Which of the Following Is Not Mentioned in the Text

question 16

Multiple Choice

Which of the following is not mentioned in the text as an additional risk resulting from international business?

• A) Exchange rate fluctuations
• B) Political risk
• C) Interest rate risk
• D) Exposure to foreign economies

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Definitions:

Increasing-Cost Industry

An industry in which the cost of production per unit increases as the total output of the industry increases, typically due to resource limitations or regulatory costs.

Consumer Demand

It refers to the desire of consumers to purchase goods and services, combined with their purchasing power, at a given price level and time.

Economic Adjustments

Modifications in market behavior or policies aimed at correcting imbalances and achieving economic stability or growth.

Economic Profits

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