Fin 6644 Essay

5862 WordsSep 29, 201224 Pages
Corporate MBA - FINANCE 6644: Global Financial Strategy August 2012 Final Exam Review Questions Instructions A. Please be concise and precise in your answers. B. Practice answers for closed book, class room setting. C. Suggested length: minimum one page [1.5 spacing]; maximum two pages per question. D. You would answer 3 questions and 2 Problems in two hours in final exam. Questions 1. Ethical Standards a. Can a multinational firm adopt varying ethical standards [such as with regard to product safety (Pinto), employee benefits (Nike) and “kickbacks” to win business (HP)] in its global operations? Why or Why Not? Discuss in depth based…show more content…
Asian and Africa) (Read: Class Notes) 5. Theoretical Relationship 1: Relationship between Money Supply and Inflation; Monetary Equation a. What Causes Inflation? Discuss. Too much money chasing to many goods. Milton freidmans equation b. What is the ‘Monetary Equation’. Why is it important to the financial manager? Concerned about what future inflation will be in the future c. What are the implications of this for the ‘foreign exchange market’? Monetary policy will give you a good idea It will affect the forward rate (Read: presentation in class and class notes) 6. Trade Policy and Offshoring Strategy: a. Why do nations trade with one another? Explain in your own words. (Ricardo’s Comparative advantage Chapter 1 Appendix: Economics and Efficiency) Appendix 1a of textbook ( Nations trade with one another because it is mutually advantageous for both parties when one is more efficient at producing a certain good and at a lower cost, and the other is proficient at producing a different good or service more efficiently. This is based on Ricaro’s theory of comparative advantage. c. What is Dynamic Comparative Advantage? What are the implications of this for the current debate on “Outsourcing” and “Off-shoring?” [Vernon’s Theory] Dynamic Comparative advantage is when early in a product's life-cycle all the parts and labor

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