1)

Agency costs faced by multinational corporations (MNCs) may be larger than those faced by purely domestic firms because

Select one:

a. Monitoring of managers located in foreign countries is more difficult.

b. Foreign subsidiary managers raised in different cultures, however, they follow uniform goals.

c. MNCs are relatively large.

d. All of the above

e. A and C only

2)

arked out of 2.00

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Question text

An MNC's short-term financing decisions are satisfied in the . market, while its medium debt financing decisions are satisfied in the market.

Select one:

a. international money; international stock

b. international bond; international credit

c. international money; international bond

d. international money; international credit

e. international credit; international money

3)

Assume that an American firm wants to engage in international business without major investment in the foreign country. Which method is least appropriate in this situation?

Select one:

a. Direct foreign investment

b. International Trade

c. Licensing

d. Franchising

4)

Assume that an Egyptian firm wants to engage in international business without major investment in the foreign country. Which method is least appropriate in this situation?

Select one:

a. Exporting

b. Licensing

c. Franchising

d. FDI

e. none of the above

5)

Assume the U.S. has a balance of trade surplus with China. When individuals in China manufacture CDs and DVDs that look almost exactly like the original product produced in the U.S. and other countries, they the U.S. balance of trade surplus. This activity is called

Select one:

a. increase; subsidizing

b. reduce; subsidising.

c. increase; pirating

d. reduce; pirating.