An Import-Export Business That Finds Itself in a "Short" Foreign-Currency

question 28

Multiple Choice

An import-export business that finds itself in a "short" foreign-currency position risks a financial loss if:

• A)it pays attention to exchange rate forecasts.
• B)foreign demand for its product rises (more than expected).
• C)the domestic currency depreciates (more than expected)..
• D)the foreign currency depreciates (more than expected)..

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Definitions:

Delayed Reinforcement

A consequence that follows an action or behavior with a significant time gap, which can impact the strength and formation of the associated behavior.

Punishment

A measure or consequence applied in response to undesired behavior, aiming to discourage such behavior in the future.

Delayed Reinforcement

A form of reinforcement in which a reward or outcome is given some time after the desired behavior is exhibited, potentially affecting the strength and speed of the learning process.

Discrepancy Reduction

The process of identifying and closing gaps between current states and desired states or goals.