The Following Describes a Long-Run Exposure of Exchange Rate Risk

question 295

True/False

The following describes a long-run exposure of exchange rate risk. You sell custom-designed
refrigerators in Canada. The refrigerators are manufactured in Mexico and it takes about 60 days
from the time you agree to a sale and accept payment in Canada until you take delivery of the
refrigerator and pay the Mexican firm. Your profit, therefore, is affected by changes in the
dollar/peso exchange rate between the order and delivery dates.

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Definitions:

Deviant Acts

Behaviors that violate the norms or expectations of a society or group.

Stigmatization

The process of discrediting individuals or groups by labeling them as less desirable or acceptable based on certain characteristics or behaviors.

African Americans

A term used to refer to citizens or residents of the United States who have total or partial ancestry from any of the Black racial groups of Africa.

Passing

The act of being perceived as a member of an identity group to which one does not belong, often to avoid stigma or discrimination.