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When Exporting to a Soft Currency Country That Is Experiencing

question 38

Multiple Choice

When exporting to a soft currency country that is experiencing a weakening exchange rate, which of the following may be used to counter the transaction risk:


Definitions:

Goal-Sharing

A strategy where organizational goals are communicated to employees, ensuring that everyone understands their role in achieving these objectives, often linked to performance and incentives.

Gain-Sharing Plans

Incentive plans that reward employees for contributing to the company's efficiency and productivity improvements by sharing the resulting financial gains.

Profit-Sharing Plans

An incentive plan in which employees receive a portion of the company's profits, typically allocated based on the company's earnings over a set period.

Deferred Plan

A type of savings plan that allows employees to defer a portion of their income to a later date, typically used for retirement savings.

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