Why are net transfers referred to as “unilateral” net transfers?
a. The transfers have no effect on the current account balance.
b. They are one-sided in that no monetary payment is expected in return.
c. The transfers go to only one foreign country each year.
d. They are one-sided in that money only flows out of the United States.
b. They are one-sided in that no monetary payment is expected in return.
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Describe the difference between social interest theory of regulation and the capture theory of regulation
What will be an ideal response?
The shorter the "pass-through" period, the ________ the desirable BOT effects of devaluation on quantities traded will appear
A) sooner B) longer C) bigger D) smaller
Which of the following represents a capital budgeting problem for multinational corporations but not for domestic corporations?
A) determining the cost of capital B) calculating after-tax cash flows C) selecting the appropriate risk-adjusted rates of return D) None of the above
Among the disadvantages of financing through stock is that
a. the issuance of bonds or commercial paper provides a predictable fixed cost for repayment in contrast to stocks, which represent a stake in the company's future profits b. the costs associated with issuing stocks and all ancillary activities can make issuing common stock more inexpensive than issuing preferred stocks or debt instruments c. all investors see issuing new stock as a negative sign that the company has to sell more of itself in order to survive d. all of these e. none of these