Question 1

1 out of 1 points

Direct foreign investment is commonly considered by MNCs because it allows the MNC to: Answer Selected Answer: Correct Answer: E. all of the above E. all of the above

Question 2
0 out of 1 points

The acquisition of a foreign subsidiary is commonly considered by MNCs because the cost is less expensive than establishing a new subsidiary of the same size. Answer Selected Answer: Correct Answer: True False

Question 3
1 out of 1 points

One of the most prevalent factors conflicting with the realization of the goal of an MNC is the existence of agency problems. Answer Selected Answer: Correct Answer: True True

Question 4
1 out of 1 points

A decentralized management style, where subsidiary managers make the relevant decisions regarding their subsidiary, may result in better decision making, as subsidiary managers are generally better informed about their subsidiary's operations. Answer Selected Answer: Correct Answer: True True

Question 5
0 out of 1 points

The Sarbanes-Oxley Act (SOX) was enacted in 2002 required MNCs and other firms to implement an internal reporting process that could be easily monitored by executives and the board of directors. Answer Selected Answer: Correct Answer: False True

Question 6
0 out of 1 points

International trade: Answer Selected Answer: Correct Answer: A. is a relatively conservative approach to foreign market penetration. D. all of the above.

Question 7
1 out of 1 points

Once a decision to establish a foreign subsidiary has been made, it is irreversible. Therefore, no periodic monitoring of the project is necessary. Answer Selected Answer: Correct Answer: False False

Question 8
1 out of 1 points

In assessing the risk of an individual project, the expected correlation of the new project's returns with those of the prevailing business should be considered. Answer Selected Answer: Correct Answer: True True

Question 9

1 out of 1 points

Generally speaking, direct foreign investment by U.S. firms in Eastern Europe has increased recently. Answer Selected Answer: Correct Answer: True True

Question 10
0 out of 1 points

Along the frontier of efficient project portfolios, exactly one portfolio can be singled out as "optimal" for all MNCs. Answer Selected Answer: Correct Answer: True False