____T__ 1. Multinational financial management requires that financial analysts consider the effects of changing currency values.
Legal and economic differences among countries, although important, do NOT pose significant problems for most multinational corporations when they coordinate and control worldwide operations and subsidiaries.
Comment: Legal and economic differences among countries do affect the worldwide operations and subsidiaries.
When the value of the U.S. dollar appreciates against another country's currency, we may purchase more of the foreign currency with a dollar.
The United States and most other major industrialized nations currently operate under a system of floating …show more content…
|e. |Cultural differences need not be accounted for when considering firm goals and employee management. |
If the inflation rate in the United States is greater than the inflation rate in Britain, other things held constant, the British pound will
|a. |Appreciate against the U.S. dollar. |
|b. |Depreciate against the U.S. dollar. |
|c. |Remain unchanged against the U.S. dollar. |
|d. |Appreciate against other major currencies. |
|e. |Appreciate against the dollar and other major currencies. |
In Japan, 90-day securities have a 4% annualized return and 180-day securities have a 5% annualized return. In the United States, 90-day securities have a 4% annualized return and 180-day securities have an annualized return of 4.5%. All securities are of equal risk, and Japanese securities are denominated in terms of the Japanese yen.