Chap001
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Chap001

Course Number: CBA 6163, Spring 2010

College/University: CSU Long Beach

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Chapter 01 Globalization and the Multinational Firm Chapter 01 Globalization and the Multinational Firm Multiple Choice Questions 1. What major dimension sets apart international finance from domestic finance? A. foreign exchange and political risks B. Market imperfections C. Expanded opportunity set D. all of the above 2. An example of a political risk is A. Expropriation of assets B. Adverse change in tax...

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01 Chapter Globalization and the Multinational Firm Chapter 01 Globalization and the Multinational Firm Multiple Choice Questions 1. What major dimension sets apart international finance from domestic finance? A. foreign exchange and political risks B. Market imperfections C. Expanded opportunity set D. all of the above 2. An example of a political risk is A. Expropriation of assets B. Adverse change in tax rules C. The opposition party being elected D. Both answers a) and b) are correct 3. Production of goods and services has become globalized to a large extent as a result of A. Natural resources being depleted in one country after another B. Skilled labor being highly mobile C. Multinational corporations' efforts to source inputs and locate production anywhere where costs are lower and profits higher D. Common tastes worldwide for the same goods and services 4. Recently, financial markets have become highly integrated. This development A. Allows investors to diversify their portfolios internationally B. Allows minority investors to buy and sell stocks C. Has increased the cost of capital for firms D. Answers a) and c) are both correct. 5. Japan has experienced large trade surpluses. Japanese investors have responded to this by A. Liquidating their positions in stocks to buy dollar denominated bonds B. Investing heavily in U.S. and other foreign financial markets C. Lobbying the U.S. government to depreciate its currency D. Lobbying the Japanese government to allow the yen to appreciate 1-1 Chapter 01 Globalization and the Multinational Firm 6. Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1.25 = 1.00. One year later the exchange rate is the same, but the Italian government has expropriated your firm's assets paying only 80,000 in compensation. This is an example of A. Exchange rate risk B. Political risk C. Market imperfections D. None of the above, since $100,000 = 80,000 $1.25/1.00 7. Suppose you start with $100 and buy stock for 50 when the exchange rate is 1 = $2. One year later, the stock rises to 60. You are happy with your 20 percent return on the stock, but when you sell the stock and exchange your 60 for dollars, you only get $45 since the pound has fallen to 1 = $0.75. This loss of value is an example of: A. Exchange Rate Risk. B. Political Risk. C. Market imperfections. D. Weakness in the dollar. 8. Suppose that Great Britain is a major export market for your firm, a U.S. based MNC. If the British pound depreciates against the U.S. dollar, A. Your firm will be able to charge more in dollar terms while keeping pound prices stable. B. Your firm may be priced out of the U.K. market, to the extent that your dollar costs stay constant and your pound prices will rise. C. To protect U.K. market share, your firm may have to cut the dollar price of your goods to keep the pound price the same. D. b) and c) are both correct. 9. Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso appreciates drastically against the U.S. dollar. This means A. Your company's products can be priced out of the Mexican market, as the peso price of American imports will rise following the peso's fall. B. Your firm will be able to charge more in dollar terms while keeping peso prices stable. C. Your domestic competitors will enjoy a period of facing lessened price competition from Mexican imports. D. b) and c) are both correct 1-2 Chapter 01 Globalization and the Multinational Firm 10. Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso depreciates drastically against the U.S. dollar, as it did in December 1994. This means A. Your company's products can be priced out of the Mexican market, as the peso price of American imports will rise following the peso's fall. B. Your firm will be able to charge more in dollar terms while keeping peso prices stable. C. Your domestic competitors will enjoy a period of facing little price competition from Mexican imports. D. b) and c) are both correct 11. Suppose that you are a U.S. producer of a commodity good competing with foreign producers. Your inputs of production are priced in dollars and you sell your output in dollars. If the U.S. currency depreciates against the currencies of our trading partners, A. Your competitive position is likely improved. B. Your competitive position is likely worsened. C. Your competitive position is unchanged. 12. Undoubtedly, we are now living in a world where all the major economic functions consumption, production, and investment A. are still inherently local B. are still regional in nature C. are slowly becoming globalized D. are highly globalized 13. Most governments at least try to make it difficult for people to cross their borders illegally. This barrier to the free movement of labor is an example of A. Information asymmetry B. Excessive transactions costs C. Racial discrimination D. A market imperfection 1-3 Chapter 01 Globalization and the Multinational Firm 14. Although the world economy is much more integrated today than was the case 10 or 20 years ago, a variety of barriers still hamper free movements of people, goods, services, and capital across national boundaries. These barriers include A. legal restrictions B. excessive transportation costs C. information asymmetry D. All of the above 15. The Japanese automobile company Honda decided to establish production facilities in Ohio, mainly to A. circumvent trade barriers B. reduce transportation costs C. reduce transactions costs D. Both a) and b) 16. When individual investors become aware of overseas investment opportunities and are willing to diversify their portfolios internationally, A. they trade one market imperfection, information asymmetry, for another, exchange rate risk. B. they benefit from an expanded opportunity set. C. They should not bother to read or to understand the prospectus, since its probably written in a foreign language D. They should invest only in dollars or euros. 17. The Nestl Corporation, a well-known Swiss MNC, used to issue two different classes of common stock, bearer shares and registered shares, and foreigners were allowed to hold only A. registered shares B. bearer shares C. voting shares D. convertible shares 1-4 Chapter 01 Globalization and the Multinational Firm 18. Deregulated financial markets and heightened competition in financial services provided an environment for financial innovations that resulted in the introduction of various instruments. Examples of these innovative instruments include A. Currency futures and options, foreign stock index futures and options B. multicurrency bonds C. international mutual funds, country funds, exchange traded funds D. all of the above 19. Nestl, a well-known Swiss corporation, A. Has been a paragon of virtue in its opposition to all forms of political risk. B. At one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, the total market value of the firm fell. C. At one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, there was a major transfer of wealth from foreign shareholders to Swiss shareholders. D. None of the above 20. The goal of shareholder wealth maximization A. is not appropriate for non-U.S. business firms B. means that all business decisions and investments that a firm makes are done for the purpose of making the owners of the firm better off financially C. is a sub-objective the firm should attempt to achieve after the objective of customer satisfaction is met D. is in conflict with the privatization process taking place in third-world countries 21. As capital markets are becoming more integrated, the goal of shareholder wealth maximization A. Has been altered to include other goals as well. B. Has lost out to other goals, even in the U.S. C. Has been given increasing importance by managers in Europe. D. Has been shown to be a deterrent to raising funds abroad. 1-5 Chapter 01 Globalization and the Multinational Firm 22. Recent corporate scandals at firms such as Enron, WorldCom and the Italian firm Parmalat A. Show that managers might be tempted to pursue their own private interests at the expense of shareholders. B. Show that Italian shareholders are better at monitoring managerial behavior than U.S. shareholders. C. Show that white-collar criminals hardly ever get punished. D. Show that socialism is a better way to go than capitalism. 23. While the corporate governance problem is not confined to the United States, A. It can be a much more serious problem in many other parts of the world, where legal protection of shareholders is weak or nonexistent. B. It has reached its high point in the United States. C. The U.S. legal system, with lawsuits used only as a last resort, ensured that any conflicts of interest will soon be a thing of the past. D. None of the above 24. The owners of a business are the A. Taxpayers B. Workers C. Suppliers D. Shareholders 25. The massive privatization that is currently taking place in formerly socialist countries, will likely A. eventually enhance the standard of living to these countries' citizens B. depend on private investment C. increase the opportunity set facing these countries' citizens D. all of the above 26. A firm with concentrated ownership A. May give rise to conflicts of interest between dominant shareholders and small outside shareholders. B. May enjoy more accounting transparency than firms with diffuse ownership structures. C. Is a partnership, never a corporation. D. Tends to exist overseas but not in the U.S. 1-6 Chapter 01 Globalization and the Multinational Firm 27. The ultimate guardians of shareholder interest in a corporation, are the A. Rank and file workers B. Senior management C. Boards of directors D. All of the above 28. In countries like France and Germany, A. Managers have often made business decisions with regard maximizing market share to the exclusion of other goals. B. Managers have often viewed shareholders as one of the "stakeholders" of the firm, others being employees, customers, suppliers, banks and so forth. C. Managers have often regarded the prosperity and growth of their combines, or families of related firms, as their critical goal. D. Managers have traditionally embraced the maximization of shareholder wealth as the only worthy goal. 29. When corporate governance breaks down A. Shareholders are unlikely to receive fair returns on their investments B. Managers may be tempted to enrich themselves at shareholder expense C. The board of directors is not doing its job D. All of the above 30. Privatization refers to process of: A. Having government operate businesses for the betterment of the public sector B. Government allowing the operation of privately owned business C. Prohibiting government operated enterprises D. A country divesting itself of the ownership and operation of a business venture by turning it over to the free market system 31. Deregulation of world financial markets A. Provided a natural environment for financial innovations, like currency futures and options. B. Has promoted competition among market participants. C. Has encouraged developing countries such as Chile, Mexico, and Korea to liberalize by allowing foreigners to directly invest in their financial markets. D. All of the above 1-7 Chapter 01 Globalization and the Multinational Firm 32. The emergence of global financial markets is due in no small part to A. Advances in computer and telecommunications technology B. Enforcement of the Soviet system of state ownership of resources of production. C. Government regulation and protection of infant industries. D. None of the above. 33. The common monetary policy for the euro zone is now formulated by A. The Bundesbank in Germany B. The Federal Reserve Bank C. The World Bank D. The European Central Bank 34. Since the end of World War I, the dominant global currency has been the A. British pound B. Japanese yen C. Euro D. U.S. dollar 35. Since the end of World War I, the U.S. dollar has played the role of the dominant global currency, displacing the A. German mark B. French Franc C. Japanese Yen D. British pound. 36. The ascendance of the dollar the dominant global currency reflects several key factors such as A. The size of the U.S. population. B. The mature and open capital markets of the U.S. economy. C. Exchange rate stability. D. All of the above. 1-8 Chapter 01 Globalization and the Multinational Firm 37. The euro A. is the common currency of Europe B. is divisible into 100 cents, just like the U.S. dollar C. may eventually have a transaction domain larger than the U.S. dollar D. All of the above. 38. Since its inception the euro has brought about revolutionary changes in European finance. For example A. By redenominating corporate bonds and stocks from 12 different currencies into one common currency, the euro has precipitated the emergence of continent wide capital markets in Europe that are comparable to U.S. markets in depth and liquidity. B. Swiss bank accounts are all denominated in euro. C. The European banking sector has become much more important as a source of financing for European firms. D. There have actually not been any revolutionary changes. 39. In David Ricardo's theory of comparative advantage, A. International trade is a zero-sum game in which one trading partner's gain comes at the expense of another's loss. B. Liberalization of international trade will enhance the welfare of the world's citizens. C. Is a short-run argument, not a long-run argument. D. Has been superseded by the now-orthodox view of mercantilism. 40. Under the theory of comparative advantage, liberalization of international trade will A. enhance the welfare of the world's citizens B. create unemployment and displacement of workers permanently C. result in higher prices in the long run as monopolist are able to charge higher prices after eliminating their competitors D. all of the above 1-9 Chapter 01 Globalization and the Multinational Firm 41. Privatization is often seen as a cure for bureaucratic inefficiency and waste; some economists estimate that privatization improves efficiency and reduces operating costs by as much as A. 5 percent B. 10 percent C. 15 percent D. 20 percent. 42. The World Trade Organization, WTO, A. Has the power to enforce the rules of international trade. B. Covers agriculture and physical goods, but not services or intellectual property rights. C. Recently expelled China for human rights violations. D. Ruled that NAFTA is to be the model for world trade integration. 43. Privatization A. Has spurred a tremendous increase in cross-border investment. B. Has allowed many governments to have the funds to nationalize important industries. C. Has guaranteed that new ownership will be limited to the local citizens. D. Has generally decreased the efficiency of the enterprise. 44. The theory of comparative advantage: A. Claims that economic well-being is enhanced if each country's citizens produce only a single product B. Claims that economic well-being is enhanced when all countries compare commodity prices after adjusting for exchange rate differences in order to standardize the prices charged all countries C. Claims that economic well-being is enhanced if each country's citizens produce that which they have a comparative advantage in producing relative to the citizens of other countries, and then trade production D. Claims that no country has an absolute advantage over another country in the production of any good or service. 1-10 Chapter 01 Globalization and the Multinational Firm 45. A multinational firm can be defined as A. A firm that invests short-term cash inflows in more than one currency B. A firm that has sales affiliates in several countries C. A firm that is incorporated in more than one country D. A firm that incorporated in one country that has production and sales operations in several other countries. 46. A MNC may gain from its global presence by A. Spreading R&D expenditures and advertising costs over their global sales B. Pooling global purchasing power over suppliers C. Utilizing their technological and managerial know-how globally with minimum additional costs D. All of the above are potential gains. 47. MNCs can use their global presence to A. Take advantage of underpriced labor services available in certain developing countries B. Gain access to special R&D capabilities residing in advanced foreign counties. C. Boost profit margins and create shareholder value. D. All of the above. 48. Foreign-owned manufacturing companies in the world's most highly developed countries: A. Generally are more productive and pay their workers more than do comparable locally-owned businesses. B. Generally are less productive and therefore pay their workers less than do comparable locallyowned businesses. C. Tend to specialize in different articles of manufacture than they produce in their home countries. D. Usually do not build their own production facilities but simply buy existing domestic manufacturing firms. 1-11 Chapter 01 Globalization and the Multinational Firm 49. A purely domestic firm sources its products, sells its products, and raises its funds domestically A. Can face stiff competition from a multinational corporation that can source its products in one country, sell them in several countries, and raise its funds in a third country. B. Can be more competitive than a MNC on its home turf due to superior knowledge of the local market C. Can still face exchange rate risk, just like a MNC D. All of the above are true. 50. MNC stands for A. Multinational Corporation B. Multi Nationalized Corporation C. Military National Cooperation 51. Which is growing at a faster rate, foreign direct investment by MNCs or international trade? A. FDI by MNCs B. International trade C. Since they are linked, they grow at the same rate D. None of the above 52. A true MNC, with operations in dozens of different countries A. Must effectively manage foreign exchange risk B. Can ignore foreign exchange risk since it is diversified C. Will pay taxes in only its home county D. None of the above. 53. A MNC can A. Be a factor that increases the opportunities of the citizens of less developed countries B. Be a factor that increases the opportunity set of domestic investors C. Increase economic efficiency D. All of the above. 1-12 Chapter 01 Globalization and the Multinational Firm 54. Today for a MNC to produce merchandise in one country on capital equipment financed by funds raised in a number of different currencies through issuing securities to investors in many countries and then selling the finished product to customers in yet other countries. A. is not uncommon B. is extremely common C. is uncommon D. is the norm 55. A corporation that can source its products in one country, sell them in another country, and raise the funds in a third country A. Is a multinational corporation. B. Is a domestic firm if all of the shareholders are from the same country C. Enjoys a built-in hedge against exchange rate risk D. Enjoys a built-in hedge against political risk 56. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of producing one additional unit of food instead of textiles. A. 1 yard of textiles per 1.67 pounds of food B. 1 pound of food per 1.67 yards of textiles C. 1 yard of textiles per .6 pounds of food D. 1 pound of food per .6 yards of textiles 57. The gains from trade A. Are likely realized in the long run when workers and firms have had the time to adjust to the new competitive environment B. Are immediately realized in the short run, when governments drop protectionist policies. C. Are smaller than the costs of adjustment D. None of the above. 58. Restrictions or impediments to free trade include such things as A. import quotas B. import tariffs C. costly transportation D. all of the above 1-13 Chapter 01 Globalization and the Multinational Firm 59. Suppose that country A is twice as good at producing widgets as country B. If the currency of B is twice as valuable as the currency of A, then A. This will cancel out the comparative advantage B. Trade will still be an improved outcome for both A and B C. While there is not enough information to make a definitive determination, the currency mismatch could conceivably cancel out the comparative advantage, depending upon how much it costs to produce the widget in country B. D. None of the above 60. Comparative advantage A. Is also known as relative efficiency B. Can lead to trade even in the face of absolute efficiency C. Exists when one party can produce a good or service at a lower opportunity cost than another party D. All of the above 61. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles or 5 pounds of food per unit of input. A. Country A is relatively more efficient than Country B in the production of food B. Country B is relatively more efficient than Country A in the production of textiles C. Country A has an absolute advantage over Country B in the production of food and textiles D. Country B has an absolute advantage over Country A in the production of food and textiles 62. Underlying the theory of comparative advantage are assumptions regarding A. Free trade between nations B. That the factors of production (land, labor, capital, and entrepreneurial ability) are relatively immobile. C. That the factors of production (land, labor, capital, and entrepreneurial ability) are relatively mobile D. a) and b) 1-14 Chapter 01 Globalization and the Multinational Firm 63. If one country is twice the size of another country and is better at making almost everything than the benighted citizens of the smaller county, A. The bigger county enjoys an absolute advantage B. The bigger county enjoys an relative advantage C. The bigger county enjoys an comparative advantage D. There is not enough information to make a determination 64. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles or 5 pounds of food per unit of input. A. Country A is relatively more efficient than Country B in the production of food B. Country B is relatively more efficient than Country A in the production of textiles C. Country A has an absolute advantage over Country B in the production of food and textiles D. Answers b and c are both correct 65. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles or 5 pounds of food per unit of input. A. Country A is relatively more efficient than Country B in the production of textiles B. Country B is relatively more efficient than Country A in the production of food C. Country A has an absolute advantage over Country B in the production of food and textiles D. All of the above 1-15 Chapter 01 Globalization and the Multinational Firm 66. Consider the no-trade input/output situation presented in the following table and graph for countries A and B. Assuming that free trade is legal; develop a scenario that will benefit the citizens of both countries. A. Country B should make all the textiles and trade with Country A for food B. Country A should make nothing but textiles and trade with Country B for food. C. Country B should make all the textiles and Country A should make all the food D. Country B should make nothing but textiles and trade with Country A for food. 1-16 Chapter 01 Globalization and the Multinational Firm 67. Countries A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two units of food. Their production possibilities curves are shown. Under the theory of comparative advantage A. The citizens of country A should make food and trade with the citizens of country B for textiles B. The citizens of country A should make textiles and trade with the citizens of country B for food C. There are no gains from trade in this example D. A is twice as good as B at making food and B is twice as good as A at making textiles 1-17 Chapter 01 Globalization and the Multinational Firm 68. Counties A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two units of food. Their production possibilities curves are shown. Under the theory of comparative advantage, if free trade is allowed, the market clearing price (or exchange rate if you will) between food and textiles will be A. One unit of food for one unit of textiles B. Somewhere between One unit of food for two units of textiles and two units of food for one unit of textiles C. One unit of food for two units of textiles D. Two units of food for one unit of textiles 1-18 Chapter 01 Globalization and the Multinational Firm 69. Countries A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two units of food. Their production possibilities curves are shown. Suppose that trade is allowed and that the international exchange rate between food and textiles is one-for-one. The increased consumption following trade will be: A. An increase of 400 units of food and 400 units of textiles B. An increase of 1,200 units of food and 1,200 units of textiles C. An increase of 800 units of food and 800 units of textiles D. There are no gains from trade in this example 70. In modern times, it is not a country per se but rather a controller of capital and know-how that gives the country in which it is domiciled a comparative advantage over another country. These controllers of capital and technology are A. The state B. The multinational corporations (MNCs) C. Portfolio managers of international mutual funds D. None of the above 1-19 Chapter 01 Globalization and the Multinational Firm 71. International trade is A. a "zero-sum" game in which one country benefits at the expense of another country B. an "increasing-sum" game at which all players become winners C. none of the above 72. The doctrine of comparative advantage was first put forth by A. Adam Smith B. Adam Sandler C. David Ricardo D. Ricky Ricardo E. None of the above 73. The comparative advantage argument in free trade A. Ignores the cost of readjustment B. Is a short-run argument C. Only works for two goods at a time D. None of the above 74. If you can make a good at a low opportunity cost A. You would be well served to produce that good and trade for other goods B. You should make something else that has a higher value C. You should make something else that has a higher opportunity cost D. None of the above 75. A country like North Korea A. Probably rejects the notion of increased opportunity presented by free trade B. Engages in free trade C. Lies on a production possibilities curve superior to South Korea, since North Korea protects its domestic producers D. None of the above 1-20 Chapter 01 Globalization and the Multinational Firm The table below shows the bushels of wheat and the bottles of beer that North and South Dakota can produce per day of labor under two different hypothetical situations (Cases I and II). 76. Which state has an absolute advantage in producing wheat in Case I? A. South Dakota B. North Dakota C. Neither state 77. Which state has an absolute advantage in producing beer in Case I? A. South Dakota B. North Dakota C. Neither state 78. Which state has an absolute advantage in producing beer in Case II? A. South Dakota B. North Dakota C. Neither state 79. Which state has a comparative advantage in producing wine in Case II? A. South Dakota B. North Dakota C. Neither state 80. Which state has a comparative advantage in wheat production in Case I? A. South Dakota B. North Dakota C. Neither state 1-21 Chapter 01 Globalization and the Multinational Firm 81. Which state has a comparative advantage in wheat production in Case II? A. South Dakota B. North Dakota C. Neither state 82. What is the relative price of wheat in North Dakota prior to trade in Case II? A. 2 bushels of wheat = bottle of beer B. bushel of wheat = 2 bottles of beer C. 1 bushel of wheat = bottle of beer D. 1 bushel of wheat = 2 bottles of beer 83. For case II, in what range must the "international" price of wheat fall? i.e. if North and South Dakota trade only with each other, what is the range of prices possible? A. Between 1 bushel of wheat = 4/3 bottles of beer and 1 bushel of wheat = 2 bottles of beer B. Between 1 bushel of wheat = 3/4 bottles of beer and 1 bushel of wheat = 2 bottles of beer C. Between 1 bushel of wheat = 3/4 bottles of beer and 1 bushel of wheat = bottles of beer D. None of the above 84. For case II, let the international price be 1 bottle = 1 bushel. Derive South Dakota's "trading possibilities curve." A. Choice a B. Choice b C. Choice c D. Choice d 1-22 Chapter 01 Globalization and the Multinational Firm 85. For case II, let the international price be 1 bottle = 1 bushel. Derive North Dakota's "trading possibilities curve." A. Choice a B. Choice b C. Choice c D. Choice d The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or other product. The last two columns give each country's consumption without trade. 86. What is the price of beer without trade in Southern Ireland? A. 2 bottles of whiskey = 3 kegs of beer B. 5 bottles of whiskey = 12 kegs of beer C. 1 bottle of whiskey = 1 kegs of beer 87. What is the price of beer without trade in Northern Ireland? A. 2 bottles of whiskey = 3 kegs of beer B. 5 bottles of whiskey = 12 kegs of beer C. 3 bottles of whiskey = 1 keg of beer 1-23 Chapter 01 Globalization and the Multinational Firm 88. In which product does Northern Ireland have a comparative advantage? A. Beer B. Whiskey C. Neither 89. Suppose that trade occurs. Each country completely specializes and 500 kegs of beer are traded for 500 bottles of whiskey. What is the international price of beer? A. 1 bottle of whiskey = 1 keg of beer B. 3 bottles of whiskey = 1 keg of beer C. 2/3 bottle of whiskey = 1 keg of beer D. 1 bottle of whiskey = 3 kegs of beer 90. If the international price of beer is one keg of beer = 1 bottle of whiskey, how much whiskey will Northern Ireland consume? Each country completely specializes and 500 kegs of beer are traded for 500 bottles of whiskey. A. 1,000 bottles B. 1,200 bottles C. 500 bottles D. 600 bottles 91. Is Northern Ireland better off when it trades with Southern Ireland? A. Yes B. No 92. What is the increased amount of goods available in Northern Ireland after trade? A. 400 more bottles of whiskey and 200 more kegs of beer B. 1,000 more bottles of whiskey and 500 more kegs of beer C. 200 more bottles of whiskey and 400 more kegs of beer 1-24 Chapter 01 Globalization and the Multinational Firm 93. Suppose that Northern Ireland and Southern Ireland each have 1,000 hours of labor per day. Southern workers are paid 1 per day and Northern workers are paid 1 per day. What is the exchange rate associated with an international price of one keg of beer = 1 bottle of whiskey? A. 1.25 = 1 B. 0.80 = 1 C. 1 = 1 D. None of the above 94. Now suppose that Southern workers receive a raise to 2 per day. Will trade be possible at the exchange rate you found in the last question? A. Yes B. No 95. Now suppose that Southern workers are paid 1 per day but the Northern workers receive a raise to 2 per day. Will trade be possible at the exchange rate you found in the question before the last question? A. Yes B. No 96. Consider a dentist and a 14-year old boy. The dentist can make $100 per hour drilling teeth and the 14-year old boy can make $2 per hour picking up used aluminum cans. The dentist is a manly man and can mow his half-acre lot in one hour. The 14-year old boy can mow the lawn in two hours. If the dentist hires the boy to mow his lawn at any price less than $100, but more than $4 A. Both he and the boy are better off B. The dentist would be exploiting the boy C. The boy would be exploiting the dentist D. All of the above 1-25 Chapter 01 Globalization and the Multinational Firm Consider the no-trade input/output situation presented in the following table and graph for South and North Carolina. Assume that free trade is legal. 97. Which state is better at making guns? A. South Carolina B. North Carolina C. neither 98. Suppose that the citizens of North and South Carolina are currently consuming as much butter as they care to. What is the maximum increase in the number of guns that could occur following trade? A. 83.33 guns B. 533.33 guns C. No increase 99. What is the relative price of a gun in terms of butter in South Carolina? A. 1 gun costs 3 butters B. 3 guns cost 1 butter C. 1 gun costs 2 butters D. 2 gun costs 1 butter 1-26 Chapter 01 Globalization and the Multinational Firm 100. What is the relative price of a gun in terms of butter in North Carolina? A. 1 gun costs 3 butters B. 3 guns cost 1 butter C. 1 gun costs 2 butters D. 2 gun costs 1 butter 1-27 Chapter 01 Globalization and the Multinational Firm Chapter 01 Globalization and the Multinational Firm Answer Key Multiple Choice Questions 1. What major dimension sets apart international finance from domestic finance? A. foreign exchange and political risks B. Market imperfections C. Expanded opportunity set D. all of the above 2. (p. 5) An example of a political risk is A. Expropriation of assets B. Adverse change in tax rules C. The opposition party being elected D. Both answers a) and b) are correct 3. (p. 4) Production of goods and services has become globalized to a large extent as a result of A. Natural resources being depleted in one country after another B. Skilled labor being highly mobile C. Multinational corporations' efforts to source inputs and locate production anywhere where costs are lower and profits higher D. Common tastes worldwide for the same goods and services 4. (p. 4) Recently, financial markets have become highly integrated. This development A. Allows investors to diversify their portfolios internationally B. Allows minority investors to buy and sell stocks C. Has increased the cost of capital for firms D. Answers a) and c) are both correct. 1-28 Chapter 01 Globalization and the Multinational Firm 5. (p. 4) Japan has experienced large trade surpluses. Japanese investors have responded to this by A. Liquidating their positions in stocks to buy dollar denominated bonds B. Investing heavily in U.S. and other foreign financial markets C. Lobbying the U.S. government to depreciate its currency D. Lobbying the Japanese government to allow the yen to appreciate 6. Suppose your firm invests $100,000 in a project in Italy. At the time the exchange rate is $1.25 = 1.00. One year later the exchange rate is the same, but the Italian government has expropriated your firm's assets paying only 80,000 in compensation. This is an example of A. Exchange rate risk B. Political risk C. Market imperfections D. None of the above, since $100,000 = 80,000 $1.25/1.00 political riskthe government is only giving you back your initial investment, if this was a good investment it should have been worth more than $100,000 a year later. For example if your cost of capital was 8% it should have been worth $108,000. 7. Suppose you start with $100 and buy stock for 50 when the exchange rate is 1 = $2. One year later, the stock rises to 60. You are happy with your 20 percent return on the stock, but when you sell the stock and exchange your 60 for dollars, you only get $45 since the pound has fallen to 1 = $0.75. This loss of value is an example of: A. Exchange Rate Risk. B. Political Risk. C. Market imperfections. D. Weakness in the dollar. Exchange Rate risk 1-29 Chapter 01 Globalization and the Multinational Firm 8. (p. 5) Suppose that Great Britain is a major export market for your firm, a U.S. based MNC. If the British pound depreciates against the U.S. dollar, A. Your firm will be able to charge more in dollar terms while keeping pound prices stable. B. Your firm may be priced out of the U.K. market, to the extent that your dollar costs stay constant and your pound prices will rise. C. To protect U.K. market share, your firm may have to cut the dollar price of your goods to keep the pound price the same. D. b) and c) are both correct. 1-30 Chapter 01 Globalization and the Multinational Firm 9. (p. 5) Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso appreciates drastically against the U.S. dollar. This means A. Your company's products can be priced out of the Mexican market, as the peso price American of imports will rise following the peso's fall. B. Your firm will be able to charge more in dollar terms while keeping peso prices stable. C. Your domestic competitors will enjoy a period of facing lessened price competition from Mexican imports. D. b) and c) are both correct 10. (p. 5) Suppose Mexico is a major export market for your U.S.-based company and the Mexican peso depreciates drastically against the U.S. dollar, as it did in December 1994. This means A. Your company's products can be priced out of the Mexican market, as the peso price of American imports will rise following the peso's fall. B. Your firm will be able to charge more in dollar terms while keeping peso prices stable. C. Your domestic competitors will enjoy a period of facing little price competition from Mexican imports. D. b) and c) are both correct 11. Suppose that you are a U.S. producer of a commodity good competing with foreign producers. Your inputs of production are priced in dollars and you sell your output in dollars. If the U.S. currency depreciates against the currencies of our trading partners, A. Your competitive position is likely improved. B. Your competitive position is likely worsened. C. Your competitive position is unchanged. Consider that your competitor's imported goods are now more expensive in dollar terms. 12. (p. 5) Undoubtedly, we are now living in a world where all the major economic functions consumption, production, and investment A. are still inherently local B. are still regional in nature C. are slowly becoming globalized D. are highly globalized 1-31 Chapter 01 Globalization and the Multinational Firm 13. (p. 6) Most governments at least try to make it difficult for people to cross their borders illegally. This barrier to the free movement of labor is an example of A. Information asymmetry B. Excessive transactions costs C. Racial discrimination D. A market imperfection 14. (p. 6) Although the world economy is much more integrated today than was the case 10 or 20 years ago, a variety of barriers still hamper free movements of people, goods, services, and capital across national boundaries. These barriers include A. legal restrictions B. excessive transportation costs C. information asymmetry D. All of the above 15. (p. 6) The Japanese automobile company Honda decided to establish production facilities in Ohio, mainly to A. circumvent trade barriers B. reduce transportation costs C. reduce transactions costs D. Both a) and b) a) see page 6. While b) is a tempting answer, if that had been the case then Honda would have moved to Ohio much sooner. Automobiles, while heavy, have a high value-to-weight ratio that makes shipping a relatively small percentage of the cost. 16. (p. 8) When individual investors become aware of overseas investment opportunities and are willing to diversify their portfolios internationally, A. they trade one market imperfection, information asymmetry, for another, exchange rate risk. B. they benefit from an expanded opportunity set. C. They should not bother to read or to understand the prospectus, since its probably written in a foreign language D. They should invest only in dollars or euros. 1-32 Chapter 01 Globalization and the Multinational Firm 17. (p. 6) The Nestl Corporation, a well-known Swiss MNC, used to issue two different classes of common stock, bearer shares and registered shares, and foreigners were allowed to hold only A. registered shares B. bearer shares C. voting shares D. convertible shares 18. (p. 10) Deregulated financial markets and heightened competition in financial services provided an environment for financial innovations that resulted in the introduction of various instruments. Examples of these innovative instruments include A. Currency futures and options, foreign stock index futures and options B. multicurrency bonds C. international mutual funds, country funds, exchange traded funds D. all of the above 19. (p. 6) Nestl, a well-known Swiss corporation, A. Has been a paragon of virtue in its opposition to all forms of political risk. B. At one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, the total market value of the firm fell. C. At one time placed restrictions on foreign ownership of its stock. When it relaxed these restrictions, there was a major transfer of wealth from foreign shareholders to Swiss shareholders. D. None of the above 20. (p. 8) The goal of shareholder wealth maximization A. is not appropriate for non-U.S. business firms B. means that all business decisions and investments that a firm makes are done for the purpose of making the owners of the firm better off financially C. is a sub-objective the firm should attempt to achieve after the objective of customer satisfaction is met D. is in conflict with the privatization process taking place in third-world countries 1-33 Chapter 01 Globalization and the Multinational Firm 21. (p. 8) As capital markets are becoming more integrated, the goal of shareholder wealth maximization A. Has been altered to include other goals as well. B. Has lost out to other goals, even in the U.S. C. Has been given increasing importance by managers in Europe. D. Has been shown to be a deterrent to raising funds abroad. 22. (p. 9) Recent corporate scandals at firms such as Enron, WorldCom and the Italian firm Parmalat A. Show that managers might be tempted to pursue their own private interests at the expense of shareholders. B. Show that Italian shareholders are better at monitoring managerial behavior than U.S. shareholders. C. Show that white-collar criminals hardly ever get punished. D. Show that socialism is a better way to go than capitalism. 23. (p. 9) While the corporate governance problem is not confined to the United States, A. It can be a much more serious problem in many other parts of the world, where legal protection of shareholders is weak or nonexistent. B. It has reached its high point in the United States. C. The U.S. legal system, with lawsuits used only as a last resort, ensured that any conflicts of interest will soon be a thing of the past. D. None of the above 24. The owners of a business are the A. Taxpayers B. Workers C. Suppliers D. Shareholders 1-34 Chapter 01 Globalization and the Multinational Firm 25. (p. 10) The massive privatization that is currently taking place in formerly socialist countries, will likely A. eventually enhance the standard of living to these countries' citizens B. depend on private investment C. increase the opportunity set facing these countries' citizens D. all of the above 26. (p. 9) A firm with concentrated ownership A. May give rise to conflicts of interest between dominant shareholders and small outside shareholders. B. May enjoy more accounting transparency than firms with diffuse ownership structures. C. Is a partnership, never a corporation. D. Tends to exist overseas but not in the U.S. 27. (p. 9) The ultimate guardians of shareholder interest in a corporation, are the A. Rank and file workers B. Senior management C. Boards of directors D. All of the above 28. (p. 9) In countries like France and Germany, A. Managers have often made business decisions with regard maximizing market share to the exclusion of other goals. B. Managers have often viewed shareholders as one of the "stakeholders" of the firm, others being employees, customers, suppliers, banks and so forth. C. Managers have often regarded the prosperity and growth of their combines, or families of related firms, as their critical goal. D. Managers have traditionally embraced the maximization of shareholder wealth as the only worthy goal. 29. When corporate governance breaks down A. Shareholders are unlikely to receive fair returns on their investments B. Managers may be tempted to enrich themselves at shareholder expense C. The board of directors is not doing its job D. All of the above 1-35 Chapter 01 Globalization and the Multinational Firm 30. (p. 14) Privatization refers to process of: A. Having government operate businesses for the betterment of the public sector B. Government allowing the operation of privately owned business C. Prohibiting government operated enterprises D. A country divesting itself of the ownership and operation of a business venture by turning it over to the free market system 31. (p. 10) Deregulation of world financial markets A. Provided a natural environment for financial innovations, like currency futures and options. B. Has promoted competition among market participants. C. Has encouraged developing countries such as Chile, Mexico, and Korea to liberalize by allowing foreigners to directly invest in their financial markets. D. All of the above 32. (p. 11) The emergence of global financial markets is due in no small part to A. Advances in computer and telecommunications technology B. Enforcement of the Soviet system of state ownership of resources of production. C. Government regulation and protection of infant industries. D. None of the above. 33. (p. 11) The common monetary policy for the euro zone is now formulated by A. The Bundesbank in Germany B. The Federal Reserve Bank C. The World Bank D. The European Central Bank 34. (p. 11) Since the end of World War I, the dominant global currency has been the A. British pound B. Japanese yen C. Euro D. U.S. dollar 1-36 Chapter 01 Globalization and the Multinational Firm 35. (p. 11) Since the end of World War I, the U.S. dollar has played the role of the dominant global currency, displacing the A. German mark B. French Franc C. Japanese Yen D. British pound. 36. (p. 11) The ascendance of the dollar the dominant global currency reflects several key factors such as A. The size of the U.S. population. B. The mature and open capital markets of the U.S. economy. C. Exchange rate stability. D. All of the above. The U.S. has only about 4% of the world's population, and exchange rates aren't stable (although our prices historically have been). 37. (p. 11) The euro A. is the common currency of Europe B. is divisible into 100 cents, just like the U.S. dollar C. may eventually have a transaction domain larger than the U.S. dollar D. All of the above. 38. (p. 11) Since its inception the euro has brought about revolutionary changes in European finance. For example A. By redenominating corporate bonds and stocks from 12 different currencies into one common currency, the euro has precipitated the emergence of continent wide capital markets in Europe that are comparable to U.S. markets in depth and liquidity. B. Swiss bank accounts are all denominated in euro. C. The European banking sector has become much more important as a source of financing for European firms. D. There have actually not been any revolutionary changes. 1-37 Chapter 01 Globalization and the Multinational Firm 39. (p. 13) In David Ricardo's theory of comparative advantage, A. International trade is a zero-sum game in which one trading partner's gain comes at the expense of another's loss. B. Liberalization of international trade will enhance the welfare of the world's citizens. C. Is a short-run argument, not a long-run argument. D. Has been superseded by the now-orthodox view of mercantilism. 40. (p. 14) Under the theory of comparative advantage, liberalization of international trade will A. enhance the welfare of the world's citizens B. create unemployment and displacement of workers permanently C. result in higher prices in the long run as monopolist are able to charge higher prices after eliminating their competitors D. all of the above 41. (p. 15) Privatization is often seen as a cure for bureaucratic inefficiency and waste; some economists estimate that privatization improves efficiency and reduces operating costs by as much as A. 5 percent B. 10 percent C. 15 percent D. 20 percent. 42. (p. 14) The World Trade Organization, WTO, A. Has the power to enforce the rules of international trade. B. Covers agriculture and physical goods, but not services or intellectual property rights. C. Recently expelled China for human rights violations. D. Ruled that NAFTA is to be the model for world trade integration. 43. (p. 15-16) Privatization A. Has spurred a tremendous increase in cross-border investment. B. Has allowed many governments to have the funds to nationalize important industries. C. Has guaranteed that new ownership will be limited to the local citizens. D. Has generally decreased the efficiency of the enterprise. 1-38 Chapter 01 Globalization and the Multinational Firm 44. (p. 11-12) The theory of comparative advantage: A. Claims that economic well-being is enhanced if each country's citizens produce only a single product B. Claims that economic well-being is enhanced when all countries compare commodity prices after adjusting for exchange rate differences in order to standardize the prices charged all countries C. Claims that economic well-being is enhanced if each country's citizens produce that which they have a comparative advantage in producing relative to the citizens of other countries, and then trade production D. Claims that no country has an absolute advantage over another country in the production of any good or service. 45. (p. 15) A multinational firm can be defined as A. A firm that invests short-term cash inflows in more than one currency B. A firm that has sales affiliates in several countries C. A firm that is incorporated in more than one country D. A firm that incorporated in one country that has production and sales operations in several other countries. 46. (p. 17) A MNC may gain from its global presence by A. Spreading R&D expenditures and advertising costs over their global sales B. Pooling global purchasing power over suppliers C. Utilizing their technological and managerial know-how globally with minimum additional costs D. All of the above are potential gains. 47. (p. 17) MNCs can use their global presence to A. Take advantage of underpriced labor services available in certain developing countries B. Gain access to special R&D capabilities residing in advanced foreign counties. C. Boost profit margins and create shareholder value. D. All of the above. 1-39 Chapter 01 Globalization and the Multinational Firm 48. (p. 17) Foreign-owned manufacturing companies in the world's most highly developed countries: A. Generally are more productive and pay their workers more than do comparable locally-owned businesses. B. Generally are less productive and therefore pay their workers less than do comparable locallyowned businesses. C. Tend to specialize in different articles of manufacture than they produce in their home countries. D. Usually do not build their own production facilities but simply buy existing domestic manufacturing firms. see International Finance in Practice p. 17. 49. A purely domestic firm sources its products, sells its products, and raises its funds domestically A. Can face stiff competition from a multinational corporation that can source its products in one country, sell them in several countries, and raise its funds in a third country. B. Can be more competitive than a MNC on its home turf due to superior knowledge of the local market C. Can still face exchange rate risk, just like a MNC D. All of the above are true. 50. MNC stands for A. Multinational Corporation B. Multi Nationalized Corporation C. Military National Cooperation 51. (p. 51) Which is growing at a faster rate, foreign direct investment by MNCs or international trade? A. FDI by MNCs B. International trade C. Since they are linked, they grow at the same rate D. None of the above 1-40 Chapter 01 Globalization and the Multinational Firm 52. (p. 17) A true MNC, with operations in dozens of different countries A. Must effectively manage foreign exchange risk B. Can ignore foreign exchange risk since it is diversified C. Will pay taxes in only its home county D. None of the above. 53. (p. 17) A MNC can A. Be a factor that increases the opportunities of the citizens of less developed countries B. Be a factor that increases the opportunity set of domestic investors C. Increase economic efficiency D. All of the above. 54. (p. 19) Today for a MNC to produce merchandise in one country on capital equipment financed by funds raised in a number of different currencies through issuing securities to investors in many countries and then selling the finished product to customers in yet other countries. A. is not uncommon B. is extremely common C. is uncommon D. is the norm 55. A corporation that can source its products in one country, sell them in another country, and raise the funds in a third country A. Is a multinational corporation. B. Is a domestic firm if all of the shareholders are from the same country C. Enjoys a built-in hedge against exchange rate risk D. Enjoys a built-in hedge against political risk 56. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Compute the opportunity cost of producing one additional unit of food instead of textiles. A. 1 yard of textiles per 1.67 pounds of food B. 1 pound of food per 1.67 yards of textiles C. 1 yard of textiles per .6 pounds of food D. 1 pound of food per .6 yards of textiles 6/10 = .6 pounds of food 1-41 Chapter 01 Globalization and the Multinational Firm 57. The gains from trade A. Are likely realized in the long run when workers and firms have had the time to adjust to the new competitive environment B. Are immediately realized in the short run, when governments drop protectionist policies. C. Are smaller than the costs of adjustment D. None of the above. 58. (p. 24) Restrictions or impediments to free trade include such things as A. import quotas B. import tariffs C. costly transportation D. all of the above 59. Suppose that country A is twice as good at producing widgets as country B. If the currency of B is twice as valuable as the currency of A, then A. This will cancel out the comparative advantage B. Trade will still be an improved outcome for both A and B C. While there is not enough information to make a definitive determination, the currency mismatch could conceivably cancel out the comparative advantage, depending upon how much it costs to produce the widget in country B. D. None of the above 60. Comparative advantage A. Is also known as relative efficiency B. Can lead to trade even in the face of absolute efficiency C. Exists when one party can produce a good or service at a lower opportunity cost than another party D. All of the above 1-42 Chapter 01 Globalization and the Multinational Firm 61. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles or 5 pounds of food per unit of input. A. Country A is relatively more efficient than Country B in the production of food B. Country B is relatively more efficient than Country A in the production of textiles C. Country A has an absolute advantage over Country B in the production of food and textiles D. Country B has an absolute advantage over Country A in the production of food and textiles Country A can produce more of everything than Country B. Thus, Country A has an absolute advantage over Country B in the production of textiles. 62. (p. 22) Underlying the theory of comparative advantage are assumptions regarding A. Free trade between nations B. That the factors of production (land, labor, capital, and entrepreneurial ability) are relatively immobile. C. That the factors of production (land, labor, capital, and entrepreneurial ability) are relatively mobile D. a) and b) 1-43 Chapter 01 Globalization and the Multinational Firm 63. (p. 22) If one country is twice the size of another country and is better at making almost everything than the benighted citizens of the smaller county, A. The bigger county enjoys an absolute advantage B. The bigger county enjoys an relative advantage C. The bigger county enjoys an comparative advantage D. There is not enough information to make a determination 64. Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles or 5 pounds of food per unit of input. A. Country A is relatively more efficient than Country B in the production of food B. Country B is relatively more efficient than Country A in the production of textiles C. Country A has an absolute advantage over Country B in the production of food and textiles D. Answers b and c are both correct Country A can produce more of everything than Country B. Thus, Country A has an absolute advantage over Country B in the production of textiles. The slopes of the lines are different: in B to give up 1 unit of food, you get 1.6 unit of textiles while in A to give up 1 unit of food yields 1.666 more units of textiles. That makes B have a comparative advantage in the production of textiles. 1-44 Chapter 01 Globalization and the Multinational Firm 65. (p. 24-25) Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles or 5 pounds of food per unit of input. A. Country A is relatively more efficient than Country B in the production of textiles B. Country B is relatively more efficient than Country A in the production of food C. Country A has an absolute advantage over Country B in the production of food and textiles D. All of the above Country A has an opportunity cost of 1 yard of textiles per .6 (= 6/10) pounds of food; Country B has an opportunity cost of 1 yard of textiles for .63 (= 5/8) pounds of food. Country A has an opportunity cost of 1 pound of food per 1.67 (= 10/6) yards of textiles; Country B has an opportunity cost of 1 pound of food for 1.60 (= 8/5) yards of textiles. Thus, Country A has an absolute advantage and a relative efficiency over Country B in the production of textiles. Country B has a relative efficiency over Country A in the production of food. Country B does not have an absolute advantage over Country A in the production of food or textiles 1-45 Chapter 01 Globalization and the Multinational Firm 66. Consider the no-trade input/output situation presented in the following table and graph for countries A and B. Assuming that free trade is legal; develop a scenario that will benefit the citizens of both countries. A. Country B should make all the textiles and trade with Country A for food B. Country A should make nothing but textiles and trade with Country B for food. C. Country B should make all the textiles and Country A should make all the food D. Country B should make nothing but textiles and trade with Country A for food. 1-46 Chapter 01 Globalization and the Multinational Firm There's a subtle difference between a) and b) With answer a) there are only 500,000,000 yards of textiles produced, which is less than the 600,000,000 units currently consumed. 1-47 Chapter 01 Globalization and the Multinational Firm 67. Countries A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two units of food. Their production possibilities curves are shown. Under the theory of comparative advantage A. The citizens of country A should make food and trade with the citizens of country B for textiles B. The citizens of country A should make textiles and trade with the citizens of country B for food C. There are no gains from trade in this example D. A is twice as good as B at making food and B is twice as good as A at making textiles 1-48 Chapter 01 Globalization and the Multinational Firm consider the shape of the combined production possibilities curve with and without trade: The citizens of country A should make textiles and trade with the citizens of country B for food; the citizens will be able to go from the point shown on the combined no trade line to somewhere better. 1-49 Chapter 01 Globalization and the Multinational Firm 68. Counties A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two units of food. Their production possibilities curves are shown. Under the theory of comparative advantage, if free trade is allowed, the market clearing price (or exchange rate if you will) between food and textiles will be A. One unit of food for one unit of textiles B. Somewhere between One unit of food for two units of textiles and two units of food for one unit of textiles C. One unit of food for two units of textiles D. Two units of food for one unit of textiles 1-50 Chapter 01 Globalization and the Multinational Firm consider the shape of the combined production possibilities curve with and without trade: The citizens of country A should make textiles and trade with the citizens of country B for food; the citizens will be able to go from the point shown on the combined no trade line to somewhere better. However, all that we know of the price is that it must make both parties better off, hence b) 1-51 Chapter 01 Globalization and the Multinational Firm 69. Countries A and B currently consume 400 units of food and 400 units of textiles each and currently do not trade with one another. The citizens of country A have to give up one unit of food to gain two units of textiles, while the citizens of country B have to give up one unit of textiles to gain two units of food. Their production possibilities curves are shown. Suppose that trade is allowed and that the international exchange rate between food and textiles is one-for-one. The increased consumption following trade will be: A. An increase of 400 units of food and 400 units of textiles B. An increase of 1,200 units of food and 1,200 units of textiles C. An increase of 800 units of food and 800 units of textiles D. There are no gains from trade in this example 1-52 Chapter 01 Globalization and the Multinational Firm consider the shape of the combined production possibilities curve with and without trade: The citizens of country A should make textiles and trade with the citizens of country B for food; the citizens will be able to go from the point shown on the combined no trade line to the point where the combined with trade curve kinks. At a world price of 1 to 1 producers in both A and B will specialize completely and the out put will be 1,200 units of both food and textiles. 70. (p. 19) In modern times, it is not a country per se but rather a controller of capital and knowhow that gives the country in which it is domiciled a comparative advantage over another country. These controllers of capital and technology are A. The state B. The multinational corporations (MNCs) C. Portfolio managers of international mutual funds D. None of the above 71. (p. 13) International trade is A. a "zero-sum" game in which one country benefits at the expense of another country B. an "increasing-sum" game at which all players become winners C. none of the above 1-53 Chapter 01 Globalization and the Multinational Firm 72. The doctrine of comparative advantage was first put forth by A. Adam Smith B. Adam Sandler C. David Ricardo D. Ricky Ricardo E. None of the above 73. The comparative advantage argument in free trade A. Ignores the cost of readjustment B. Is a short-run argument C. Only works for two goods at a time D. None of the above 74. If you can make a good at a low opportunity cost A. You would be well served to produce that good and trade for other goods B. You should make something else that has a higher value C. You should make something else that has a higher opportunity cost D. None of the above 75. A country like North Korea A. Probably rejects the notion of increased opportunity presented by free trade B. Engages in free trade C. Lies on a production possibilities curve superior to South Korea, since North Korea protects its domestic producers D. None of the above The table below shows the bushels of wheat and the bottles of beer that North and South Dakota can produce per day of labor under two different hypothetical situations (Cases I and II). 1-54 Chapter 01 Globalization and the Multinational Firm 76. Which state has an absolute advantage in producing wheat in Case I? A. South Dakota B. North Dakota C. Neither state South Dakota can produce more wheat. 77. Which state has an absolute advantage in producing beer in Case I? A. South Dakota B. North Dakota C. Neither state North Dakota can brew more beer. 78. Which state has an absolute advantage in producing beer in Case II? A. South Dakota B. North Dakota C. Neither state South Dakota can produce more beer in case II 79. Which state has a comparative advantage in producing wine in Case II? A. South Dakota B. North Dakota C. Neither state South Dakota can produce more wheat 1-55 Chapter 01 Globalization and the Multinational Firm 80. Which state has a comparative advantage in wheat production in Case I? A. South Dakota B. North Dakota C. Neither state 1 bottle of beer gets you 4 bushels of wheat in South Dakota but 1 bottle of beer gets only bushel of wheat in North Dakota. If you had a bottle of beer and wanted a bushel of wheat, where would you trade? 81. Which state has a comparative advantage in wheat production in Case II? A. South Dakota B. North Dakota C. Neither state 4 bottles of beer gets you 3 bushels of wheat in South Dakota but 4 bottles of beer gets only 2 bushels of wheat in North Dakota. If you had a bottle of beer and wanted a bushel of wheat, where would you trade? 82. What is the relative price of wheat in North Dakota prior to trade in Case II? A. 2 bushels of wheat = bottle of beer B. bushel of wheat = 2 bottles of beer C. 1 bushel of wheat = bottle of beer D. 1 bushel of wheat = 2 bottles of beer 83. For case II, in what range must the "international" price of wheat fall? i.e. if North and South Dakota trade only with each other, what is the range of prices possible? A. Between 1 bushel of wheat = 4/3 bottles of beer and 1 bushel of wheat = 2 bottles of beer B. Between 1 bushel of wheat = 3/4 bottles of beer and 1 bushel of wheat = 2 bottles of beer C. Between 1 bushel of wheat = 3/4 bottles of beer and 1 bushel of wheat = bottles of beer D. None of the above 1-56 Chapter 01 Globalization and the Multinational Firm 84. For case II, let the international price be 1 bottle = 1 bushel. Derive South Dakota's "trading possibilities curve." A. Choice a B. Choice b C. Choice c D. Choice d South Dakota will specialize in making beer and will be able to trade for wheat at the 1-1 price. They will be better off with trade. 85. For case II, let the international price be 1 bottle = 1 bushel. Derive North Dakota's "trading possibilities curve." A. Choice a B. Choice b C. Choice c D. Choice d North Dakota will also specialize in making beer and will be able to trade for wheat at the 1-1 price. They will be better off with trade. Note: these last two questions make a good pair, as students with a poor understanding will be tempted to make one state produce beer and another produce wheat just for the sake of symmetry. 1-57 Chapter 01 Globalization and the Multinational Firm The first two columns give the maximum daily amounts of beer and whiskey that Southern Ireland and Northern Ireland can produce when they completely specialize in one or other product. The last two columns give each country's consumption without trade. 86. What is the price of beer without trade in Southern Ireland? A. 2 bottles of whiskey = 3 kegs of beer B. 5 bottles of whiskey = 12 kegs of beer C. 1 bottle of whiskey = 1 kegs of beer 87. What is the price of beer without trade in Northern Ireland? A. 2 bottles of whiskey = 3 kegs of beer B. 5 bottles of whiskey = 12 kegs of beer C. 3 bottles of whiskey = 1 keg of beer 88. In which product does Northern Ireland have a comparative advantage? A. Beer B. Whiskey C. Neither 1 keg of beer gets you 3 bottles of whiskey in Northern Ireland but 1 keg of beer gets you 2/3 bottles of whiskey in Southern Ireland. If you had a keg of beer and wanted a bottle of whiskey, where would you trade? 1-58 Chapter 01 Globalization and the Multinational Firm 89. Suppose that trade occurs. Each country completely specializes and 500 kegs of beer are traded for 500 bottles of whiskey. What is the international price of beer? A. 1 bottle of whiskey = 1 keg of beer B. 3 bottles of whiskey = 1 keg of beer C. 2/3 bottle of whiskey = 1 keg of beer D. 1 bottle of whiskey = 3 kegs of beer clearly they will trade at the international price: if it was higher or lower they would trade with some other country not each other. 90. If the international price of beer is one keg of beer = 1 bottle of whiskey, how much whiskey will Northern Ireland consume? Each country completely specializes and 500 kegs of beer are traded for 500 bottles of whiskey. A. 1,000 bottles B. 1,200 bottles C. 500 bottles D. 600 bottles Northern Ireland will specialize in whiskey making 1,500 bottles. They trade 500 bottles of whiskey away and receive 500 kegs of beer. 91. Is Northern Ireland better off when it trades with Southern Ireland? A. Yes B. No 92. What is the increased amount of goods available in Northern Ireland after trade? A. 400 more bottles of whiskey and 200 more kegs of beer B. 1,000 more bottles of whiskey and 500 more kegs of beer C. 200 more bottles of whiskey and 400 more kegs of beer 1-59 Chapter 01 Globalization and the Multinational Firm 93. Suppose that Northern Ireland and Southern Ireland each have 1,000 hours of labor per day. Southern workers are paid 1 per day and Northern workers are paid 1 per day. What is the exchange rate associated with an international price of one keg of beer = 1 bottle of whiskey? A. 1.25 = 1 B. 0.80 = 1 C. 1 = 1 D. None of the above In Northern Ireland, 1,000 workers each are paid 1 per day to produce 1,500 bottles of whiskey or 1,000 is needed to produce 1,500 bottles at an average cost of 0.67/bottle. In Southern Ireland, 1,000 workers are each paid 1 to produce 1200 kegs of beer for an average cost of 1,000/1,200 kegs = 0.83/keg. To finance their purchases the Northern Irish will demand euro the Southern Irish will demand pounds (500 kegs of beer traded for 500 bottles of whiskey). 0.67/bottle 500 bottles of whiskey = 0.83/keg 500 keys of beer or 0.67 = 0.83 1.25 = 1. 94. Now suppose that Southern workers receive a raise to 2 per day. Will trade be possible at the exchange rate you found in the last question? A. Yes B. No It will now cost 1,200 2 = 2,400 to produce 1,200 kegs of beer in the South. This is a price of 2 per keg. If the Irish in the North want to buy 500 kegs it will cost them 1,000. At the exchange rate of 1.25 = 1 this translates as 800. In Northern Ireland the cost of producing 500 kegs of beer is 1,000 95. Now suppose that Southern workers are paid 1 per day but the Northern workers receive a raise to 2 per day. Will trade be possible at the exchange rate you found in the question before the last question? A. Yes B. No It will now cost 1,500 2 = 3,000 to produce 1,500 bottles of whiskey in the North. This is a price of 2 per bottle. If the Irish in the South want to buy 500 bottles it will cost them 1,000. At the exchange rate of 1.25 = 1 this translates as 1,250. In Southern Ireland the cost of producing 800 bottles of whiskey is only 1,000. 1-60 Chapter 01 Globalization and the Multinational Firm 96. Consider a dentist and a 14-year old boy. The dentist can make $100 per hour drilling teeth and the 14-year old boy can make $2 per hour picking up used aluminum cans. The dentist is a manly man and can mow his half-acre lot in one hour. The 14-year old boy can mow the lawn in two hours. If the dentist hires the boy to mow his lawn at any price less than $100, but more than $4 A. Both he and the boy are better off B. The dentist would be exploiting the boy C. The boy would be exploiting the dentist D. All of the above It really comes down to a philosophical question regarding exploitation. Consider the no-trade input/output situation presented in the following table and graph for South and North Carolina. Assume that free trade is legal. 97. Which state is better at making guns? A. South Carolina B. North Carolina C. neither 1-61 Chapter 01 Globalization and the Multinational Firm 98. Suppose that the citizens of North and South Carolina are currently consuming as much butter as they care to. What is the maximum increase in the number of guns that could occur following trade? A. 83.33 guns B. 533.33 guns C. No increase South Carolina makes nothing but guns. North Carolina will make all the butter consumed: 650 units. They will have the productive capacity to make an additional 33 1/3 guns. Total gun output 533.33 guns, Increase in guns = 83.33 99. What is the relative price of a gun in terms of butter in South Carolina? A. 1 gun costs 3 butters B. 3 guns cost 1 butter C. 1 gun costs 2 butters D. 2 gun costs 1 butter 100. What is the relative price of a gun in terms of butter in North Carolina? A. 1 gun costs 3 butters B. 3 guns cost 1 butter C. 1 gun costs 2 butters D. 2 gun costs 1 butter 1-62

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McMaster University - ENG - 1M03
2-1CHAPTER 2ATOMIC STRUCTURE AND INTERATOMIC BONDINGPROBLEM SOLUTIONSFundamental Concepts Electrons in Atoms2.1 Atomic mass is the mass of an individual atom, whereas atomic weight is the average (weighted) of the atomic masses of an atom's naturally
McMaster University - ENG - 1M03
2-22.2 The average atomic weight of silicon (ASi ) is computed by adding fraction-of-occurrence/atomic weight products for the three isotopes. ThusASi = f 28 A28 + f 29 A29 + f 30 A30 Si Si Si Si Si Si= (0.9223)(27.9769) + (0.0468)(28.9765) + (0.0309)(
McMaster University - ENG - 1M03
2-32.3 (a) In order to determine the number of grams in one amu of material, appropriate manipulation of the amu/atom, g/mol, and atom/mol relationships is all that is necessary, as 1 g / mol 1 mol # g/amu = 23 atoms 1 amu /atom 6.023 x 10 = 1.66 x 10-
McMaster University - ENG - 1M03
2-42.4 (a) Two important quantum-mechanical concepts associated with the Bohr model of the atom are (1) that electrons are particles moving in discrete orbitals, and (2) electron energy is quantized into shells. (b) Two important refinements resulting fr
McMaster University - ENG - 1M03
2-52.5 The n quantum number designates the electron shell. The l quantum number designates the electron subshell. The ml quantum number designates the number of electron states in each electron subshell. The ms quantum number designates the spin moment o
McMaster University - ENG - 1M03
2-62.6 For the L state, n = 2, and eight electron states are possible. Possible l values are 0 and 1, while possible ml values are 0 and 1; and possible ms values are . Therefore, for the s states, the quantum numbers are1 1 1 1 1 1 200 ( ) and 200 (- )
McMaster University - ENG - 1M03
2-72.7 The electron configurations for the ions are determined using Table 2.2 (and Figure 2.6). P5+: 1s22s22p6 P3-: 1s22s22p63s23p6 Sn4+: 1s22s22p63s23p63d104s24p64d10 Se2-: 1s22s22p63s23p63d104s24p6 I-: 1s22s22p63s23p63d104s24p64d105s25p6 Ni2+: 1s22s22
McMaster University - ENG - 1M03
2-82.8 The K+ ion is just a potassium atom that has lost one electron; therefore, it has an electron configuration the same as argon (Figure 2.6). The I- ion is a iodine atom that has acquired one extra electron; therefore, it has an electron configurati
McMaster University - ENG - 1M03
2-9The Periodic Table2.9 Each of the elements in Group IIA has two s electrons.Excerpts from this work may be reproduced by instructors for distribution on a not-for-profit basis for testing or instructional purposes only to students enrolled in course
McMaster University - ENG - 1M03
2-102.10 From the periodic table (Figure 2.6) the element having atomic number 112 would belong to group IIB. According to Figure 2.6, Ds, having an atomic number of 110 lies below Pt in the periodic table and in the right-most column of group VIII. Movi
McMaster University - ENG - 1M03
2-112.11 (a) The 1s22s22p63s23p5 electron configuration is that of a halogen because it is one electron deficient from having a filled p subshell. (b) The 1s22s22p63s23p63d74s2 electron configuration is that of a transition metal because of anincomplete
McMaster University - ENG - 1M03
2-122.12 (a) The 4f subshell is being filled for the rare earth series of elements. (b) The 5f subshell is being filled for the actinide series of elements.Excerpts from this work may be reproduced by instructors for distribution on a not-for-profit bas
McMaster University - ENG - 1M03
2-13Bonding Forces and Energies2.13 The attractive force between two ions FA is just the derivative with respect to the interatomic separation of the attractive energy expression, Equation 2.8, which is just A d- A r = = dr r2FA =dE A drThe constant
McMaster University - ENG - 1M03
2-142.14 (a) Differentiation of Equation 2.11 yieldsB A d d- r rn = + dr drdE N dr=nB A - = 0 r (1 + 1) r ( n + 1)(b) Now, solving for r (= r0)A2 r0=nB r0( n + 1)or A 1/(1 - n) r0 = nB (c) Substitution for r0 into Equation 2.11 and solving fo
McMaster University - ENG - 1M03
2-152.15 (a) Curves of EA, ER, and EN are shown on the plot below.(b) From this plot r0 = 0.24 nm E0 = 5.3 eV (c) From Equation 2.11 for EN A = 1.436 B = 7.32 x 10-6 n=8 Thus, A 1/(1 - n) r0 = nB 1/(1 - 8) 1.436 = 0.236 nm (8)(7.32 10-6 ) andExcerp
McMaster University - ENG - 1M03
2-172.16 This problem gives us, for a hypothetical X+-Y- ion pair, values for r0 (0.38 nm), E0 ( 5.37 eV), and n (8), and asks that we determine explicit expressions for attractive and repulsive energies of Equations 2.8 and 2.9. In essence, it is necess
McMaster University - ENG - 1M03
2-192.17 (a) Differentiating Equation 2.12 with respect to r yields r C dD exp d dE r = dr dr drC r2 Der / =At r = r0, dE/dr = 0, and(r0 /)C2 r0=De(2.12b)Solving for C and substitution into Equation 2.12 yields an expression for E0 as (r0 /)
McMaster University - ENG - 1M03
2-20Primary Interatomic Bonds2.18 (a) The main differences between the various forms of primary bonding are: Ionic-there is electrostatic attraction between oppositely charged ions. Covalent-there is electron sharing between two adjacent atoms such that
McMaster University - ENG - 1M03
2-212.19 The percent ionic character is a function of the electron negativities of the ions XA and XB according to Equation 2.10. The electronegativities of the elements are found in Figure 2.7. For MgO, XMg = 1.2 and XO = 3.5, and therefore,2 % IC = 1
McMaster University - ENG - 1M03
2-222.20 Below is plotted the bonding energy versus melting temperature for these four metals. From this plot, the bonding energy for molybdenum (melting temperature of 2617C) should be approximately 7.0 eV. The experimental value is 6.8 eV.Excerpts fro
McMaster University - ENG - 1M03
2-1CHAPTER 2ATOMIC STRUCTURE AND INTERATOMIC BONDINGPROBLEM SOLUTIONSFundamental Concepts Electrons in Atoms2.1 Atomic mass is the mass of an individual atom, whereas atomic weight is the average (weighted) of the atomic masses of an atom's naturally
McMaster University - ENG - 1M03
2-25Secondary Bonding or van der Waals Bonding2.23 The intermolecular bonding for HF is hydrogen, whereas for HCl, the intermolecular bonding is van der Waals. Since the hydrogen bond is stronger than van der Waals, HF will have a higher melting tempera
McMaster University - ENG - 1M03
3-1CHAPTER 3THE STRUCTURE OF CRYSTALLINE SOLIDS PROBLEM SOLUTIONSFundamental Concepts3.1 Atomic structure relates to the number of protons and neutrons in the nucleus of an atom, as well as the number and probability distributions of the constituent e
McMaster University - ENG - 1M03
3-2Unit Cells Metallic Crystal Structures3.2 For this problem, we are asked to calculate the volume of a unit cell of lead. Lead has an FCC crystal structure (Table 3.1). The FCC unit cell volume may be computed from Equation 3.4 asVC = 16R 3 2 = (16)
McMaster University - ENG - 1M03
3-33.3 This problem calls for a demonstration of the relationship a = cell shown below4R for BCC. Consider the BCC unit 3Using the triangle NOP(NP) 2 = a 2 + a 2 = 2a 2And then for triangle NPQ,(NQ) 2 = (QP) 2 + (NP) 2But NQ = 4R, R being the atomi
McMaster University - ENG - 1M03
3-43.4 We are asked to show that the ideal c/a ratio for HCP is 1.633. A sketch of one-third of an HCP unit cell is shown below.Consider the tetrahedron labeled as JKLM, which is reconstructed asThe atom at point M is midway between the top and bottom
McMaster University - ENG - 1M03
3-5Now, we can determine the JH length by consideration of triangle JKL, which is an equilateral triangle,cos 30 =a /2 = JH a 33 2andJH =Substituting this value for JH in the above expression yields a 2 c 2 a2 c2 a2 = + = + 3 2 3 4and, solving for
McMaster University - ENG - 1M03
McMaster University - ENG - 1M03
3-73.6 This problem calls for a demonstration that the APF for HCP is 0.74. Again, the APF is just the total sphere volume-unit cell volume ratio. For HCP, there are the equivalent of six spheres per unit cell, and thus 4 R 3 3 VS = 6 3 = 8 R Now, the
McMaster University - ENG - 1M03
3-8Density Computations3.7 This problem calls for a computation of the density of molybdenum. According to Equation 3.5nAMo VC N A=For BCC, n = 2 atoms/unit cell, and 4 R 3 VC = 3Thus,nAMo= 4 R 3 N 3 A=[(4) (0.1363(2 atoms/unit cell)(95.94 g/m
McMaster University - ENG - 1M03
3-93.8 We are asked to determine the radius of a palladium atom, given that Pd has an FCC crystal structure. For FCC, n = 4 atoms/unit cell, and VC = 16R 3 2 (Equation 3.4). Now,nAPd VC N A ==(16R 3 2 ) N AnAPdAnd solving for R from the above expre
McMaster University - ENG - 1M03
3-103.9 This problem asks for us to calculate the radius of a tantalum atom. For BCC, n = 2 atoms/unit cell, and 4 R 3 64 R 3 VC = = 3 33Since, from Equation 3.5= nATa VC N A=nATa 64 R 3 3 3 N A and solving for R the previous equation 3 3nA 1/3 Ta
McMaster University - ENG - 1M03
3-113.10 For the simple cubic crystal structure, the value of n in Equation 3.5 is unity since there is only a single atom associated with each unit cell. Furthermore, for the unit cell edge length, a = 2R (Figure 3.23). Therefore, employment of Equation
McMaster University - ENG - 1M03
3-123.11 (a) The volume of the Ti unit cell may be computed using Equation 3.5 asVC = nATiN ANow, for HCP, n = 6 atoms/unit cell, and for Ti, ATi = 47.9 g/mol. Thus,VC = (6 atoms/unit cell)(47.9 g/mol) (4.51 g/cm3)(6.023 x 1023 atoms/mol)= 1.058 x 1
McMaster University - ENG - 1M03
3-133.12 This problem asks that we calculate the theoretical densities of Al, Ni, Mg, and W. Since Al has an FCC crystal structure, n = 4, and VC = 16 R 3 2 (Equation 3.4). Also, R = 0.143 nm (1.43 x 10-8 cm) and AAl = 26.98 g/mol. Employment of Equation
McMaster University - ENG - 1M03
3-14=(6 atoms/unit cell)(24.31 g/mol)(1.38 x 10-22 cm3/unit cell)(6.023 x 1023 atoms/mol)= 1.75 g/cm3The value given in the table is 1.74 g/cm3. Tungsten has a BCC crystal structure for which n = 2 and a = g/mol and R = 0.137 nm. Therefore, employmen
McMaster University - ENG - 1M03
3-153.13 In order to determine whether Nb has an FCC or a BCC crystal structure, we need to compute its density for each of the crystal structures. For FCC, n = 4, and a = 2 R 2 (Equation 3.1). Also, from Figure 2.6, its atomic weight is 92.91 g/mol. Thu
McMaster University - ENG - 1M03
3-163.14 For each of these three alloys we need, by trial and error, to calculate the density using Equation 3.5, and compare it to the value cited in the problem. For SC, BCC, and FCC crystal structures, the respective values of 4R . n are 1, 2, and 4,
McMaster University - ENG - 1M03
3-17= 4R 3 NA 3nAC=(2 atoms/unit cell)(91.6 g/mol) 3 (4)(1.37 10-8 cm) /(unit cell) (6.023 1023 atoms/mol) 3 = 9.60 g/cm3 Therefore, its crystal structure is BCC.Excerpts from this work may be reproduced by instructors for distribution on a not-for
McMaster University - ENG - 1M03
3-183.15 In order to determine the APF for U, we need to compute both the unit cell volume (VC) which is just the product of the three unit cell parameters, as well as the total sphere volume (VS) which is just the product of the volume of a single spher
McMaster University - ENG - 1M03
3-193.16 (a) For indium, and from the definition of the APF4 n R3 3 a2cAPF =VS VC=we may solve for the number of atoms per unit cell, n, as(APF) a 2 c 4 R3 3n==(0.693)(4.59) 2 (4.95) (10-24 cm3) 4 (1.625 10-8 cm)3 3 = 4.0 atoms/unit cell(b) In
McMaster University - ENG - 1M03
3-203. 17 (a) We are asked to calculate the unit cell volume for Be. For HCP, from the solution to Problem 3.6VC = 6 R 2 c 3But, c = 1.568a, and a = 2R, or c = 3.14R, andVC = (6)(3.14) R 3 3 = (6) (3.14) ( 3) 0.1143 10-7 cm[]3= 4.87 1023 cm3/unit
McMaster University - ENG - 1M03
3-213.18 This problem calls for us to compute the atomic radius for Mg. In order to do this we must use Equation 3.5, as well as the expression which relates the atomic radius to the unit cell volume for HCP; from Problem 3.6 it was shown thatVC = 6 R 2
McMaster University - ENG - 1M03
3-223.19 This problem asks that we calculate the unit cell volume for Co which has an HCP crystal structure. In order to do this, it is necessary to use a result of Problem 3.6, that isVC = 6 R 2 c 3The problem states that c = 1.623a, and a = 2R. There
McMaster University - ENG - 1M03
3-23Crystal Systems3.20 (a) The unit cell shown in the problem statement belongs to the tetragonal crystal system since a = b = 0.35 nm, c = 0.45 nm, and = = = 90. (b) The crystal structure would be called body-centered tetragonal. (c) As with BCC, n =
McMaster University - ENG - 1M03
3-243.21 A unit cell for the face-centered orthorhombic crystal structure is presented below.Excerpts from this work may be reproduced by instructors for distribution on a not-for-profit basis for testing or instructional purposes only to students enrol
McMaster University - ENG - 1M03
3-25Point Coordinates3.22 This problem asks that we list the point coordinates for all of the atoms that are associated with the FCC unit cell. From Figure 3.1b, the atom located of the origin of the unit cell has the coordinates 000.11 22Coordinates
McMaster University - ENG - 1M03
3-263.23 Here we are asked list point coordinates for both sodium and chlorine ions for a unit cell of the sodium chloride crystal structure, which is shown in Figure 12.2. In Figure 12.2, the chlorine ions are situated at all corners and face-centered p
McMaster University - ENG - 1M03
3-273.24 This problem calls for us to list the point coordinates of both the zinc and sulfur atoms for a unit cell of the zinc blende structure, which is shown in Figure 12.4. First of all, the sulfur atoms occupy the face-centered positions in the unit
McMaster University - ENG - 1M03
3-283.25 A tetragonal unit in which are shown the 1 11 2and111 242point coordinates is presented below.Excerpts from this work may be reproduced by instructors for distribution on a not-for-profit basis for testing or instructional purposes only to
McMaster University - ENG - 1M03
3-293.26 First of all, open the Molecular Definition Utility; it may be found in either of Metallic Crystal Structures and Crystallography or Ceramic Crystal Structures modules. In the Step 1 window, it is necessary to define the atom type, a color for t
McMaster University - ENG - 1M03
3-30represent any bonds at all (in which case we click on the Go to Step 4 button). If it is decided to show bonds, probably the best thing to do is to represent unit cell edges as bonds. The window in Step 4 presents all the data that have been entered;
McMaster University - ENG - 1M03
3-31Crystallographic Directions3.27 This problem calls for us to draw a [ 2 1 1 ] direction within an orthorhombic unit cell (a b c, = = = 90). Such a unit cell with its origin positioned at point O is shown below. We first move along the +x-axis 2a uni
McMaster University - ENG - 1M03
3-323.28 This problem asks that a [ 1 01 ] direction be drawn within a monoclinic unit cell (a b c, and = = 90 ). One such unit cell with its origin at point O is sketched below. For this direction, we move from the origin along the minus x-axis a units
McMaster University - ENG - 1M03
3-333.29 We are asked for the indices of the two directions sketched in the figure. For direction 1, the projection on the x-axis is a, while projections on the y- and z-axes are -b/2 and -c, respectively. This is a [ 2 1 2 ] direction as indicated in th
McMaster University - ENG - 1M03
3-343.30 The directions asked for are indicated in the cubic unit cells shown below.Excerpts from this work may be reproduced by instructors for distribution on a not-for-profit basis for testing or instructional purposes only to students enrolled in co
McMaster University - ENG - 1M03
3-353.31 Direction A is a [ 1 10] direction, which determination is summarized as follows. We first of all position the origin of the coordinate system at the tail of the direction vector; then in terms of this new coordinate systemx y b zProjections P
McMaster University - ENG - 1M03
3-363.32 Direction A is a [ 33 1 ] direction, which determination is summarized as follows. We first of all position the origin of the coordinate system at the tail of the direction vector; then in terms of this new coordinate systemx y b zProjections
McMaster University - ENG - 1M03
3-373.33 For tetragonal crystals a = b c and = = = 90; therefore, projections along the x and y axes are equivalent, which are not equivalent to projections along the z axis. (a) Therefore, for the [011] direction, equivalent directions are the following
McMaster University - ENG - 1M03
3-383.34 We are asked to convert [110] and [ 00 1 ] directions into the four-index Miller-Bravais scheme for hexagonal unit cells. For [110]u ' = 1, v' = 1, w' = 0From Equations 3.6u=1 1 1 (2u v = [(2)(1) 1] = ) 3 3 3 1 1 1 (2v u = [(2)(1) 1] = ) 3 3
McMaster University - ENG - 1M03
3-393.35 This problem asks for the determination of indices for several directions in a hexagonal unit cell. For direction A, projections on the a1, a2, and z axes are a, a, and c, or, in terms of a and c the projections are 1, 1, and 1. This means that