Test bank International Finance MCQ (word)Chap 20.doc

Fundamentals of Multinational Finance, 3e (Moffett) Chapter 20 International Trade Finance 20.1 Multiple Choice and True/False Questions 1) The exporter-importer relationship to a corporation of a foreign importer that has not previously conducted business with the firm would be an A) unaffiliated known. B) affiliated party. C) unaffiliated unknown. D) any of the above. Answer: C Topic: Unaffiliated Unknown Party Skill: Recognition 2) Which of the following relationships between importing and exporting parties would require the least detailed contract to conduct business? A) affiliated party B) unaffiliated unknown party C) known unaffiliated party D) domestic supplier Answer: B Topic: Unaffiliated Unknown Party Skill: Recognition 3) Polaris Corporation has made an agreement to ship goods to a foreign firm with whom they have not entered into a contract for three years. However, the firms have communicated regularly since the last sale three years ago. This is an example of an A) unaffiliated known party transaction. B) unaffiliated unknown party transaction. C) affiliated party transaction. D) none of the above. Answer: A Topic: Affiliated Party Transaction Skill: Conceptual 4) Today, international trade is dominated by transactions between unaffiliated parties (known or unknown). Answer: FALSE Topic: International Trade Skill: Recognition 5) Because most international transactions are between affiliated parties, international transaction contracts are less complex, but the management of the total value of the MNE is more complex. Answer: TRUE Topic: International Trade Skill: Recognition 6) A ________ is issued to the exporter by a common carrier transporting the merchandise. A) commercial invoice B) bankers acceptance C) packing list D) bill of lading Answer: D Topic: Bill of Lading Skill: Recognition 7) A signed