Principles of
Managerial Finance
16 Edition
th
By Chad Zutter, Scott
Smart
(Test Bank All Chapters
100% Original Verified,
A+ Grade)
All Chapters Arranged Reverse: 19-1
,Principles of Managerial Finance, 16e (Zutter/Smart)
Chapter 19 International Managerial Finance
19.1 The multinational company and its environment
1) NAFTA was a treaty establishing free trade and open markets among Europe and the United
States.
Answer: FALSE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
2) The World Trade Organization is an international body established to police world trading
practices and to mediate disputes among member countries.
Answer: TRUE
Diff: 1
Topic: GATT and the WTO
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
3) The World Trade Organization (WTO) was established as part of the 1994 General Agreement
on Tariffs and Trade (GATT).
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
4) NAFTA was an international financial market that provides for borrowing and lending
currencies outside their country of origin.
Answer: FALSE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
1
Copyright © 2022 Pearson Education, Inc.
,5) Fluctuations in foreign exchange markets can affect foreign revenues and profits of a
multinational company, but they have no impact on its overall value.
Answer: FALSE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
6) The Euromarket is the international financial market that provides for borrowing and lending
currencies outside their country of origin.
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
7) The Euromarket provides multinational companies with an external opportunity to borrow or
lend funds with the additional feature of less government regulation.
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
8) The trade agreement that replaced NAFTA is called The United States Mexico Canada
Agreement.
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
9) A joint venture is a partnership under which the participants have contractually agreed to
contribute specified amounts of money and expertise in exchange for stated proportions of
ownership and profit.
Answer: TRUE
Diff: 1
Topic: Legal Forms of Business Organization
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
2
Copyright © 2022 Pearson Education, Inc.
, 10) The official melding of the national currencies of the European Union into one currency, the
euro, created the European monetary union in 2002.
Answer: TRUE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
11) Mercosur is a major South American trading bloc that includes countries that account for
more than half of the total of Latin America's GDP.
Answer: TRUE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
12) The Mercosur is a major European trading bloc that includes former Soviet bloc countries in
Eastern Europe.
Answer: FALSE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
13) Multinational companies are firms that have international assets but operations in domestic
markets only and draw part of their total revenue and profits from such markets.
Answer: FALSE
Diff: 1
Topic: The Multinational Company and Its Environment
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
14) After the election of President Donald Trump, the United States withdrew from a trade
agreement it had signed with several Pacific Rim countries in 2016 called the Trans-Pacific
Partnership.
Answer: TRUE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
3
Copyright © 2022 Pearson Education, Inc.
Managerial Finance
16 Edition
th
By Chad Zutter, Scott
Smart
(Test Bank All Chapters
100% Original Verified,
A+ Grade)
All Chapters Arranged Reverse: 19-1
,Principles of Managerial Finance, 16e (Zutter/Smart)
Chapter 19 International Managerial Finance
19.1 The multinational company and its environment
1) NAFTA was a treaty establishing free trade and open markets among Europe and the United
States.
Answer: FALSE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
2) The World Trade Organization is an international body established to police world trading
practices and to mediate disputes among member countries.
Answer: TRUE
Diff: 1
Topic: GATT and the WTO
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
3) The World Trade Organization (WTO) was established as part of the 1994 General Agreement
on Tariffs and Trade (GATT).
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
4) NAFTA was an international financial market that provides for borrowing and lending
currencies outside their country of origin.
Answer: FALSE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
1
Copyright © 2022 Pearson Education, Inc.
,5) Fluctuations in foreign exchange markets can affect foreign revenues and profits of a
multinational company, but they have no impact on its overall value.
Answer: FALSE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
6) The Euromarket is the international financial market that provides for borrowing and lending
currencies outside their country of origin.
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
7) The Euromarket provides multinational companies with an external opportunity to borrow or
lend funds with the additional feature of less government regulation.
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
8) The trade agreement that replaced NAFTA is called The United States Mexico Canada
Agreement.
Answer: TRUE
Diff: 1
Topic: Financial Markets
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
9) A joint venture is a partnership under which the participants have contractually agreed to
contribute specified amounts of money and expertise in exchange for stated proportions of
ownership and profit.
Answer: TRUE
Diff: 1
Topic: Legal Forms of Business Organization
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
2
Copyright © 2022 Pearson Education, Inc.
, 10) The official melding of the national currencies of the European Union into one currency, the
euro, created the European monetary union in 2002.
Answer: TRUE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
11) Mercosur is a major South American trading bloc that includes countries that account for
more than half of the total of Latin America's GDP.
Answer: TRUE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
12) The Mercosur is a major European trading bloc that includes former Soviet bloc countries in
Eastern Europe.
Answer: FALSE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
13) Multinational companies are firms that have international assets but operations in domestic
markets only and draw part of their total revenue and profits from such markets.
Answer: FALSE
Diff: 1
Topic: The Multinational Company and Its Environment
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
14) After the election of President Donald Trump, the United States withdrew from a trade
agreement it had signed with several Pacific Rim countries in 2016 called the Trans-Pacific
Partnership.
Answer: TRUE
Diff: 1
Topic: Key Trading Blocs
Learning Objective: LG 1
Learning Outcome: F-30
AACSB: Analytical Thinking
3
Copyright © 2022 Pearson Education, Inc.
