Globalization and the Multinational Corporation: Multiple Choice Questions

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International Financial Management, 2e (Bekaert / Hodrick) Chapter 1 Globalization and the Multinational Corporation 1.1 Multiple Choice Easy 1) Which of the following was created in an effort to promote free trade? A) World Trade Organization B) the Sarbanes-Oxley Act C) multilateral development banks D) the Organization for Economic Cooperation and Development Answer: A 2) Which one of the following is an investment from which the payoff over time is derived from the performance of an underlying asset? A) a common stock certificate B) a derivative security C) a corporate bond D) a mortgage bond Answer: B 3) What is the name for the shifting of non-strategic functions to specialist firms to reduce costs? A)…show more content…
D) a single European currency managed by a European central bank. Answer: D 18) The European Union is a free trade association that is based on a(n) A) economic and monetary union. B) economic union. C) monetary union. D) a commonly agreed upon list of lowered tariffs. Answer: A 19) Which one of the following has a single currency managed by a common central bank? A) ASEAN B) European Union C) World Trade Organization D) The Organization for Economic Cooperation and Development Answer: B 20) Which one of the following is renowned for its high-quality databases on economic and social data? A) WTO B) EU C) OECD D) World Bank Answer: C 21) What is the name of the international organization that fosters monetary and financial cooperation and serves as a bank for central banks? A) WTO B) EU C) World Bank D) Bank for International Settlements Answer: D 22) Which of the following are institutional banks that provide financial support and professional advice for developing countries? A) multilateral development banks B) central banks C) investment banks D) Barclays bank Answer: A 23) What economic field of study explores the problems associated with a firm that arise from a separation of ownership and control and devises ways to resolve them? A) futures and options B) agency theory C) foreign direct investment D) franchising Answer: B 24) State-owned investment
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