Saved Financial globalization

Saved Financial globalization has NOT resulted in:

continuing imbalances of balance of payments.

an increase in quantity and speed in the flow of capital across the world.

capital markets less open and a decrease in the availability of capital for many organizations.

uniform ways of ownership, control, and governance across the world.

Saved Multinational enterprises (MNEs) are firms, both for profit companies and not-for-profit organizations, that have operations in more than one country, and conduct their business through foreign subsidiaries, branches, or joint ventures with host country firms. True False

Saved Eurocurrencies are domestic currencies of one country on deposit in a second country.

True False

Saved Which of the following would NOT be a way to implement comparative advantage? Question 4 options: IBM exports computers to Egypt. Computer hardware is designed in the United States but manufactured and assembled in Korea. Water of the greatest purity is obtained from wells in Oregon, bottled, and exported worldwide. All of the above are examples of ways to implement comparative advantage.

Saved Comparative advantage in the 21st century is based more on services and their cross border facilitation by telecommunications and the Internet.

True False

Saved In determining why a firm becomes multinational there are many reasons. One reason is that the firm is a market seeker. Which of the following is NOT a reason why market-seeking firms produce in foreign countries? Question 6 options: satisfaction of local demand in the foreign country satisfaction of local demand in the domestic markets political safety and small likelihood of government expropriation of assets All of the above are market-seeking activities.

Relative to MNEs, purely domestic firms tend to have GREATER political risk.

True False

Typically, a “greenfield” investment abroad is considered an investment having a greater foreign presence than a joint venture with a foreign firm.

True False

Today it is widely assumed that there are NO LIMITS to financial globalization.

True False

The twin agency problems limiting financial globalization are caused by these two groups acting in their own self-interests rather than the interests of the firm.

rulers of sovereign states and unsavory customs officials corporate insiders and attorneys corporate insiders and rulers of sovereign states attorneys and unsavory customs officials