International Trade MCQs

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Direct foreign investment allows firms to avoid






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All of the following are valid reasons for expansion of international business by U.S. multinational corporations except to






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Which one of the following statements concerning American Depository Receipts (ADRs) is false?






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A British company currently has domestic operations only. It plans to invest equal amounts of money on projects either in the U.S. or in China. The co...






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Technocrat, Inc., located in Belgium, currently manufactures products at its domestic plant and exports them to the U.S. since it is less expensive to...






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All of the following are concerns that are unique to foreign investments except






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The cost of capital for foreign investment projects is higher because of all of the following factors except






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Which of the following is not a political risk of investing in a foreign country?






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The benefits of direct foreign investment by multinational corporations include all of the following except






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Which of the following is a benefit to the home country of international diversification by multinational companies?






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The most likely benefit of a multinational company to its home country is






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The most likely benefit of a multinational company to its host country is






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The most likely adverse effect on a multinationals home country is






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Which of the following is not a method of financing international trade?






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For an American investor who wants to avoid legal restrictions on investing in equity securities of foreign companies, the most frequent means of maki...






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A letter of credit is a(n)






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A seller is paid in a bill of lading and letter of credit transaction when the bill of lading is given to the






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Which method of payment in an international trade transaction requires payment whenever an instrument is presented?






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Commercial drafts are common in international business transactions. Such a draft






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From the sellers perspective, what is the most risky form of payment used in international trade?






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From the sellers perspective, the least risky form of payment in international trade is






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An exporter delivers goods to a retailer for sale to the public. If the exporter is paid only after sale to third parties, the arrangement is a(n)






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The method of financing international trade that necessarily involves sale of medium- to long-term receivables is






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A bankers acceptance is






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Which of the following is a form of barter?






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Cross-border factoring involves






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XCo is an American company that wants to sell widgets to DCo, a Danish Corporation. XCo is unsure about DCos ability to pay. XCo should






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Which of the following is false concerning a bill of lading?






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Which of the following statements is true with respect to international transfer pricing by a U.S. firm?






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A firm ships its product to a foreign subsidiary and charges a price that may increase import duties but lower the income taxes paid by the subsidiary...