國際金融英文版練習題-Chapter-1

1、International FinanceAssignment Problems (1)Name:Student No.:Choose the correct answer for the following questions (only ONE correct answer)Which of the following is NOT true regarding the subject matter of international finance?International finance studies the important trade theories.Internationa

2、l finance examinesthetheoryofbalance ofpaymentsand its relationship with macroeconomic variables.International finance studies exchange rate theories and the impacts of the exchange rate on the economy.Internationalfinancediscussestheexchangeraterisksandthederivative instruments by which people use

3、to cover the exchange rate risks and to speculate.Globalization refers to .the strengthening of existing international linkages of commerce, finance and the addition of new international linkagesthe expansion of world governance and global societythe increased mobility of peoples and informationAll

4、of the aboveMutually beneficial trade requires each country to be the least-cost producer of at least one good that it can export to its trading partner. This is called .the theory of comparative advantagethe international finance theorythe theory of absolute advantagethe theory of balance of paymen

5、tsWhichofthefollowingwouldNOTbeawaytoimplementcomparative advantage?IBM exports computers to Gambia.Computer hardware is designed in the United States but manufactured and assembled in Malaysia.Water of the greatest purity is obtained from the wells in Oregon, bottled, and exported worldwide.All of

6、the above are examples of ways to implement comparative advantage.Which of the following would NOT be considered a feature of comparative advantage?Exporters in country A sell goods to importers in country B.Firms in country A specialize in making products that can be produced relativeefficiently, g

7、iven country As endowment of factors of production. Firms in country B do likewise thus maximizing the combined output of countries A and B.Trade exists between countries A and B because of specialized factors of production that cannot be moved among countries.All of the above are features of compar

8、ative advantage.The real sector in an economy deals with .transactions in all goods and servicestransactions in all financial assetstransactions in goods, services and financial assetstransactions in new technological products onlyOfthefollowing,whichwouldNOT beconsideredawaythatgovernment interfere

9、s with comparative advantage?tariffsquotasmanagerial skillsother non-tariff restrictionsA firm with operations in more than one country is called a (an) .big firmmultinational corporationinternational firmall of the aboveThe primary goal of an MNC comes down to .seek marketsimprove its production ef

10、ficiencygain access to technology or managerial expertisemaximize shareholder wealthWorld trade of goods and services has expanded in a remarkable pace because of the .reduction in trade barrierslower transportation costsadvances in telecommunications, information technology and financial servicesAl

11、l of the above are the reasons of rapid growth in international trade.Nowadays the world trade in goods and services is important .only to developed countriesonly to less developed countriesto both developed and less developed countriesto neither developed nor less developed countiesWhichofthefollow

12、ing isNOT a characteristicofthenowadaysfinancial markets?Increasingly interdependent national financial marketsthe global trend toward free-market economiesAnincreasinglynumberofcross-borderpartnerships,includingmany international merges, acquisitions, and joint venturesAn increasing number of coope

13、rative linkages among securities exchange indicates that mutually beneficial trade can occur even when one nation is absolutely more efficient in the production of all goods.The theory of comparative advantageThe theory of absolute advantageThe theory of balance of paymentsThe theory of exchange rat

14、e determinationA well-established multinational company needs to maximize its firm value.an open market placehigh quality strategic managementaccess to capitalall of the aboveQuestions 15 through 20 are based on the information presented in table 1.1:Table 1.1Production capabilityContainers of snowb

15、oardsContainers of digital camerasAustria has 1,000 units15 containers/unit8 containers/unit of production factorsRussia has 1,000 units12 containers/unit3 containers/unit of production factorsOne production factor in Austria has a (an) over one production factor in Russia in .absolute disadvantage;

16、 digital camerasabsolute disadvantage; snowboardsabsolute advantage; both digital cameras and snowboardsnone of the aboveAustria has a large comparative advantage over Russia in the production of at a ratio of .snowboards; 5:4digital cameras; 8:3snowboards; 8:3digital cameras; 5:4Assume no trade bet

17、ween Austria and Russia. If each country puts 50% of their factorsintoeachproduct,thetotalnumberofsnowboardsanddigitalcameras produced by the two countries combined are and .13,500 snowboards; 5,500 cameras12,000 snowboards; 8,000 cameras5,500 snowboards; 13,500 cameras3,000 cameras; 15,000 snowboar

18、dsIf trade takes place at Russias domestic price, snowboards will be required to obtain 1 digital camera.A. 4B. 2.5C. 1.25D. 0.25If each country specializes in production with Austria producing only digital cameras and Russia producing only snowboards, at a trading rate of 3 snowboards per digital camera, how many cameras and snowboards will be available to be consumed in Austria if they trade 3,000 cameras to Russia?9,000 snowboards and 5,000 cameras3,000 snowboards and 3,000 cameras3,000 snowboards and 9,000 camerasThe