Suppose That Mickey's Clothing Moved Its Operations Out of Korea

question 127

Multiple Choice

Suppose that Mickey's Clothing moved its operations out of Korea and into China because of the lower wages in China. Now, the wages in Korea are such that it would be cheaper to manufacture
The clothes in Korea than it is in China. This is an example of:

• A) Transitory price fluctuations.
• B) Short-run exposure.
• C) Economic exposure.
• D) Transactions exposure.
• E) Forward exposure.

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Definitions:

Global Warming

Global warming is the long-term rise in Earth's average surface temperature due to human activities, especially the emission of greenhouse gases, leading to climate change impacts.

Dangers Information

Information regarding potential threats or risks that can affect individual or public safety, health, and well-being.

Profit

The financial gain achieved when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operation.

Global Warming

The long-term rise in Earth's average surface temperature, largely due to human activities such as burning fossil fuels.