International Financial Management
14th Edition
ISBN: 9780357130698
Author: Madura
Publisher: Cengage
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- . _______ Foreign licensing is similar toa. starting from scratch.b. franchising.c. wholesaling.d. establishing a subsidiary in another country.e. establishing a sales office in a foreigncountry.arrow_forward22.Examples of external reporting issues include the following except:Select one:a. Should accounts of foreign operations be translated to parent currency when consolidated statements are prepared?b. Which exchange rates should be employed when translating from one currency to another?c. Does translation from one set of measurement rules to another change the information content of the original message?d. Should foreign managers be evaluated in terms of parent currency or the local currency of the country in which the manager operates?arrow_forwardMost trade activity is intra-regional (African nations trading with each other), rather than interregional (between African nations and other regions), because the continent lacks functioning ports. True Falsearrow_forward
- Match each term in Column A with its related definition in Column B. Column A 1. ____________ Maquiladora 2. ____________ Import 3. ____________ Joint venture 4. ____________ Export 5. ____________ MNC Column B a. A company that does business in more than one country in such volume that its well-being and growth rest in more than one country. b. A company purchases materials or parts from another company that is located in a foreign country. c. A company sells its product to purchasers located in foreign countries. d. A type of partnership in which investors from one country co-own the enterprise with investors from another country. e. A manufacturing plant located in Mexico that processes imported materials and reexports them to the United States.arrow_forwardIn accordance with U.S. generally accepted accounting principles, which translation combination is appropriate for a foreign operation whose functional currency is the U.S. dollar? Choose the correct option. Method Treatmemt of transition adjustment a. Current rate other comprehensive income b. Current rate Gain or loss in net income c. Temporal other comprehensive income d. Temporal Gain or loss in net incomearrow_forwardNonearrow_forward
- Good corporate citizenship ________. A. Is expensive to implement and does not guarantee returns B. must have managements sincere convictions behind it in order to succeed C. Is more relevant in countries with less regulation. D. makes good business sensearrow_forwardanswer these questionarrow_forwardCountry risk is: Group of answer choices A. The risk that a counterparty or obligor will not be able to pay its obligations because of cross-border restrictions. B. An assessment of the political and economic risk of a country. C. Both A & B D. Neither A or Barrow_forward
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