International Finance And Treasury - Study Mode

[#251] Below Product Cycle Theory, overseas demand can be primarily contented by
Correct Answer

(A) Exporting

Explanation

Solution: Below Product Cycle Theory, overseas demand can be primarily contented by exporting. The Product Life Cycle Theory is an economic theory that was developed by Raymond Vernon in response to the failure of the Heckscher-Ohlin model to explain the observed pattern of international trade.

[#252] Features of international business that a organization may be exposed to
Correct Answer

(D) All of answers are correct

Explanation

Solution: Features of international business that a organization may be exposed to Exchange rates, Foreign economic conditions and Political risk.

[#253] Example of a market deficiency is
Correct Answer

(D) All of answers are correct

Explanation

Solution: Example of a market deficiency is Restrictions on transfer of labour, Restrictions on transfer of funds and Restrictions on capital flows during currency crisis. Market efficiency refers to the degree to which market prices reflect all available, relevant information.

[#254] Joint venture is
Correct Answer

(B) Jointly owned by two or more firms

Explanation

Solution: Joint venture is jointly owned by two or more firms. A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.

[#255] Longer debt instrument issued by government and corporations is considered as
Correct Answer

(D) bonds

Explanation

Solution: Longer debt instrument issued by government and corporations is considered as bonds. A bond, also known as a fixed-income security, is a debt instrument created for the purpose of raising capital. They are essentially loan agreements between the bond issuer and an investor, in which the bond issuer is obligated to pay a specified amount of money at specified future dates.