国际金融.docx

1、国际金融CHAPTER 1 Globalization and the Multinational Firm 1) What major dimension sets apart international finance from domestic finance?a) foreign exchange and political risksb) Market imperfectionsc) Expanded opportunity setd) all of the above2) An example of a political risk is a) Expropriation of a

2、ssetsb) Adverse change in tax rulesc) The opposition party being electedd) a) and b) are both correct3) Production of goods and services has become globalized to a large extent as a result a) Skilled labor being highly mobileb) Natural resources being depleted in one country after anotherc) Multinat

3、ional corporations efforts to source inputs and locate production anywhere where costs are lower and profits higherd) Common tastes worldwide for the same goods and services4) Recently, financial markets have become highly integrated. This development a) Allows investors to diversify their portfolio

4、s internationallyb) Allows minority investors to buy and sell stocksc) Has increased the cost of capital for firmsd) Answers a) and c) are both correct.5) Japan has experienced large trade surpluses. Japanese investors have responded to this bya) Liquidating their positions in stocks to buy dollar d

5、enominated bondsb) Investing heavily in U.S. and other foreign financial marketsc) Lobbying the U.S. government to depreciate its currencyd) Lobbying the Japanese government to allow the yen to appreciate6) Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1

6、.25 = 1.00. One year later the exchange rate is the same, but the Italian government has expropriated your firms assets paying only 80,000 in compensation. This is an example of a) Exchange rate riskb) Political riskc) Market imperfectionsd) None of the above, since $100,000 = 80,000$1.25/1.007) Sup

7、pose that Great Britain is a major export market for your firm, a U.S. based MNC. If the British pound depreciates against the U.S. dollar, a) Your firm will be able to charge more in dollar terms while keeping pound prices stable.b) Your firm may be priced out of the U.K. market, to the extent that

8、 your dollar costs stay constant and your pound prices will rise.c) To protect U.K. market share, your firm may have to cut the dollar price of your goods to keep the pound price the same.d) b) and c) are both correct.8) Most governments at least try to make it difficult for people to cross their bo

9、rders illegally. This barrier to the free movement of labor is an example ofa) Information asymmetryb) Excessive transactions costsc) Racial discriminationd) A market imperfection9) When individual investors become aware of overseas investment opportunities and are willing to diversify their portfol

10、ios internationally, a) they trade one market imperfection, information asymmetry, for another, exchange rate risk.b) they benefit from an expanded opportunity set.c) They should not bother to read or to understand the prospectus, since its probably written in a foreign language d) They should inves

11、t only in dollars or euros.10) Nestl, a well-known Swiss corporation,a) Has been a paragon of virtue in its opposition to all forms of political risk.b) At one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, the total market value of the firm fell.c) A

12、t one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, there was a major transfer of wealth from foreign shareholders to Swiss shareholders.d) None of the aboveGoals for International Financial Management11) The goal of shareholder wealth maximization a

13、) is not appropriate for non-U.S. business firmsb) means that all business decisions and investments that a firm makes are done for the purpose of making the owners of the firm better off financiallyc) is a sub-objective the firm should attempt to achieve after the objective of customer satisfaction

14、 is metd) is in conflict with the privatization process taking place in third-world countries12) As capital markets are becoming more integrated, the goal of shareholder wealth maximizationa) Has been altered to include other goals as well.b) Has lost out to other goals, even in the U.S.c) Has been

15、given increasing importance by managers in Europe. d) Has been shown to be a deterrent to raising funds abroad.13) Recent corporate scandals at firms such as Enron, WorldCom and the Italian firm Parmalata) Show that managers might be tempted to pursue their own private interests at the expense of sh

16、areholders.b) Show that Italian shareholders are better at monitoring managerial behavior than U.S. shareholders.c) Show that white-collar criminals hardly ever get punished.d) Show that socialism is a better way to go than capitalism.14) While the corporate governance problem is not confined to the

17、 United States,a) It can be a much more serious problem in many other parts of the world, where legal protection of shareholders is weak or nonexistent.b) It has reached its high point in the United States.c) The U.S. legal system, with lawsuits used only as a last resort, ensured that any conflicts

18、 of interest will soon be a thing of the past.d) None of the above15) The owners of a business are the a) Taxpayersb) Workersc) Suppliersd) Shareholders16) The massive privatization that is currently taking place in formerly socialist countries, will likelya) eventually enhance the standard of livin

19、g to these countries citizensb) depend on private investmentc) increase the opportunity set facing these countries citizensd) all of the above17) A firm with concentrated ownershipa) May give rise to conflicts of interest between dominant shareholders and small outside shareholders.b) May enjoy more

20、 accounting transparency than firms with diffuse ownership structures.c) Is a partnership, never a corporation.d) Tends to exist overseas but not in the U.S.18) The ultimate guardians of shareholder interest in a corporation, are the a) Rank and file workersb) Senior managementc) Boards of directors

21、d) All of the above19) In countries like France and Germany,a) Managers have often made business decisions with regard maximizing market share to the exclusion of other goals.b) Managers have often viewed shareholders as one of the “stakeholders” of the firm, others being employees, customers, suppl

22、iers, banks and so forth.c) Managers have often regarded the prosperity and growth of their combines, or families of related firms, as their critical goal.d) Managers have traditionally embraced the maximization of shareholder wealth as the only worthy goal.20) When corporate governance breaks downa

23、) Shareholders are unlikely to receive fair returns on their investmentsb) Managers may be tempted to enrich themselves at shareholder expensec) The board of directors is not doing its jobd) All of the aboveGlobalization of the World Economy21) Privatization refers to process of:a) Having government

24、 operate businesses for the betterment of the public sectorb) Government allowing the operation of privately owned businessc) Prohibiting government operated enterprisesd) A country divesting itself of the ownership and operation of a business venture by turning it over to the free market system22)

25、Deregulation of world financial marketsa) Provided a natural environment for financial innovations, like currency futures and options.b) Has promoted competition among market participants.c) Has encouraged developing countries such as Chile, Mexico, and Korea to liberalize by allowing foreigners to

26、directly invest in their financial markets.d) All of the above23) The emergence of global financial markets is due in no small part toa) Advances in computer and telecommunications technologyb) Rigorous enforcement of the Soviet system of state ownership of resources of production.c) Government regu

27、lation and protection of infant industries.d) None of the above.24) The euro a) is the common currency of Europeb) is divisible into 100 cents, just like the U.S. dollarc) may eventually have a transaction domain larger than the U.S. dollard) All of the above.25) Since its inception the euro has bro

28、ught about revolutionary changes in European finance. For examplea) By redenominating corporate bonds and stocks from 12 different currencies into one common currency, the euro has precipitated the emergence of continent wide capital markets in Europe that are comparable to U.S. markets in depth and

29、 liquidity.b) Swiss bank accounts are all denominated in euro.c) The European banking sector has become much more important as a source of financing for European firms.d) There have actually not been any revolutionary changes.26) Since the end of World War I, the dominant global currency has been th

30、e a) British poundb) Japanese yenc) Eurod) U.S. dollar27) In David Ricardos theory of comparative advantage,a) International trade is a zero-sum game in which one trading partners gain comes at the expense of anothers loss.b) Liberalization of international trade will enhance the welfare of the worl

31、ds citizens. c) Is a short-run argument, not a long-run argument.d) Has been superseded by the now-orthodox view of mercantilism.28) The World Trade Organization, WTO,a) Has the power to enforce the rules of international trade.b) Covers agriculture and physical goods, but not services or intellectu

32、al property rights.c) Recently expelled China for human rights violations.d) Ruled that NAFTA is to be the model for world trade integration.29) Privatizationa) Has spurred a tremendous increase in cross-border investment.b) Has allowed many governments to have the funds to nationalize important industries.c) Has guaranteed that new ownership will be limited to the local citizens.d) Has