Which of the Following Is True in Regards to Outside

question 18

Short Answer

Which of the following is true in regards to outside directors?
a. The trend around the world is to introduce less outside directors.
b. In the United States, less than a half century ago, most boards were made up entirely or largely of outside directors.
c. Many US firms are now favoring a board that is entirely made of people who are insiders due the need for people who can understand the increasing complexity of MNEs.
d. Japanese boards have not waited until they are in financial difficulty to bring in outside directors from banks.
e. Academic research has failed to empirically establish a link between the outsider/insider ratio and firm performance.

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Definitions:

Big Mac Index

An informal measure of currency exchange rates using the price of a McDonald's Big Mac as a benchmark to compare the purchasing power parity between two currencies.

The Economist

A renowned international weekly newspaper that focuses on current affairs, international business, politics, technology, and culture.

Exchange Rates

The price of foreign currency; for example, how many dollars we must give up in exchange for marks, yen, and pounds.

Balance Of Payments

A record of all economic transactions between residents of a country and the rest of the world in a given period.