1、1International FinanceAssignment Problems (1) Name: Student No.:Choose the correct answer for the following questions (only ONE correct answer) 1. Which of the following is NOT true regarding the subject matter of international finance?A. International finance studies the important trade theories.B.
2、 International finance examines the theory of balance of payments and its relationship with macroeconomic variables.C. International finance studies exchange rate theories and the impacts of the exchange rate on the economy.D. International finance discusses the exchange rate risks and the derivativ
3、e instruments by which people use to cover the exchange rate risks and to speculate.2. Globalization refers to _.A. the strengthening of existing international linkages of commerce, finance and the addition of new international linkagesB. the expansion of world governance and global societyC. the in
4、creased mobility of peoples and informationD. All of the above3. Mutually beneficial trade requires each country to be the least-cost producer of at least one good that it can export to its trading partner. This is called _.A. the theory of comparative advantageB. the international finance theoryC.
5、the theory of absolute advantageD. the theory of balance of payments4. Which of the following would NOT be a way to implement comparative advantage?A. IBM exports computers to Gambia.B. Computer hardware is designed in the United States but manufactured and assembled in Malaysia.C. Water of the grea
6、test purity is obtained from the wells in Oregon, bottled, and exported worldwide.D. All of the above are examples of ways to implement comparative advantage.5. Which of the following would NOT be considered a feature of comparative advantage?A. Exporters in country A sell goods to importers in coun
7、try B.B. Firms in country A specialize in making products that can be produced relative 2efficiently, given country As endowment of factors of production. Firms in country B do likewise thus maximizing the combined output of countries A and B.C. Trade exists between countries A and B because of spec
8、ialized factors of production that cannot be moved among countries.D. All of the above are features of comparative advantage.6. The real sector in an economy deals with _.A. transactions in all goods and servicesB. transactions in all financial assetsC. transactions in goods, services and financial
9、assetsD. transactions in new technological products only7. Of the following, which would NOT be considered a way that government interferes with comparative advantage?A. tariffsB. quotasC. managerial skillsD. other non-tariff restrictions8. A firm with operations in more than one country is called a
10、 (an) _.A. big firmB. multinational corporationC. international firmD. all of the above9. The primary goal of an MNC comes down to _.A. seek marketsB. improve its production efficiencyC. gain access to technology or managerial expertiseD. maximize shareholder wealth10. World trade of goods and servi
11、ces has expanded in a remarkable pace because of the _.A. reduction in trade barriersB. lower transportation costsC. advances in telecommunications, information technology and financial servicesD. All of the above are the reasons of rapid growth in international trade.11. Nowadays the world trade in
12、 goods and services is important _.A. only to developed countriesB. only to less developed countriesC. to both developed and less developed countriesD. to neither developed nor less developed counties312. Which of the following is NOT a characteristic of the nowadays financial markets?A. Increasingl
13、y interdependent national financial marketsB. the global trend toward free-market economiesC. An increasingly number of cross-border partnerships, including many international merges, acquisitions, and joint venturesD. An increasing number of cooperative linkages among securities exchange13. _ indic
14、ates that mutually beneficial trade can occur even when one nation is absolutely more efficient in the production of all goods.A. The theory of comparative advantageB. The theory of absolute advantageC. The theory of balance of paymentsD. The theory of exchange rate determination14. A well-establish
15、ed multinational company needs _ to maximize its firm value.A. an open market placeB. high quality strategic managementC. access to capitalD. all of the aboveQuestions 15 through 20 are based on the information presented in table 1.1:Table 1.1Production capabilityContainers of snowboards Containers
16、of digital camerasAustria has 1,000 units 15 containers/unit 8 containers/unitof production factorsRussia has 1,000 units 12 containers/unit 3 containers/unitof production factors15. One production factor in Austria has a (an) _ over one production factor in Russia in _.A. absolute disadvantage; dig
17、ital camerasB. absolute disadvantage; snowboardsC. absolute advantage; both digital cameras and snowboardsD. none of the above16. Austria has a large comparative advantage over Russia in the production of _ at a ratio of _.A. snowboards; 5:4B. digital cameras; 8:3C. snowboards; 8:34D. digital camera
18、s; 5:417. Assume no trade between Austria and Russia. If each country puts 50% of their factors into each product, the total number of snowboards and digital cameras produced by the two countries combined are _ and _.A. 13,500 snowboards; 5,500 camerasB. 12,000 snowboards; 8,000 camerasC. 5,500 snow
19、boards; 13,500 camerasD. 3,000 cameras; 15,000 snowboards18. If trade takes place at Russias domestic price, _ snowboards will be required to obtain 1 digital camera.A. 4B. 2.5C. 1.25D. 0.2519. If each country specializes in production with Austria producing only digital cameras and Russia producing
20、 only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD.
21、There is not enough information to answer this question20. If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consume
22、d in Russia if they trade 9,000 snowboards to Austria?A. 9,000 snowboards and 5,000 camerasB. 3,000 snowboards and 3,000 camerasC. 3,000 snowboards and 9,000 camerasD. There is not enough information to answer this questionAnswers to Assignment Problems (1)1. A 2. D 3. C 4. D 5. D 6. A 7. C 8. B 9. D 10. D11.C 12.B 13.A 14.D 15. C 16. B 17. A 18. A 19. A 20. B
