BA+178+Final+Exam+A+Spring+2009+Answer+Key

BA+178+Final+Exam+A+Spring+2009+Answer+Key - BA 178 Final...

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BA 178 Final Exam A Spring 2009 Key Part A 1. B 11. C 2. D 12. B 3. A 13. B 4. A 14. C 5. C 15. D 6. B 16. A 7. A 17. D 8. A 18. C 9. D 19. B 10. A 20. D Part B 1. Discuss the advantages and disadvantages of using a joint venture to enter foreign markets. There are several advantages to expanding into foreign markets via a joint venture. First, firms benefit from a local partner's knowledge of the host market. Second, a firm can share the costs and/or risks of operating in a foreign market. Third, in many countries, political considerations make joint ventures the only feasible entry mode. Disadvantages of joint ventures include conflicts between partners over strategies and operational issues. Some joint ventures have failed because one partner expropriates the technology of the other and competes with it.
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2. Discuss the features of the Eurocurrency market that make it an attractive place in which banks and MNE’s can source short-term financing and deposit funds. Why can firms borrow at a lower rate and deposit at a higher rate in the Eurocurrency market than in their domestic banking market? The features of the Eurocurrency market that make it attractive are the ready availability of credit to MNE’s in
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BA+178+Final+Exam+A+Spring+2009+Answer+Key - BA 178 Final...

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