Questions from Multinational Business Finance

Q: What does it mean for a country—or its government—

What does it mean for a country—or its government—to compete for business on the basis of taxation?

Q: The term globalization has become widely used in recent years. How

The term globalization has become widely used in recent years. How would you define it?

Q: Which assets play the most critical role in linking the major institutions

Which assets play the most critical role in linking the major institutions that make up the global financial marketplace?

Q: What reasons can you give for the observation that intrafirm trade is

What reasons can you give for the observation that intrafirm trade is now greater than trade between non-affiliated exporters and importers?

Q: Explain the difference between a letter of credit (L/C

Explain the difference between a letter of credit (L/C) and a draft. How are they linked?

Q: What is different about international financial management?

What is different about international financial management?

Q: What is the major difference between currency risk and risk of non

What is the major difference between currency risk and risk of non-completion? How are these risks handled in a typical international trade transaction?

Q: Identify each party to a letter of credit (L/C

Identify each party to a letter of credit (L/C) and indicate its responsibility.

Q: Why would an exporter insist on a confirmed letter of credit?

Why would an exporter insist on a confirmed letter of credit?

Q: List the steps involved in the export of computer hard disk drives

List the steps involved in the export of computer hard disk drives from Penang, Malaysia, to San Jose, California, using an unconfirmed letter of credit authorizing payment on sight.