Multinational Financial Management
Sample Mid term 2
1. When Interest Rate Parity (IRP) does not hold
(a) there is usually a high degree of ination in at least one country
(b) the nancial markets are in equilibrium
(c) there are opportunities
Strategic Management for the
Capstone Business Simulation and
Analysis and Assessment
Michael L. Pettus, Ph.D.
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced or
used in any form or by any
Maximizing the Power of a Strategy
Making choices that complement
a competitive approach and
maximize the power of strategy
Dynamics and the
Timing of Strategic
Multinational Financial Management
Sample Mid term 1
1. In conversation, Interbank FX trades use a shorthand abbreviation in expressing spot
currency quotations. Consider a $/ bid-ask quote of $1.9072-$1.9077. The big gure,
assumed to be know
BUS 428: Multinational Financial Management
All questions are multiple choice questions. There are 15 questions in total.
Using a No.2 pencil, choose the best (or most accurate) answer for each question.
Exam 2 Review
5 integral parts/tasks of the managerial process of crafting and executing
1) Forming/Developing a STRATEGIC VISION, MISSION & VALUES, of where the company needs to
head & what the future entails.
2) SETTING OBJECTIVES to convert t
The Strategically Relevant Components of a Companys External Environment
External environment factors: general economic conditions, legislations and regulations,
population demographics, societal values and lifestyles, and technology
Chapter 2: Leading the Process of Crafting and Executing Strategy
What does the strategy- making, strategy-executing process entail?
Process of crafting and executing a companys strategy consists of 5 interrelated and integrate phases:
Developing a strat
Chapter 1 notes
Trend away from distinct national economic units and toward one huge global market.
Globalization of Markets
Moving away from an economic system in which national markets are distinct entities, isolated by trade
Chapter 4 notes
describes a situation in which the cause and effect of a phenomenon are not easy to explain
unique strengths, embedded in a firm, that allow differentiation in its products and services , which creates
Chapter 7 notes
An improvement of an existing (invention) technological product, system, or method of doing something.
Industry life cycle
the four different stages-introduction growth, maturity, and decline-that occur in the evolution of an
Chapter 6 notes
shows the cause and effect links by which specific improvements create desired outcomes(shows
convergence of initiatives and resources into tangible outcomes)
Top down strategy
start with end destination and work backwards to
Chapter 2 notes
5 stage process of strategy making
1) Developing a strategic vision, mission, and values
2) Setting objectives
3) Crafting a strategy to achieve objectives
4) Executing the strategy
5) Monitoring developments, evaluating performance, & ini
Chapter 3 notes
Combination of top down intended and bottom up emergent strategy
Strategy-planning activity in which managers envision different what-if scenarios to anticipate plausible
Chapter 8 notes
All cost pertaining to organizing an economic exchange within a hierarchy, including recruiting and
retaining employees, paying salaries and benefits, and setting up a business.
Backward vertical integration
Exam 1 Review
A company's strategy is
its action plan for outperforming its competitors and achieving superior profitability
WHAT DO WE MEAN BY STRATEGY?
-What is our present situation?
Business environment and industry conditions
Firm's financial and com
Chapter 5 notes
A clear understanding of how the firm will generate profits and the strategic actions it must take to succeed
over the long term.
Customer Value Proposition
a cluster of benefits that an organization promises customers to sa
Chapter 4: Evaluation a Company's Resources and Competitive Position
Question 1: How well is the companys present strategy working?
Companys competitive approach- firms competitive scope within the industry
Whether the company has made moves recently to
Chapter 1- What is strategy and why is it important?
What do we mean by strategy?
A companys strategy is managements action plan for running the business and
conducting operations. The crafting of a strategy represents a managerial commitment
to pursue a
Memo to the Boss: Dow Corning Success in China
The main issue that I identified in the Dow Corning case is its struggle to stay
competitive in the booming Chinese market when the customers are continuing to
Exam 1 Chapters 1-5
Tuesday, March 7th
-Chapter 1 What is Strategy and Why Is It Important?
-Strategy a companys strategy is its action plan for outperforming its competitors and
achieving superior profitability