International Finance Exam
FIN4860 Section 001
Exam 1; Spring 2014
Prof. Nagel
Print your last name in large letters: __________________________
Print your first name: ________________________
Print your MTSU email address ______________________
You have 85 minutes to complete this exam.
This test is open book and open notes but not open internet. You may use any calculator you wish.
Put your answers to essay questions in the space provided.
Put all answers to the multiple choice questions below.
Question #
A
B
C
D
E
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3
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11
12
Chapter 1
For all multiple choice questions, choose all correct answers; that is one or more answers may be correct.
1. C1 (ESSAY - Reference goals of intl firms) Assume that the CEO of Whole Foods Inc., John Mackey, is considering expansion of its food stores to Japan by doing a joint venture with Japan’s largest food store chain, Daiei. Focus on the goals of companies in the USA versus those in Japan. When dealing with Daiei, what will be a source of difficulty in reaching agreement with the CEO of Daiei? Give a possible example of this difficulty.
2. C1 (exchange rate risk) Australia is a wealthy resource rich country that exports ever larger quantities of iron ore, minerals, gems, and beef to other countries. However, over the past year Ford and General Motors closed their car manufacturing operations in Australia, and Toyota just announced they will close their operations. Overall, Australia will lose 50,000 plus auto related jobs. Why is Australia losing auto related jobs?
a. Australian workers produce extremely low quality cars that cannot compete
b. Australians prefer public transportation so few cars are sold in Australia
c. Foreign individuals wanting Australia’s resources have driven up demand for Australian currency so Australians can purchase imported cars for fewer
Exam 1; Spring 2014
Prof. Nagel
Print your last name in large letters: __________________________
Print your first name: ________________________
Print your MTSU email address ______________________
You have 85 minutes to complete this exam.
This test is open book and open notes but not open internet. You may use any calculator you wish.
Put your answers to essay questions in the space provided.
Put all answers to the multiple choice questions below.
Question #
A
B
C
D
E
2
3
4
5
6
7
11
12
Chapter 1
For all multiple choice questions, choose all correct answers; that is one or more answers may be correct.
1. C1 (ESSAY - Reference goals of intl firms) Assume that the CEO of Whole Foods Inc., John Mackey, is considering expansion of its food stores to Japan by doing a joint venture with Japan’s largest food store chain, Daiei. Focus on the goals of companies in the USA versus those in Japan. When dealing with Daiei, what will be a source of difficulty in reaching agreement with the CEO of Daiei? Give a possible example of this difficulty.
2. C1 (exchange rate risk) Australia is a wealthy resource rich country that exports ever larger quantities of iron ore, minerals, gems, and beef to other countries. However, over the past year Ford and General Motors closed their car manufacturing operations in Australia, and Toyota just announced they will close their operations. Overall, Australia will lose 50,000 plus auto related jobs. Why is Australia losing auto related jobs?
a. Australian workers produce extremely low quality cars that cannot compete
b. Australians prefer public transportation so few cars are sold in Australia
c. Foreign individuals wanting Australia’s resources have driven up demand for Australian currency so Australians can purchase imported cars for fewer