Global Banking and Electronic Banking

What is the primary goal of managers in multinational corporations (MNCs)?

• To minimize operational costs

• To expand into new markets

• To maximize shareholder wealth

• To maximize employee satisfaction

Which of the following is a common method used by firms to conduct international business?

• Franchising

• Crowdfunding

• Venture Capital

• Peer-to-Peer Lending

What is an agency problem in the context of MNCs?

• A conflict between managers and shareholders

• A legal issue with foreign governments

• A financial crisis affecting multiple countries

• A disagreement between different subsidiaries

Which act was enacted to improve corporate governance and transparency in financial reporting?

• Dodd-Frank Act

• Sarbanes-Oxley Act

• Glass-Steagall Act

• Foreign Corrupt Practices Act

What is the theory of comparative advantage primarily concerned with?

• Increasing market share

• Maximizing shareholder wealth

• Specialization and trade between countries

• Reducing operational costs

Which of the following is NOT a method of international business?

• Joint Ventures

• Franchising

• Crowdsourcing

• Licensing

What is a disadvantage of licensing as a method of international business?

• High initial investment

• Difficulty in ensuring quality control

• Limited market access

• Increased operational costs

What is the primary focus of the Sarbanes-Oxley Act?

• Encouraging international trade

• Promoting employee rights

• Enhancing corporate governance and accountability

• Reducing taxes for corporations

Which management style can reduce agency costs in an MNC?

• Autonomous management

• Centralized management

• Decentralized management

• Collaborative management

What is the primary risk associated with exchange rate fluctuations for MNCs?

• Reduced cash flows from foreign operations

• Higher employee turnover

• Increased operational costs

• Increased competition