Reviewer for International Finance

Test I. True or false 1-20

Test II. Identification 1-15
Multinational Companies
Licensing
Comparative theory/advantage
Balance of payment
Outsourcing
Exchange rates
Inflation
Foreign exchange market
Stock exchange
Forward rate
Spot rate
Hedging
IMF
World bank
World trade organization
Test III. ENUMERATION
Methods to conduct International Business
1. International trade
2. Licensing
3. Franchising
4. Joint ventures
5. Acquisitions of existing operations
Factors affecting international trade flows
1. Cost of labor
2. Inflation
3. National income
4. Government policies
5. Exchange rates
Factors affecting direct foreign investment
1. Changes in restrictions
2. Privatization
3. Potential economic growth
4. Tax rates
5. Exchange rates

Agencies facilitates international flows

1. International monetary fund
2. World bank
3. World Trade Organization
4. International development association
5. International finance corporation
6. Organization for economic cooperation and development
Methods used to invest internationally
1. Direct purchases of foreign stocks
2. Investment in MNC stocks
3. American depository receipts
4. Exchange traded funds
5. International mutual funds
Factors that influence exchange rates
1. Relative inflation rates
2. Relative interest rates
3. Relative income levels