In January 2000 Ecuador officially replaced its national currency, the Ecuadorian sucre, with the U.S. dollar. This practice is known as________________.
A. bi-currencyism
B. dollarization
C. a Yankee bailout
D. sucrerization
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To MNEs, foreign project evaluation from the _________ viewpoint serves some useful purposes and/but should _______________ the ____________ viewpoint.
A. parent's; be subordinated to; local
B. local's; not dominate; parent's
C. local; not be subordinated to; parent's
D. none of the above
The ________ approach argues that exchange rates are determined by the supply and demand for a wide variety of financial assets.
A. balance of payments
B. monetary
C. law of one price
D. asset market
In January 2018, the Argentine Peso changed in value from 4.00 Peso per U.S. dollar to 4.20 Peso per U.S. dollar, thus, the Argentine Peso ________ against the U.S. dollar.
A. remained neutral
B. strengthened
C. weakened
D. all of the above
A MNEs marginal cost of capital is constant for considerable ranges in its capital budget, but this statement cannot be made for most domestic firms.