Questions from Financial Management

Q: Explain the relationship between transparency of firms and investor participation (or

Explain the relationship between transparency of firms and investor participation (or trading activity) in stock markets. Based on this relationship, how can governments of countries increase the amou...

Q: a. Explain how the theory of comparative advantage relates to the

a. Explain how the theory of comparative advantage relates to the need for international business. b. Explain how the product cycle theory relates to the growth of an MNC.

Q: a. Explain how the existence of imperfect markets has led to

a. Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets. b. If perfect markets existed, would wages, prices, and interest rates among countri...

Q: a. Do you think the acquisition of a foreign firm or

a. Do you think the acquisition of a foreign firm or licensing will result in greater growth for an MNC? Which alternative is likely to have more risk? b. Describe a scenario in which the size of a c...

Q: a. What factors cause some firms to become more internationalized than

a. What factors cause some firms to become more internationalized than others? b. Why might the Internet have resulted in more international business?

Q: Identify some of the key factors that can allow for stronger governance

Identify some of the key factors that can allow for stronger governance, thereby increasing participation and trading activity in a stock market

Q: Explain how the appreciation of the Australian dollar against the U.

Explain how the appreciation of the Australian dollar against the U.S. dollar would affect the return to a U.S. firm that invested in an Australian money market security.

Q: Explain how the international integration of financial markets caused the credit crisis

Explain how the international integration of financial markets caused the credit crisis of 2008–2009 to spread across many countries

Q: Bloomington Co. is a large U.S.-based MNC

Bloomington Co. is a large U.S.-based MNC with large subsidiaries in Germany. It has issued stock in Germany to establish its business. As an alternative financing mechanism, it could have issued stoc...

Q: As of today, the interest rates in Countries X, Y

As of today, the interest rates in Countries X, Y, and Z are similar. In the next month, Country X is expected to have a weak economy, while Countries Y and Z are expected to experience a 6 percent in...