With the Growth of Service Industries in the Last Decade

question 73

Multiple Choice

With the growth of service industries in the last decade, what might one expect regarding union membership?

• A) it would increase, as service industries are typically unionized
• B) it would decrease, as service industries are typically non-unionized
• C) it would increase, as the growth of service industries indicates overall economic growth
• D) it would not be impacted

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Definitions:

Discount

A reduction from the usual cost of something or the process of determining the present value of future cash flows.

Political Risk

In international business, the chance that the value of a firm’s investment in a foreign country will be reduced by political actions of either the foreign government or terrorists.

Exchange Rate Risk

The risk that international trade dealings will earn less than expected because of movement in exchange rates.

Economic Risk

The possibility of loss caused by macroeconomic or market conditions, such as changes in interest rates or recessions.