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Sitkin & Bowen: International Business 2e

Chapter 13: Self test questions

Instructions

Answer the following questions and then press 'Submit' to get your score.

Question 1

The FX exposures that MNEs incur because of their regular value chain activities are called 'transactional.'

Question 2

Economic risk is a short-term phenomenon.

Question 3

Decisions on hedging are largely a reflection of people's attitudes towards the volatility of earnings.

Question 4

A common unit of measure in international finance is 'basis points' - this expresses one tenth of one per cent.

Question 5

MNEs can - and do - reduce their transactions with the outside world by internalizing a process of clearing. This is often carried out through a 'netting department.'