Part I: Multiple Cholce (10 questions, 50 points) 1. (5 points) A form of foreign direct investment where a parent company beilds its sew facilities in a foreign country from the ground up is a. greenfield investment b. vertical integratiorn d. cross-border acquisition 2. (5 points) A primary stock market is a. an internationally-important market such as NYSE b, where brokers and market makers trade c. a market where corporations issue new shares to initial investors d. a market that provides market participants with marketability and share valuation 3. (5 points) In general, after cross-listing a. the stock price decreases b. the cost of capital decreases c. the liquidity of the stock dries up d. the investor base for the firm shrinks 4. (5 points) The right figure shows the percentage of top ten firms country by country. In France, for Stock Market Concentration Market Capitali ason oftop 10frms as % of total 93% example, top ten firms account for Greece 82% about 30% of the national market Denmark capitalization. According to the Spain taly right figure, the diversification benefits of international investors are SMALLEST in 50% GermanyI 50% 30% a. Greece b. both Italy and Germany c. Japan France Canada Japan 125% 15% d. none of the above 0% 20% 40% 60% 80% 10% 2