题目内容

Which of the following is NOT an example of a financial cash flow?

A. parent invested equity capital
B. intrafirm principal payments
C. interest on intrafirm lending
D. export or import of goods and services

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Toyota Corporation operates in many different countries and pays taxes at many different rates. However, they always pay the same rate as their local competitors. Toyota is operating in an environment of _________ tax policy.

A. foreign neutrality
B. territorial approach
C. domestic neutrality
D. none of the above

A ________ transaction in the foreign exchange market requires delivery of foreign exchange at some future date.

A. currency
B. forward
C. spot
D. swap

When a foreign project is analyzed from the parent's point of view, the additional risk that stems from it "foreign" location is typically measured by _________ or ________.

A. adjusting the timing; adjusting the cash flows
B. adjusting the discount rates; adjusting the cash flows
C. adjusting the discount rates; adjusting the timing
D. none of the above

Which of the following statements is NOT true regarding MNEs when compared to purely domestic firms?

A. MNEs have higher agency costs
B. MNEs tend to rely more on short and intermediate term debt.
C. MNEs have greater costs of asymmetric information.
D. MNEs have greater foreign exchange risk.

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