Which of the Following Is a Possible Strategy for Reducing

question 27

Multiple Choice

Which of the following is a possible strategy for reducing economic exposure?

• A) hedging with forward contracts
• B) purchasing foreign supplies
• C) financing with foreign funds
• D) All of these are correct.

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Definitions:

Law of Effect

A psychological principle stating that behaviors followed by satisfying consequences tend to be repeated, while those followed by unpleasant consequences are less likely to be repeated.

Cognitive Model

A theoretical approach that explains psychological phenomena by emphasizing mental processes, including perception, memory, and thought.

Counterconditioning

A behavior therapy technique used to replace an undesirable response to a stimulus with a more desirable one.

Shaping

A method in behavioral psychology used to gradually train a new behavior by reinforcing successive approximations to the desired behavior.