CHAPTER1GLOBALIZATIONANDTHEMULTINATIONAL.docxVIP

CHAPTER 1 GLOBALIZATION AND THE MULTINATIONAL FIRMANSWERS SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMSQUESTIONS1. Why is it important to study international financial management?Answer: We are now living in a world where all the major economic functions, i.e., consumption, production, and investment, are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance a few decades ago. At t