Answer the question? Multiple choice

Question 1: Every currency exchange involves two currencies currency 1 & currency 2:

Currency 1/ currency 2 [5 pts.]

O Currency 1 is the base currency & currency 2 is the unit currency

O Currency 1 is the unit currency & currency 2 is the base currency

O Currency 1 is the price currency & currency 2 is the quote currency

O Currency 1 is the base currency & currency 2 is the price currency

Question 2: What is direct quote? [5 pts]

O A direct quote is the home currency price of a unit of foreign currency

O A direct quote is the foreign currency price of a unit of foreign currency

O A direct quote is the exchange rate between two currency calculated with a third currency

O A direct quote is the home currency price based on fair exchange market value

Question 3: The two fundamental tax principles are [5 pts]

O Direct taxes and indirect taxes

O Tax morality and tax neutrality

O Income tax and withholding tax

O Income tax and value added tax

Question 4: Tax havens and international offshore financial centers are [5 pts]

O Located in every financial centers and small islands around the world.

O Located in countries that have a low corporate tax rate, unstable currency and stable government.

O Located in countries that have no corporate tax rate, a stable currency and stable government.

O Located in countries that have a low corporate tax rate, a stable currency and stable government.

Question 5: Nations structure their tax systems along two basic approaches: [5 pts]

O The global approach and the national approach

O The global approach and the territorial approach

O The worldwide approach and the territorial approach

O The worldwide approach and the local approach

Question 6: Under the three categories of import/export relationships: Unaffiliated unknown is considered [5 pts]

O When two parties would need to enter into a detailed sales contract and all the needed agreements.

O When two parties would need to enter into no detailed sales contract and all the needed agreements.

O When two parties would need to enter into a detailed sales contract and significantly looser agreement.

O When two parties would need to enter into a detailed sales contract and significantly difficult agreement.

Question 7: Government programs to help finance exports through [5 pts]

O International Monetary Fund and United Nation

O World Bank and United Nation

O Export credit insurance and export-import bank and export financing

O Export credit insurance and trade financing alternatives

Question 8: OLI frame paradigm features are [5 pts]

O Ownership, location and internalization

O Ownership, joint venture and wholly owned

O Greenfield, location and licensing

O Ownership, licensing and internationalization

Question 9: Classification of political risks are - [5 pts]

O Industry specific, country specific & firm specific

O Country specific, factory specific & firm specific

O Firm specific, industry specific & Global specific

O Global specific, country specific & firm specific

Question 10: One of the major criticisms of Modern Portfolio Theory on its assumption that - [5 pts]

O If something has not happened in the past, it cannot happen in the future

O Diversified portfolio always provides better returns on investments.

O If something has happened in the past, it cannot happen in the future

O If something has not happened in the past, it can happen in the future