Question 1 The one reason MNC can be harmful for the host country is
Question 1 The one reason MNC can be harmful for the host country is:
Question 1 options:
They pay less than local labor rates
They often avoid taxes
They obtain strong negotiating power with local government
They raise unemployment levels
Question 2
A company might put money in FDI because:
Question 2 options:
High return
Cheap labor
Tax advantage
All of these answers
Question 3
One of the downsides of outsourcing for a company is that it:
Question 3 options:
Raises energy costs
Raises costs
Raises taxes
Reduces confidentiality
Question 4
One of the most underestimated challenges encountered by companies when entering a new global region is recognition. For example, Best Buy failed in China as a direct result of not localizing their brand and product offerings. This is a failure of:
Question 4 options:
Public relations
Ethics
Organizational structure
Leadership
Question 5
Each country will specialize in making the good that it can make most efficiently, relative to the other country. This description best defines which of the following?
Question 5 options:
Global advantage
Fiscal advantage
Comparative advantage
Absolute advantage
Question 6
Which of the following circumstances might influence a business not to invest in a specific foreign country?
Question 6 options:
The country’s currency is susceptible to high inflation.
The country’s neighbors have lower inflation rates.
All of these answers.
The country’s laws provide inadequate protection for intellectual property.
Question 7
Which of the following is a correct definition of an exchange rate?
Question 7 options:
All of these answers.
A spot rate is a contract where currency is exchanged approximately two days after the trade.
A forward rate is a contract where currency is exchanged at some point in the future.
The forward rate is a function of the spot rate, the time until settlement, and a growth rate.
Question 8
A company is concerned that the value of its accounts receivable from overseas will decrease due to a shift in exchange rate. What type of exchange exposure is the company concerned about?
Question 8 options:
Long-run exposure.
Short-run exposure.
Translation exposure.
Economic exposure.
Question 9
Mary went on vacation from the UK to the US, so she had to purchase some dollars ($). How many pounds sterling (L) did she exchange for US dollars if she now has $135? The exchange rate is L 1 = $1.5542? Give your answer to the nearest pound sterling?
Question 9 options:
L 209.1
L 209.0
L 86.9
L 86.5
Question 10
Latisha wants to go to Australia. She has $1200 which she wants to exchange for Australian dollars (AUD) Hoow many Australian dollars are her USD worth. The exchange rate is $1 = AUD 1.4939. Giver your answer to the nearest Australian dollar.
Question 10 options:
AUD 1792
AUD 803
AUD 1793
AUD 802
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