Mastering Multinational Corporations and Global Finance
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Questions and Answers

What is the definition of a multinational or global corporation?

A corporation that operates in two or more countries.

What is multinational financial management?

It deals with financial decisions made by multiple countries or have subsidiaries abroad.

What is domestic financial management?

It is focused on financial decisions within a single country's borders.

What is the international monetary system?

<p>It is the framework within which exchange rates are determined.</p> Signup and view all the answers

What is a fixed exchange rate for a currency?

<p>It is set by the government and is allowed to fluctuate only slightly (if at all) around the desired rate, which is called the par value.</p> Signup and view all the answers

Multinational or Global Corporation - A corporation that operates in two or more ______.

<p>countries</p> Signup and view all the answers

Multinational financial management deals with financial decisions made by ______ countries or have subsidiaries abroad.

<p>multiple</p> Signup and view all the answers

The International Monetary System is the framework within which ______ rates are determined.

<p>exchange</p> Signup and view all the answers

Spot exchange rate is the quoted price for a unit of foreign currency to be delivered 'on the ______' or within a very short period of time.

<p>spot</p> Signup and view all the answers

A floating or flexible exchange rate is ______ regulated.

<p>not</p> Signup and view all the answers

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