While Not Always True for Small Firms, Large Multinationals Can

question 6

Multiple Choice

While not always true for small firms, large multinationals can deal with currency fluctuations by

• A) using forward contracts and foreign-currency options.
• B) locating all their plants in the country that offers the most advantageous exchange position.
• C) limiting sales in each country market to reduce exposure to any one currency.
• D) following the advice of the international sales manager.

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Definitions:

Amartya Sen

An Indian economist and philosopher, born in 1933, who is known for his work on welfare economics, social choice theory, and economic and social justice.

Famine

An extreme scarcity of food that leads to widespread hunger, malnutrition, and mortality in a population.

Inequality of Access

The uneven distribution of resources or opportunities to utilize services or goods among different populations or groups.

Total Fertility Rate

An estimate of the average number of children a woman will have over her reproductive lifetime.