How Can a Futures Contract Mitigate Exchange Rate Risk for Anexporting

question 37

Multiple Choice

How can a futures contract mitigate exchange rate risk for anexporting firm?

• A)Exporters can pin down the exact exchange rate they want to trade at and ensure a certain income stream.(True Answer
• )Correct
• B)Exporters can avoid international trade and enter into contracts for domestic items only.
• C)The contract does so by allowing exporters to avoid political risks associated with exchange rate volatility.
• D)The contract does so by allowing exporters to trade in alternate stable currencies.

Understand how warranty descriptions impact the enforceability of warranties.

Analyze legal scenarios involving warranty disputes and disclaimers in sales transactions.

Evaluate the legal effectiveness of warranty disclaimers in retail contracts.

Recognize the distinction between voluntary and reflexive behaviors in the context of learning theory.

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Definitions:

Logo

A symbol or design adopted by an organization to identify its products, uniforms, vehicles, etc.

Brand Name

The unique name given to a product or service from a specific source, used to distinguish it from others in the market.

Higher-Quality Materials

Substances or components that are superior in terms of durability, texture, and overall performance in the manufacturing of products.

Trading Up

A business strategy that involves convincing customers to purchase more expensive items, upgrades, or add-ons in an effort to increase profitability.