The Extent to Which a Foreign Company Changes Dollar Prices

question 85

Multiple Choice

The extent to which a foreign company changes dollar prices of its products in the U.S.market as a result of exchange rate fluctuations is called:

• A)hedging.
• B)exchange rate pass-through.
• C)a target exchange rate.
• D)factoring.
• E)inflation-proofing.

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Definitions:

Liability

An obligation or debt owed by an individual or company, typically financial, that arises from past transactions or actions.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, which allows for the assets of the debtor to be measured and evaluated, and the liabilities to be discharged or restructured under the protection of bankruptcy court.

Loan Agreement

A contract between a borrower and a lender outlining the terms and conditions of a loan.

Bankruptcy Defense

Strategies or legal arguments used by a defendant in litigation to counter claims made in the context of a bankruptcy case.