Chapter 17, Problem 2ST

Which of the following is true about financial institutions in the United States compared to those in other countries? (a). Most U.S. intermediaries are allowed to engage in nonbanking (nonfinancial) business activities, whereas the nonbanking activities of foreign financial institutions have been severely restricted until recently (b) .US, financial institutions have been much more heavily regulated than their foreign counterparts with regard to expansion (branching) and the services that could be offered (c).U.S. financial institutions and their foreign counterparts have similar regulations with regard to engaging in nonbanking activities (d). U.S. financial institutions and their foreign counterparts have similar regulations with regard to expansion (branching) and the services that could be offered. (e).US, financial Institutions have been regulated less than their foreign counterparts with regard to expansion (branching) and the services that could be offered.

Boseman is also considering making the entry into the international market by engaging in foreign direct investments in the nations. Which one of the following is not a true statement regarding foreign direct investment from the host country’s perspective?  a.Significant financial inflows always result from engaging in foreign direct investment. b.Foreign direct investment can create new jobs and can generate tax revenues for governments c.A concern of the local governments in host countries is the lack of corporate social responsibility d.There is the potential for exploitation of human labor within certain countries e.These investments may take the form of plants, buildings, or inventories

Suppose InBev Corporation (a non-U.S. MNC) buys Anheuser-Busch Corporation (a U.S. corporation) by paying the U.S. shareholders in cash. Which of the following can be said of the US capital account?   Group of answer choices   The acquisition of cash by US shareholders will decrease foreign ownership, which will be recorded as a debit.   The US federal reserve will increase its currency reserves.   InBev's reduction in cash will be recorded as a debit on the U.S. capital account..   InBev's increased ownership of US assets is recorded as a credit.   U.S. shareholders increased ownership in InBev will be recorded as a credit.