32K Points

📊 International Financial Management

Q. Assume a U.S. firm initiates direct foreign investment in the U.K.. If the British pound is expected to appreciate against the dollar, the dollar value of earnings remitted to the parent should _______. The parent may request that the subsidiary _______ in order to benefit from the expectation about the pound.

(A) increase; postpone remitting earnings until the pound strengthens
(B) decrease; postpone remitting earnings until the pound strengthens
(C) decrease; remit earnings immediately before the pound strengthens
(D) increase; remit earnings immediately before the pound strengthens

💬 Discuss

✅ Correct Answer: (A) increase; postpone remitting earnings until the pound strengthens

V

Vinay

🎓 Mover ⭐ 28.75K Points

📊 International Financial Management

Q. Which of the following is a reason to consider international business?

(A) economies of scale.
(B) exploit monopolistic advantages.
(C) diversification.
(D) all of the above

💬 Discuss

✅ Correct Answer: (D) all of the above

G

Gopal Sharma

🎓 Tutor III ⭐ 38.32K Points

📊 International Financial Management

Q. If countries are highly influential upon each other, the correlations of their economic growth levels would likely be __________. A firm would benefit __________ by diversifying sales among these countries relative to another set of countries that were not influential upon each other.