In theory, the purely domestic firm should support _________ debt ratios than a MNE because their cash flows are _______________.
A. higher; more stable due to a lack of international diversification
B. higher; less stable due to a lack of international diversification
C. lower; more stable due to a lack of international diversification
D. lower; less stable due to a lack of international diversification
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Of the following, which would NOT be a significant decision-making factor in a multinational firm's repositioning decision-making?
A. the stability of the local currency
B. the ability to move capital in and out of the subsidiary's country
C. the subsidiary's tax environment (high or low)
D. All of the above are significant factors
Negotiable certificates issued by a U.S. bank in the United States to represent the underlying shares of stock, which are held in a trust at a custodian bank in a foreign country, are called ______.
A. SDRs
B. FDRs
C. IOUs
D. ADRs
Other things equal, a firm would rather have ________ in a depreciating currency, and ________ in an appreciating currency.
A. accounts receivable; accounts receivable
B. accounts receivable; accounts payable
C. accounts payable; accounts receivable
D. none of the abov
If your company were to import and export textiles, the transactions would be recorded in the current account subcategory of____________.
A. services trade
B. income trade
C. goods trade
D. current transfers