Multinational Business Finance Complete Test Bank By Eiteman 1 
Multinational Business Finance Complete Test Bank by Eiteman
Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett)
Chapter 1 Current Multinational Challenges and the Global Economy
1.1 Financial Globalization and Risk
True/False
1) BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets.
Answer: FALSE
Diff: 1
Topic: 1.1 Financial Globalization and Risk
Skill: Recognition
2) Multinational enterprises (MNEs) are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms.
Answer: TRUE
Diff: 1
Topic: 1.1 Financial Globalization and Risk
Skill: Recognition
3) Ownership, control, and governance changes radically across the world. The publicly traded company is not the dominant global business organization—the privately held or family-owned business is the prevalent structure—and their goals and measures of performance differ dramatically.
Answer: TRUE
Diff: 2
Topic: 1.1 Financial Globalization and Risk
Skill: Recognition
1.2 The Global Financial Marketplace
Multiple Choice
1) A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the following obstacles to maximizing firm value?
A) an open market place
B) high quality strategic management
C) access to capital
D) none of the above
Answer: D
Diff: 2
Topic: 1.2 The Global Financial Marketplace
Skill: Recognition
2) A well-established, large China-based MNE will probably be most adversely affected by which of the following elements of firm value?
A) an open marketplace
B) high-quality strategic management
C) access to capital
D) access to qualified labor pool
Answer: A
Diff: 2
Topic: 1.2 The Global Financial
Multinational Business Finance, 13e (Eiteman/Stonehill/Moffett)
Chapter 1 Current Multinational Challenges and the Global Economy
1.1 Financial Globalization and Risk
True/False
1) BRICs is a term used in international finance to represent assets that are considered to be inexpensive and sturdy, but fundamentally unsound and and incapable of coping with the upheavals now apparent in international financial markets.
Answer: FALSE
Diff: 1
Topic: 1.1 Financial Globalization and Risk
Skill: Recognition
2) Multinational enterprises (MNEs) are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms.
Answer: TRUE
Diff: 1
Topic: 1.1 Financial Globalization and Risk
Skill: Recognition
3) Ownership, control, and governance changes radically across the world. The publicly traded company is not the dominant global business organization—the privately held or family-owned business is the prevalent structure—and their goals and measures of performance differ dramatically.
Answer: TRUE
Diff: 2
Topic: 1.1 Financial Globalization and Risk
Skill: Recognition
1.2 The Global Financial Marketplace
Multiple Choice
1) A well-established, large U.S.-based MNE will probably NOT be able to overcome which of the following obstacles to maximizing firm value?
A) an open market place
B) high quality strategic management
C) access to capital
D) none of the above
Answer: D
Diff: 2
Topic: 1.2 The Global Financial Marketplace
Skill: Recognition
2) A well-established, large China-based MNE will probably be most adversely affected by which of the following elements of firm value?
A) an open marketplace
B) high-quality strategic management
C) access to capital
D) access to qualified labor pool
Answer: A
Diff: 2
Topic: 1.2 The Global Financial