0 Out of 1 Points
0 Out of 1 Points
0 Out of 1 Points
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
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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