Test Bank All Chapters

Principles of Managerial Finance 16 th Edition By Chad Zutter, Scott Smart (Test Bank All Chapters 100% Original Verified, A+ Grade)

All Chapters Arranged Reverse: 19-1 1 / 4

Principles of Managerial Finance, 16e (Zutter/Smart) Chapter 19 International Managerial Finance 19.1 The multinational company and its environment 1) NAFTA was a treaty establishing free trade and open markets among Europe and the United States.

Answer: FALSE

Diff: 1

Topic: Key Trading Blocs

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

2) The World Trade Organization is an international body established to police world trading practices and to mediate disputes among member countries.

Answer: TRUE

Diff: 1

Topic: GATT and the WTO

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

3) The World Trade Organization (WTO) was established as part of the 1994 General Agreement on Tariffs and Trade (GATT).

Answer: TRUE

Diff: 1

Topic: Financial Markets

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

4) NAFTA was an international financial market that provides for borrowing and lending currencies outside their country of origin.

Answer: FALSE

Diff: 1

Topic: Financial Markets

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

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5) Fluctuations in foreign exchange markets can affect foreign revenues and profits of a multinational company, but they have no impact on its overall value.

Answer: FALSE

Diff: 1

Topic: Key Trading Blocs

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

6) The Euromarket is the international financial market that provides for borrowing and lending currencies outside their country of origin.

Answer: TRUE

Diff: 1

Topic: Financial Markets

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

7) The Euromarket provides multinational companies with an external opportunity to borrow or lend funds with the additional feature of less government regulation.

Answer: TRUE

Diff: 1

Topic: Financial Markets

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

8) The trade agreement that replaced NAFTA is called The United States Mexico Canada Agreement.

Answer: TRUE

Diff: 1

Topic: Financial Markets

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

9) A joint venture is a partnership under which the participants have contractually agreed to contribute specified amounts of money and expertise in exchange for stated proportions of ownership and profit.

Answer: TRUE

Diff: 1

Topic: Legal Forms of Business Organization

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

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10) The official melding of the national currencies of the European Union into one currency, the euro, created the European monetary union in 2002.

Answer: TRUE

Diff: 1

Topic: Key Trading Blocs

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

11) Mercosur is a major South American trading bloc that includes countries that account for more than half of the total of Latin America's GDP.

Answer: TRUE

Diff: 1

Topic: Key Trading Blocs

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

12) The Mercosur is a major European trading bloc that includes former Soviet bloc countries in Eastern Europe.

Answer: FALSE

Diff: 1

Topic: Key Trading Blocs

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

13) Multinational companies are firms that have international assets but operations in domestic markets only and draw part of their total revenue and profits from such markets.

Answer: FALSE

Diff: 1

Topic: The Multinational Company and Its Environment

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

14) After the election of President Donald Trump, the United States withdrew from a trade agreement it had signed with several Pacific Rim countries in 2016 called the Trans-Pacific Partnership.

Answer: TRUE

Diff: 1

Topic: Key Trading Blocs

Learning Objective: LG 1

Learning Outcome: F-30

AACSB: Analytical Thinking

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