Fins3616 Answers Homework
Solutions
End-of-Chapter
Questions and Problems
to accompany
Multinational Finance by Kirt C. Butler
Fourth Edition (2008) John Wiley & Sons
PART I Overview and Background * Chapter 1 An Introduction to Multinational Finance * Answers to Conceptual Questions * 1.1 List the MNC’s key stakeholders. How does each have a stake in the MNC? * Stakeholders narrowly defined include shareholders, debtholders, and management. More broadly defined, stakeholders also would include employees, suppliers, customers, host governments, and residents of host countries. * 1.2 In what ways do cultural differences impact the conduct of international business? * Because they define the rules of the game, national business and popular cultures impact each of the functional disciplines of business from research and development right through to marketing, production, and distribution. * 1.3 What is country risk? Describe several types of country risk one might face when conducting business in another country. * Country risks refer to the political and financial risks of conducting business in a particular foreign country. Country risks include foreign exchange risk, political risk, and cultural risk. * 1.4 What is political risk? * Political risk is the risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. * 1.5 What
End-of-Chapter
Questions and Problems
to accompany
Multinational Finance by Kirt C. Butler
Fourth Edition (2008) John Wiley & Sons
PART I Overview and Background * Chapter 1 An Introduction to Multinational Finance * Answers to Conceptual Questions * 1.1 List the MNC’s key stakeholders. How does each have a stake in the MNC? * Stakeholders narrowly defined include shareholders, debtholders, and management. More broadly defined, stakeholders also would include employees, suppliers, customers, host governments, and residents of host countries. * 1.2 In what ways do cultural differences impact the conduct of international business? * Because they define the rules of the game, national business and popular cultures impact each of the functional disciplines of business from research and development right through to marketing, production, and distribution. * 1.3 What is country risk? Describe several types of country risk one might face when conducting business in another country. * Country risks refer to the political and financial risks of conducting business in a particular foreign country. Country risks include foreign exchange risk, political risk, and cultural risk. * 1.4 What is political risk? * Political risk is the risk that a sovereign host government will unexpectedly change the rules of the game under which businesses operate. * 1.5 What