Question

13. Which one of the following provides strong evidence that internationalization continues to grow in the world economy? import restrictions by the Bush Administration on foreign steel efforts suggested by politicians to restrict the sourcing of foreign products by locally headquartered multinationals the growing volume of foreign direct investment by U.S. as well as other multinational companies pressure on governments to embargo unfriendly nations 14. For the multinational corporation, which one of the following complements to the integration of world wide operations is MOST critical? flexibility b. adaptability c. speed c conomies of scale of distribution d 15. According to Shapiro, if you were the CEO of a multinational corporation, which of the following would be MOST important to you in hiring a manager? One that Avoids risk at any price b. Manages effectively the political environment of the subsidiary country Anticipates every future disturbance related to the supply chain d Makes decisions that anticipates problems and provides solutions that enhances the firm's prospects for growth 16. Suppose that the Brazilian real devalues by 40% against the U.S. dollar. By how much will the dollar appreciate against the real? 67% b 40% 32% d. 28% C 17. If the U.S. dollar appreciates against the Nigerian naira by 150%, the naira depreciates against the dollar by 60% b. 75% c. 125% d. 300% 18. If a foreigner purchases a U.S. government security a. the supply of dollars rises b. the federal government deficit declines the demand for dollars rises d. the U.S. money supply rises

Answer 1

13. C the growing volume of FDI by US as well as other multinational countries, as among other options, the FDI shows the growth of internationalization the most.

14. c. speed. As flexibility and adaptability again leads to better working and provides the opportunity to grow and economies of scale leads to cost cut and is a benefit to the company

15. d make decision that are anticipates the problem and provide the solution that leads to firms growth

16. a. 67%

Because, in the start if the exchange rates are:

C* reais = 1 dollar

when Brazilian reais devalues against dollar, :

c* reais =0.60 dollar

(c*reais)/0.60 = 1 dollar

So the dollar against reais will be

1/60= dollar against reais

= 1.6666667 or increase by 66.67%

Or 67%