Question 1(1 point)

The one reason MNC can be harmful for the host country is:

Question 1 options:

They raise unemployment levels

They obtain strong negotiating power with local government

They pay less than local labor rates

They often avoid taxes

Question 2(1 point)

A company might put money in FDI because:

Question 2 options:

All of these answers

High return

Tax advantage

Cheap labor

Question 3(1 point)

One of the downsides of outsourcing for a company is that it:

Question 3 options:

Raises energy costs

Raises costs

Reduces confidentiality

Raises taxes

Question 4(1 point)

One of the most underestimated challenges encountered by companies when entering a new global region is recognition. For example, Best Buy failed in China as a direct result of not localizing their brand and product offerings. This is a failure of:

Question 4 options:

Public relations

Leadership

Ethics

Organizational structure

Question 5(1 point)

Each country will specialize in making the good that it can make most efficiently, relative to the other country. This description best defines which of the following?

Question 5 options:

Global advantage

Fiscal advantage

Comparative advantage

Absolute advantage

Question 6(1 point)

Which of the following circumstances might influence a business not to invest in a specific foreign country?

Question 6 options:

The country's currency is susceptible to high inflation.

The country's neighbors have lower inflation rates.

The country's laws provide inadequate protection for intellectual property.

All of these answers.

Question 7(1 point)

Which of the following is a correct definition of an exchange rate?

Question 7 options:

All of these answers.

A spot rate is a contract where currency is exchanged approximately two days after the trade.

A forward rate is a contract where currency is exchanged at some point in the future.

The forward rate is a function of the spot rate, the time until settlement, and a growth rate.

Question 8(1 point)

A company is concerned that the value of its accounts receivable from overseas will decrease due to a shift in exchange rate. What type of exchange exposure is the company concerned about?

Question 8 options:

Long-run exposure.

Short-run exposure.

Economic exposure.

Translation exposure.

Question 9(1 point)

Mary went on vacation from the UKto the US, so she had to purchase some dollars ($).How many pounds sterling (L) did she exchange for US dollars if she now has $135?The exchange rate is L 1 = $1.5542?Give your answer to the nearest pound sterling?

Question 9 options:

L 86.9

L 86.5

L 209.1

L 209.0

Question 10(1 point)

Latisha wants to go to Australia.She has $1200 which she wants to exchange for Australian dollars (AUD) Hoow many Australian dollars are her USD worth.The exchange rate is $1 = AUD1.4939.Giver your answer to the nearest Australian dollar.

Question 10 options:

AUD 803

AUD 1792

AUD 802

AUD 1793