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Full Test Bank For International Financial Management Abridged Edition 11Th Edition Jeff Madura PDF Docx Full Chapter Chapter
Full Test Bank For International Financial Management Abridged Edition 11Th Edition Jeff Madura PDF Docx Full Chapter Chapter
7. Which of the following theories identifies the non-transferability of resources as a reason for
international business?
a. theory of comparative advantage.
b. imperfect markets theory.
c. product cycle theory.
d. none of the above
ANS: B PTS: 1
8. Which of the following theories suggests that firms seek to penetrate new markets over time?
a. theory of comparative advantage.
b. imperfect markets theory.
c. product cycle theory.
d. none of the above
ANS: C PTS: 1
9. Which of the following industries would most likely take advantage of lower costs in some less
developed foreign countries?
a. assembly line production.
b. specialized professional services.
c. nuclear missile planning.
d. planning for more sophisticated computer technology.
ANS: A PTS: 1
11. A product cycle is the process by which a firm provides a specialized sales or service strategy, support
assistance, and possibly an initial investment in the franchise in exchange for periodic fees.
a. True
b. False
ANS: F PTS: 1
12. Licensing is the process by which a firm provides its technology (copyrights, patents, trademarks, or
trade names) in exchange for fees or some other specified benefits.
a. True
b. False
ANS: T PTS: 1
© 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
13. The agency costs of an MNC are likely to be lower if it:
a. scatters its subsidiaries across many foreign countries.
b. increases its volume of international business.
c. uses a centralized management style.
d. A and B.
ANS: C PTS: 1
14. An MNC may be more exposed to agency problems if most of its shares are held by:
a. a few mutual funds
b. a widely dispersed set of individual investors
c. a few pension funds
d. all of the above would prevent agency problems
ANS: B PTS: 1
15. The Sarbanes-Oxley Act improves corporate governance of MNCs because it:
a. makes executives more accountable for verifying financial statements
b. eliminates stock options as a form of compensation
c. ties executive compensation to firm performance
d. places a limit on the amount of funds that managers can spend
ANS: A PTS: 1
16. MNCs can improve their internal control process by all of the following, except:
a. establishing a centralized data base of information
b. ensuring that all data are reported consistently among subsidiaries
c. ensuring that the MNC always borrows from countries where interest rates are lowest
d. using a system that checks internal data for unusual discrepancies
ANS: C PTS: 1
17. Franchising is the process by which national governments sell state owned operations to corporations
and other investors.
a. True
b. False
ANS: F PTS: 1
18. The parent of MNC can implement compensation plans that directly reward the subsidiary managers
for enhancing the value of the MNC.
a. True
b. False
ANS: T PTS: 1
19. If a publicly-traded MNC's managers make poor decisions that reduce its value, it may encourage
other firms to acquire it.
a. True
b. False
ANS: T PTS: 1
© 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
20. Institutional investors such as mutual funds or pension funds which have large holdings of an MNC's
stock do not normally want to take control of it and therefore have no influence over management of
the MNC.
a. True
b. False
ANS: F PTS: 1
21. In comparing exporting to direct foreign investment (DFI), an exporting operation will likely incur
____ fixed production costs and ____ transportation costs than DFI.
a. higher; higher
b. higher; lower
c. lower; lower
d. lower; higher
ANS: D PTS: 1
25. Imperfect markets represent conditions under which factors of production are immobile.
a. True
b. False
ANS: T PTS: 1
26. The Sarbanes-Oxley Act (SOX) was enacted in 2002 required MNCs and other firms to implement an
internal reporting process that could be easily monitored by executives and the board of directors.
a. True
b. False
ANS: T PTS: 1
© 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
27. If markets were perfect, then labor and other costs of production would be perfectly stable (no
movement across borders).
a. True
b. False
ANS: F PTS: 1
28. The valuation of an MNC is reduced if the required return on its investments in foreign countries is
reduced.
a. True
b. False
ANS: F PTS: 1
29. Which of the following is not mentioned in the text as an additional risk resulting from international
business?
a. exchange rate fluctuations.
b. political risk.
c. interest rate risk.
d. exposure to foreign economies.
ANS: C PTS: 1
30. Licensing obligates a firm to provide ____, while franchising obligates a firm to provide ____.
a. a specialized sales or service strategy; its technology
b. its technology; a specialized sales or service strategy
c. its technology; its technology
d. a specialized sales or service strategy; a specialized sales or service strategy
e. its technology; an initial investment
ANS: B PTS: 1
31. Which of the following is not a way in which agency problems can be reduced through corporate
control?
a. executive compensation.
b. threat of hostile takeover.
c. acquisition of a foreign subsidiary.
d. monitoring by large shareholders.
ANS: C PTS: 1
32. The goal of a multinational corporation (MNC) is the maximization of shareholder wealth.
a. True
b. False
ANS: T PTS: 1
33. A centralized management style, where major decisions about a foreign subsidiary are made by the
parent company, results in an increase in agency costs.
a. True
b. False
ANS: F PTS: 1
© 2013 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted
in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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Fam. Plethodontidæ.
Plethodon cinereus cinereus (Green). Sugar Grove.
Plethodon cinereus erythronotus (Green). Sugar Grove,
Columbus, and Worthington. In the early part of the year this is the
commonest salamander in the ravines in Franklin County. It is found
generally away from water, under loose debris two or more rods from
the stream.
Plethodon glutinosus (Green). Sugar Grove. This salamander is
found in such localities as were mentioned for P. c. erythronotus.
Gyrinophilus porphyriticus (Green). Sugar Grove.
Spelerpes bilineatus (Green). Sugar Grove. Habits apparently
aquatic.
Spelerpes longicauda (Green). Sugar Grove. This salamander is
abundant in this region where it may be found in May under stones
at the edge of the water together with its eggs; the eggs are attached
to the under side of a hollow stone. Some individuals were found in
May, 1900, away from water.
Spelerpes ruber (Daudin). Fairfield County.
Desmognathus fusca (Rafin). Sugar Grove and Perry Co.
Aquatic in habits.
Fam. Pleurodelidæ.
Diemictylus viridescens miniatus (Rafin). Sugar Grove.
Fam. Bufonidæ.
Bufo lentiginosus (Shaw). Columbus and Knox County. This is
the common toad of Central Ohio.
Bufo lentiginosus americanus LeConte. A specimen from the
sand dunes of Cedar Point, Sandusky, Ohio.
Fam. Hylidæ.
Acris gryllus crepitans Baird. Knox County, Central College and
Columbus. The common cricket-frog of Central Ohio is this
subspecies. The young resemble the species gryllus LeConte in
having the under surface of the thigh reticulated and blotched.
Chorophilus triseriatus (Wied.). Sugar Grove.
Hyla versicolor LeConte. Knox County and Columbus.
Hyla pickeringii Storer. Sugar Grove.
Fam. Ranidæ.
Rana virescens Kalm. Sugar Grove and Columbus.
Rana palustris LeConte. Sugar Grove.
Rana sylvatica LeConte. Knox County and Sugar Grove.
Rana clamata Daudin. Columbus.
Rana catesbiana Shaw. Columbus.
Summary for Batrachia.—Families 8, Genera 12, Species 25.
THE PROMETHEA MOTH, CALLOSAMIA
PROMETHEA.
Herbert Osborn.
The figures of the moth, male and female, were drawn twenty
one years ago, and having now come of age they may perhaps be
trusted to make their first public appearance.
MEETING OF THE BIOLOGICAL CLUB.
F. J. T.
Ohio State University
Six distinct and independent Colleges, each with a Dean and
Faculty of its own.
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