Multinational Financial Management Requires That

question 11

Multiple Choice

Multinational financial management requires that

• A) The effects of changing currency values be included in financial analyses.
• B) Legal and economic differences need not be considered in financial decisions because these differences are insignificant.
• C) Political risk should be excluded from multinational corporate financial analyses.
• D) Traditional U.S. and European financial models incorporating the existence of a competitive marketplace not be recast when analyzing projects in other parts of the world.
• E) Cultural differences need not be accounted for when considering firm goals and employee management.

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Definitions:

Convenience Sampling

A nonprobability method of sampling whereby elements are selected for the sample on the basis of convenience.

Nonprobabilistic Sampling

A sampling method where the elements of the population do not have a known or equal chance of being selected.

Probabilistic

Pertaining to the use of or grounded in the theory of probability and the randomness of outcomes.

Stratified

A sampling method that involves dividing a population into smaller groups, known as strata, that share similar characteristics.