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Sematech is a producer of computer chips. To gain an advantage over other computer chip makers, Sematech focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of Sematech's competitors have begun to reduce the company's competitive advantage. In response to this threat, Sematech has decided to add production capacity in an effort to lower costs.
-If Lucy Sullivan were a Sematech manager who oversaw the finance operations in the company's functional structure, Lucy would be considered a
Political Risk
Political risk involves the possibility that political decisions, events, or conditions will significantly affect the profitability of a business or the expected value of a given economic action.
Cross-Rate
Refers to the exchange rate between two currencies calculated through their common exchange rates with a third currency.
Euros
The official currency of 19 out of the 27 European Union countries, which together comprise the Eurozone.
British Pounds
The currency of the United Kingdom, symbolized by £ and known as sterling, used throughout the UK and its territories.
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