FINANCE 6644: Global Financial StrategyKrishnan DandapaniJanuary 2015Final Exam Review Questions InstructionsAPlease be concise and precise in your answers.BPractice answers for closed book, class room setting.CSuggested length: minimum one page [1.5 spacing]; maximum two pages per question.DYou would answer 3 short essays and 2 Problems in two hours, 30 minutes in final exam.Questions1.Ethical Standardsa.Can a multinational firm adopt varying ethical standards [such as with regard to product safety (Pinto), employee benefits (Nike) and “kickbacks” to win business (HP)] in its global operations? Why or Why Not? Discuss in depth based on the goals of multinational corporations?
b.How do corporate governance and financial management differ for US basedcorporations and global multinational corporations?
2.GlobalPricing StrategyWith the emergence of the Internet as a dominant influence in global markets, many anticipated that the “Law of One Price” for all products would evolve. However that did not materialize.AWhat is “Law of One Price”?. When would that exist globally?