Question 1

0 out of 1 points

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. Answer Selected Answer: Correct Answer: A. close to zero; more B. high and positive; less

Question 2
1 out of 1 points

International trade: Answer Selected Answer: Correct Answer: D. all of the above. D. all of the above.

Question 3
0 out of 1 points

In assessing the risk of an individual project, the expected correlation of the new project's returns with those of the prevailing business should be considered. Answer Selected Answer: Correct Answer: False True

Question 4
1 out of 1 points

MNCs often attempt to set up production in locations where land and labor are expensive, because expensive factors of production indicate high demand. Answer Selected Answer: False

Correct Answer:

False

Question 5
1 out of 1 points

Once a decision to establish a foreign subsidiary has been made, it is irreversible. Therefore, no periodic monitoring of the project is necessary. Answer Selected Answer: Correct Answer: False False

Question 6
0 out of 1 points

MNCs can probably achieve more desirable risk-return characteristics from their project portfolios if they sufficiently diversify among products and geographical markets. Answer Selected Answer: Correct Answer: False True

Question 7
1 out of 1 points

The parent of MNC can implement compensation plans that directly reward the subsidiary managers for enhancing the value of the MNC. Answer Selected Answer: Correct Answer: True True

Question 8
0 out of 1 points

The valuation of an MNC is reduced if the required return on its investments in foreign countries is reduced. Answer Selected Answer: Correct Answer: True False

Question 9
0 out of 1 points

A microeconomic perspective focuses on external forces such as economic conditions that can affect the value of an MNC. Answer Selected Answer: Correct Answer: True False

Question 10
0 out of 1 points

A macroeconomic perspective focuses on the financial management decisions that affect the value of MNC. Answer Selected Answer: Correct Answer: True False

Friday, May 25, 2012 10:48:10 AM CDT

OK