Instruction: Choose only one right answer for the multiple choices and give a short answer for the subjective questions 1) The sources of funds for a multinational corporation and its subsidiaries can...

Answer the 11 questions


Instruction: Choose only one right answer for the multiple choices and give a short answer for the subjective questions 1) The sources of funds for a multinational corporation and its subsidiaries can be subdivided into two categories, ________ and ________. A) internally generated, externally generated B) retained earnings, internally generated C) capital markets-generated, externally generated D) retained earnings, externally generated 2) Let us say you are a manager of a given Multinational Corporation and requested to solicit a fund of $300 Million for a new project. Explain the source of fund you will be looking for? Tell us the step-by-step action you will make in getting this fund from the sources you identified. 3) Many people confuse purchasing power of a money with inflation. What is the difference between the two concepts? Give example for both. 4) When one corporation owns shares in another, the practice is known as ________. A) cross-listing B) cross-market C) cross-holding D) Diversification 5) Only one of the following terms is comprising political risk and its economic and financial environment. A) Sovereign risk B) Nationalization C) Country risk D) Economic risk 6) What makes the political risk difference than sovereign risk? 7) When an exporter is dealing with a high credit risk customer, ________ as a form of payment is most often used. A) draft B) banker's acceptance C) open account D) cash in advance 8) How do you make a decision if you are offered a job offer in two countries such as Saudi Arabia or Canada? Explain your decision by giving example. 9) Explain the different methods by which an importer can make a payment to an exporter. List them in increasing order of risk to the importer and to the exporter. 10) What is the correct term for documentary credit that cannot be changed unless all parties involved first agree to the change? A) revocable B) irrevocable C) confirmed D) straight 11) What is the difference between sight draft and time draft credit payments? 1