All of the Following Are Management Tools Available for a U.S

question 52

Multiple Choice

All of the following are management tools available for a U.S. company to hedge its net investment in a foreign affiliate except for:

• A) Forward exchange contracts
• B) Foreign currency commitments
• C) Intercompany financing arrangements including intercompany transactions
• D) None of these.

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Definitions:

World Trade Organization

An international organization designed to supervise and liberalize world trade, by providing a forum for negotiating trade agreements and a dispute resolution process.

Agricultural Products

Goods derived from the cultivation of land and the raising of crops and livestock.

Dumping

The practice whereby a company exports a product at a price lower than the price it normally charges in its own home market, often considered as unfair competition.

Exports

Trade goods or services exported from one country to another for commercial exchange or sale.